Welcome back! We hope everyone had a wonderful Valentine's Day and apologize for blogging irregularly! This post will be rather lengthy and will include all the pharmaceutical companies we have yet to speak about.
Accuray (ARAY): Accuray focuses on robotic radio-surgery systems, and was established in 1990. The CEO is Euan Thompson. This company currently sells stocks for about $4.50, confirming our predictions over two months ago prices would severely fall. Since the beginning of the recession in 2008, Accuray has not done well; it sold shares for almost $30 but the cuts in employment and profits caused major problems, which consequently took their toll on the stock market. In late November, it was first rated an 'underperform' by many analysts. Releases later in 2012 showed that profits were only a mere 50% of the expected performance. When we first looked at the company, it was selling for $6.49, but we advised our members to not invest, and it has since hit a trough. We expect a slight increase in profits over last quarter, depending on lab results, but still do not advise investing in ARAY.
AstraZeneca (ANZ): Established in 1992, AztraZeneca is a tad younger than Accuray, and instead focuses on prescription medicine (you may recall "AztraZeneca may be able to help" from many commercials). The current CEO is Simon Lowth. Shares of ANZ currently sell for about $45-46, about the same as prices since 1998. We expected a strong surge of growth at the end of last year, following the signing of new major contracts and promising drug trials. Indeed, until late-January, AztraZeneca experienced strong growth on the market. Unfortunately, analysts predicted below-prediction earnings and share prices have been falling since. As the news wear off, we expect more investment into the company and expect prices to increase again.
BioTime (BTX): BioTime is a company established in 1990, and now headed by Michael West, that concentrates on regenerative medicine, including but not limited to stem cells and neural diseases. As with AztraZeneca, we predicted sustained growth due to good drug results. At this same time, we bought stocks at $3.29, and they reached a high of about $4.70. This was a 42% increase over our purchase price, and a significant source of income in our simulated investments (with $50,000, one could have bought more than 15,000 stocks and made $20,000 in profits). More companies are now approved for stem-cell research and testing, creating more competition. Although BioTime is one of the strongest companies in the industry, investors are now also visiting other options that may prove more lucrative. We advise to remain neutral in investing in BTX; stock prices should not fluctuate significantly over the next few weeks, but we expect slight growth in the long term.
DepoMed (DEPO): DepoMed focuses mainly on central nervous system research and disease treatment. The company was established in 1995 and the current CEO is James Shoeneck. Our first stock market impression of DEPO was of severe instability, alternating up to 75% in a single year. However, more recent observations suggest improving results, thus more investors. After hosting a medical conference, they were named leader in pain medication, and have since gradually gained investor momentum, gaining about 18%. We encourage investment in DepoMed, but make sure to sell your stocks if another company releases excellent results.
Johnson & Johnson (JNJ): Johnson and Johnson is one of the older pharmaceutical companies, dating to 1887, taking a head start into development of health care products. Headed by CEO Alex Gorsky, JNJ sells stocks for about $76. The company saw tremendous sustained growth with the Information Era and slight yet gradual growth since. One of the major results sending JNJ above the $60 was the announcement of the expansion of the psoriasis drug, which treats multiple immune inflammatory disorders. As more suppliers and hospitals buy the drug, the company keeps gaining investors and stock price is about to reach an all-time high. We advise to invest in the company, unless lawsuits from the recent hip replacement recalls cause lawsuits.
Pfizer (PFE): The oldest of our group, the 1849 Pfizer (originally known as Charles Pfizer & Co.), focuses on disease treatments and medicine. The company is headed by Ian Read and stocks sell for about $27. PFE held a constant decline of investment from the Information Era until the 2008 Recession, and now seems to maintain constant growth. The decision to acquire NextWave Pharmaceuticals late last year allowed Pfizer to gain new patents and new grounds in the market, including strong foundations for ADHD medication. The recent split between Pfizer and its animal division, Zoetis (ZTS) is attracting more investors as the focus of the company turns to humans only. Releases of testing for the Lyrica drugs, aimed at curing fibromyalgia (chronic pain), and improved results on stage 3 and 4 cancer also draw in investors. We also encourage investment in PFE and expect growth over the next months.
