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Where to Find the Best Hidden Health Care InvestmentsBy Rob Fannon, editor Medical InvestorFriday, March 16, 2007 It's no secret that Americans spend a fortune on health care… about 16 cents of every dollar made, in fact.
Last year alone, we spent $2.1 trillion on medical expenses.
So, where does all of this money go? Well, as you can imagine, a lot goes to doctors, hospitals, and drug and insurance companies. That's no surprise.
But there is a handful of little-known medical businesses you've probably never heard of, some of which make an absolute fortune for shareholders, year after year.
Contract research organizations (CROs), for example, handle the nitty-gritty of drug trials for Big Pharma. Last year, drugmakers spent $60 billion on research, funneling of 25% to CROs. That number is expected to double in five years' time.
Another out-of-the-way industry, medical devices, sells premium-priced, high-margin products and generates big cash flows. As baby boomers head into an active retirement and as America's waistline expands, medical devices – like drug-coated heart stents, pacemakers, and joint replacements – are going to be more and more in demand.
Actually, the health care industry is hiding a few more of these gems...
American consumers are pouring money into the health care sector (remember, we spent $2.1 trillion last year). And with the market's recent volatility, investors are flocking to "defensive" sectors, like health care. Stay tuned next week for more details...
Good investing,
Rob Fannon
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