Stock price when the opinion was issued
Whole healthcare complex was weak in 2023 and 2024, so the valuations were reasonable coming into 2025. Current market downtrend plus today's threat of tariffs on pharmaceuticals, and we don't know how this will all end. Drug pipeline is particularly exciting.
Can't tell you when it will turn the corner, but it's a good component of a diversified portfolio.
Bought is heavily this morning. Is a diversified, large-cap pharma with 45% of revenue is oncology. Keytruda goes off patent in 2028, so there's a race to offset that patent. Vaccines face issues--Gardisil isn't performing in China, and RFK Jr. is anti-vaccines. However, if they combine an enzyme with a drug like Keytruda, does that reset the patent? Does the patent continue? That is in debate.
Whole sector's been problematic, so this name could be just caught up in that downdraft. Fundamentally looks pretty good. Could be an opportunity. ROC last few years has been 7%, 9%, 9%, 10%, 11%. Nothing wrong with those numbers. Pretty clean balance sheet, decent working capital position.
Revenue growth last quarter down 1.6%. Before that, it usually ran around a positive 6-7%. Yield is 3.9%, chart looks great as they keep bumping it up once a year -- cashflow and payout ratio to support that look really healthy.