UnidoRecruitingNATIONAL

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Monday, 10 September 2012

A Quick Look at the Top 5 Pharmaceutical Companies

Posted on 12:56 by Unknown
While Marc Faber is predicting that the stock market will be lower in a few months, he suggests that investors diversify into the pharmaceutical sector. The reasoning behind this is that during a stock market crash, the pharmaceutical sector will be less hurt by worsening market conditions. Pharmaceutical companies provide a stable dividend and their products are less dependent on economic cycles.

There are many pharmaceutical companies for investors to put their money in, but I suggest to choose for the big companies as you will be sure to get a stable dividend with the lowest risk profile. Smaller biotech companies are too speculative to invest in. I'll discuss the top 5 pharmaceutical companies (by revenue) in this article. These are Johnson and Johnson (JNJ), Pfizer (PFE), Roche (RHHBY.PK), GlaxoSmithKline (GSK) and Novartis (NVS).

When choosing companies in the large pharmaceutical sector, the P/E ratio is the most important. There is a difference between brand-name companies and generic drug companies. The generic drug companies (like TEVA or a division of Novartis) basically sell the same drug as brand-name companies, but at lower prices.  Additionally, they don't have the problem of patent expiration. On chart 1 we can see that the P/E ratio for the pharmaceutical sector has been falling, bringing in nice valuations currently at a P/E of 16.6 for big pharma and a P/E of 18 for generic drug pharma.

Chart 1: P/E Ratio Pharma
A summary of the P/E ratios for the 5 top pharmaceutical companies is given in table 1. Based on this table, GlaxoSmithKline would be the most inexpensive company.
Table 1: P/E Ratio of Big Pharma
However, there are other things to consider when choosing to invest in a pharmaceutical company. It is important to look at the dividend and the product pipeline of the company, especially their "patent cliffs".

Read about it here.

Email ThisBlogThis!Share to XShare to FacebookShare to Pinterest
Posted in GSK, JNJ, Marc Faber, Novartis, Pfizer, pharmaceutical, Roche | No comments
Newer Post Older Post Home

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • GLD trust gold inflow?
    Looks like the media is telling us that the GLD trust physical gold holdings are rising and giving a boost to the precious metals prices. I ...
  • J.P. Morgan Converts Almost Half of Eligible Gold to Registered Gold
    I couldn't believe my eyes when I saw this. Suddenly we saw the J.P. Morgan vault get almost half of the eligible gold converted into re...
  • Correlation between Bonds and Gold
    Just to be sure that I have this picture (and correlation) logged onto this blog, here is the famous Zero Hedge bonds Vs. gold chart. Chart ...
  • The Current Status on Precious Metals
    Let's do a quick analysis on precious metals here. First off, I said yesterday that China lost interest in gold during the past months i...
  • Disconnect between selling price of physical silver and paper silver
    As the paper silver keeps falling (blue chart), some miners aren't willing to reduce their selling price (red chart) on their silver bul...
  • Diamonds: The Less Known Commodity: Olivut Resources
    Everyone is talking about gold and silver these days, but nobody talks about diamonds. Let's have a little peek inside this sector. Ther...
  • China May 2012 Gold Imports from Hong Kong Still in an Uptrend
    A little update on China's gold imports from Hong Kong. For May 2012, China imported 75.6 metric tons from Hong Kong . Pretty disappoint...
  • China Gold Imports Hit Record High
    An update on the China Gold Imports from Hong Kong has just been put out on Bloomberg . It is amazing, how much they are buying, imports mor...
  • China Construction Bank to Buy European Bank: RBS or Commerzbank?
    On 16 September 2012, China Construction Bank  (CCB) announced that it would use up to $15 billion dollars to buy a stake (30%-50% stake or ...
  • No U.S. Deficit in December 2012
    The U.S. has done a good job in the month of December 2012. Its outlays of $270 billion were fully absorbed by receipts of $270 billion whic...

