New products may trump threat from generics.
Life science and diagnostics firms offer attractive growth and moats, but be wary of valuations.
As a result of the ruling, we’re raising our fair value on Fresenius and lowering our fair value on Akorn.
Although first-quarter results showed positive signs, debt remains a significant concern.
Clinical trial requirements and the lack of interchangeability mean that Botox remains a wide-moat franchise.
The wide-moat firm hasn't yet faced competition for Restatsis, so we think our fair value estimate stays mostly intact.
The stock price implies the worst-case scenario for this wide-moat company.
Concerns about generic Restasis and longer-term Botox competition are manageable challenges for this wide-moat company.
The drugmaker must still contend with extensive competition in the generic drug industry and high financial leverage.
We think generic competition on Restasis is manageable and that Allergan has an innovative pipeline and strong aesthetics business.
We're increasing our fair value estimate on the former and decreasing our fair value on the latter, due to Mylan's approval of it generic version of Teva's Copaxone.
Kare Schultz's familiarity in branded drug markets lead the firm to take on more product development risk longer-term, with purchases of earlier-stage products and more dramatic asset sales.
Removing Opana from the market adds another headwind to this high-risk firm's competitive pressure in its branded and generics segments, high financial leverage concerns, and ongoing mesh litigation.
We're increasing our fair value estimate on the narrow-moat company to reflect higher margin assumptions.
Increasing competition in the U.S. generics business and past poor capital-allocation decisions diminish our confidence in future economic profits.
The generic drug industry faces several challenges, but long-term, patient investors could consider no-moat Teva and Mylan.
The market is too harshly penalizing the company for the large challenges it faces in both its generics and branded segments over the coming years.
We continue to have modest expectations for new products and the pipeline.
Fear could create opportunity, but we advise investors to proceed with caution.
The company is a likely takeover target, thanks to its focus on more complex generic drug products.
The FDA's warning letter issued on a key generic Copaxone 40mg manufacturing facility owned by Pfizer does not affect our long-term view of this no-moat drugmaker.
Although we think the narrow-moat drugmaker looks undervalued, the company continues to face significant challenges as it transitions to a new CEO and from the potential upcoming competition on Copaxone.
The narrow moat company's results and announcements give us confidence in its ability to drive innovation in the genome sequencing market and maintain its competitive advantage.
Management's new projections show greater weakness beyond our original expectations, stemming almost entirely from the generics segment.
Pricing pressure in the generic drug market and anticipated generic competition on the one of the narrow-moat company's main drugs in 2017 makes the abrupt leadership change a concerning development at a critical time for the company.
The underpriced wide-moat drugmaker boasts an attractive product portfolio, healthy pipeline, and clean balance sheet.
The wide-moat company looks well positioned for long-term growth.
Though low earnings multiples are justified for many companies in this beleaguered industry, a handful of players look relatively safe and undervalued at current levels, says Morningstar's Michael Waterhouse.
The stock looks undervalued as accounting issues temporarily detract from an attractive business.
We're lowering our fair value estimate for Valeant and expect near-term volatility to remain extremely high for this undervalued firm.
The wide-moat firm also is undervalued on a stand-alone basis.
Shares of the embattled firm will still look undervalued, but investors need to remain very cautious.
The company faces near-term challenges after the split, but we still like its moat.
Product durability, diversification, and cost synergies support strong earnings growth for this undervalued wide-moat firm.
Actavis' transformation to a wide-moat company following its deal with Allergan represents a good buying opportunity for long-term investors.
Continued technology advancements and market expansion support Illumina's narrow moat.
Distributors Henry Schein and Patterson should be able to maintain their competitive advantages over the long run and deserve a spot on investors' watchlists.
Brand recognition and product innovation keep the firm's moat wide.
We've upgraded our moat ratings for Henry Schein and Patterson Companies to wide on distribution network cost advantages and high switching costs among their fragmented customers and suppliers.
Greater accountability creates a new level of operating uncertainty.
The large manufacturers shouldn't have much trouble with the new requirements, though.
No-moat health service providers are most challenged by industry uncertainty.
Emerging markets will be the next frontier of generic drug industry M&A.
The industry must spend again as patient volumes pick up.
As the generic industry consolidates, we predict what the future may hold.