GrowthGuru

Buying Healthcare Stocks for an Obama Presidency (Part III)

Assuming healthcare reform passes, the most likely scenario is that R&D investment capital to new blockbuster drugs will probably flow towards the more innovative biopharmaceutical firms. Once a drug is found to have potential (say when positive results are reported at the end of Phase II trials), the large pharmaceuticals will enter into expensive bidding wars with hot biopharma firms.

Right now, I would shy away from big pharma, their new role will be to license, market, brand, manufacture, distribute, take on law suits, etc. Spread your risk today with promising biopharmas. Do your homework and stay away from advisors that manipulate the market.

Anonymous but Honest - GrowthGuru

full disclosure - I am betting 100% of IRA on OGXI... (Oncogenex Pharmaceutical), a Canadian biopharma firm... My father had prostate cancer and survived. So, I am biased... Why not do well by doing good? OGXI has a large pipeline of promising drugs for cancer-resistent patients.