The 2013 All-America Research Team: Pharmaceuticals/Specialty, No. 3: Christopher Schott

Christopher Schott
J.P. Morgan

First-place appearances: 0

Total appearances: 3

Analyst debut: 2011

Rising to third place after two years as a runner-up is J.P. Morgan’s Christopher Schott, who also captures a runner-up position in Pharmaceuticals/Major. “We continue to see the sector as well positioned,” Schott says, “driven in part by the wave of consolidation occurring across the space.” In this light he has continued to urge clients to buy Actavis, a Parsippany, New Jersey–based generic drugmaker he deems ideally poised to profit from the space’s rapid M&A activity. Schott reiterated his long-standing overweight rating on the shares in March, at $89.86, on potential earnings-per-share upside into 2014. In late May, Actavis and Irish rival Warner Chilcott announced their intention to merge, prompting the analyst to add Actavis to his focus list in June, at $125.09. “The company’s pending merger with Warner Chilcott could result in earnings nearly doubling by 2015,” he says. The deal is expected to close by year-end, and from March through August the stock surged 50.4 percent, to $135.18. “Chris does great in-depth work,” cheers one money manager. “He not only understands the deep fundamentals for dedicated health care investors, but he also does bigger-picture sector calls for generalists.” — Leslie Kramer