These Drug Makers Are Letting Growth Opportunities Slide By

It takes a lot of diligence, a lot of talent, and sometimes even the perfect alignment of the stars for pharmaceutical manufacturers to produce a successful drug. Obstacles can materialize at many points in a drug’s production timeline. Developing, testing, and receiving regulatory approval all represent challenges for companies even before their drugs reach the market, at which time a whole new set of problems must be faced. Then competition, issues with insurance coverage, and the occasional recall can take their toll.

The New York Stock Exchange’s Healthcare Index — with 108 listed companies — experienced rough and choppy trading last week, although it managed to end the five-day period up $5.50, or 0.6 percent, at $8,688.92. But this gain left many healthcare stocks behind. The Nasdaq’s Healthcare Index of 404 companies dropped $2.52, or 0.63 percent, to $397.93, pulled down by several poorly performing stocks.

For the most part, the healthcare sector has led the stock market rally this year, or at least heavily contributed to it. Thanks to the aging population of the United States, the healthcare sector is poised to profit — with or without President Obama’s Affordable Healthcare Act — in the near future as well. But this driver can only push healthcare companies so far, further catalysts — like a solid new drug pipeline or a solidly performing treatment — are needed to further capitalize on this opportunity for growth.

Several healthcare companies have allowed this growth opportunity slide between their fingers…