Wall Street professionals are in many respects paid worriers, and that's certainly true in the world of Big Pharma. Investors fret about the quality of the pipeline at companies like Pfizer (NYSE:PFE), Lilly (NYSE:LLY) and Merck (NYSE:MRK) and their ability to grow after patent cliffs. But when a company like Novartis (NYSE:NVS) comes down the road with a healthy pipeline, the Street seems to respond with worries about how well that pipeline will actually sell, the gaps in the company's product line-up, and the extent of internal cost saving initiatives.
All of that said, the skeptics on Novartis have at least some valid points. While Novartis is a well-balanced company and a good option for income-oriented investors, it is not the cheapest or most interesting Big Pharma stock today. (Learn how to find a healthy pharmaceutical investment in a market full of weak drugs. For more, see Evaluating Pharmaceutical Companies.)
Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2011/If-Pipelines-Matter-Novartis-Should-Be-Looking-Healthy-PFE-LLY-MRK-NVS-SNY-TEVA-BIIB-GSK-NVO-AZN1130.aspx
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