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Investors Single Out Their TopGun Investment Targets in Global Healthcare

July 12th, 2011 by TopGun Press

Don’t Think of ‘Me Too’, Think of Me First

PALM BEACH, FL, July 12, 2011 (TOPGUN PRESS) – Performance Advisory Group, Brendan Wood International, today released the results of its Global Shareholder Confidence Poll in the Healthcare industry. US based Allergan Inc. clinched top spot. Investors evaluated Global Healthcare companies on ten core-buying criteria, with the results aggregated into the Brendan Wood Shareholder Confidence Index comprising a panel of over 2,500 global investors. The results link investor confidence and share-price appreciation albeit in an environment where stocks are as likely to trade as a group rather than on their individual merits.

Of the 60+ Global Healthcare companies included in the Brendan Wood Shareholder Confidence Index, only seven managed to achieve TopGun status with index scores above the decisive 800 mark.

The Top Global Healthcare Shareholder Confidence Results are:

Company – Shareholder Confidence Index Score
Allergan Inc. – 945
Teva Pharmaceutical Industries – 897
Medco Health Solutions Inc. – 879
Celgene Corp. – 844
Fresenius SE & Co. KGaA – 813
Novo Nordisk A/S – 809
Novartis AG – 804

Unlike some other more volatile sectors where confidence in the space rises and falls with the changes in the market, Healthcare typically floats around the middle range in terms of investor confidence.

So, how did these companies capture the confidence of investors in a space that is for the most part steady as it goes? Not surprisingly, no one best strategy prevailed.

In the US, Allergan captured the confidence of investors through the strength of its TopGun leadership. TopGun CEO David Pyott, TopGun CFO Jeffrey Edwards and TopGun Board, also led by Mr. Pyott, are cited by investors for continuing to under-promise and over-deliver, a worldwide theme this year. According to investors, they have the right strategy for building their business and tapping growth. They have a “fantastic” diversification strategy and ability to tap under-appreciated markets.

Joining Allergan in the US are Medco Health Solutions and Celgene whose key area of confidence came from their competitive positioning in their respective categories. According to investors, Medco Health Solutions’ management team, which includes TopGun CFO Richard Rubino, although having faced recent hurdles has had the unique ability to position itself in what should be a commoditized business. TopGun CEO Robert Hugin’s Celgene has dominated its therapeutic category and has next generation follow-on compounds in the pipeline that further enhance its competitive position.

Israel based Teva Pharmaceutical Industries makes the cut because it is viewed by investors as being best in class in terms of product diversification, quality and distribution.

The TopGun European Healthcare companies that made the list, Novo Nordisk, Novartis and Fresenius pit organic growth against serial acquirors. According to investors, the confidence in Novo Nordisk is partly due to its strong organic growth. The company has been focused on diabetes care for all of its history however it has had plenty of opportunity to acquire additional business legs. The biggest call on what to do with the company was to not invest in shorter-lived drug development which has proved to be exactly the right one for TopGun CEO, Lars Rebien Sørensen, and his Novo Nordisk management team.

On the other hand, Swiss based Novartis, whose management team also includes a TopGun in CFO Jonathan Symonds, is seen by investors as a serial acquiror. Although sometimes knocked for paying expensive prices, investors have cited Novartis’ pre-emptive acquisitions as a contributing factor in their confidence in Novartis’ long term growth potential. Such acquisitions are viewed as part of a strategy to avoid the effects of patent expiries. German based Fresenius joins Novartis in the elite group and has historically been viewed as an active acquiror as well.

In Global Healthcare, unique strategic differences trump “me too” propositions in gaining the confidence of the highly specialized Healthcare investors and broker analysts who message the street.

TO DISCUSS THE RESULTS Learn more about the implications of this worldwide poll by contacting the project leaders. Brendan Wood International is a Performance and Career Advisor assisting both firms and individuals. The firm has conducted more than 1,000 offsites and management strategy sessions for financial institutions and corporations worldwide. Brendan Wood seeks out optimal financial service relationships for corporations and places TopGun executives and investment professionals in senior rainmaker assignments.

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Amanda Knott
+1 416 924 8110

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