Stock price when the opinion was issued
You'd have thought they'd be hit more by tariffs, as Trump hammers on that many drug components are made overseas. So the market must be thinking tariffs will benefit pharma, to explain why this name is up on such a tremendously down day. Keeping people guessing and on a knife's edge isn't a bug of the current US administration, it's a feature.
His healthcare investments focus on health management like UNH and medical devices.
Once upon a time, he really liked it. Beaten up for inability to bring forward a weight-loss drug; that may or may not be a realistic critique of this stock long term. Analyst community is really...just...waiting. He sold last year, not ready to come back in. Solid company, an improved oncology pipeline might be a reason to get back in.
Organic growth in large cap pharmaceutical companies is something like 2%-3% and in order to offset that, they sell non-core assets and put that money back in their pipeline. This company’s pipeline has Prevnar which they are going to use in adults, as well as a breast cancer drug. These 2 drugs combined he feels are somewhere in the $2 billion range over the next couple of years. Feels the stock is worth $35-$36 on an analysis basis. Yield of 3.25%.