Healthy prospects for a growing sector

As the US population ages and consumes more pharmaceuticals, often subsidised by the government, companies exposed to the US health sector should prove to be a very interesting investment

One of the principal arguments for investing in healthcare stocks, and in particular pharmaceuticals manufacturers, has been shifting demographics. As we are often reminded, the population of the US and elsewhere is ageing rapidly and, as the baby boomer generation starts to reach its dotage, the demand for prescription medication is expected to soar. The US government's response to this trend has been to introduce a bill called Medicare part D, which entitles people over the age of 65 to heavily subsidised drugs. The bill has encouraged eight million uninsured people to sign up to an insu...