Abbott Labs (ABT) is a consistent performer with diversified healthcare operations, including pharmaceuticals, diagnostics, medical nutrition products, and medical devices/stents. ABT is back to the lower end of its trading range near 50 bucks, presenting an excellent entry point with a 2.8% dividend yield and forward PE of about 14X.
Celgene (CELG) is also trading at the low end of its trading range around 50 bucks as a large-cap growth stock focused on cancer biotech products and research with an estimated PEG ratio below one.
The accompanying table [click to enlarge or download] presents the top five rated companies with market caps of at least $250M from each of the 10 new healthcare indexes developed by ETF Innovators [ETFI] from a database of about 500 companies worldwide. The ETFI Global Healthcare Sector PerformIdex consists of 50 top rated companies on an equal weight basis from each of the 10 new healthcare indexes as an alternative strategy to existing health composite ETFs with highly correlated returns and over-weight exposure to th
The accompanying table includes statistics and the top five rated companies in the ETFI Global Health Innovators Index of companies with market caps over $100M which received FDA approval in the trailing 12-month period for either an original new drug or medical device product. The index includes companies which get approvals for drugs or biological agents classified as new chemical entities (i.e. excluding reformulations of existing drugs, generic drugs, and label extensions for existing produc
The accompanying table presents the top six rated companies with market caps of at least $250 million (USD) from each of the eight ETFI healthcare indexes (which include a database of about 320 companies) as equally-weighted components in the ETFI Global Healthcare Sector PerformIdex of 48 companies.
The accompanying table presents an updated calendar of expected FDA decision dates and advisory committee [FDAC] meetings expected to impact the price of underlying biotech and pharma stocks. Genzyme (GENZ) faces a FDAC tomorrow (10/21) for its pending BLA for Myozyme manufactured at the 2,000L bioreactor scale. Also, Discovery Labs (DSCO) submitted its complete response to the FDA last Friday to address an approvable ruling for Surfaxin back in May and insiders continue to buy the stock. DSCO expects the FDA to rule on Surfaxin
"Abbott has been acting strong depite market weakness, indicating that money moving into ABT, perhaps as a defensive play.
"ABT has a low beta of 0.14 versus the S&P 500's 1.00. That would indicate that ABT is a low risk play. In any case, the stock is set up nicely for a breakout from an eight-week flat base. With good earnings co
The accompanying table presents a 20-stock defensive growth portfolio which I believe will outperform the overall market as measured by the S&P 500 Index as the current panic trade comes to an end and investors stop selling stocks regardless of their fundamentals. The average PEG ratio for this group of stocks is below one and the average dividend yield of 4.4% is nearly two times the S&P 500 ETF (SPY) yield of 2.4%. All of the stocks have a market cap over $1B with an average of just under $75B and the indust
The accompanying table presents a full FDA calendar of decision dates updated through today, which I will maintain at the bottom of my blog in place of the previous Global Carbon Trading Index. Click on the calendar image above or on my blog to view or download the PDF version of the FDA calendar, which I will also maintain at: www.geocities.com/mikehavrx/fdac.pdf .
Several key decisions are pending through the end of this month for the group of 14 big pharma companies I outlined yesterday, including Eli Lilly (L
The accompanying table presents an overview of big pharma companies, presented in descending order by market cap. My favorite play in the space remains to be Pfizer (PFE), which I have written about previously and finally bought shares today at $17.90 with a dividend yield exceeding 7%. Despite growth concerns and looming generic competition for Lipitor in late 2011, I bought shares of Pfizer today as a value pick and turnaround play which operates in a defensive sector with a strong balance sheet. Also, the Company is aggressive
Abbott Labs (NYSE: ABT) posted better than expected earnings and sales growth and raised its guidance this morning, reflected in the above 1-year stock chart which shows the Company has outperformed the S&P 500 index by over 30% and the Healthcare Sector SPDR exchange-traded fund (XLV) by over 20%. Results included the following:
-global sales growth of 14.8% to $7.3 billion (B)
-pharmaceutical sales ($4.1B) growth of 16.7% led by Humira (a biological agent for autoimmune diseases such as rheumatoid arthritis), which experienced a 48% growth in sales for 1H08 at $1
"You can invest for all the right reasons and still get the wrong result," notes long-standing turnaround stock expert George Putnam, referring to the poor performance of the pharmaceutical sector in recent years.
Here, in his industry-leading The Turnaround Letter, he offers a fascinating review of 10 leading drug stocks which he now believes offer a combination of growth potential at "pretty cheap" valuations. Here is
"You can invest for all the right reasons and still get the wrong result," says George Putnam, referring to the poor performance of the pharmaceutical sector in recent years.
Here, in his industry-leading The Turnaround Letter, he offers a fascinating review of 10 leading drug stocks which he now believes offer a combination of growth potential at "pretty cheap" valuations.
"In 2000 and 2001, when the Internet boom was becoming a bust, many smart investors turned away from technology stocks and put their money into drug stocks. How could you go wrong with the big pharmaceutical companies?
4/29 - "The non-approval of Cordaptive is good news for ABT’s niacin franchise. Since our forecasts did have Cordaptive getting approved we are raising our estimates for ABT’s Niaspan and Simcor...While we had forecast most of the growth of Cordaptive coming from new patients (that had troubles with niacin flushing), we did assume some share erosion for Niaspan in 2008 and Simcor in 2009. We are now expecting Niaspan to grow at a 12% 2008-12 CAGR (up from 7%) and Simcor to grow 18% up from 13%. These changes up our 2009 and 2010 estimates by $0.04 each."
"We rate the shares of Abbott Labor...
4/29 - "Abbott Laboratories (NYSE: ABT) shares are trading higher after the Food and Drug Administration denied regulatory approval for Merck & Co.'s (NYSE: MRK) cholesterol drug Cordaptive. The Merck drug would have directly competed with ABT's own cholesterol drug. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ABT."
"For a bullish hedged play on this stock, I would consider a June bull-put credit spread below the $50 range. A bull-put credit spread is an options position that combines the purcha...
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"You can invest for all the right reasons and still get the wrong result," says 
