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GlaxoSmithKline’s logo appears on its offices in west London. The company will divest some assets in exchange for others from Novartis.
GlaxoSmithKline’s logo appears on its offices in west London. The company will divest some assets in exchange for others from Novartis.
(TOBY MELVILLE/REUTERS)

Just say yes to pharma stocks

Two potential multi-billion dollar deals highlight optimism over the global pharmaceutical sector.

Drug stocks are already outperforming: Over the past 12 months, the S&P 500 Pharmaceutical and Life Sciences Index’s total return of 29 per cent outpaced the S&P 500 by seven percentage points. Much of the outperformance occurred this year; the Pharma index climbed 8.7 per cent relative to the S&P 500’s 1.8 per cent.