Re: DB
If the following can be taken as correct:
"Pharmaceutical companies are the biggest winners under the new plan. Demand for drugs will rise, as our already overmedicated seniors will be happy to pass the cost off onto younger taxpayers. Large drug makers will become virtual partners with government, lobbying to make sure their drugs are part of the new system. Those drugs will continue to cost much more in the U.S. than foreign countries, despite efforts in the new bill to change federal rules prohibiting reimportation of drugs.
The Department of Health and Human Services secretary already stated that he will never approve reimportation. Combine this lack of price competition with lengthy patents and protectionist FDA rules, and you have a perfect prescription for record pharmaceutical profits. The pharmaceutical industry reportedly spent $135 million in recent months lobbying for the new Medicare bill. This speaks volumes about how seriously they viewed the stakes involved."
Then I'd say that there is no need to go for specialized drug companies. Go for the biggest ones.
Large companies have proportionally more patents covering them and thus, they'd gain just as much from this as small ones.
So why take the inherent risks that goes with selecting small, if you get the same bonus by buying big and secure?
Shopping list should therefore include Pfizer, Eli Lilly, Novartis, Glaxo and Astra Zeneca.
I could think of more - how many do you want?
You may also find a pharmaceutical stock fond with a diversified basket. There are several of them, but I'm not intimately familiar with the American fond market and can't recommend...
KD
