by winston » Mon Apr 03, 2017 9:00 am
not vested
At the moment, my #1 buy is a global leader in both biotechnology and conventional medicines. It’s Roche Holding AB (NASDAQ: RHHBY).
Roche’s main drivers of revenue growth today are a pair of blockbuster cancer therapies, but it’s also got a very promising multiple sclerosis drug in the pipeline as well.
The company has a deep commitment to R&D that has paid off again and again. In fact, it’s the only company to win 13 “Breakthrough Therapy Designations from the US Food and Drug Administration.
Its big research operation is one reason I favor it over the small biotechs that are betting it all on just one breakthrough drug.
Sure, the Gilead or Celgene that hits it big is fun, but scores of small pharmas burn through their cash without ever reaching the finish line…or their research simply never holds up…or they can’t navigate the maze of tests, trials, and approvals to get to a marketable drug.
The best part of the Roche story is that the company is temporarily on sale. You see, another drug company in need of cash owns a third of my favorite drug company’s shares.
And whenever Wall Street hears that a big block of stock is about to be moved, they like to mark down the entire company as if it should be on sale.
Act now and you can pick up the shares at a nice discount to its real value and lock in abnormally high capital gains from a true blue chip.
Throw in a 5-year average dividend of 3.24% and you’ve got a stock I’ll likely be holding for years. No wonder it’s my favorite of the half-dozen pharma stocks in my portfolio right now.
Source: Profitable Investing
It's all about "how much you made when you were right" & "how little you lost when you were wrong"