Monday, April 21, 2008

Depressed About Stocks? How about Anti-Depression Drug Stocks?

In the United States, approximately 14 million adults per year are affected by depression, and according to the World Health Organization, depression causes the suffering of an estimated 121 million people throughout the world and is expected to become the second leading cause of disability worldwide by the year 2020. With these numbers, the demand for antidepressants is expected to grow significantly

Eli Lilly & Co. (LLY) has the eighth best selling drug, Zyprexa, used to treat schizophrenia, and has a patent expiration of 2011. It also has Cymbalta for treating depression. Lilly has a PE of 19, a PEG of 1.81, and a yield of 3.6%.

Forest Laboratories Inc. (FRX) has the drug Lexapro, also known as Cipralex which expires in 2012. The drug is an antidepressant used to treat depression and anxiety disorders. The stock has a PE of 23, and a PEG of 1.1.

AstraZeneca plc (AZN) has Seroquel, an antipsychotic used to treat schizophrenia and the 16th best selling drug, expires 2011. The stock has a PE of 11, a PEG of 2.77, and pays a yield of 4.6%.

Wyeth (WYE), the pharmaceutical company based in New Jersey, manufactures Effexor, the brand name for Venlafaxine, used to treat depression and anxiety disorders. This drug, which was the 13th best selling pharmaceutical, first got approved in December 1993. The stock has a PE of 13, a PEG of 3.01, and a yield of 2.6%.

Pfizer Inc. (PFE) has Zoloft, the brand name of Sertraline, which is used to treat depression and anxiety disorders. The drug got approval December 1991. The stock has a PE of 18, a PEG of 2.03, and has a 6% yield.

Glaxosmithkline plc (GSK) produces Wellbutrin, used for the treatment of depression and seasonal affective disorder. The drug got approval in August 2003. It also has Paxil, also known as Seroxat, for depression. The stock has a PE of 12, a PEG of 4.21, and a yield of 5.6%.

Author owns PFE.

By Fred Fuld at

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