Pharma Index going Upwards — Top 3 Drug Manufacturers You Should Consider

Nikhil Khandelwal



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Pharma 3tops

2018: Volatile year for drug manufacturers

2018 remains the volatile year for the drug manufacturers.

The recent steep rise in US Pharma companies has pushed the overall Pharma index upwards. Upon May 11, 2018 announcement of President Donald J. Trump’s Blueprint To Lower Drug Prices  the pharmaceutical sector took a sigh of relief. The major point which everyone was fearful of were not included in the statement.

Trump administration’s intervention, Competition from Generic and “Me-too” drugs were affecting the demands for Branded and Proprietary drugs. Overall this sector remain subdued since beginning of the year up till recently.

The proposal excluded the recommendations like – allowing the government to negotiate drug prices directly with manufacturers or importing lower-cost prescription drugs from abroad, and others.

Pharma ETF as a benchmark

Looking at SPDR Pharma ETF (XPH-N) could be a good benchmark. It has been up more than 10% since last three months.

The fund seeks to invest in stocks of companies operating across the pharmaceuticals sector. It invests in stocks of companies across all market capitalizations, with a market capitalization above $500 Million. US Pharma companies has increased the prices in recent periods. This applies to both branded and the old generics drugs.

XPH-N

SPDR Pharma ETF

 

Based on Stockchase Expert Opinions and Technical Analysis, we believe below three companies are good potential stocks for trend following strategy followers. All the three stocks are up more than 10% over last one month period and possesses the great potential to be looked at.

Discover the 3 stocks on the next page

Trend Following is a trading strategy according to which one should buy an asset when its price trend goes up, and sell when its trend goes down, expecting price movements to continue.

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