Is healthcare the cure for investor pain?

HEALTHCARE

Dan Mahony, healthcare fund manager at Polar Capital, explains how large pharmaceutical companies are set to overcome a series of headwinds, including the peak of patent expirations in 2012.

Over the last year, global stock markets have been extremely volatile largely driven by macroeconomic concerns. While the outcome of these issues is hard to predict, without doubt the sovereign debt crisis is forcing governments to cut spending and de-lever their balance sheets. As a result, we expect a protracted period of low interest rates and anaemic economic growth. The key challenges for investors heading into 2012, therefore, are where to find yield and where to find growth – healthcare can provide the answers. A recent Citigroup report suggests that large pharmaceutical compan...