This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Early Allergy Season: Sneezing Your Way to Profit




By Stephanie Landsman, Producer, "Squawk Box"

NEW YORK (CNBC) --While allergy sufferers pay the price for a warmer than usual winter, profits will likely bloom for pharmaceutical companies. So stop and smell the roses. This could provide a healthy boost to your portfolio.

It's only March and pollen counts are setting record highs all over the Southeast. In New York City, trees are blooming several weeks ahead of schedule.

"An early start to the allergy season is always good for the large pharmaceutical companies that manufacture allergy meds," said Paul Walsh, vice president of weather analytics at the Weather Channel. "This year's mild winter followed by record spring warmth is manna from heaven for these firms." (Note: The Weather Channel is owned by NBCUniversal, CNBC's corporate parent.)

More from CNBC
'Solar Flare-Ups': Petitions Over UFOs and Weather Cuts
Did a Tax-Budget Battle Almost Kill the US in 1812?
Hamptons 'Beach Pass Barometer': Economic Rebound Sign?

So, we're sniffing out new portfolio strategies in between sneezing and wheezing.

"The early onset of the allergy season could provide a boost to an industry that missed out on a big flu season," said Argus Research President John Eade.

Eade, who follows big pharma, said the timing of this season could also aid Merck (MRK) -- which is the biggest seller of prescription allergy medicine. That's because it loses its patent protection on its blockbuster drug Singulair later this year. When Merck does, Eade said Mylan Labs (MYL) is in line to launch a generic.

"Other companies positioned to profit are the diversified pharma companies that own consumer products divisions -- including Johnson & Johnson and Pfizer," said Eade.

Miller Tabak Health Care Transformation Fund Manager Les Funtleyder shares the same view.

"We kind of had for drug companies not a great cold and flu season, because the weather was so wrong for it. But, we'll make it back on the allergies," said Les Funtleyder.

Merck, Johnson & Johnson (JNJ), Sanofi (SNY) and Pfizer (PFE) make a big portion of the allergy drugs in the market -- both prescription and over-the-counter. Of those, Funtleyder believes Merck, the maker of the antihistamine Claritan and nasal spray Afrin, will be the biggest winner.

Bottom line: You may not be breathing easier, but the world's biggest pharmaceutical companies will be, this spring.

Disclosure: Miller Tabak Health Care Transformation Fund owns shares Of Merck and Johnson & Johnson.



--Written by Stephanie Landsman at CNBC.

CNBC is a world leader in business news, providing real-time financial market coverage and business information.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs