New studies have shown price increases of prescription drugs used by the elderly have significantly outpaced the overall rate of inflation in recent years.
Investors are also concerned over impending patent expirations on a large number of major drugs.
Selected issues also offer takeover appeal the consolidating global drug market. Although strong projected demographic expansion in the highly prescribed elderly segment of the population remains a solid underpinning for growth, recent political clamor to enact prescription drug benefit for Medicare beneficiaries could prove detrimental to drug industry profitability, as such coverage may be subject to steep price discounts. The industry has historically rejuvenated itself with the development of new premium-priced breakthrough therapies that have obsoleted older drugs and opened up entirely new markets. Drugmakers should also continue to benefit from a more industry-friendly regulatory environment, with the FDA committed to streamlining and making more efficient the overall new drug approval process. Bid on or offer business services Web design, logo design, computer consulting, and more.