I didn't exactly win a lot of fans for myself last year when I decided it was time to jettison Johnson & Johnson (NYSE: JNJ) and turn my affections to other med-tech names – most notably Swiss giant Roche (Nasdaq: RHHBY.PK). At the time, few people seemed to like Roche. The company was under (theoretical) assault from biosimilar competition, the efficacy of major drug Avastin was in question, and the company didn't have much to offer in areas like vaccines, generics, and consumer health while investors started to drool over the supposed synergies of one-stop shops like Novartis (NYSE: NVS).
What a difference a year makes. Although J&J has done a little better than I thought it might, Roche has done about as well as I thought it would and last year's 20% gain was welcome indeed. More importantly, the situation around Roche today is one that warms the heart of many value investors – analyst sentiment has shifted and Roche has moved from a least-favored name to one of the more popular picks for 2012.
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Roche Goes From Also-Ran To Darling
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