Big pharma is in the unfortunate position of being everyone's whipping boy. PFE and MRK have been beat around the head and shoulders enough that they have to show their contrition by reporting lousy numbers and laying a few folks off. Is it real or just a grand act? Either way, it's working, when's the last time you heard about Canadian drugs or congressional hearings?
I suppose you can remain nervous about PFE until the Lipitor cloud is gone but I'd have to say with a forward PE of 11 it's looking pretty cheap even if they loose Lipitor(unlikely).
I'm not sure that buying MYGN or any other bio would fit their current posture as NYSE martyr so I wouldn't hold my breath on that one.
>>I'm not sure that buying MYGN or any other bio would fit their current posture as NYSE martyr so I wouldn't hold my breath on that one.<<
That would be a disaster, as the monster potential value here would never be realized.
But it might make sense to gobble up a bio in the $10-50B range for PFE. MRK make the critical error that brings everyone down; ie., it's not the crime, but the attempted cover-up. (Nixon, Martha, now Rove?). Don't lie is the clear path, yet many fall down and can't be honest, somehow, which is pretty amazing, if not surprising.
Saw the NVS ceo sometime back commenting on this and he said it perfectly; paraphrasing "give the consumer all the information, good and bad, and let them decide with their doctor"
Good Rx for the industry- hard to feel sorry for MRK, if what I'm reading is true (massive cover-up, etc.)