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.
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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...
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
