As emerging markets continue to grow and prosper, it’s believed that they’ll be a major driving force behind the pharmaceutical and biotechnology sectors and their respective exchange trade funds.
Leaders in the pharmaceutical industry now feel that countries that drove growth in the last two decades won’t be the same countries driving growth in the next two. According to Meda News.com, nearly 80% of drugs are sold and consumed by 20% of the developed world, but this trend is likely to shift. Emerging markets, the industry says, will become more important.
Although demand for these drugs is projected to shift away from developed countries, it is the United States that will be the leader when it comes to developing these drugs, researching them and getting them to consumers.
- PowerShares Dynamic Pharmaceuticals (NYSEArca: PJP): up 15.2% year-to-date
- the SPDR S&P Pharmacueticals (NYSEArca: XPH): up 25.3% year-to-date
- iShares Dow Jones U.S. Pharamceusticals (NYSEArca: IHE): up 28.5% year-to-date
Kevin Grewal contributed to this article.