2009 is turning out to be a better year for Big Pharma than initially feared. Oh sure, there’s the ongoing threat of generics coming onto the market, but, you can easily make the argument that this year wasn’t half bad.
The industry dodged a bullet over the summer on health care reform, leaving company executives relatively upbeat on how their firms will emerge from the changes.
A report by IMS Health says prescription drug revenue will likely climb about 5% in the US next year with worldwide sales growing as high as 7% though 2013.
Also swine flu sparked a surge of new sales.
Considering, over the past 3 months the Health Care SPDR is up only 7% while the S&P is up almost twice that, is the space about to catch up?
Quite possibly. And we could see big moves in the space as soon as Thursday. Just take a look at the firms reporting!
Thursday's Pharma Earnings
Meanwhile on a related note -- after hours Amgen reported a better-than-expected profit as cost cuts and lower taxes helped offset a steep decline in sales of its Aranesp anemia drug, but regulatory concerns about its osteoporosis drug sent shares lower.
What’s the trade?
I’m a buyer of Amgen on weakness, adds Guy Adami.
I like Amgen too, says Pete Najarian. Personally, I thought the numbers they put up were astounding.
For me the best name in the space is Abbott Labs, says Joe Terranova.