Start the conversation
The pharmaceutical industry is one of the most profitable sectors in the world.
More than $978 billion was spent on prescription drugs in 2014, according to a report from ExpressScripts. That was a 13.1% jump from 2013.
And the biggest names in the pharmaceutical industry are bringing in billions annually. Here's the complete list of pharmaceutical companies by revenue in 2014:
This chart shows the revenue generated by pharmaceuticals alone. For example, Johnson and Johnson (NYSE: JNJ) total sales were $74.3 billion in 2014 for the entire company. Pharmaceuticals accounted for $36.4 billion of that total according to the research firm Statista.
The list of pharmaceutical companies is topped by Novartis AG (NYSE: NVS), which had more than $51 billion in pharmaceutical revenue in 2014. The $274 billion company's biggest revenue generator is the cancer drug Glivec. In 2014 it had more than $4.7 billion in sales. Novartis had three other drugs that brought in at least $2 billion: Gilenya, Lucnetis, and Diovan.
Pfizer Inc. (NYSE: PFE) is next on the list with pharma revenue near $45 billion annually. Its drug Lyrica, which treats diabetic peripheral neuropathy, is the company's biggest revenue generator with $5.1 billion in 2014.
Third on the list of pharmaceutical companies is Sanofi SA (NYSE: SNY) whose own diabetes treatment Lantus brought in $6.3 billion in 2014.
Now, Money Morning's Defense and Tech Specialist Michael Robinson has found the best way to profit from the absolutely booming pharmaceutical industry.
It's a play on the entire market, and it seen gains more than seven times higher than the Dow Jones Industrial Average in 2015…
How to Profit from the Most Lucrative List of Pharmaceutical Companies
In 2015, Robinson's pick has gained 10.3% while the Dow has gained just 1.4%. Over the last 12 months, the play is up 24.9% compared to 8.1% for the Dow.
And the best part about the investment is that it's a play on the pharmaceutical industry's $166 billion M&A trend of 2015. You see, with all the cash these companies generate, they are able to easily scoop up other competitors or rising companies.
So far, $166 billion has been spent on M&A in the pharma industry this year, and it shows no sign of slowing down. And Robinson's investment will continue to profit from it…
Follow me on Twitter: @KyleAndersonMM