The reality of drug pricing

The reasons for price rises and what the hostile rhetoric means for pharma companies

Andrew Willis 1 March, 2019 | 6:00PM

High drug prices have been making headlines recently, with a recent U.S. Senate hearing into the matter earlier this week.

Should investors inject their portfolios with some pharma exposure to get behind this trend? Or are there dangerous side-effects to watch out for when getting behind companies selling thousand-dollar doses?

“Pharmaceutical companies are one of the few permanent, non-cyclical businesses out there,” says Paul MacDonald, CIO of Harvest Portfolios Group and portfolio manager of the Harvest Healthcare Leaders Income ETF (HHL), pointing out that the drug pricing debate isn’t new.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Gilead Sciences Inc77.83 USD3.33
Johnson & Johnson148.75 USD1.21
Merck & Co Inc80.72 USD2.13

About Author

Andrew Willis

Andrew Willis  Andrew Willis is a content editor for Morningstar.ca.

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