Stocks That May Be In Recovery

For the past few years, health care stocks have looked rather sickly. Large pharmaceutical companies were losing patent protection on their biggest money makers and, at the same time, were getting little return from their research and development spending.

Today, though, this industry is undergoing an innovation renaissance. All that money which was spent on R&D is on the verge of creating a whole host of profitable new drugs as well as equipment.

There are at present 334 drug compounds in the final stages of clinical trials in the U.S.; that's an increase of 24% from 2002. The big companies that haven't been developing new drugs on their own have been buying smaller ones that have. And health-care takeover spending is on a pace that may set a record in 2008.

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