CNBC just had Hemant Shah on to talk about big Pharmas. They started the segment by noting that the sector was up today and mentioned MRK, PFE, WLA, SBH, and BMY.
When asked for his top pick he mentioned WLA, based on earnings momentum. For the next 12-18 months he liked WLA, PNU, and LLY (potential Evista sales). As far as an SBH merger was concerned, he felt that they had a year or two, but they had to do something by 2000 because two of their top sellers would be going off patent then.
As far as the driving force behind merger mania was concerned, he did feel that there was a need for more R&D spending. Since the sector was still doing well, they were not being forced into consolidation, but it was the right thing to do. He again indicated that it was really up to the CEOs, and their willingness to make personal sacrifices.
His "sleepy" pick was PNU because of potential for their urinary incontinence drug. |
