While allergy sufferers pay the price for a warmer than usual winter, profits will likely bloom for pharmaceutical companies. So stop and smell the roses. This could provide a healthy boost to your portfolio.
It’s only March and pollen counts are setting record highs all over the Southeast. In New York City, trees are blooming several weeks ahead of schedule.
“An early start to the allergy season is always good for the large pharmaceutical companies that manufacture allergy meds,” said Paul Walsh, vice president of weather analytics at the Weather Channel. “This year’s mild winter followed by record spring warmth is manna from heaven for these firms.” (Note: The Weather Channel is owned by NBCUniversal, CNBC's corporate parent.)
So, we’re sniffing out new portfolio strategies in between sneezing and wheezing.
“The early onset of the allergy season could provide a boost to an industry that missed out on a big flu season,” said Argus Research President John Eade.
Eade, who follows big pharma, said the timing of this season could also aid Merck — which is the biggest seller of prescription allergy medicine. That’s because it loses its patent protection on its blockbuster drug Singulair later this year. When Merck does, Eade said Mylan Labs is in line to launch a generic.Page 1 of 3 | Next Page