Big Pharma

On the way upIf you are looking for some good long term advice, keep reading. There is a great company out there, that gets very little media attention, but they quietly go on about the business of saving lives every day. The name of the company is Nektar Therapeutics (NKTR).

One of Nextar's biggest inventions recently was the technology that allows insulin to be administered through a large inhalation device; which was purchased by Pfizer.

Not only that but Nektar has received grants from the American Association of Cancer Research (AARC), but they also have an R&D deal with Bayer Healthcare.

Top Partnered Products: (approved)
Exubera® (Pfizer)
Neulasta® (Amgen)
PEGASYS® (Roche)
Macugen™ (Eyetech)

Nektar will be a great M&A target over the next few years, and with a stock price in the $6 range currently, we are looking for a target at as high as $13.50 per share over the next 24 months.

Rating: Strong Buy


Still just looking up
As for Pfizer things can't get much worse for the stock, which has fallen 57% from its record high in 2000 and 9% over the last 12 months. Blame falling revenues, failed drugs and widespread doubts that it can replace drugs losing their patents, including its blockbuster cholesterol pill Lipitor.But with multiples hitting 10-year lows and U.S. Big Pharma's highest dividend yield -- 5.1% -- investors have little to lose.