Or is it just healthcare reform risk being correctly priced by the market? Certainly on current fundies they look pretty cheap - solid dividends, low P/Es, and the analysts aren't expecting collapsing earnings anytime soon. They haven't really participated in the rally, some of them are still at Oct 2008 prices. Growth prospects are not amazing but these seem like solid blue chips at a fair price. Any thoughts?
All the talk about drug failures and empty shelves in drug labs has been forgotten. The healthcare gambit hides this reality. Only some well capitalized bond shorters know that the overleveraged mergers will lead to bond sell-offs in the next 12-18 mths. To answer your question, of course they are overvalued. JNJ BMS Biovail Astra Zeneca All good long-term shorts IMO.