You Have to Love a Lucrative 'Drug Deal'
NEW YORK (TheStreet) -- When it comes to investments, I love to be a sleuth and uncover deals that everyone and their mother-in-law doesn't already know about. If I find a gem in a sector that's in an uptrend, all the better!
The pharmaceutical and biopharmaceutical sectors have been marching steadily higher. My personal favorite bellwether for the sector is Pfizer (PFE), which is often referred to these days as a "biopharmaceutical company." Heck, why not, and look at how PFE has been doing price-wise over the past year.
What a fine-looking chart (above), and we can't help but notice Pfizer's year-over-year diluted quarterly EPS growth, which is stellar. No wonder it can pay a great dividend with the prospects of raising that dividend year after year.
Its one-year chart speaks for itself. This company is on fire.Focusing on what makes a drug company (whoops, I mean a biopharmaceutical company) great, is what PFE does so well: One can plainly see on its brilliant Web site its greatness defined through diversity. Its Web site says: "To maximize new opportunities in biomedical research, and bring more innovative medicines to more patients more quickly, Pfizer has created two distinct research organizations. The PharmaTherapeutics Research & Development Group focuses on the discovery of small molecules and related modalities; and The BioTherapeutics Research & Development Group focuses on large-molecule research, including vaccines." Pfizer is setting the industry standard in another important way. It has developed an enhanced commercial operating structure. Pfizer has nine diverse health care businesses: Primary care, specialty care, oncology, emerging markets, established products, consumer health care, nutrition, animal health and capsugel.
>>EXCLUSIVE OFFER: Jim Cramer's protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass. Next up is Elan (ELN), one that deserves a look after its recent brush with privately held pharmaceutical investor Royalty Pharma. Since its inception in 1996, U.S.-based Royalty Pharma has been buying pharmaceutical intellectual property. It owns royalty interests in products such as Gilead Science's (GILD) HIV drugs and Abbott Laboratories' (ABT) arthritis drug Humira.
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