Categories

  • 10 (1)
  • 10 year treasuries (1)
  • 1987 (1)
  • 2012 (7)
  • 30 (1)
  • account (1)
  • acquisitions (1)
  • adjustable (1)
  • ADP (1)
  • Advantage (1)
  • aggregates (2)
  • AGQ (1)
  • agriculture (1)
  • Akamai Technologies (1)
  • alert (1)
  • Alex Jones (1)
  • Allan Meltzer (1)
  • Allana (1)
  • Allana Potash (1)
  • amber gold (1)
  • America (1)
  • and (2)
  • Angela (1)
  • APMEX (5)
  • applications (1)
  • April 2012 (1)
  • arbitrage (2)
  • Arthur (1)
  • asia (2)
  • Asian (1)
  • At. Augustine Gold (1)
  • Atlantic Economy Summit (1)
  • AUD (1)
  • Australian dollar (1)
  • automotive (2)
  • average (3)
  • Avino (1)
  • bac (2)
  • backing (1)
  • backwardation (6)
  • balance (8)
  • balance sheet (3)
  • Baltic (1)
  • Baltic Dry Index (1)
  • Bank (10)
  • Bank of America (1)
  • Bankrupt (1)
  • bankruptcy (2)
  • banks (3)
  • bar (1)
  • Barclays (1)
  • Bargain (1)
  • Barrick Gold (1)
  • base (1)
  • base money (1)
  • Bass (1)
  • BCS (1)
  • beleggerscompetitie (4)
  • Belgium (10)
  • Ben (3)
  • Ben Bernanke (4)
  • Bernanke (4)
  • Bernstein (1)
  • BHP (1)
  • bitcoin (8)
  • blog (1)
  • BNP (1)
  • bond (14)
  • bond yields (1)
  • bonds (33)
  • boom (1)
  • Brad Cooke (1)
  • Brazil (1)
  • brent (2)
  • Brink's (2)
  • brother (1)
  • BrotherJohnF (1)
  • bubble (2)
  • budget (2)
  • Budget Deficit (1)
  • Buffett (2)
  • building (2)
  • bullion (1)
  • bullish (1)
  • buyback (1)
  • buying (1)
  • c (1)
  • calculation (2)
  • Cambridge (1)
  • Canada (1)
  • Capacity (8)
  • Capacity Utilization (7)
  • Capesize (1)
  • capita (1)
  • Capstone Mining (1)
  • car crash (1)
  • Case-Shiller (1)
  • Casey (1)
  • Cash is Trash (1)
  • cattle (1)
  • ceiling (4)
  • celente (2)
  • cement (1)
  • central (2)
  • CFTC (3)
  • Chaudhary (1)
  • Chicago (2)
  • China (48)
  • China Construction Bank (1)
  • CHK (1)
  • chocolate (1)
  • Citigroup (2)
  • city (1)
  • claims (3)
  • CLF (1)
  • cliff (3)
  • CME (11)
  • cnbc (2)
  • CNT depository (1)
  • coal (2)
  • cocoa (1)
  • COFER (2)
  • coffee (1)
  • comedy (1)
  • COMEX (33)
  • commercial (1)
  • Commerzbank (1)
  • commodities (4)
  • commodity (1)
  • competition (1)
  • composition (1)
  • Conan (1)
  • Conference (2)
  • congress (1)
  • consumer (4)
  • consumption (2)
  • Contango (26)
  • contraction (1)
  • convention (1)
  • copper (34)
  • copper contango (1)
  • corn (2)
  • Corp (1)
  • correlation (54)
  • correlations (7)
  • cost (5)
  • costs (1)
  • COT (4)
  • cotton (1)
  • council (1)
  • country (2)
  • county (1)
  • cover (1)
  • CPI (5)
  • crash (2)
  • CRB (3)
  • credit (2)
  • Credit Agricole (1)
  • Croatia (1)
  • crude (3)
  • currency (3)
  • current (1)
  • curve (1)
  • Cut (1)
  • Cyprus (7)
  • Da (1)
  • daily (1)
  • Dan Norcini (1)
  • David (1)
  • David Morgan (2)
  • DB (1)
  • de-peg (1)
  • Debt (30)
  • debt ceiling (2)
  • debt limit (1)
  • December (1)
  • decoupling (7)
  • default (4)
  • deficit (7)
  • deflation (2)
  • delivery (1)
  • Demand (6)
  • Denmark (2)
  • Denninger (1)
  • deposit (8)
  • deposit facility (1)
  • deposits (3)
  • diamond (1)
  • Discouraged (1)
  • disposable (1)
  • dividend (1)
  • DJP (1)
  • DNC (1)
  • dollar (2)
  • domestic (1)
  • Doug (1)
  • Dow (7)
  • drop (1)
  • Dry (1)
  • durable (1)
  • dwcf (1)
  • earnings (4)
  • earnings per share (1)
  • ECB (6)
  • economy (1)
  • Ecuador (1)
  • elections (1)
  • electricity (2)
  • eligible (2)
  • Embry (1)
  • Employment (1)
  • Endeavour (1)
  • Endeavour Silver (2)
  • Engelhard (1)
  • eps (3)
  • equities (3)
  • equity (1)
  • equity markets (1)
  • Eric (6)
  • Eric Sprott (1)
  • estate (2)
  • estimate (1)
  • ETF (3)
  • Ethiopia (1)
  • Ethiopian Potash (1)
  • eur (1)
  • Eureka (1)
  • Euribor (2)
