Pharmaceutical and Health
The pharmaceutical industry has been a highly profitable industry, showing steady growth with attractive yields. However, there has been an increase in pressure on the industry in recent years. Although profit margins are still high, global earnings are under enormous pressure due to many factors including regulatory and compliance issues, research and development expenditures and the length of time it takes for drug approvals and licenses to be granted.
However, with the explosion of emerging markets comes a lamentable side effect where a significant percentage of people who are adopting Western lifestyles unfortunately acquire Westernized diseases.Today, China is experiencing an outbreak of diabetes and other health issues. This, in turn, will benefit drug companies who will be well positioned to treat increasing numbers of patients.
These markets will safeguard the welfare of larger companies, but smaller operations could benefit greatly from investments for these locations.