Pharmaceutical Industry News
3 Cheap Specialty Pharma Stocks
Tuesday, 11, May 2010
After last week’s gut-wrenching sell-off, Monday’s snap-back rally was just what the doctor ordered. However, this is no time to rest on your laurels. Now is a great time to begin looking for new stocks to buy during the next sell-off.One area that shows promise is specialty pharmaceuticals (which also may be just what the doctor ordered). These companies consist primarily of generic drug makers that design new formulations of name-brand drugs that are nearing patent expiration, or sell generic versions of drugs that have gone off-patent.
The pharmaceutical industry continues to go through some pretty big changes. Over the next five years, drugs that currently generate more than $142 billion in sales are going off-patent.That is going to create huge opportunities for generic drug makers to take market share.In addition, U.S. healthcare reform is going to cut into the profits of pharmaceutical companies. The drug companies will have to provide the government with larger discounts on drugs for Medicaid patients and extend rebates to insurers who dispense drugs to people covered by Medicaid.