  • euro (8)
  • Europe (7)
  • European Union (1)
  • Eurozone (1)
  • exchange (1)
  • EXK (1)
  • expansion (1)
  • experiment (4)
  • exploration (1)
  • export (1)
  • exports (1)
  • Exposure (1)
  • external (1)
  • Faber (3)
  • family (1)
  • Faustian (1)
  • fed (2)
  • federal (10)
  • federal reserve (3)
  • Fertilizer (1)
  • Financial Services Committee (1)
  • First (3)
  • First Majestic Silver Corp. (1)
  • fiscal (3)
  • fiscal cliff (1)
  • fixed (1)
  • food stamps (1)
  • food stamps hire people (1)
  • foreigners (4)
  • forex (1)
  • Forum (1)
  • forward (1)
  • franc (1)
  • France (3)
  • Fraser (1)
  • French (1)
  • fund (1)
  • funds (3)
  • gas (1)
  • Gazprom (1)
  • gdp (25)
  • George Soros (1)
  • Germany (3)
  • gld (3)
  • GNP (1)
  • GOFO (4)
  • Gold (130)
  • gold money index (1)
  • golden cross (1)
  • Goldman (1)
  • Goldman Sachs (2)
  • goldonomic (1)
  • goods (1)
  • got gold report (1)
  • government (2)
  • great (1)
  • Great Depression (2)
  • Greece (8)
  • Greg (1)
  • gross (1)
  • growth (1)
  • GS (1)
  • GSK (1)
  • Hampshire (1)
  • Hang Seng (1)
  • Happy New Year (1)
  • Hedge (1)
  • Hewlett Packard (1)
  • Hitler (1)
  • HMI (1)
  • holding (1)
  • holdings (4)
  • Hole (1)
  • Hollande (4)
  • home (1)
  • hong (7)
  • Hong Kong (11)
  • hour (4)
  • hourly (3)
  • Housing (8)
  • housing market index (1)
  • HSBC (1)
  • Hunter (1)
  • Hyperinflation (3)
  • IMF (1)
  • import (14)
  • imports (16)
  • income (1)
  • index (13)
  • India (1)
  • industrial (2)
  • industry (1)
  • inflatiion (1)
  • inflation (11)
  • iniflation (1)
  • initial (3)
  • initial claims (1)
  • initiative (1)
  • Insider (1)
  • insider trading (1)
  • institute (1)
  • interconnectivity (1)
  • Interest (9)
  • interest payment (1)
  • Interest Rates (1)
  • inventory (1)
  • investment (2)
  • Investor (1)
  • Iran (4)
  • Ireland (1)
  • Iron (2)
  • Iron ore (2)
  • Irwin (1)
  • Israel (2)
  • Italy (4)
  • J.P. Morgan (7)
  • J.P. Morgan Chase (1)
  • Jackson (1)
  • James (5)
  • James Turk (2)
  • Japan (10)
  • jesse jackson (1)
  • Jim (1)
  • Jim Rogers (1)
  • Jim Sinclair (1)
  • JNJ (1)
  • job cuts (1)
  • jobless (2)
  • John (3)
  • John Davis (1)
  • Jones (2)
  • JP Morgan (1)
  • jpm (1)
  • July (1)
  • June (2)
  • junk (3)
  • Karl (1)
  • keiser (2)
  • king world news (1)
  • Kohler (1)
  • kong (7)
  • KWN (2)
  • Kyle (1)
  • Kyle Bass (1)
  • laptop (1)
  • large commercial (1)
  • Las (1)
  • LBMA (3)
  • LCNS (9)
  • Lease (8)
  • Lease rate (3)
  • lease rates (2)
  • Lecture (1)
  • lending (1)
  • leverage (1)
  • Liberty (1)
  • LIBOR (3)
  • Lloyds (1)
  • LME (3)
  • Loans (1)
  • london (2)
  • long (1)
  • LTRO (3)
  • lumber (1)
  • M0 (1)
  • M1 (1)
  • M2 (1)
  • M3 (2)
  • Majestic (3)
  • Maloney (1)
  • manager (1)
  • manipulation (1)
  • Marc (3)
  • Marc Faber (11)
  • March (1)
  • margin (1)
  • marginal (4)
  • market (5)
  • Mastercard (1)
  • maturity (2)
  • Mauldin (1)
  • max (2)
  • max keiser (3)
  • May (1)
  • MBS (5)
  • Melvin (1)
  • merger (1)
  • Merkel (1)
  • metal (1)
  • metals (7)
  • Metdist (1)
  • MF global (1)
  • Michael (2)
  • Middle East (1)
  • Mike (1)
  • Mike Maloney (2)
  • miners (2)
  • mines (1)
  • Mining (4)
  • minister (1)
  • Mint (1)
  • monetary (1)
  • money (4)
  • Moneyshow (1)
  • monitoring (1)
  • Monitoring of decoupling (1)
  • Morgan (1)
  • Morgan Stanley (1)
  • mortgage (6)
  • Moustache (1)
  • moving average (1)
  • MZM (3)
  • natural (1)
  • Natural gas (3)
  • Neeraj (1)
  • Negative (3)
  • net (4)
  • Netherlands (2)
  • New (1)
  • News (1)
  • nickel (1)
  • Noel (1)
  • Nomura (2)
  • non farm payroll (1)
  • non-farm payroll (1)
  • NOS (1)
  • Novartis (1)
  • O'Brien (1)
  • obesity (1)
  • Occupy (1)
