7 Wide-Moat Stocks in Healthcare to Buy
We think the market is over-reacting to new drug pricing proposals, creating a buying opportunity.
Stocks of the major drug manufacturers recently took a hit as the U.S. Department of Health released details of a plan to address high drug prices. The plan lists three policy ideas: negotiating drug prices for those covered by Medicare, capping the out-of-pocket costs in Medicare Part D, and responding to manufacturers that raise prices greater than the inflation rate. Other variations of these policies are already making their way through Congress in the form of the Democrat-led HR.3 Act and bipartisan Senate Finance Committee drug pricing package.
Jakir Hossain does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.