With the current pressure on prices within the healthcare market, you can notice the higher volatility in this segment. We already own a big slice of healthcare in our portfolio ($JNJ, $AMGN and $GILD), so we checked out a favorite of the past few weeks in the DGI community: Cardinal Health. And made a deep dive into two of it’s peers – AmerisourceBergen and McKesson to compare the competition.
Medical distribution is a sub industry within healthcare which are less dependent on drug prices than, for example, biotech. Therefore it’s a nice ‘escape’ from the pressured drug manufactures, but you will still be able to profit from the longterm potential of the medical and pharmaceutical industry.