  • Offering (1)
  • oil (9)
  • oil embargo (1)
  • Okun (1)
  • olivut resources (1)
  • OLV (1)
  • Onion (1)
  • open (3)
  • orders (1)
  • ore (1)
  • outflow (1)
  • outlay (4)
  • outlays (1)
  • overnight (1)
  • P/B (1)
  • P/E (2)
  • palladium (4)
  • Pan American Silver (1)
  • Panamax (1)
  • paper (1)
  • Paulson (1)
  • payment (1)
  • payroll (3)
  • pegging (1)
  • pending (1)
  • Pentagon (1)
  • Pento (2)
  • permit (2)
  • personal (1)
  • Peter (13)
  • Peter Schiff (13)
  • petition (1)
  • Pfizer (1)
  • pharmaceutical (1)
  • phys (1)
  • physical (2)
  • piano (1)
  • PIIGS (6)
  • platinum (7)
  • PMI (11)
  • Ponzi (1)
  • Poor's (2)
  • population (1)
  • Portugal (3)
  • positions (3)
  • Potash (1)
  • Potemkin (1)
  • PPLT (1)
  • precious (4)
  • premium (25)
  • president (1)
  • Price (16)
  • private (1)
  • product (1)
  • production (7)
  • profit (1)
  • PSLV (5)
  • public (3)
  • purchasing (1)
  • QE (1)
  • QE3 (6)
  • radio (1)
  • rally (2)
  • rate (27)
  • rates (2)
  • ratio (11)
  • RBS (1)
  • real (4)
  • Real estate (4)
  • receipt (1)
  • recession (1)
  • recycling (1)
  • red (1)
  • referendum (1)
  • regions (1)
  • registered (3)
  • registered gold (1)
  • repatriation (1)
  • report (4)
  • requirement (1)
  • reserve (12)
  • reserve currency (1)
  • reserve requirement (1)
  • reserves (3)
  • Resource (1)
  • revenue (2)
  • revision (1)
  • revisions (1)
  • Rhodium (1)
  • Rickards (1)
  • RJA (1)
  • RMB (1)
  • Road (1)
  • Roche (1)
  • Royal Canadian Mint (1)
  • run (1)
  • Russia (2)
  • Sachs (1)
  • sales (1)
  • SAU (1)
  • Saudi Arabia (1)
  • Savings (5)
  • scheme (1)
  • Schiff (13)
  • Scott Minerd (1)
  • scrap (3)
  • second quarter (1)
  • sector (1)
  • securities (1)
  • Seminar (1)
  • sentiment (2)
  • SGS (1)
  • Shanghai (15)
  • share (1)
  • sheet (7)
  • SHIBOR (1)
  • short (6)
  • short positions (1)
  • shortage (2)
  • shorting (1)
  • Show (1)
  • Silva (1)
  • silver (90)
  • Silver glitch (1)
  • Silver Lake Resources (1)
  • Singapore (1)
  • single (1)
  • Sipef (1)
  • slv (3)
  • Societe general (1)
  • Soros (1)
  • soybean (1)
  • soybeans (1)
  • Spain (4)
  • Spain unemployment (1)
  • SpainC (1)
  • Spanish (1)
  • SPDR (1)
  • spending (2)
  • Spiegel (1)
  • SPPP (2)
  • SPR (1)
  • spread (1)
  • Sprott (14)
  • stand (1)
  • standard (3)
  • Standard and Poor's (5)
  • starts (1)
  • stimulus (2)
  • stock (19)
  • stocks (2)
  • strategic petroleum reserve (1)
  • Street (1)
  • stress (1)
  • Student (1)
  • sugar (1)
  • supply (5)
  • Supramax (1)
  • surplus (1)
  • surprise (1)
  • Swaps (1)
  • Swiss (2)
  • Switzerland (4)
  • takeover (1)
  • target (1)
  • tax (8)
  • taxation (1)
  • taxes (1)
  • Tekoa (1)
  • test (1)
  • testify (1)
  • The Real Crash (1)
  • Theory (2)
  • TLT (1)
  • total (4)
  • trade (1)
  • trade deficit (1)
  • transport (1)
  • treasuries (18)
  • treasury (10)
  • treasury holdings (2)
  • trust (3)
  • turbo (1)
  • Turk (5)
  • U.S. (21)
  • U.S. debt (1)
  • U.S. dollar (1)
  • U.S. Mint (2)
  • U.S. treasuries (1)
  • U.S. treasury holdings (1)
  • U3 (1)
  • U6 (1)
  • unemployment (17)
  • Unemployment rate (1)
  • united states (1)
  • up (1)
  • US (7)
  • USA (1)
  • USD (8)
  • Utilization (8)
  • Valcambi (1)
  • valuation (1)
  • Vegas (1)
  • velocity (5)
  • Visa (1)
  • volatility (1)
  • wage (3)
  • wages (1)
  • Wall (1)
  • Wall Street Journal (1)
  • War (3)
  • warehouse (1)
  • Warren (2)
  • wedge (1)
  • Western Potash (1)
  • wheat (2)
  • worker (1)
  • world (1)
  • World Market Window (1)
  • wrap (1)
  • WTI (1)
  • Yahoo (1)
  • year (2)
  • yen (2)
  • Yeul (1)
  • yield (11)
  • yields (2)
  • yuan (1)
  • zero (6)
  • Zero Hour (2)
  • Zero Hour Debt (1)
  • zerohedge (2)
  • zinc (1)

