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.
Let's look at ELN's 1-year price chart, which also shows its trailing 12-month free cash flow. You're about to see an anomaly that is partly explained by the $600 million in debt I told you about.