Skip to content

Five healthcare stocks we are keeping an eye on in September


Successful vaccine programs have materially blunted the immediate threat of Covid-19. However, the pandemic has left an unprecedented backlog, not just in elective care procedures, but also in more life-threatening scenarios. The sector’s attractions include exposure to long term demographic trends like growing populations and increasing life expectancies. Complex regulatory regimes and technical complexity often result in high profit margins and daunting barriers to entry.

Companies who develop therapies for rare or ‘orphan’ diseases can enjoy further protections and incentives, and have been able to charge very high prices. But this comes with lots of risk and costs.

Expected US legislation (already ratified by the Senate) means the pricing of new therapies, as well as price rises on existing approved treatments, will come under pressure. The development process is long, expensive and has a low hit rate. Typically, drugs take at least ten years to develop and these costs can push into the billions. Most drugs that make it through pre-clinical evaluation never reach approval.

But the stakes are high. Blockbuster drugs can generate billions of dollars over their lifetime.

Want the full story? Access all of The Armchair Trader's content for just £5.99 per month.

Get weekly investment ideas and tips that will take your investing to the next level. Sign up here.

Free 28 day trial. Cancel anytime.

Log In or Sign Up to Armchair Trader+

Already a member? Log in here:

Not a member yet? Sign up for your free trial or check out the benefits of membership.

Further content of this article is not available as it is for members only. Please visit the registration page for Armchair Trader Plus+ for further details on the benefits of becoming a member.

Looking for great investing ideas? Sign up to our free newsletter.

Join us on WhatsApp

This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

'How to' Guides

Our latest in-depth company reports

Detailed reviews of selected companies and investment trusts.

On the podcast

Sign up for great investing stock tips

Thanks to our Site Partners

Our partners are established, regulated businesses and we are grateful for their support.

CME Group
FP Markets
Back To Top