Take, for example, Pfizer, the industry's largest player.? As of the end of the third quarter 2008, Pfizer held $27 billion in cash and equivalents.? The market is crumbling, and meanwhile Pfizer is sitting on enough cash to buy Biogen Idec, Inc. (BIIB), Amylin Pharmaceuticals, Inc. (AMLN), Forest Laboratories, Inc. (FRX), Sepracor, Inc. (SEPR), Dendreon Corporation (DNDN), Arena Pharmaceuticals, Inc. (ARNA), Onyx Pharmaceuticals, Inc. (ONXX), OSI Pharmaceuticals, Inc. (OSIP) and Elan Corporation Plc (ELN) -- all without issuing one share.? And, while we wait for Pfizer to put its enormous cash balance to work, the dividend yield is nearly 8%.

We have a Buy rating on Abbott Laboratories (ABT) ($7 in cash, 3% yield), Johnson & Johnson (JNJ) ($15B in cash, 3% yield), and Bristol-Myers Squibb (BMY) ($8B in cash, 7% yield).? All 3 of these companies are well capitalized and well positioned for future growth.

This year we have already seen some sizable deals with Takeda acquiring Millennium, Roche bidding for Genentech, Inc. (DNA) and Lilly's recent surprise move to acquire ImClone Systems Inc. (IMCL).

Cash is king in big pharma. The shopping spree will continue. Start investing in the industry's strongest and best positioned names to take advantage.