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Here’s why drug-distribution and pharmacy stocks are bargains now

Vitaliy Katsenelson
Here’s why drug-distribution and pharmacy stocks are bargains now

Without commenting on Allergan (AGN) shares of which we own, or AbbVie (ABBV) which we do not, health care companies in general are noncyclical — health care consumption is stable and independent of the whims of the global economy. The world’s population is aging rapidly, and as people get older they consume more health care services. The media (mainly “60 Minutes”) has likened drug distributors’ exposure to opioid lawsuits to Philip Morris International’s (PM) $150 billion tobacco settlement.