Some of the most prominent pharmaceutical companies -- including Dow Jones Industrial Average components Johnson & Johnson, Pfizer, and Merck -- heavily invest in marketing. In fact, the sales, marketing, and administrative expenses at many pharma companies exceed the R&D budget. As blockbuster drugs continue to lose patent exclusivity, is this really the best way for big pharma players to spend money? Should investors be upset, or is this a strategy that will build shareholder wealth over the long term?
In the following video, analyst Max Macaluso examines how large marketing budgets affect consumer behavior in the health-care sector and urges shareholders to think about this issue as they make investing decisions.
Large-cap health-care stocks like Johnson & Johnson, Pfizer, and Merck are traditionally known as defensive plays, but it'll take more than a few investments to save up for your retirement. Don't make the same mistakes as the masses and learn about The Shocking Can't-Miss Truth About Your Retirement. It won’t cost you a thing, but keep in mind that this report won't be available forever. Click here now to grab your copy today.