BUZZ-View from the buyside: Old Mutual's Murphy buys more pharma stocks

** Pharma about to be perceived as a growth sector again, driven by drug discoveries & accelerated US FDA approvals, says Old Mutual Global Investors' Simon Murphy, who has bought more Pharma stocks in recent months

** After wave of patent losses on blockbuster products (peaked 2 yrs ago), cos recovering ability to bring new medicine to market; drug approvals in 2014 by US FDA highest in 18 yrs driven by new treatment for cancer & rare disease [D:nL6N0UE2C1]

** Murphy flags AstraZeneca (NYSE: AZN - news) as particularly well placed in emerging field of immuno-oncology, which helps body's own immune cells fight tumours. PM's biggest positions are in AZN & Shire

** PM flags Shire (Xetra: S7E.DE - news) 's strong balance sheet & cash generation, says more add-ons should keep growth story going; co focuses on ADHD & rare diseases (niche diseases not enough of profit pull for Big Pharma but can make difference to Shire given its size)

** Holds BTG, resembles Shire earlier in cycle; has core cash-generative anti-venom business & some royalties from which co recycling cashflow into Interventional Medicine which PM says will grow quickly e.g. Varithena

** GlaxoSmithKline (Other OTC: GLAXF - news) , which sold immuno-oncology products as part of Novartis (Xetra: 904278 - news) asset swap & no longer really at forefront of new discovery, is PM's least preferred in sector; holds stock which sees as quite cheap with very good divi yield

** Murphy manages Old Mutual UK Equity Fund & Old Mutual UK Opportunities Fund; stocks held in both funds (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)