Stockwatch: Specialty shines and biotech rains
This article was originally published in Scrip
Executive Summary
With the second quarter 2011 earnings season now well past the half way mark, of the majors only Pfizer had yet to report. When Pfizer did report on August 2, the headline numbers were flat and uninspiring, but at least not disappointing. Pfizer’s net profit rose five percent from the same quarter in 2010 to $2.61 billion and met consensus estimates. Similarly, sales fell by two percent compared to the second quarter last year at $17 billion, again meeting analysts’ estimates, if only from a four percent gain due to a weakening dollar. Pfizer’s previous guidance for the year was re-iterated, and will be achieved by R&D cuts in the face of its best-selling lipid-lowering drug Lipitor (atorvastatin) going generic in the US.
You may also be interested in...
Stock Watch: Is Johnson & Johnson Edging Away From Pharma?
J&J’s Medtech division outshone pharma while recently launched innovative products contributed minimally: it is to be hoped investors’ reactions to the first set of big pharma Q1 results will not set the tempo for earnings season.
Stock Watch: Risk And The Pharmaceutical Discount Rate
In contrast to the SEC’s view that public companies’ regulatory filings give investors all the information needed to make an investment decision, the discount rate used to value a company may not reflect all its risks.
Stock Watch: Pharma Businesses That Leave Consumer Behind
Healthcare conglomerates that divorce consumer, animal health and even generics businesses from their pure-play branded pharmaceutical groups could leave a less diversified and riskier sector in uncertain times. But the advantages are apparent.