Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Astellas Needs To Pick A Model To Prosper

There are multiple avenues to success in the pharmaceutical industry. Companies can go the Big Pharma route of significant internal R&D development and sales efforts, the Forest Labs (NYSE:FRX) approach of minimal R&D and extensive in-licensing, or the tried-and-true biotech approach of major R&D development with sales handled by larger pharmaceutical partners.

What is more difficult, though, is to do both. While many companies go through an awkward phase where they rely on licensing or co-promotion agreements while building their own sales force (Lundbeck (OTCPK:HLUYY) being a good example), Japan's Astellas Pharma (OTCPK:ALPMY) needs to come up with a clearer strategy and stick to it. As it is, the company's odd mix of...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details