Four pharmaceuticals in which I could invest

DiabetesForo's profile photo   02/04/2010 12:12 p.m.

Companies that produce medications for chronic diseases, such as diabetes, have guaranteed income.There are four companies that produce these medications, which makes them attractive to invest.

Heart disease, infarctions, cancer, respiratory diseases and diabetes are the main causes of mortality in the world, being responsible for 60% of deaths.

According to the International Diabetes Federation, 300 million people in the world have diabetes and it is forecast that in 2030 there are almost 200 million more with this disease.The annual expenses of a person suffering from diabetes per year are approximately US $ 500.

The projected income for this sector amount to US $ 30,237 million.

A survey conducted by the consulting firm Evaluate Pharma, shows that four diabetes drug producing companies will receive 80% of the income in 2010

The price performance of the shares of these companies last year was not the best, therefore they can be in mind as investments with valorization potential.

Thus, these companies can get their faces through the pharmaceutical sector, for which the panorama of the coming years is not the best.(See article, great pharmaceuticals: a business at risk)

Novo Nordisk

Novo Nordisk, is a Danish company that produces medicines for diabetes and biofamaceutical products.73% of its income depends on the sale of diabetes medicines, has 51% of the world insulin market and 27% of world revenues generated by medication sales for this disease.

It has registered actions in the Copenhagen Stock Exchange that quote 365 Danish crowns per action, US $ 68.45.The ADR price in the New York Stock Exchange, with a symbol NVO, has increased 31% since January last year, on Tuesday it closed to US $ 68.96 per share.

The company reports sales of 51,078 million Danish crowns, US $ 9,578 million, a gross margin of 79.6% and a net margin of 21.08%.Profit per share of 17.82%.Income growth has remained at a rate of 3% on average for the last 5 years.The profit per action in 2009 was 17.82 Danish crowns, US $ 3.34.

On January 25 of this year, they obtained the approval of a medicine called Victaza, for the treatment of type 2 diabetes, which gives it the opportunity to take advantage of the patent for 20 years.

Sanofi-Aventis

Sanofi-Aventis is a European pharmaceutical group, based in Paris.They have their income concentrated in the US and Europe.It is one of the largest producers of vaccines and medications for all types of diseases worldwide.Sales of diabetes medications represent 18.9% of their income.

Sales projections for 2010 in diabetes products reach US $ 5.8 billion, that is, 19.30% of world revenues from sales of products for this disease.

The net margin of this company in the third quarter of 2009 was 30.4%, reporting net profits of 6,670 million euros, US $ 9,310 million, 20.1% more than those reported for the same period of 2008. Profits forAction in that same period was 3.11 euros per share, US $ 4.34.

He has actions in the Paris Stock Exchange and in the New York Stock Exchange.The prices in the two countries have increased in the last year 15%, in New York with the SNY symbol, the closing price yesterday was US $ 37.62.

Eli Lilly

It is one of the largest pharmaceutical companies in the world, based in Indianapolis, EU, with presence on all continents in the world.It produces medications for cardiovascular diseases, cancer, diabetes, osteoporosis, neuronal diseases, erectile dysfunction, among others.

For diabetes, produce two kinds ofInsulins that represent 14% of the annual income that amount to US $ 21,836 million.The projection of income from the production of medicines for this disease in 2010 is US $ 3,327 million, that is, 11% of the estimated income of all diabetes medications manufacturers.

The profits in 2009 were US $ 4,851 million, US $ 4.42 per share, which represented an increase of 16% compared to the results of the year 2008.

However, the actions in the New York Stock Exchange, with LLY symbol, have not had a good performance.The price of the action since January of last year has fallen 12%, at this time the price is US $ 35.62.

Merck & Amp;Co.

Merck & Amp;Co. is an international pharmaceutical company, which is dedicated to the discovery, development, manufacture and marketing of a wide range of health products and services.With the main headquarters at Whitehouse Station, New Jersey, EU.

Income from your diabetes medicine, Januvia, represent 13.44% of their income.In the third quarter of 2009, they reported income of the order of US $ 13,539 million.

Net earnings reach US $ 2,489 million, US $ 3.03 per share.The net margin of the company is 37.5%.

The actions in the New York Stock Exchange, with MRK symbol, were valued 27.5%, are currently quoted at US $ 39,54.

The shares of these companies can be purchased through a correspondent contract with a local stock exchange firm.Likewise, there are US companies offered by E-Trade platforms to negotiate actions from the New York Stock Exchange.

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DiabetesForo
02/04/2010 12:12 p.m.
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Hello, you are telling me that if I invest in one of these four companies I will make myself gold?The bag is not going much but honestly if I could choose, I would prefer to investigate a cure.Sometimes I think that all these companies that you have named, are not interested in finding a cure, because they are becoming rich at the expense of all the diabetics of the world.We are a great investment for them!:(( Greetings

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paula
02/04/2010 3:45 p.m.
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I do not say anything, I link a story that I find interesting.;)

The laboratories fulfill that double function of earning money and investigating medications ... without them insulin analogues would not exist.
The thin line between earning money and ethics:-/ ... ufff very complicated.
To me when they take a 100% reliable non -invasive meter, I will not care that the creator wins money.

All these laboratories know, and plan plans for this, that one day or another their ganacies will go down and will not have so much source of income (for example when 25 years of their patents are completed).
Every so often you can read mercks between companies (the same Merck with Sharp, for example).

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DiabetesForo
02/05/2010 1:38 a.m.
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