Archive for September, 2011

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CMS Starts to (Kind of) Publish AMP – Why This Matters

Generic dispensing (i.e. gross) margins are far higher than branded dispensing margins throughout the drug trades (wholesalers, retailers, and PBMs). In our view this is primarily due to the traditional use of average wholesale price (AWP) as a benchmark for

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Patent Wars!

  Mobile patents were hot before Google’s purchase of MMI and its IPR portfolio.  Since then, the tortuous legal process for sorting out the IPR mess has a dominant topic for investors.  Market leaders are tactically litigating against one another

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A Simple Formula for Drug (and Biotech and Spec Pharma) Stock Selection

Therapeutic (drug, biotech and specialty pharma) stocks tend to gradually outperform their peers in the year or so preceding and following major anticipated product approvals. The exception is the period immediately surrounding the scheduled regulatory action, where risks are skewed

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Quick Thoughts: Zagat – Great for Google, Tough for Yelp, and No Problem for OpenTable

Given the slight uptick in Google shares on an otherwise down day, the early reviews on the company’s acquisition of privately held Zagat are positive.  We agree – combining Zagat’s comprehensive user ratings and reviews of restaurants and other local

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TMT in 2Q11: Debt Crisis Aftermath Leaves Value Opportunities in Growth Themes

The 2Q11 earning season was obviously eventful, with wrangling over the US debt limit a catalyst for a major rerating of the entire market.  Against this, technology, despite its unusually low relative valuation, performed in line vs. the broader index. 

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