Global pharma favorites

"Top drugs include Crestor (cholesterol) and Symbicort (asthma). Another important drug, the antipsychotic Seroquel, generated more than $4 billion in revenue last year.

"However, the drug is at the center of more than 9,000 lawsuits from former Seroquel patients claiming the drug caused weight gain, high blood sugar levels, and even diabetes.

"The U.S. government is also investigating the drug's marketing. While this issue does lend some risks to the stock, the shares, down 30% from their 52-week high of nearly $50 per share, seem to be discounting a lot of the concerns.

"The stock trades at just seven times the 2009 earnings estimate, a very low valuation for a quality drug company. The stock carries an estimated yield of nearly 6%. These shares offer a nice combination of growth and income and are attractively priced for new buying.

"Novo Nordisk is the world's largest diabetes-care company. Diabetes is seen by some health-care professionals to be at 'epidemic' levels, with the number of people with diabetes expected to rise by one estimate to 350 million by 2025.

"Thus, Novo Nordisk should see continued steady demand for its products. The firm will also see increased competition, too, as more drug makers try to capture a share of this growing market.

"The stock has been weak in recent trading following disappointing regulatory news for its new liraglutide medication.

"A Food and Drug Administration panel provided a mixed recommendation on the drug. It's possible that approval of the drug could be delayed for an extended period of time, although the FDA is not required to follow the panel's advice.

"Still, the decline has brought these shares into a very attractive price level for patient, long-term investors. I am a big fan of the stock and recommend these shares for any investor."

Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.