Woodford: Pharmaceuticals have never been this cheap

Invesco Perpetual's income stalwart Neil Woodford remains convinced pharmaceuticals are the buy of the decade, stating the sector is now the cheapest it has ever traded.

Woodford, who runs hefty overweight positions in pharmaceutical stocks within his £11.6bn High Income and £8.8bn Income funds, argued one of the most compelling characteristics of the sector is its ability to cut costs in the future.  Speaking to Hargreaves Lansdown, Woodford said firms have built up bloated cost bases, meaning companies can continue to grow earnings through cutting costs despite a slowdown in new innovations. "The sector has never traded on lower valuations than it has traded on this year and I have seen across the sector signs of improving performance in terms of ...