As emerging markets continue to grow and prosper, it’s believed that they’ll be a major driving force behind the pharmaceutical and biotechnology sectors and their respective exchange trade funds (ETFs).

Leaders in the pharmaceutical industry now feel that countries that drove growth in the last two decades won’t be the same countries driving growth in the next two.  According to Meda, nearly 80% of drugs are sold and consumed by 20% of the developed world, but this trend is likely to shift. Emerging markets, the industry says, will become more important. (What health care reform means).

Although demand for these drugs is projected to shift away from developed countries, it is the United States that will be the leader when it comes to developing these drugs, researching them and getting them to consumers. (How innovation benefits pharmaceutical industry).

For more stories on pharmaceuticals, visit our pharmaceuticals category.

  • PowerShares Dynamic Pharmaceuticals (NYSEArca: PJP): up 15.2% year-to-date

  • the SPDR S&P Pharmacueticals (NYSEArca: XPH): up 25.3% year-to-date

  • iShares Dow Jones U.S. Pharamceusticals (NYSEArca: IHE): up 28.5% year-to-date

Kevin Grewal contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.