Birth control is still a hot button issue. And for all the laws, debates, and medical advancement being made to hinder and advance the use, it’s worth reminding that the industry draws in billions of dollars each year that pump up big name pharmaceutical companies.
In The News:
Men’s birth control may be around the corner in the form on a hormone skin gel that significantly lowered sperm production. “A drug dubbed JQ1 swiftly stunted sperm production in male mice, a new study found. And like the female birth control pill, its fertility-fighting effects on were completely reversible,” reports ABC News.
In California state Senate has approved a Timely Access to Birth Control bill that would allow registered nurses to dispense birth control, making it easier for women to get contraceptives at primary care clinics.
The federal Affordable Care Act, upheld by the Supreme Court on June 28, requires all private insurers to implement the health care reform, self-insured institutions are exempt from the changes, according to the government health care website. The University of Oklahoma, which is privately insured, announced it will still cover birth control and other preventative health care measures at no cost to students through their university-provided health insurance. Meanwhile, several Christian universities have filed suit against the Obama administration over the policy.
Business Section: Investing Ideas
Americans spent $5 billion last year on birth control alone. Much of the sales are from generic brands but it’s a growing market, especially as more drugmakers come out with new products, such as male birth control.
To illustrate how large the business is: Bloomberg reports Bayer Pharma took in $1.5 billion last year from its birth control pills YAZ and Yasmin. Meanwhile, Merck reported over $600 million in sales from its Nuvaring.
Considering the ongoing debates and discoveries (in the midst of an election year no less) what do you think will happen to the firms who see large revenue streams from birth control products?
Here are a few major pharmaceutical companies who currently manufacture popular birth control products:
Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:
1. Church & Dwight Co. Inc. (CHD, Earnings, Analysts, Financials): Develops, manufactures, and markets a range of household, personal care, and specialty products under various brand names in the United States and internationally. Market cap at $7.68B, most recent closing price at $55.19. Maker of Trojan brands of prophylactics and home pregnancy kits.
2. Johnson & Johnson (JNJ, Earnings, Analysts, Financials): Engages in the research and development, manufacture, and sale of various products in the health care field worldwide. Market cap at $186.79B, most recent closing price at $67.75. Owns Ortho-McNeil Pharmaceutical, which makes diaphragms, and the oral contraceptive pill brands Ortho Tri-cyclen and Ortho-Evra (as seen modeled in article image).
3. Merck & Co. Inc. (MRK, Earnings, Analysts, Financials): Provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. Market cap at $130.69B, most recent closing price at $42.91. Manufacturer of the NuvaRing.
4. Pfizer Inc. (PFE, Earnings, Analysts, Financials): A biopharmaceutical company, offers prescription medicines for humans and animals worldwide. Market cap at $177.03B, most recent closing price at $23.70. Manufactures the Depo-Provera Contraceptive Injection and birth control pills such as Lybrel and Loestrin.
5. Teva Pharmaceutical Industries Limited (TEVA, Earnings, Analysts, Financials): Develops, produces, and markets generic drugs; and proprietary branded pharmaceuticals in various therapeutic categories and active pharmaceutical ingredients worldwide. Market cap at $38.08B, most recent closing price at $40.38. The company owns Barr Pharmaceuticals (which owns Duramed Pharmaceuticals) that produces various pharmaceuticals including women’s health care products, oral contraceptives, and intrauterine contraception.
Written by Rebecca Lipman.
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