First, the stocks to sell. Pfizer’s two major franchises, Lipitor and Norvasc, are already feeling pressure from generics. The company’s only worthwhile pipeline drug, torcetapib, was discontinued. With both patent expirations and a weak pipeline, there’s just no reason to own this stock, Cramer says.
Johnson & Johnson is no better. The company’s biggest drug, the anti-psychotic Risperdal, goes off patent next year, and its replacement, Invega, is off to a bad start. Even worse: From 2008 through 2012, one of JNJ’s major drugs goes off patent every year.
“Sure, Warren Buffett likes the stock,” Cramer says, “ but I think this is one of those times when Buffett is wrong.”
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