The pharmaceutical industry spends an astronomical amount of money in advertising to the American public--ad spending on drugs totaled a whopping $4.5B in 2009 alone. But when you consider that U.S. doctors wrote more psychiatric prescriptions last year than there are people in this country, the price is more than worth the profit.
The following infographic, sourced from IMS Health, shows the most prescribed psychiatric drugs in the U.S. For a larger view, click on the image.
Below we've listed all the companies that are profiting from these drug sales.
Check out our list of the companies seeing profits from these drugs.
- Pfizer (NYSE:PFE): Sells some of the most commonly-prescribed anti-anxiety and anti-depressant medication, including Xanax, Ativan, Zoloft and Effexor XR. Pfizer currently offers a dividend yield of 4.88%, with expected earnings growth of about 4.6% over the next year.
- Forest Labs (NYSE:FRX): Maker of anti-depressant Lexapro. The company has no debt, and a relatively low forward P/E of 6.38. Earnings have declined by 10.73% over the last year, with the stock sliding by more than 22% in 2010.
- Eli Lilly (NYSE:LLY): Sells Prozac and Cymbalta. The company has managed to grow annual earnings by 18.85% over the last 5 years, but Wall Street analysts project declining earnings growth over the next 5 years as the company's patents expire. The company currently offers a dividend yield of 6.05%.
- Bristol-Myers Squibb (NYSE:BMY): Sells Desyrel, used to treat depression and panic attacks. The stock currently offers a dividend yield of 5.7%, with Wall Street analysts expecting earnings growth of 8.29% over the next year. The company's debt, as a percentage of shareholder equity, equals 40%.
- AstraZeneca (NYSE:AZN): Sells Seroquel, which treats bipolar disorders. The stock has managed to gain 9.52% over the last year, with sales growing by 11.36% during the most recent quarter. The stock currently offers a dividend yield of 5.42%.
Disclosure: No positions