The pro football season kicks off tonight, and the Fool is getting in the spirit. Our fantasy team might just help you tear up the investing gridiron! Head this way to read all about the starting lineup.
These picks aren't drug companies to provide steroids for your fantasy football players. Instead, I've got three drug stocks that could play offense, defense, and special teams on any Pro Bowl team.
My pick for offense, Barr Pharmaceuticals (NYSE: BRL ) , has quite a few plays up its sleeves -- more than 550, to be more specific, since that's the number of products it markets globally. The generic pharmaceutical company isn't as big as Teva (Nasdaq: TEVA ) or Novartis (NYSE: NVS ) , but its smaller size hasn't stopped it from trying to capture its share of first-to-file Abbreviated New Drug Applications.
The company has an all-star roster, including the running back Pliva, whose acquisition last October opened up 30 new global markets for the company. The company's lawyers play tight end. Sometimes they stay in to block, but usually they go out for a pass by trying to break patents of brand-name drugs.
The company is starting its backup quarterback, Plan B -- commonly referred to as the "morning after" pill. The drug had a rocky start, but the FDA approval to allow the drug to be sold over the counter last year has caused sales to nearly double. Barr is trying to get restrictions loosened so that people under the age of 18 could buy the drug. The move is far from a Hail Mary and could further increase the drug's sales.
Offense may be exciting, but it's defense that wins championships and keeps your portfolio from spiraling downward. Large pharmaceutical companies such as GlaxoSmithKline (NYSE: GSK ) can do just that. Its sheer size means that minor hiccups with FDA approvals don't cause major stock declines like you see with developmental-stage drug makers.
Glaxo's 3.9% annualized dividend plays free safety; the free quarterly payout is one of the reasons the company was picked for our Income Investor newsletter. Its strong safety counterpart is the decent revenue growth it experienced in the most recent quarter thanks to new weight loss drug Alli.
Playing middle linebacker and hoping to squash any viral running backs is Glaxo's new human papillomavirus (HPV) vaccine candidate, Cervarix. The vaccine is awaiting marketing approval and would compete with Merck's (NYSE: MRK ) Gardasil, which is already approved.
Finally, what football team would be complete without a strong special teams group to run back kickoffs and punts? Rule Breakers pick Omrix Biopharmaceuticals (Nasdaq: OMRI ) could double as the team's trainer, since two of its drugs are used to stop bleeding. The company has hired a free agent, Johnson & Johnson's (NYSE: JNJ ) wound-management division, which it uses to sell its biosurgical products. I don't think we'll see a lot of trick plays from Omrix, but its recently approved thrombin product has the potential to be run back for a touchdown. It had better hurry up and establish its game plan, though; ZymoGenetics' recombinant thrombin is up for FDA approval early next year.
The greatest thing about being a drug stock investor is that there are so many different types of companies to invest in. From big pharma to small biotech, there's a game plan to fit any portfolio.
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