Summary
Few groups have been sacked more often than the big drug companies in the past few years: New blockbuster medicines have been scarce, patents on key drugs have expired and studies have recently shown that some drugs, such as Celebrex, have harmful side effects. But given a few breaks, drug stocks have the potential to go on the offensive in 2005.
The bargain bin is filled with drug companies. Start with Bristol- Myers Squibb, a cheap stock with a kicker. At $24, Bristol (symbol BMY) sells at 17 times the average of analysts' earnings estimates of $1.40 per share for 2005. The kicker is Bristol's 4.7 percent dividend yield, among the highest in the sector. In recent years, Bristol has lost patent protection on such high-profile drugs as Taxol and BuSpar. But the company currently has a solid roster of patented drugs, including cholesterol fighter Pravachol and cancer medication Erbitux. Bristol's pipeline of new products includes Muraglitazar, for diabetes, and Entecavir, to treat hepatitis B.See the full content of this document
Extract
Drug Firms Primed for a Recovery
Shares of Eli Lilly took a hit in December when the company announced that ...
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