Pharmaceutical industry: 5 major factors attract investors
September 22, 2004 15:20
Some people have joked that they should let the helicopters exude such a flyer around the earth: throw away the idea of investing Coca-Cola, turn the eye to the famous pharmaceutical enterprise! However, although the pharmaceutical industry is so attractive, we have fewer hearing the voice of her, which is a bit incredible. For those who often drink cola, Coca-Cola is a repeated consumer product. For medicines, it is far more than a repeating consumer product. Most chronic diseases therapeutic drugs will not be only one-time, and patients often take a prescription drug for several years, sometimes even for a lifetime. "Remember to take medicine" is a selling point of drugs. This repetitive sale has brought reliable benefits to pharmaceutical companies, and each new patient means an increase in annual income. If this fact is combined with the existing demographic characteristics and the future development trend of the pharmaceutical industry, we have enough reason to believe that the pharmaceutical industry is moving into the strongest period in history. The following five factors enable the leaders in the pharmaceutical industry to become the most worthwhile investment in various industries. High-profit industry pharmaceutical companies with repeated purchase features are not for some can have no reason, but to satisfy people's health needs. Drugs have the characteristics of repeated purchase, regardless of the consumption level of the purchaser. This decided that pharmaceutical companies can sell products at a higher price. Once the leading pharmaceutical company has established its own position in the industry, the leader can get more than 30% of the profit margin, twice the average profit margin of S & P 500 companies (S & P 500 Companies). In addition to high R & D fees, pharmaceutical companies are absolutely possible. In addition, patent protection can also ensure that new drugs maintain a higher profit level at least in 10 years (Note: Independ, patent provides pharmaceutical provider 20 years of monopoly period, but the patent protection period usually from the date of application - drug The early stages of the development process began to calculate, that is, the actual profit period after the drug enters the market at least 10 years). The world's population environment is conducive to the development of the industry. The annual per capita drug consumption over 65 years old is 3 to 4 times the people around 30 years old. At present, the global population is stepped in an aging stage. By 2010, the population of 65 and over the United States will exceed 17% of the US population, and the size of the US drug market will increase to more than $ 105 billion. In addition to the United States, most developed countries have begun to move towards aging society. This means that the world's $ 188 billion in pharmaceutical market will grow faster. US pharmaceutical companies currently occupy 30% of the global drug market, which is still rising. In addition, the number of global population is also increasing. Scientific progress gave birth to more treatments New drugs R & D, such as tiger. In the past 15 years, the speed of scientific progress is equivalent to the previous 40 years, especially in the field of biotechnology and combination. Many combine drugs that greatly extend the lives of AIDS and like Baisui, Zuo Luo Fu and Pfizer Wan Ai can be developed in a short period of time. Science is developing forward. Every success or even failure has made scientists into the goal of new drug development. More than other industries is that pharmaceutical companies will grow diversified, but don't worry that the industry's mission is diminished, and the business scope transcends the core competitiveness, or let consumers feel confused. It is the matter where human health is to do is to do in this group of pharmaceutical companies. They may not provide enough new products to meet the needs of the pharmaceutical market, as a variety of new diseases continue to appear. However, a good treatment will always be welcomed. In fact, ironically, despite the improvement of medical conditions, people's average life expectancy increase, people's demand for drugs is getting bigger. For example, antihypertensive drugs can extend people's life, but the elderly who take these antihypertensive drugs also need drugs for other diseases, such as arthritis, Parkinson, Alzheimer's disease. The FDA is more efficient to save or extend the life of advanced patients, US Congress and FDA agreed that such patients have the right to use experimental drugs.
