Pharmaceutical ETF Surges on Healthy Outlook

Plus, tax reform is seen as a major boon for pharmaceuticals companies.

“The act taxes corporations at a flat rate of 21%, down from the previous top rate of 35%, repeals the corporate alternative minimum tax, and allows a full deduction of the foreign portion of dividends received by corporate shareholders from foreign subsidiaries,” according to “Companies in the pharmaceutical industry will likely have extra cash on hand as they benefit from the corporate tax cut while excluding from income foreign dividends they receive from foreign subsidiaries.”

Industry observers argue that medical technology companies can tap into increased healthcare spending among emerging economies while the U.S. market has matured and could experience slower growth. Looking ahead, in the years through 2024, spending growth is projected to average 5.8% and peak at 6.3% in 2020.

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