BUZZ-European pharma: 7-year high P/E in focus as M&A fervour pauses

** A pause in the heady stream of M&A headlines around the European healthcare sector & earnings season shines the spotlight on 7-year high valuations.

** Deal-making and the popularity of defensives have made sector a big draw for investors this year second only to utilities. http://link.reuters.com/nab52w

** European pharma valuations on a P/E basis currently at a 7-year high and the biggest premium to the broader market since Oct 2008. http://link.reuters.com/pab52w

** The 33 healthcare stocks on the Stoxx 600 trade at an average forward P/E of 20 times. BTG Plc (LSE: BTG.L - news) at 35.3 times is the most expensive.

** Shire (LSE: SHP.L - news) up 75% this year trades at 25 times, Coloplast (Other OTC: CLPBF - news) up 33% this year trades at 29 times, Hikma up 43.4% this year trades at 23.6 times.

** Full list: http://link.reuters.com/rab52w

(RM (LSE: RM.L - news) : vikram.subhedar.thomsonreuters.com@reuters.net)