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3 Takeaways From Large-Cap Pharma Earnings

We see some opportunity for investment, especially in Merck.

3 Takeaways From Large-Cap Pharma Earnings
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Damien Conover: The majority of the large-cap pharmaceutical stocks have reported 2019 results. And the results are largely as we anticipated. However, I think there's a few really important takeaways from this recent earning season.

First off, drugs that are innovative, targeting areas of unmet medical need, are really driving growth. This is different than a decade ago when the pharmaceutical firms were really targeting drugs that had me-too indication, slight improvements. That's different. With a lot of new pipeline drugs coming out of the early stages of development and into the market, we're really starting to see a lot of growth in drugs that target areas like oncology and immunology. So growth is really starting to improve.

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Damien Conover, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.