Demographics, Dividends & Deals Will Keep Big Pharma Rolling

The healthcare sector has beaten the overall S&P 500 over the past year and the fundamentals are in place for continued outperformance, says Monica DiCenso, US Head of Equity Strategy at J.P. Morgan Private Bank. DiCenso expects increased spending on healthcare as people live longer globally due to medical advances. She also sees a host of new drugs in big pharma pipelines with large players hiking dividend yields as they wait to introduce new products. Finally, DiCenso says deal activity will gain steam as companies seek to gain tax benefits through mergers with foreign players.