Coming patent expirations on key drugs and the development and marketing of products now in the pharmaceutical industry's pipeline could alter company revenue and profits significantly in coming years. As a result, drug-stock investors are focused not only on this year's earnings but also on those in the distant future.
Mindful of the long-term view, Tim Anderson, an industry analyst at Sanford Bernstein, recently projected 2015 and 2020 profits for nine major U.S. and European drug companies in a report titled "The Long View: Is There Light at the End of the Pharmaceutical 'Patent Cliff' Tunnel?" Few analysts in any industry make such long-term projections.
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