Michael Moore vs. Big Pharma

His critics claim that Michael Moore hates America. His fans reply that he just wants to hold big corporations such as General Motors (NYSE: GM), Ford (NYSE: F), Nike (NYSE: NKE), Wal-Mart (NYSE: WMT), and Kmart accountable for their actions. In a series of documentary films, each the commercial equivalent of a political attack ad (followed up by this year's Fahrenheit 9/11, an actual political attack ad), Moore has targeted all of the above companies, beginning with his Roger & Me in 1989, followed by The Big One in 1996 and then Bowling for Columbine in 2002.

Next up, Big Pharma. According to reports initially published in the Los Angeles Times, several of the major pharmaceutical companies, including Pfizer (NYSE: PFE) and GlaxoSmithKline (NYSE: GSK), are warning their employees not to talk with any portly gentleman wearing a baseball cap, sporting a five o'clock shadow, and asking uncomfortable questions. Especially if he has a camera team in tow.

Considering the amount of bad press the industry has encountered lately -- beginning with Merck's (NYSE: MRK) Vioxx recall, running through Pfizer's own problems with Celebrex and now into Bayer's naproxen -- it's no surprise that the drug industry has emerged as a big, fat blip on Moore's radar. But what does this mean for investors?

If you already own stocks in this industry, then get set to hunker down. Hopes that the storm of controversy has passed appear to be premature. This story has legs, and Moore is aiming to run with it for all it's worth.

Meanwhile, value hounds like our own Philip Durell can be forgiven if they're salivating at the prospects of Moore helping to beat down the stock prices of the perennial cash-cow pharmaceuticals. Where there's panic in an industry and fear and loathing among its investors, there's likely to be an overreaction that will bury stocks that possess inside value under a ton of bad publicity. The time may not be far off when we'll have a whole passel of great drug stocks to choose from, each selling for somewhere between a reasonable price and a significant discount to intrinsic value.

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Fool contributor Rich Smith owns no shares in any of the companies mentioned in this article.