(Large-cap) stocks provide the same relative safety and advantages that large-cap drug stocks provide. Despite the economic environment, people do need their drugs. Large-cap drug stocks are seen as a safe haven with relatively inelastic demand. |
I think the earnings thing was the big thing. And even before that figure was announced, the earnings for the year had been downgraded from above $5 a share for the past two quarters. |
In order for the small caps to really come back into favor, I think some of the valuations of these drug stocks will have to either remain where they are or come down a bit. |
People have come to expect that. We did see some exciting drugs, we did get to see some new things. But it might have fallen short of past meetings. |
The patents that are expiring make up a significant portion of their results. They're not going to be one of the top growth stories -- probably only single-digit (percentage-wise) in 2000 and 2001. |