Update-1… 11/17…Vertex (VRTX) rises on good volume.Added to small position. Good value on fwd PE; look for an upgrade or a deal. Strong CF franchise but needs R&D milestone hit.
Large Cap Biopharmaceuticals Metrics and Review
- Stock Performance was mixed across the sector so stock picking was key.
- The biotech sector underperformed as shown by the IBB flat YTD.
- Our top picks were Abbvie (ABBV), Merck, Regeneron (REGN) and Roche (RHHBY).
Throughout 2021 we emphasized large cap biopharmaceuticals as a core holding in your healthcare portfolio. We developed this model with diversification from medtech and life science tools.When the antiviral news broke we were holding a little Merck and Pfizer which only recently caught up. The following large caps are at or near 52 week highs: ABBV, GSK, LLY, PFE and RHHBY. Good performance was achieved in slower growth value plays with good dividends: GILD, GSK. We traded LLY which is the best performer in 2021 but has become very expensive with a Price to Sales of 9.26 and a forward PE of 31.72. The LLY chart shows a double top at $270
Laggards were BIIB still up YTD despite selloff from Aduhelm AD drug; and VRTX which is tradable for a potential deal. Amgen is another laggard down 8% YTD because of lackluster growth,
Today JNJ announced a split of the Company separating its legacy consumer products from higher growth growing biopharmaceutical and medtech products.The response was good but the stock rose only 1.34% to the $165 level .JNJ was $180 in August.
We will update this post through January 2022 at the time of the JPMorgan Healthcare Conference.
*acquired by AZN
*acquired by BMY