As can be seen from the chart Pharmaceutical inventories are near a low point in the cycle. This may be from excellent management foresight, product nearing the end of their patents, increased demand from abroad due to the weak dollar.
Without examining in detail the financial statements of each individual company, it is not possible to make an informed statement as to which is actually the case. It is however an area that may provide some potential bargains within the general market weakness.
I shall have a closer look at some of the potential candidates in the weeks to come.
