Big Pharma is Getting Killed

In case you have not heard, the stocks of the largest pharmaceutical companies are getting killed. Bristol-Myers Squibb (BMY), Merck (MRK) and Schering-Plough (SGP) are down more than 60 percent from their recent highs. Pfizer (PFE) and Eli Lilly (LLY) are down over 40 percent. Company and product specific problems and the general malaise hanging over big pharma have brought down prices.

Big Pharma Stock Prices
Stock	Symbol	Price*	High Price**	High Price Date	Change Price
Abbott Laboratories	ABT	$45.02	$50.28	01/31/2002	-10.46%
AstraZeneca	AZN	$37.60	$50.51	03/09/2004	-25.56%
Bristol-Myers Squibb	BMY	$23.44	$62.42	10/28/1999	-62.45%
GlaxoSmithKline	GSK	$44.57	$62.56	01/06/1999	-28.76%
Eli Lilly	LLY	$54.24	$99.95	08/08/2000	-45.73%
Merck	MRK	$28.05	$80.15	12/28/2000	-65.00%
Pfizer	PFE	$24.16	$45.76	07/11/2000	-47.20%
Schering-Plough	SGP	$18.56	$54.24	12/19/2000	-65.78%
Wyeth	WYE	$39.63	$62.21	04/04/2002	-36.30%
* As of 01/31/2005 ** All time high or last major high.

On the other hand Johnson & Johnson (JNJ), is making news highs and Novartis (NVS) is on the upside.

So are the big losers a buy, sell or hold? BMY and MRK sport hefty dividends yields of 4.77 percent and 5.42 percent which make them somewhat attractive. But stocks that are on the downside tend to keep going down, so the prudent investor should avoid these stocks.

If you own any of these stocks, learn about their specific problems. And if you can stomach the pain of owning them, hold on until prices move back to the upside.