Add it all up, and biosimilar producers have not had an easy path. More reading on biologics: How to Invest in Biotech Stocks. Every minute, seven American baby boomers will turn That means over 10, men and women every day, and over 3. And this rate isn't expected to slow down until at least As this cohort of baby boomers hits retirement, the impact of the aging baby boomer population will likely drive national healthcare expenditures -- and company revenues -- higher.
Healthcare spending is even expected to outpace gross domestic product GDP by one percentage point, boosting the healthcare share of GDP from This figure is expected to grow at an annual average rate of 6. But it's not just the growth opportunities that attract investors. The safety in economic downturns draws investors as well. During the recession, spending decreased in every consumer spending category except for healthcare. With such expenses often being the last budget category to get nixed in tough times, this makes the healthcare sector itself largely recession-proof, particularly for established companies like Amgen NASDAQ:AMGN.
The company boasted an impressive Combining this with a well-timed share buyback program and positive clinical trial results for a pipeline drug, the stock was one of the best-performing large-cap biopharmas. So whether you're looking for long-term growth or simply a recession-proof strategy for your portfolio, investing in the pharmaceutical industry could be one of the best places to park your cash in both good times and bad.
Here are several other industry tailwinds poised to drive growth in the long term:. Before diving into how to evaluate pharmaceutical stocks, it's important to note that all the same basic investing rules apply. Learning how to assess a company's financial position , valuation , and future growth opportunities is essential for every investor. To start, here are the most common metrics to use when evaluating profitable pharmaceutical companies:.
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The lower the ratio, the cheaper the stock. As one of the most widely used relative valuation metrics, it serves as an easy reference point to compare stocks within an industry. Price-to-earnings-growth ratio PEG : Pharmaceutical investors often buy stocks based on the growth opportunities ahead. A PEG ratio below 1 means a stock is trading below its expected growth rate, and is generally considered undervalued.
A PEG ratio above 2, however, would signal that the price of the stock has exceeded the future growth rate; it may indicate an investor should wait on the sidelines. Profit margin : A measure of profitability, a profit margin measures how much net income a company produces for every dollar spent generating that revenue; to calculate it, divide net income by revenue. Generally, the higher the margin, the more profitable the company.
On the long road of drug development, it may take decades for a company to become profitable. Here are a few important metrics to use when assessing a company before it reaches profitability:. For very-early-stage companies, you can even use future expected sales in the calculation:. Generally, early-stage biopharmaceutical companies are valued at between 3 and 5 times the expected peak annual sales of each company's lead drug candidate. If you find a company trading for less than 3 times future sales, and the prospects for gaining approval and market share look favorable, you may have hit the jackpot.
Cash burn and cash runway : Bringing a drug successfully to market is no easy -- or cheap -- feat. And for a company with no approved products on the market, the stakes are even higher, with little to no recurring revenue stream to keep the lights on. That's why a company's cash balance is one of the most important balance-sheet items a pharmaceutical investor should know. Cash burn is simply how much cash a company is using every quarter.
Cash runway is a measure of how long the company will be able to keep that spending up before it runs out of money; it can be calculated by taking a company's total cash balance and dividing it by quarterly cash burn. The longer the cash runway, the better for pharmaceutical investors. It's important to view multiple data points in context when considering whether a stock is priced favorably. For example, a company with a significantly higher debt load may have trouble making interest payments and, therefore, may be a riskier bet than a company with no debt on its balance sheet.
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All other things being equal, you'd expect a company with no debt to trade at a premium to the company with higher leverage. While quantitative financial data points are helpful, often qualitative factors, like the quality of management, can be just as important in assessing whether or not to buy a stock in the pharmaceutical industry. Management: A good place to start when evaluating a company's management is to consider the experience of the executive team and the board of directors. Do they have experience developing pharmaceutical products?
Have they successfully navigated regulatory authorities to bring a biologic to market? In such a heavily regulated industry, where mistakes are constantly made, there's really no substitute for experience. It's also important to consider how transparent the management team is. Home care services help people maintain their health and independence at home.
Many of these services are funded by the Ontario government. Visiting Health Professional Services These services can help you after a stay in hospital, or if you need help due to illness or injury. You may also receive supplies and equipment that you need. Personal Care and Support These services can help you with many daily living activities. Examples include bathing, dressing, toileting, eating, and more. Homemaking Homemaking services help you with routine household activities.
These include menu planning, shopping, preparing meals, light housekeeping and more. Community Support Services These services help you live safely and independently at home. They include services such as meal delivery, transportation, help for your caregivers, adult day programs and more. Many people who want to stay in their own homes will arrange a mix of services funded in a number of different ways.
Explore the services that will best meet your needs and situation. Gather information about who can provide these services to you. Your Centre will determine if you qualify for government-funded home care. You will have to pay for the services you need. You can apply directly to the people or companies that you choose. Learn more about finding a home care provider. Call: TTY Health care for newcomers to Ontario Find home care services in Ontario. For other drugs, you will need a doctor or nurse to give you a prescription.
A prescription is like a list of steps to follow for your health care. It tells you what drug s you will need to take, how often and for how many days. What do you do with a prescription?
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Is there any drug plan to help cover the costs? The information you find here will help you understand: how to get drugs with a prescription who pays for prescription drugs in Ontario. You need to have your prescription filled by a drug store also called a pharmacy. You may choose a store based on factors like the location and hours of operation. Staff will check the prescription and your personal information such as your name, address and phone number.
If you have a drug plan that will help pay for your medicine, you need to provide that information. The pharmacist will tell you how to take the medicine safely. If you have any questions about taking the medicine, be sure to ask. OHIP does not pay for prescription drugs.kamishiro-hajime.info/voice/comment-localiser/app-espion-iphone-x.php
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But if you need help paying for your medication, there are other plans that may help you. For instance, you may be covered by one of Ontario's drug plans. These include:. The Ontario Drug Benefit Plan. This plan pays for over 3, drug products, including nutrition products and diabetic testing agents. All Ontarians over the age of 65 are automatically covered by this plan. The Trillium Drug Plan. This plan is for people living in Ontario who spend a large part of their income on prescription medicines. Or, if you work, your employer may offer a drug plan which will pay some or all of your drug costs.
If not, you will have to pay for your prescription drugs on your own. To apply to the Ontario Drug Benefit Plan: You will likely join this plan through another Ontario health care program, such as long-term care or home care. The person who helps you apply for that program will also help you apply to this drug plan. If you are over age If you have a valid Ontario health card, you do not need to apply to this plan. You simply take your prescription and your health card to your drug store.
Tell the pharmacist that you are now eligible for the Ontario Drug Benefit Plan. The pharmacist will check that you qualify through the government's Health Network System.