re: JAPAN - Pharma stocks
Did some new research on Japan however and found some gems of a lifetime. Imagine major pharma corporations with an ample stuffed pipeline selling for under PSR of 2..
Listed are only those firms where I had a chance to look at their R&D pipelines in English and where I think that valuation is low..
My top pick: Kaken Pharmaceutical - 4521.J - 740 Yen www.kaken.co.jp
Y-70.3bn sales, PSR 1, P/B 2, PE 35 R&D 8%/sales
nice pipeline .. 17 compounds .. 5 approved, 5 NDA, 5 Phase 2, 2 Stage 1, 2 Preclinical, 4 Drug discovery collaborations .. noteworthy their licensing of a top SCIOS product in the past for Japan (& Asia ?). They are famous for in-licensing other products..
Tanabe Seiyaku - 4508.J - 1150 Yen
Y-194bn sales, PSR 1.76, P/B 1.76, PE 17
Pipeline: 18 compounds ... 7 NDA, 3 Phase 2, 7x Trials, 1x launch
Dainippon Pharma - 4506.J - 1350 Yen
Y-159bn sales, PSR 1.44, P/B 2.10, PE 23,
Pipeline: 17 compounds ... 1 launch, 5 NDA, 1 P3, 6 P2, 4 P1
Sankyo - 4501.J - 2000 Yen
Y-545bn sales, PSR 1.68 PE 25 P/B 1.40 R&D 14%/Rev.
Pipeline: 26 compounds .. 5 filed, 2 P3, 6 P2, 10 P1, 5 PreCl
looks like I'm going to buy that Kaken Pharma, think their shares are listed on the PinkSheets in the US also..
the other Japan Shares I have are doing quite ok..
6911.J .. New Japan Radio .. consolidating gains .. unchanged at 670 Yen, volume receding. I'm waiting for the next leg up that should get us close to 900Yen. That level will be a tad hard to crack, maybe we will rest there for a month or so..
3407.J .. Asahi Kasei .. inched up back to 431Y, due to a plant fire the shares plunged to 405 Yen but receoved since the incident happend (13.03.2002). This stock is a real gem with its cash cow in prefabricated housing / building products and vast interests in chemicals, industrial gases, pharmaceutics, compound semiconductors and most of all their analog & mixed signal semiconductor arm called AKM. AKM alone provided 26 Yen per share in a period with relative strong demand. That is almost 4x current EPS for the year ending March 31st (this year AKM contribution is flat). Anyway, they nonetheless increased production capacity by around 15%. Consumer Equipment is booming right now, so we should feel a positive impact in the fiscal year 2003 (ending March 2003). Upward guidance for the coming year from New Japan Radio points to the same take-off in demand..
rgrds
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