04-30-2020, 06:22 AM
(04-29-2020, 04:57 PM)oncemoreuntothejimbreech Wrote: What is a drug company’s everyday business? Selling drugs. So drug companies might not be a good investment for investors, but new patents without competitors during a pandemic can equal billions in sales for the company first to the market.
Gilead did 22 billion in sales last year. One analyst at Bank of America estimated the drug has a potential of 2.5 billion which seems like a lot but that is roughly a shade more than 10 percent of Gilead's total business. Gilead was priced yesterday at around 80 dollars per share and went up roughly 8 dollars in early market trading before it was halted. About 10 percent...hmmm. It then settled down after it was reopened and ended the day up roughly 5 percent. By the way, Gilead's 22 billion in yearly sales places it around 10th in the drug industry.
As far as investing, I don't have the play money, but this industry has some mixed messages due to the political climate. I would probably invest in medical devices like Medtronic, Stryker, or robotics like Intuitive Surgical. But with the delay in elective surgeries, some of these companies more likely hurt at the moment from it. I also like the 'wearables'...self monitoring and just download the info to your doctor