I would consider GlaxoSmithKline (LSE: GSK) to be a top-class pick for investors to make a fortune. And not only on account of its monster 5.1% dividend yield.
As my colleague Edward Sheldon recently commented, the world is set to experience a boom in the number of so-called silver surfers in the coming decades, a surge in the number of citizens over the age of 60. With this comes rising healthcare demand, naturally, and this is a phenomenon that GlaxoSmithKline, with its broad range of treatments, is in prime position to exploit.
This isn’t the only reason to pile in to GlaxoSmithKline today. Investors in the pharmaceuticals arena need to be prepared for long, frustrating and often extremely-expensive product launch delays in the event of poor testing data and/or the thumbs-down from regulators. The FTSE 100 firm has a great track record of getting its products to market relatively quickly, however, a critical quality in recent years as the business has suffered from crushing patent losses such as that of Advair.
Investors still concerned about the unpredictability surrounding drugs pipelines may be tempted to buy in to fellow Footsie share NMC Health (LSE: NMC) instead.
Like GlaxoSmithKline, the private healthcare provider is also in great shape to ride the boom of ageing citizens. It is, however, involved in offering a range of medical services from gynaecology and obstetrics though to drugs dispensing, although it is probably more famous for its hospital network which spans the United Arab Emirates.
In total NMC can actually boast a network of 185 facilities in 17 countries, a footprint that has been helped by rampant acquisition activity. It’s well placed to benefit from citizens’ booming wealth in the Emirates, but it is not content to rest on the exceptional emerging market revenues opportunities that it has. More specifically, it has stated its intention in recent times to get a slice of the fast-growing fertility clinic market and is looking to open a swathe of such clinics across Europe.
A pet pick
Looking at the business of healthcare though a different lens, Animalcare (LSE: ANCR) is a very-promising pharmaceuticals play focused on helping our sick four-legged friends. The business of providing medicines to both agricultural and companion animals is becoming increasingly large, and thanks to its exceptional product ranges things look exceptionally healthy for the AIM-quoted firm.
Animalcare’s operations have been given a huge boost following the acquisition of Ecuphar last year, a move that has boosted its geographical reach as well as its operational clout. The rationale of the move was underlined by news released this week that revenues from pet products jumped almost 70% year-on-year between January and June, to £23.6m.
And investors should be encouraged by the company’s vow to supercharge its position in the high-margin veterinary pharmaceuticals products arena. Its declining share price suggests that the market remains unconvinced right now, but I reckon the earnings outlook for the business remains extremely exciting.