Large Cap Biopharmaceuticals Metrics And Review: JNJ Splits Up

Large Cap Biopharmaceuticals Metrics and Review

  • Stock Performance was mixed across the sector so stock picking was key.
  • The biotech sector underperformed as shown by the IBB flat YTD.
  • Our top picks were Abbvie (ABBV), Merck, Regeneron (REGN), and Roche (RHHBY).

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Throughout 2021 we emphasized large-cap biopharmaceuticals as a core holding in your healthcare portfolio. We developed this model with diversification from medtech and life science tools. When the antiviral news broke we were holding a little Merck and Pfizer which only recently caught up. The following large caps are at or near 52-week highs: ABBV, GSK, LLY, PFE, and RHHBY. Good performance was achieved in slower growth value plays with good dividends: GILD, GSK. We traded LLY which is the best performer in 2021 but has become very expensive with a Price to Sales of 9.26 and a forward PE of 31.72. The LLY chart shows a double top at $270

Laggards were BIIB still up YTD despite selloff from Aduhelm AD drug; and VRTX which is tradable for a potential deal. Amgen is another laggard down 8% YTD because of lackluster growth,

Today JNJ announced a split of the Company separating its legacy consumer products from higher growth growing biopharmaceutical and medtech products. The response was good but the stock rose only 1.34% to the $165 level. JNJ was $180 in August.

We will update this post through January 2022 at the time of the JPMorgan Healthcare Conference.

    1/15/18 11/11/21 11/1/19 2021 YTD   FWD Analyst %  
          $B   P/S PE Recom Div  
Abbvie ABBV 100.000 116.63 81.75 206.2 8.85 3.73 8.4 1.9 4.46  
Alexion*(ALXN) ALXN 123.000 182.5 109.38 40.33 n/a 4.56 9.38 2.2  

*acquired by AZN

Amgen AMGN 185.000 211.56 221 119.2 -8 4.69 11.7 2.5 3.33  
AstraZeneca* AZN 35.000 62.92 40.34 196.4 25.9 6.76 15.81 1.6 2.23 see ALXN
Biogen BIIB 336.000 266.57 299.2 39.16 8.87 3.55 14 2.3  
Bristol Myers* BMY 63.000 59.19 57.16 131.4 (4.4) 2.88 7.56 2 3.31  
Celgene* (BMY) CELG 106.000 n/a 108.53 77 n/a 4.69 8.7 n/a  

*acquired by BMY

                       
Gilead Sci GILD 79.000 67.43 64.66 84.6 12.18 3.08 9.93 2.4 4.21  
GlaxoSmithK GSK 38.000 43.23 45 108.76 17.47 2.39 13.51 2 5.02  
Eli Lilly LLY 85.000 262.6 113 251.2 51.55 9.26 31.72 2.2 1.29  
Merck MRK 59.000 84 84.94 212.2 7.64 4.95 11.48 2 3.09  
Regeneron REGN 367.000 626.6 310.48 70.9 29.7 5.24 13.61 2  
Vertex VRTX 158.000 185.9 215.21 48.6 21.35 6.81 13.95 2  
                       
XBI     124.62 83.66   -10.28          
IBB     169.4 109.85   1.27          
FBIOX     22.45 20.26   -13.07          
XLV     133.69 94.87   17.37          
XPH     50.06 39.47   -2.23          
QQQ     368.82 201.23   24.5          
         
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