Sanofi-Aventis and Bayer are Pharma's Biggest Gainers on Barron's Most Respected Company Survey
The following article has been posted on
The Actionable Ideas Blog by
Julie Huang, President of
Kaimen Company.
"The World's Most Respected Companies" is Barron's cover story for the week of Monday, February 15, 2010. Barron's Reporter Vito J. Racanelli writes about Barron's 6th Annual Survey of money managers who indicated their level of respect, defined from "highly respect" to "don't respect", of the world's 100 companies based on market capitalization at the end of 2009. Johnson & Johnson took the #2 spot this year, down from the top spot it held in 2009.
This blog post takes a quick look at major changes in this year's rankings among the pharmaceutical and medical companies. Keep in mind that this Barron's report is coming out right before the earnings season.
2010 Pharma/Medical Companies with the Biggest Gain:
Sanofi-Aventis(up 17 points) and Bayer (up 14 points)
Sanofi-Aventis went from #67 in 2009 to #50 in 2010 (up 17 points). Bayer went from #45 in 2009 to #31 in 2010 (up 14 points). Other pharmaceutical and medical companies that saw improvements in their rankings included:
• Novartis: up 3 points from #30 in 2009 to #27 in 2010.
• Roche: up 3 points from #41 in 2009 to #38 in 2010.
• GlaxoSmithKline: up 2 points from #38 in 2009 to #36 in 2010.
• Pfizer: up 1 point from #55 in 2009 to #54 in 2010.
2010 Pharma/Medical Companies with the Biggest Slide:
Abbott and AstraZeneca
Both Abbott and AstraZeneca lost 9 points. Abbott slid from #15 in 2009 to #24 in 2010. AstraZeneca slid from #52 in 2009 to #61 in 2010. Other companies in the industry that slid in the 2010 Barron's Respect Rankings include:
• Amgen: down 4 points from #25 in 2009 to #29 in 2010.
• Johnson & Johnson: down 1 point from the top spot in 2009 to #2 in 2010.
• Merck: down 1 point from #32 in 2009 to #33 in 2010.
After Hours Trading
At the time of this blog post:
• Bayer (BAY): trading up 1.43%
• AstraZeneca ADR (AZN): down 1.08%
So, share your thoughts and write in your comments to:
1.What do you think Sanofi-Aventis and Bayer did right in 2009 to earn them the respect of investors? In other words, what can other companies learn here?
2. What advice would you give to Abbott and AstraZeneca?
3. Should companies care about this survey?
My disclosure: Neither Kaimen Company nor I own any stocks of the companies mentioned in this blog post. In addition, Kaimen Company and its employees, including myself, currently do not represent any of the companies mentioned in this blog post.
@2011 Kaimen Company.