second team Gregory Gilbert BofA Merrill Lynch
third team David Steinberg Deutsche
Aaron (Ronny) Gal rises one rung to finish in first place for the first time, partly on the strength of what one money manager calls “spectacular, high-conviction stock picking, especially where Allergan is concerned.” The 42-year-old Sanford C. Bernstein analyst first recommended the Irvine, California–based manufacturer way back in 2006. He has been highlighting his position ever since, telling clients that clinical applications for Botox go far beyond wrinkle removal and when the drug’s full potential is realized, Allergan’s share price will soar. Last fall the company reported that it had achieved positive results in its own testing of Botox as a treatment for migraine headaches and plans to apply to the FDA for a supplemental license application by the end of this year. Allergan’s stock rose 38.7 percent year-to-date through August, far ahead of the sector’s anemic 2.5 percent advance. Gal earned a Ph.D. in chemistry from the Massachusetts Institute of Technology in 1996 and worked as a pharmaceuticals consultant at Boston Consulting Group before joining Bernstein in 2005.
BofA Merrill’s Gregory Gilbert, who slips one notch to second place, has built “some of the best pricing models out there,” according to one investor. Gilbert upgraded Par Pharmaceutical Cos. to buy in April, at $10.93, as the Woodcliff La, New Jersey, generic-drug maker was dumping unprofitable brands to focus on products with greater sales potential. The stock had skyrocketed 87.1 percent, to $20.45, by late August.
David Steinberg of Deutsche Bank rises one rung to third place. The San Francisco–based analyst reiterated his yearlong buy on Teva Pharmaceutical Industries in July 2008, after the Israeli generic-drug manufacturer announced plans to acquire Barr Pharmaceuticals of Montvale, New Jersey; Steinberg thought the match made good sense. Teva’s stock advanced 23.3 percent since the reiteration, through August 2009.
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