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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (57231)	5/2/2016 12:41:24 PM
From: E_K_S	Respond to of 78719

Value Medical/Pharma plays As you are familiar w/ the industry and have a good concept of value investing, can you provide any names in this sector? I have done well, buying a basket of Pharma's several years ago when their PE's were in the teens. There is a lot of money going to this sector as the baby boomer age. I have also been buying medical REITs that are/were undervalued based on new tenant leases (Kaiser, St Jude and other providers) and their long term lease contracts. I have a small position in OPK that provides medical testing services but that would not be a value play until their FCF & revenues double from current levels. I have been putting new money into THQ a slightly leveraged CEF Bio/Pharma fund that includes dividend payers and Bio-tec plays. Pays monthly about 8%. EKS

To: Graham Osborn who wrote (57231)	5/2/2016 11:28:25 PM
From: MNTNH	1 Recommendation Recommended By Jurgis Bekepuris Read Replies (2) \| Respond to of 78719

My impression was that while GILD's treatment is expensive (think I read about $80k), its only slightly higher than its peers ($65k-70+k). And there aren't that many peers doing Hep C. Offhand I know the most recent being MRK which is suing GILD for the "formula" used for the highly profitable Solvadi/Harvoni as well as ABBV which is trying to take away share by negotiations with ESRX. Slamming GILD for high medicine prices appears to be flimsy versus Martin Schkreli's Turing Pharma type of price increase. Firstly, GILD did not just buy the portfolio and jack prices all day long. They got some basic HepC drugs, bought a firm and researched a delivery thats once a day with higher efficacy within 8 weeks . This compares to the usual 3-4 times daily dosage for other competitors' drugs that extends to 12 weeks medication period. The threat comes from people like ABBV whos willing to cut prices real low (to offset their disadvantages) in order to gain market share. I think congress wise, too early to tell if they would do anything and it would be many years in the works. Patent wise it expires 2029s if Im not wrong, so heres over a decade to milk this. However, its not terribly cheap. I was also reading their HIV pipeline may be promising, not sure if any truth in it? @Graham?