Expect AstraZeneca to ride on the coat-tails of Pfizer’s patent victory as they have the #2 product in the sector.
This is a dynamite company anyway with a p/e of just 20 that will be a sector low once the dust clears on PFE and MRK today.
Although I like Merck and Pfizer as well, I think anyone who didn’t buy MRK 2 weeks ago when I recommended it may have missed the bus (or at least the front half).
AZN will make 15% more this year on relatively flat sales, this is something I always like in a company. Also, they are Euro based and get to do all kinds of cool experiments that US companies have to refrain from so I like the pipeline play better.
The Jan $50s are a good buy at under $1.50 (a $1.20 premium) and should be sold with a tight stop once they pass $2. This is a short-term play on the sector but, with PFE gaining 11%, AZN should benefit as well.
