second team Jamilu Rubin Goldman Sachs
third team C. Anthony Butler Barclays
Timothy Anderson of Sanford C. Bernstein climbs one level to lead the sector for the first time. Anderson, 41, “has the best sense of how M&A adds up in the long view,” says one buy-sider who made money by following Anderson’s long-term buy on Schering-Plough Corp. The San Francisco–based analyst first recommended the Kenilworth, New Jersey–based drugmaker two years ago on the strength of its product pipeline, and he has been highlighting the call ever since. In March, Merck & Co. of Whitehouse Station, New Jersey, announced it would acquire Schering-Plough in a cash-and-stock transaction worth $23.61 per share — a 33.9 percent premium above the closing price the day before the merger was announced. The deal is expected to close by the end of the year. Anderson earned an MBA at the University of Chicago in 1994 and worked as a pharmaceuticals analyst at Prudential Equity Group before moving to Bernstein in 2007.
Jamilu Rubin, who catapults from runner-up to second place, “has a comprehensive vision that translates into concrete trading ideas,” asserts one client. The Goldman Sachs analyst reiterated her conviction buy on Wyeth in November, telling investors the Madison, New Jersey–based outfit was an attractive acquisition target. Wyeth agreed in January to merge with New York–based Pfizer in a $61 billion deal that is expected to close in the fourth quarter. Wyeth’s stock surged 47.5 percent from Rubin’s reiteration through August. During the same period the sector advanced 12 percent.
C. Anthony Butler of Barclays Capital repeats in third place. “He’s constantly hunting new trading ideas that fit our needs,” says one buy-side enthusiast. Butler also is appreciated for highlighting his long-standing outperform call on Merck, which was ahead of the sector by 5.1 percentage points for the 12 months ended August 31.
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