The healthcare sector had an outstanding year in 2014. The healthcare sector showed a growth of 23.30%, which makes it number three in the S&P 500 sector performances following behind the utilities and technology sector. In addition, various catalysts applicable in 2015 as well many of the stock experts are predicting another strong year for the healthcare sector.
Many stock experts believe 2015 is another year of merger and acquisitions. They also foresee the focus of acquiring companies shifting to adding branded pipeline assets to leverage the commercial infrastructure buildings that has been the core of the major acquisitions during the last couple of years. Moreover, this means the tax inversion strategies would be replaced by adding products that could spur sales growth. This shows that biotech or special pharmaceutical companies with large product pipelines would be in big demand. We identify some of the healthcare companies for 2015.
Biogen Idec Inc. (BIIB, Financial) is the main biotechnology pick of the stock. Many stock experts are predicting that Tysabri earnings would have a meaningful upside in 2015. The consensus applauded the release of data on a monoclonal antibody called BIIB033, which is safe and tolerable in people, according to the combined results based on two similar Phase 1 clinical trials that tested high doses in healthy people and people with multiple sclerosis.
Gilead Sciences Inc. (GILD, Financial) is another top biotech pick of the stock. The healthcare took a downside a few months ago when healthcare provider Express Scripts chose AbbVie’s (ABBV, Financial) hepatitis C drug over Gilead’s for limited distribution to its 25 million subscribers. The company came back and announced that it had reached a deal, in which CVS would exclusively offer Gilead Sciences' hepatitis C drugs. The product Harvoni would also be on CVS preferred drug list and reachable for customers using the Affordable Care Act.
Shire PLC (SHPG, Financial) is one of the top picks in specialty pharmacies. The stock had been destroyed back in the fall when AbbVie made a point with tax inversion benefits gone, which it wanted out of the planned acquisition of the company.
Novartis AG (NVS, Financial) is the largest drug maker by sales and is the manufacturer of the fourth top selling oncology drug in the world. In addition, the product Gleevec has $4.7 billion in sales, but it is showing flattish growth on year over year. This could prove troublesome for Novartis as physicians would be switching patients to other treatments and drugs.
Boston Scientific Corp (BSX, Financial) has gone sideways during the last year and more stock experts are warming up to this former medical devices high flyer. The company has informed analysts that they would continue to buy back more stock. The company also hinted that it would achieve 25% operating margins by 2017.
Illumina Inc. (ILMN, Financial) is one of the top pick in life sciences. It develops and manufactures for markets like science tools and integrated systems for the analysis of genetic variation. The company is the dominant early leader in a growing genetic sequencing market, which some analysts estimated would reach $20 billion per annum in the near future.
Cepheid Inc. (CPHD, Financial) is one of the top picks in the diagnostics category. It is also one of the leading molecular diagnostics that develops, manufactures and markets easily utilized molecular systems and tests. Investors in the pharmaceutical business need to stay focused on this company in the future, as it seems set to grow its profits.
Rite Aid Corp (RAD, Financial) is another top pick in the healthcare stocks for 2015 and is one of the leading drugstore chains with approximately 4,600 stores in 31 states of the U.S. In fiscal year 2014, the company reported annual revenues of $25.2 billion.
While some healthcare stocks might be doing well, others seem to be failing along the way because of bad management on their part as well as a lack of resources. Still, it is expected that the healthcare industry will grow and become bigger while providing for unhealthy persons.