Blog Archive

  • ►  2013 (243)
    • ►  August (7)
    • ►  July (14)
    • ►  June (34)
    • ►  May (23)
    • ►  April (53)
    • ►  March (36)
    • ►  February (33)
    • ►  January (43)
  • ▼  2012 (257)
    • ►  December (42)
    • ►  November (26)
    • ►  October (30)
    • ▼  September (20)
      • Copper turns back to backwardation
      • Oil Price Dip is a Buying Opportunity
      • Long Idea: Platinum!
      • Stock Alert: St. Augustine Gold & Copper Ltd
      • China Construction Bank to Buy European Bank: RBS ...
      • The correlation between M1 and Gold: Quantifying h...
      • Predictions all Came True!
      • Capacity Utilization Rate Keeps Climbing in Canada...
      • Large Portion of QE3 Goes to Interest Payments on ...
      • A Quick Look at the Top 5 Pharmaceutical Companies
      • China Gold Import from Hong Kong Positive in July
      • Payrolls Rose 91000, less than forecast
      • China Acts: 1 trillion yuan stimulus on Infrastruc...
      • Eurobonds in Favor Against U.S. Bonds
      • Mike Maloney Survives Car Crash
      • Peter Schiff Goes Undercover: DNC Convention 2012
      • Is it too late to buy Silver Lake Resources?
      • CME adds Silver Stock Depository: CNT DEPOSITORY, ...
      • U.S. Debt at 16 Trillion
      • Gold - Silver Ratio breaks down
    • ►  August (25)
    • ►  July (32)
    • ►  June (30)
    • ►  May (29)
    • ►  April (23)
Powered by Blogger.

About Me

Unknown
View my complete profile