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To: Tom Wilkes who wrote (27)	11/30/1997 10:37:00 PM
From: Michael Burry	Read Replies (1) \| Respond to of 33

Tom, Speaking of Bloomberg, it's got a little bit on Novartis in the current issue. Looks good, and I am reviewing the financials. I didn't realize they also had Gerber (acquired in 94). Powerful franchise there. At 22 times forward earnings, it looks good. All of the big pharms are worthwhile for long term, but my favorite now is Merck. J&J is another good one. Schering & Plough, Pfizer, and Warner-Lambert all look good, but they have all had pretty good runs recently. An interesting one is American Home Products, which is being hurt by the fen-fen stuff, but is still an awesome business. So, in order, Merck, J&J, AHP. I'm trying to forget Hillary. The deal is, only the pharms have the money to truly advance both technology and drug design, and if the US kills them with price controls, then we all will have much bigger problems than an underperforming stock or two. One of the interesting things is that only like 7% of health care expenditures are for pharm. And less than 20% is doctors. The rest is the administrative infrastructure and money in insurers pockets. Pharms will be the last to be hit IMO. Biotech stocks are always risky, not the least because they are often run by egomaniacs. Good Investing, Mike