subject: Healthcare Investing is Becoming More Lucrative with Boom in Population [print this page] Healthcare Investing is Becoming More Lucrative with Boom in Population
Healthcare Investing has become quite profitable these days. Boom in population, aging population, baby boomers, increasing life expectancy of people with chronic ailments, epidemic proportions of obesity, diabetes, and cardiac problems, and new lifestyle related diseases due to technological advancements have all led to increasing dependency of a person on medicines and health and fitness solutions available in the market. Naturally, this entails increasing profits for pharmaceutical and drug manufacturers, biotech companies, hospitals, pathology labs, fitness centers and other healthcare sectors.
Research & development of new medicines and their clinical trials is another area that requires intensive funding and opens up an entire new option for an investor point of view. When you invest in a pharmaceutical company, you should pay attention to the following points:
Popular drugs sold by the company: Each leading drug company has some specific medicines it is known for. Know which medicines of the company are popular, what they treat, the number of people affected by the diseases they treat, availability of substitutes available in the market, and whether the company holds the patent of these drugs.
Marketing Framework of the company: Study how the company shares its revenues or profits with other companies.
Clinical Trials and their results of Wonder Drugs: Healthcare Industry largely depends on the results of the ongoing clinical trials and if a drug delivers better than expected results or is releasing in market soon, it may give wings to the stock of the company.
In addition, keep a tab on the current News about the Drugs and the Company. FDS warnings or loss of a patent, market share of the company, number of prescriptions recommending the drug all greatly affect stock prices of a company. If you are into healthcare investing, you have to monitor your stocks actively.
