Healthcare: Values Among Drug, Biotech, and Supply Chain Firms
Innovation, consolidation, and a mixed regulatory picture for healthcare stocks in the first- quarter.
Regulatory changes in the U.S. have provided a mixed picture for healthcare, with the positive benefits of tax reform offsetting the minor negative legislation on drug pricing. With the U.S. corporate tax rate falling to 21% from 35%, many global companies' tax rates have fallen by several hundred basis points. However, changes to payments to some of the U.S. drug programs, including Medicare Part D, will create a minor headwind to prices in the U.S., but pricing should remain strong relative to other geographies.
Damien Conover does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.