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Originally Posted by PR_Tom
Said long ago that if you invest in oil, pharmaceutical and defense, you are gonna be rich. Which points out the obvious fact that you dont have to be a genius.. etc.
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I've been heavily in oil, gas and Rx stocks. Oil and gas has been great though gas just took off recently. Pharmacy hasn't been all that great though. Big Pharma faces major patent expirations. Pfizer is trading at the same price it was 10 years ago (though you got the dividends, a nice one right now). Lipitor expiration is coming up. Merck and Shering Plough were just rocked by the bad news on Vytorin. Sanofi has been going sideways for about 4 years. I assume the smaller pharmaceutical companies are facing price pressure from Wal Mart, etc with their $4.00 Generic programs. Then you have the unknown pricing changes which might occur under legislation in the US should a Democrat get elected president. Yeah, I know the government can't negotiate prices under the 2003 Med Modernization law but i could see that changing. Pharma probably ain't bad from here and has great demographics but there are certainly some pricing risks.