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3 Pharma Stocks Goldman Sachs Sees as Buys

Alexander Nicoll

Stagnant deal activity has investors "losing patience with the large cap pharma sector," according to a note from Goldman Sachs analyst Jami Rubin. Small- and mid-cap biotech companies are being valued at all time highs, and companies are staying away from new acquisitions for fear of paying high premiums for them, Rubin wrote. "Pharma management teams are facing investor pressure to put their capital to work, but balancing the risk of overpaying with the risk of doing nothing has led to low levels of deal activity thus far this year in our view," Rubin said.