BUZZ-European Pharma: UBS shuffles recommendations

** UBS (LSE: 0QNR.L - news) analysts say investors in healthcare stocks should seek exposure to oncology and new expensive drugs which displace older expensive drugs; avoid therapy areas at risk of becoming crowded and new drugs with high budget impact

** Brokerage double upgrades to "buy" from "sell" Novo Nordisk +2.5%, upgrades to "buy" from "neutral" Bayer (Swiss: BAYN-EUR.SW - news) AG +1.3% and Galenica +2.2%

** UBS expects increased confidence in Novo's growth as payers publish their reimbursement formularies in 2017

** On Bayer, UBS says patience should be rewarded as FCF numbers play out

** Brokerage expects Galenica (LSE: 0QKM.L - news) 's pharma revenue to double by 2022 to nearly CHF 2.4 bln with two blockbuster drugs to treat potassium disorders and anaemia

** Brokerage cuts to "neutral" from "buy" Shire (Hamburg: 3979575.HM - news) -1.9%, Actelion -2.2%

** On Shire, UBS sees tougher environment for expensive orphan drugs constraining performance

** On Actelion, UBS says putting aside the potential M&A, stand-alone biz fully valued

** Shire (Xetra: S7E.DE - news) , Actelion (LSE: 0QMN.L - news) biggest drags on Stoxx Europe 600 Health Care, Novo Nordisk (LSE: 0QIU.L - news) biggest boost (Reuters Messaging: pranav.kiran@thomsonreuters.com@reuters.net)