Production of new drugs is costly: PricewaterhouseCoopers estimates that for every 30 drugs in pre-clinical trials, only one makes it to market. Each drug costs millions (and sometimes billions) of dollars to develop, meaning R&D divisions are colossal monetary sinkholes that only occasionally produce a billion-dollar gem.
Consider this: A PWC report estimates that by 2020, the global pharmaceutical industry will be generating an annual $1.6 trillion in sales. That's 60% growth in a few short years.
If these projections are correct, then it means rather than seeing an indefinite lean period, Big Pharma is set for a boom as this larger, more powerful growth trend plays out. And this spells opportunity for investors who look in the right places.
So, given the industry headwinds I just described, where will this growth come from?
So, given the industry headwinds I just described, where will this growth come from?
The short answer: emerging markets.
http://finance.yahoo.com/news/global-pharma-boom-coming-heres-180000860.html
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