We are generally positive on the pharmaceutical industry heading into 2009. We expect the majority of stocks to fair far better in 2009 than they did in 2008, based on a number of attributes.

Firstly, almost all the names in the group are trading at very reasonable valuations. Several of the largest players are trading at PEs below 10x, including Pfizer Ltd. (

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We are generally positive on the pharmaceutical industry heading into 2009. We expect the majority of stocks to fair far better in 2009 than they did in 2008, based on a number of attributes.Firstly, almost all the names in the group are trading at very reasonable valuations. Several of the largest players are trading at PEs below 10x, including Pfizer Ltd. (PFE, 8x), Eli Lilly & Co. (LLY, 9x), Merck (MRK, 9x), AstraZeneca (AZN, 9x) and Wyeth (WYE, 10x) based on our fiscal 2009 estimates.Secondly, expectations are low. Most of the companies are not expected to generate significant revenue growth, and earnings growth is primarily being drive by cost-cutting and share buybacks. Therefore, there seems little downside risk to our financial models, even should the economy continue to struggle throughout the entire year. So we do not see much risk ...

Wyeth Pharmaceuticals (WYE) is one of the world's largest research-driven pharmaceutical and healthcare products companies. It focuses on the discovery, development, manufacturing and marketing of pharmaceuticals, vaccines, biotechnology products and non-prescription medicines.Wyeth's recent performance has been stunted due to the entry of generic Protonix in late 2007. EPS growth through 2009 will benefit from recently implemented productivity initiatives and share repurchases. Recent pipeline setbacks and generic competition will cause a drag on financial performance.The next wave of sustainable revenue growth will not come until 2012. We believe the current valuation is fair and rate the shares a Hold with a $42 price target.Jason Napodano, CFA contributed to this report.Read the full analyst report on WYE "WYE" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

Bristol-Myers Squibb, Inc. (BMY) remains one of our top-picks in the pharmaceutical industry for 2009. We like Bristol for a number of reasons, including the company's solid financial position, a deep pipeline with significant biologic exposure, and turnaround/acquisition potential.Bristol also offers a big dividend of $1.24 per share (recently confirmed Thursday), which yields 5.5%. The company has the lowest exposure to foreign exchange translation among its U.S. peers, and is expected to grow the bottom-line by approximately 11% CAGR [compound annual growth rate] through 2012.Oh, by the way, Bristol is sitting on over $8 billion in cash, and just announced today they will be spinning off the Mead Johnson Nutritional business to shareholders in 2009. The Mead Johnson IPO is expected to fetch another $1 billion in cash for Bristol.  By the end of the first quarter 2009, Bristol could be sitting on nearly ...

Goldman Sachs is adding Wyeth (NYSE:WYE) to their Conviction Buy list on the significant gap between the current share price and break-up value of $50.Wyeth’s strength in biologicals and vaccines and the lack of extreme patent exposure make it one of the most attractive fundamental stories in Pharma. These assets are underappreciated due to the overhang of WYE’s core Pharma business. Recent biotech price-tags reflect the industry’s willingness to pay a premium for these assets. Management has recently signaled a commitment to its growth assets, de-emphasizing primary care research. Firm's 12-month price target is $46, yielding 39% potential upside.Notablecalls: These things tend to move.

Investors turn to the large drug company stocks for several reasons. They are considered recession proof, they are a play on the ageing of the baby boomers, and they are often considered safer and less volatile than most other stocks. Since dividends are so vital to many investors they days, the high yielding big pharmas are of interest. All of the following have yields over 2.5%, PE's below 20, and PEGs below 3.Pfizer Inc. (PFE) Its drugs include Lipitor, Norvasc Caduet, Chantix/Champix, Lyrica, Geodon/Zeldox, Aricept, Zoloft, Celebrex, Vfend, Zyvox, Viagra, Detrol, and Zyrtec, and for animals; Clavamox/Synulox, RespiSureOne/StellamuneOne, Bovi-Shield Gold, Dectomax, and Draxxin. The stock yields 7.5% It has a PE of 12.7 and a PEG of 2.12 .Bristol Myers Squibb Co. (BMY) Its drugs include PLAVIX, AVAPRO/AVALIDE, PRAVACHOL, COUMADIN, REYATAZ, SUSTIVA, BARACLUDE, ERBITUX, TAXOL, SPRYCEL, IXEMPRA, ABILIFY, ORENCIA, and EFFERALGAN. The ...

Community-acquired pneumonia (CAP) occurs when individuals who have not been recently hospitalized develop a pneumonia infection. This disease is the sixth most common cause of death in the United States, affecting people of all ages. If not properly treated, CAP can be fatal. Researchers are finding it harder to treat CAP as it grows more resistant to current antibiotics, leaving drug company researchers scrambling to develop an efficient treatment.

Last week, Advanced Life Sciences Holdings Inc. (Nasdaq: ADLS) and Wyeth Pharmaceuticals, a division of Wyeth (NYSE: WYE), announced they have signed a development and commercialization agreement for an oral antibiotic for the treatment of community respiratory tract infections in the Asia Pacific region, excluding Japan.

Cethromycin is a novel drug, administered once-a-day, which is shown to have a higher potency and broader range of activity than other treatments. According to the press release, during in-vitro tests, Cethromycin appears to be effective

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Wyeth (WYE) is one of the world's largest research-driven pharmaceutical and healthcare products companies. The Madison, New Jersey-based companyÂ’s recent performance has been stunted due to the entry of generic Protonix in late 2007. EPS growth through 2009 will benefit from recently implemented productivity initiatives and share repurchases.

The company has a number of intriguing strategic alliances and potential billion dollar drugs in the late-stage pipeline. Recent pipeline setbacks will cause a drag on financial performance. Upside could have come from a favorable ruling on the Protonix patent but that has now been pushed back to the fourth quarter of 2009. AlzheimerÂ’s candidate bapineuzumab is a potential mega-blockbuster but we question its approvability.

We believe the current valuation is fair given the trade-off between the significant number of pipeline disappointments versus the potential for bapineuzumab to become a mega-blockbuster. We expect 2008 revenue to be up about 5% compared to

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Maverick CapitalMaverick Capital Management Holdings AnalysisThis post is being written as part of HedgeFundBlogger.com's Investment Securities Tool which analyzes the holdings of hedge fund managers.Lee Ainslie started Maverick Capital back in 1993 with $38 million. Nowadays, the fund is worth $10 billion. Ainslie, like many of the other fund managers I've profiled, has a background rooted in learning from legendary great Julian Robertson at Tiger Management. So, due to the fact that these proteges learned from the best and have had great success running their own hedge funds, I continually try to find a reason not to follow these funds. And, needless to say I'm never successful. Some contacts over at Maverick have explained that their hedge fund strategy is straight up stock picking, both long and short. They made ...

Blue Ridge CapitalBlue Ridge Capital | John A. Griffin Holdings AnalysisThis post is being written as part of my Investment Securities Tool which analyzes the holdings of hedge fund managers.Blue Ridge Capital is ran by John A. Griffin. Griffin is similar to Steve Mandel at Lone Pine Capital and Lee Ainslie at Maverick Capital in that they all are 'Tiger Cubs' (a.k.a. pupils of Julian Robertson while at Tiger Management). Griffin though, is more well known because he was Julian Robertson's right hand man. So, needless to say, the dude knows his stuff. Blue Ridge seeks absolute returns by investing in companies who dominate their industries and shorting the companies who have fundamental problems. And, right off the bat that presents us with a bit ...