Investors in pharmaceutical companies need to keep a sharp eye on happenings in the sector. First, the major players in this space are losing patent protection on some of their best-selling blockbuster drugs. Generic competition can devastate a pharma company’s top line, and investors need to closely track upcoming patent expirations. Second, pharma companies must have a robust pipeline of late-stage drugs that can potentially make huge profits once approved. Finally, this sector is rife with mergers and acquisitions, and investors might profit from companies making savvy purchases or smaller acquisition targets.
Bristol-Myers Squibb (NYSE:BMY) is just one of the major pharma players facing challenges from the patent expiration of a leading drug. It is expanding its pipeline through R&D and the recent acquisition of Amylin Pharmaceuticals
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