December 7, 2006

December 7, 2006
By Richard C. Young

Below are excerpts on Pfizer and Johnson & Johnson from the August issue of the Intelligence Report, along with my latest advice on why J&J
is still the right move for us.

Pfizer: Not on my Monster Master List now because I have reservations about statin drugs. Pfizer did $12.5 billion in revenues in
Lipitor in 2005 and it’s running full-page color ads in the WSJ portraying Dr. Robert Jarvik, inventor of the artificial heart, flogging Lipitor.
I’m real uneasy here!”

Johnson & Johnson (NYSE: JNJ): The company is paying $16.6 billion to Pfizer for a nice portfolio of stable brands, including Listerine,
Visine, and Lubriderm. PFE can now spend additional huge sums promoting drugs that give me pause. J&J is your play.”

On December 2, Pfizer announced it was halting clinical trials on a Lipitor combination drug in development due to an unexpectedly high death rate.
The stock dropped 10% on the news. The chart below compares the performance of Pfizer vs. Johnson & Johnson since the release of the August Intelligence
. J&J is still your play.

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