J&J: Thoughts On Sirukumab And Other Problems

9/25/17

Background

In my 8 articles on Johnson & Johnson (NYSE:JNJ) over the past 3 1/2 years, I have alternated between liking the stock and being neutral on it - I've never been negative. However, the most recent article, written in July, was titled "J&J: Some Good News, But Here's Why It's Dropped A Level Or Two." That article, written with the stock at $135 versus $131 at Friday's close, serves as a relevant counterpoint to this one, which lists several legal issues which both challenge the company's adherence to its highly promoted "Credo" and may challenge its finances. The points made in the July article focused on operational problems that I thought made JNJ just another large corporate name on which I was neutral.

In the article, I specified Bristol-Myers Squibb (NYSE:BMY) as a superior choice for pharma-biotech investors. Since then, BMY has risen from $55 to $63 (I am neutral on new money investing in the stock right now), so the "meh" on JNJ and "like" for BMY was a good paired "trade" over this short, 2-month time frame.

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