I bought Roche (OTCQX:RHHBY)
years ago because I thought that the Street was overly concerned about
near-term threats to the company's oncology portfolio and was
overlooking the long-term potential of a true giant in oncology and an
underrated player in global pharmaceuticals and diagnostics. I really
can't complain about the performance since my early 2011 purchase, as
Roche's 90%-plus gain has outstripped Novartis (NYSE:NVS), Johnson & Johnson (NYSE:JNJ), Glaxo (NYSE:GSK), Pfizer (NYSE:PFE) and Novartis . Of the stocks I was looking at at that time (when I decided to sell Johnson & Johnson), only Amgen (NASDAQ:AMGN) and Bristol-Myers (NYSE:BMY) have done better.
Since
then, though, Roche has underwhelmed me with its R&D productivity.
The company has done fine with its oncology drug development, but its
repeated failures outside of oncology have left the company with a gap
in its pipeline and vulnerability to potential price competition in
immuno-oncology. Absent a more comprehensive re-think of its approach to
R&D, it may be time to think about taking profits in this Swiss
drug and diagnostics giant.
Continue reading here:
Poor Pipeline Productivity Has Left Roche More Vulnerable
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