Can healthcare sector overcome industry headaches?

Neptune UK Mid Cap fund manager Mark Martin looks at the prospects for companies in the out of favour pharmaceutical industry.

Large pharmaceutical companies performed relatively well during the market crash of 2008/9, but they have been out of favour subsequently, underperforming the wider market since the nadir of the credit crisis in March 2009. Primed by central banks - in particular Ben Bernanke at the Federal Reserve - stock markets have focused on higher risk assets and sectors most exposed to the business cycle and to emerging market growth. In such an environment it is unsurprising that the consistent and recurring revenue streams provided by the healthcare sector have appeared relatively unattractive. ...