Wednesday, October 10, 2012

Goldman Analyst Downgrades J&J: Says "Sell"

FiercePharma has;
Rubin pushed for Pfizer split, but J&J is more focused on M&A

Goldman Sachs analyst Jami Rubin can be tough to please. Particularly for companies that aren't jazzed about the idea of splitting themselves into smaller pieces. Hear that, Johnson & Johnson ($JNJ)?
Just in case J&J hadn't received the message, Rubin downgraded the stock to "Sell" yesterday. As Barron's points out, a sell rating on a big-time stock like J&J--one that pays a 3.5% dividend, no less--is a rare species. But Rubin ticks off her reasons with gusto--and, perhaps to add insult to injury, said she prefers Eli Lilly & Co. ($LLY) these days.
J&J's newly launched drugs--including the clot-fighter Xarelto and the prostate-cancer pill Zytiga--face new competition, Rubin says. Its pipeline lacks "transformational ... opportunities." Its management is too focused on M&A, not enough on sharing cash with shareholders. So, even with that 3.5% dividend, J&J offers a yield of only 7%, she figures.
Pfizer ($PFE), of course, is hiving off its non-pharma businesses to focus on prescription drugs, a strategy Rubin advocated. In fact, she's now agitating for even more sales--Pfizer's consumer health or generics business, for instance. And Abbott ($ABT) plans to spin off its drug business as a separate company, AbbVie, within a couple of months.
J&J, however, seems wedded to its conglomerate tradition, and its patchwork quilt of operating units. And that's the final straw for Rubin. J&J's "focus on M&A versus cash returns to shareholders or a break-up strategy [like Pfizer's or Abbott's] puts it at a disadvantage as other companies get more aggressive," Rubin wrote in a note to investors (as quoted by The Street). The verdict? Downgrade.
- read the Barron's piece
- get 
more from The Street

Thank You Fierce Pharma and Ms Staton

And of possible related interest:

Wiki has;

Asset Forfeiture

"Asset forfeiture is confiscation, by the State, of assets which are either (a) the alleged proceeds of crime or (b) the alleged instrumentalities of crime,"

..... .....


Proponents of seizure suggest that it is a necessary tool to prevent drug trafficking or other crimes. Statistics indicate that asset forfeiture has failed to prevent methamphetamine drug crime in South Africa [3]. Former United States president George H. W. Bush said, "Asset forfeiture laws allow [the government] to take the alleged ill-gotten gains of drug kingpins and use them to put more cops on the streets."

ED;  WHEN, the cops we already Have start busting these Drug Kingpins and seizing Their assets, rather than Protecting them, ... .

IF, Corporations enjoy the same protections as individual people when it comes to political donations/1st Amendment Free Speech Rights, Then, .....

They should Also be subject to the same penalties for Violating existing Federal Criminal Statutes that would toss Private Citizens into prison, and cost them the Seizure of their Assets. 

Health Care Cronyism: A Tribute

The Law

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