< The 2014 All-Europe Research Team Richard Vosser & team J.P. Morgan Cazenove First-place appearances: 2
Total appearances: 11
Team debut: 2006 J.P. Morgan Cazenove slips one spot to No. 3 in this sector, which newly combines the Biotechnology (where the firm held third place last year) and Pharmaceuticals categories. Newcomer Richard Vosser assumed leadership of this party of six from Alexandra Hauber, who jumped to UBS in the fall. The London- and Mumbai-based analysts cover 24 companies, delivering what one client terms “deep pipeline analyses, often unconventional views and good knowledge of the small- to midcap space.” Germany’s Bayer is the team’s favorite name going forward. “We see the potential for further Xarelto-driven upgrades,” says Vosser. Xarelto is a prescription medicine used to reduce the risk of stroke and blood clots in people with common cardiac arrhythmias. “Our above-consensus estimates for Xarelto helped drive our core [earnings-per-share] forecasts 1 to 5 percent higher than consensus for 2014 to 2016,” he says. Moreover, the analysts believe that other product launches may well contribute to better-than-expected sales this year as well. In general, they are cautiously optimistic about the sector’s prospects, advising that although a return to top-line growth and contributions from increasing pipelines are likely, the group’s upside potential appears less robust than it was last year.