Strong Keytruda outlook helps mitigate upcoming patent losses.
We think the market is not anticipating enough declines on several complex drugs due to generic and biosimilar pressures.
Opdivo setback aside, drugmakers Bristol, Merck, Roche and AstraZeneca are well positioned to reinforce their economic moats with transformative new immuno-oncology drugs.
Overblown concerns over drug pricing in the U.S. are creating attractive valuations for the more innovative drug companies.
Although some proposals could trim growth prospects, they shouldn’t have a major impact on more innovative drugs.
If the plan were to take shape, less innovative generic drugs and older branded drugs would be the likely targets for price controls.
Despite the high price paid, we don't expect any major changes in Pfizer's fair value estimate.
Anti-NGF drugs are a risky bet but could be a bonanza opportunity for Pfizer, Lilly, and Regeneron.
Bristol's poor trial results with key drug Opdivo open the door for Merck’s Keytruda to gain share.
Investors are underestimating the strong pricing environment for drugs that target unmet medical needs, like pain management.
We think the market underappreciates the depth of the firm’s pipeline and potential to increase margins.
The next generation of immunology drugs will help Eli Lilly navigate the shifting pharma landscape.
We plan to raise our fair value for the pharma giant after second-quarter results, but valuation remains rich.
Despite healthcare valuations increasing, we still see some stocks as undervalued, with opportunities in the drug and device areas.
We continue to think the shares are undervalued.
An anticipated slowdown in pharma giant’s drug business gives us some pause on the firm’s current valuation, but its long-term competitive advantages are intact.
New rules from the U.S. Treasury may put a damper on the Pfizer merger, but Allergan remains an attractively priced wide-moat company nonetheless.
Concern over unlikely U.S. drug pricing reforms has led to favorable valuations in healthcare.
Investors' concerns over the impacts of slowing global growth and drug pricing are overdone, leaving some quality names undervalued.
The pharma giant is mitigating its patent losses, and we think it's undervalued.
We think the market is underestimating the pharma giant’s long-term earnings potential.
Headwinds from the firm’s drug business shouldn't derail strong returns over the long run, says Morningstar’s Damien Conover.
While valuations in healthcare stocks have improved, we still see opportunities in these undervalued companies.
With manageable patent-loss exposures and strong pipelines, Big Pharma is the best positioned it has been since 2005.
The pharma megadeal strategically strengthens Pfizer with a lower tax rate and an increased growth profile, writes Morningstar’s Damien Conover.
We're increasing our fair value estimate on the pharma giant after a strong third-quarter update, says Morningstar's Damien Conover.
The wide-moat pharma firm’s third-quarter results were slightly ahead of our expectations, and we think the market continues to underappreciate the value of the company’s pipeline, writes Morningstar’s Damien Conover.
Given the stock's major pullback on the discontinuation announcement, we now see Lilly as fairly valued.
We see several stocks with attractive valuations across the different health-care industries.
The worst of the patent cliff is past, and we expect strong returns on invested capital over the long term.
Merck and Biogen boast strong pipelines and are in strong positions for long-term growth--and they're undervalued, says Morningstar's Damien Conover.
Increasing commotion over its branded drugs and a device segment that seems to lack innovation will hold back J&J’s revenue growth in the coming years.
Despite the sector looking slightly overvalued, we still see stocks with attractive valuations across the different industries.
Positive trial data for diabetes drug Januvia and strong first-quarter results keep Merck's stock undervalued and its wide moat intact.
New products will secure the drug firm’s wide moat and help increase the firm’s valuation over time, writes Morningstar’s Damien Conover.
Strong drug sales helped wide-moat J&J report a steady quarter, but increasing competitive threats to leading drugs and a relatively weak late-stage pipeline will be headwinds in the future.
Despite the sector looking slightly overvalued overall, we still see stocks that offer attractive valuations across the different industries.
Despite the high 39% premium to Hospira's stock price, we believe the acquisition price is justified based on Pfizer's ability to unlock more value with its global reach.
Despite an improving pipeline and slowing patent losses, a lackluster growth outlook will likely drive Pfizer to acquire assets in the near term.
The pharmaceutical giant turned in an in line fourth-quarter, but new competition and a strong dollar will slow growth in 2015, writes Morningstar’s Damien Conover.
While the sector looks slightly overvalued overall, we still see several stocks that offer attractive valuations across the different industries.
The drugmaker faces less long-term volatility as the focus shifts to steady businesses.
New drug launches are helping offset tepid consumer and device growth, but competition will likely weigh on the health-care giant next year.
While the sector looks fairly valued overall, we still see several stocks that offer attractive valuations across the different industries, including pharmacy benefit managers.
The company's diverse operating divisions and robust pipeline should lead to steady growth.
Unexpectedly robust sales of hepatitis C drug Olysio helped lift the drug giant’s pharma segment, while medical devices struggled, says Morningstar’s Damien Conover.
Despite full valuations overall, we do see some opportunities, especially in pharmacy benefit managers.
While Merck gains access to important next-generation hepatitis C drugs, we believe the acquisition price overvalues the pipeline assets.
The sale to Bayer monetizes Merck's consumer unit at a strong valuation, and removes Merck from an area where it lacks scale.
Cost-cutting, tax opportunities, and oncology synergies are motivating factors for Pfizer, and the firms will likely agree to merge, says Morningstar's Damien Conover.