Bristol Myers Squibb (BMY)

Owned this one for a number of years but ended up selling it, but keeping Mead Johnson Nutrition (MJN-N). Has done relatively well because some of its patent expiries are behind it. Has some interesting new drugs coming through. Reasonable yield.

Trades at a little bit of a premium to all the other pharmas. Has had some very good flow through on some of their products, but generally you suffer from a lack of growth. A well-run company and has some great drugs in the pipeline but you will have the volatility. He prefers a company like Johnson & Johnson (JNJ-N).

All Pharmas have drugs coming off patent and have trouble coming up with new drugs. This company has done a great job over the last couple of years with some successes, but they too are facing patent expiries. Pays a decent dividend but thinks they are going to have a tough fight for the next few years because pipeline is looking rather meagre and he doesn’t think there is much room for capital appreciation at all.

Very well run company. Has been on the rise because 1) market has been going up and 2) there has been a bit of a resurgence in some of the pharmaceutical stocks and the healthcare sector in general. Pays a nice dividend. Good long-term Buy and Hold blue chip.

Big Pharma is somewhat of a crap shoot, because you never know what the FDA is going to do. Also you never know if a drug will have a problem with injury or death. Also, there is patent litigation. However, big Pharma has been marked down tremendously from 10-15 years ago. They are going to grow because the US healthcare system is an enormous consumer of medications. He prefers companies that not only have drugs, but over-the-counter medications and medical devices.

Sold his holdings when they were losing their patent on their big drug. Prefers Mead Johnson Nutrition (MJN-N) or Abbot Labs (ABT-N). Also, likes Johnson & Johnson (JNJ-N). This one has done okay and has a decent yield.

There are headline risks with any of the pharma stocks and this is not an area that he gravitates to despite the fact the dividends are reasonably solid, have been paid for some time, and would likely be paid for some time. Issue for many of the big pharmas is the risk of the shift away to generic drugs and the lack of growth prospects that result from that dynamic.

It is under performing the sector. He suggests you reduce. What is probably going to happen, is if the market is healthy it should rally back. Probably will rally back to the trend line and then you should reduce or escape the stock.

Has been one of the better performers in pharmaceuticals relative to some of its peers. There is probably some concern with the upcoming US election and based on how that swings it could have a short-term impact on the trading price. Good dividend yield and a relatively low PE. Good long-term Buy & Hold. Dividend should be safe.

Had a couple of issues. One of them is their cardiovascular drug that hasn’t been approved by FDA. Also, have Plavix which is coming off patent which will hurt them on a year-over-year basis. In spite of this, he feels the stock is a Buy. Have some cancer drugs that are coming out. Acquired Amylin. Cost-cutting from this and the value from the products they got will flow through in the next couple of years. Trading at a reasonable multiple and has a reasonable dividend.

Has had a good run since ’09 and pays a good dividend but is expensive relative to its pier group. Lots of strength has been driven on the back of a heart drug that is approved in Europe and Canada. Could be a big blockbuster drug for them. If FDA approves stock will move higher but if not approved there will be significant downside so he lightened up, waiting for the announcement.

Looks like they had an earnings miss. Tends not to like company that have missed on earnings. A defensive stock with a low beta. Feels the dividend is pretty safe. Long-term is fine but in the short term you have to look at the earnings report and try to understand why they missed.