The Medicines Company (MDCO): Is There a Future for Small Pharma?

Of course, this isn’t cheap. The growth story on Cubist has been major news since it was one of the fastest growers in 2010. So the growth story has pushed Cubist to trade at 27 times its current and one-year projected earnings. So if you’re a deal-seeker like I am, you might have to sit out this one unless you’re patient enough to wait for a decent dip, like in November 2012.

The Foolish bottom line

There are a ton of opportunities out there in pharma. While a massive company may not be able to fill the pharmaceutical niches, a smaller company may be perfect for the job. The above companies have serious prospects for growth, and they may be solid candidates for bettering your portfolio.

Chris Hodge has no position in any stocks mentioned. The Motley Fool recommends Cubist Pharmaceuticals.

The article Is There a Future for Small Pharma? originally appeared on Fool.com.

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