There is a possibility they could lose the Plavix patent suit, but PFE trial with Ranbaxy late last year gives more assurance their patent will be upheld. IMO all negatives, except Plavix loss, are priced into the stock; Plavix is probably partially priced in. Anything positive will cause the stock to move higher. Additionally, they are a good candidate for takeover by foreign drug manufacturer, such as Novartis, which may want to increase US presence and take advantage of the relatively cheap Dollar in buying assets. Meanwhile, the divi is rich, so an investor is being paid to wait for the stock to move higher. JMHO; do your own DD.
Could not agree more. Have been a BMY holder for 20+ yrs. Not happy with Mgmt,Plavix situation, Erbitux, etc,but that damn ole divy make a heck of a difference.With Gerstner leaving the BOD, Trials for Schiff and Lane to start next year (channel stuffin'episode), Louie Freeh(former FBA Dir)on the BOD, a consent decree in place and it looks like Dolan will be going or company will merge after Plavix lit. is settled, could make a nice runup. Granted will not likely hit 70's again, but in today's environment do not believe any Pharma will hit their mid 90's highs. What I envision is that Drug companies will seek to balance their pipeline portfolio's by returning to more balanced companies like JNJ is now and they were before Anal..ysts forced them into pure play Pharma's.Consumer, Med Device and even OTC Pharma can counteract the swings and mitigate Pharma pipeline issues, and the expectations of needing $Billion blockbusters to keep up with Wall Street growth projections.
Can you imagine what BMY's bottom line and top line growth would look today with Zimmer back in the fold? PFE with Howmedica(Orthopaedics), Valley Labs(electrosurgery), and Schneider (Cardio)?
While Miles does not seen like one to have the iniate intelligence to figure this out. ABT actually has become more diversified going into Medical Device with Spinal, and now Stents. So someone in that executive suite is thinking longer term and not worrying about this qtr's bonus. Had they retained Medical Monitoring and some of the consumer meds who knows how much better the stock price might be.
I will not be surprised if Pharma's again do not persue this 3 legged stool strategy (As Dick Glb of BMY was once quoted) in the future. Adding Biotech as maybe a 4th leg. Drug pricing pressure from govermental and third party payors will squeeze margins, while these other businesses can enable them to preserve their overall margins with offsetting enviromental offerings less sensitive to pricing issues.
my wholesalers have been saying for the last 2 weeks that generic plavix would be out anytime now. last i heard they are saying release around easter. generic made by anda, and the info is coming from their sales reps...use the info if you want, you know how trustworthy sales people are.