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Quarter-End Insights

Our Outlook for Health-Care Stocks

Mergers and acquisitions replace reform as a key health-care topic.

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  • The passage of the health-care reform completion didn't result in a sector rally despite its overall benign attributes.
  • Big Pharma performance was particularly weak in the quarter, primarily as a result of near-term noise. Industrywide trends and fundamentals are attractive, and stocks remain undervalued.
  • Mergers and acquisitions dominate the industry landscape. More consolidation is expected.

Alex Morozov does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.