The global pharma sector is undervalued. However, it is not without reason. The last couple of years have brought nothing but disappointment for its investors. Generic competition, patents expiring, and most importantly, lots of money to be made elsewhere! But the times they are a changing! On the edge of a recession in the US, and the slowest Christmas sale in years. Later this month the Fed will decide whether they are going to lower rates by 25p or 50p, but how much is not the important question, the fact is that the rates are going down! And the pharma sector has always outperformed following a rate cut - the last three times by an average 15%. I expect this time will be no exception, and the sector has a lot to make up for! Astrazeneca is currently trading at a P/E around 10 along with many other big players in the industry like GSK, Pfizer and Sonafi-Aventis. The troules aren't over for these companies, fare from it, but my thought is that the last years' focus on everything but pharma has caused a lot of good thing to go unnoticed, and as the sharp eyes of the stock community returns, the new blockbusters will be revealed one by one.