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As many are trying to rebound from the flu outbreak.
Other investment types are looking at this as a way to make some money Damien Conover joins us now with some -- sucks that you should be walking he's equity strategist at Morningstar and yeah I'd just say David is is that callous as it sounds that you have -- report -- across the contrary.
Many investors are wondering what sectors could actually benefit from this in the first big question is gotta be.
Are they gonna see a substantial amount -- revenue from flu season this year.
-- -- I think they will either -- or the drug makers are really well positioned with their vaccines -- a handful of big pharmaceutical companies that make the majority of these vaccines.
And it's tricky to benefit from the current path.
Vaccine is actually out there put out of the currently available doses.
The probably she almost all of them being used vs last year you'd see a lot of vaccines that you start using should see a nice uptick in vaccine sales year over year -- also important.
Bloated yes give up the pharmacies and -- get back about a second but since you brought up the drug makers alike a look at some of the names and get your take on these guys because.
But many of these -- a partnership in particular when it comes to Tamiflu which is the most widely prescribed flu drug if you will.
But -- -- sanity you got Novartis.
Some reporting to Johnson & Johnson JJ's a potential play here Glaxo AstraZeneca.
Is the -- RD been made in these stocks ahead of flu season or is the severity of the flu season a reason to look at them again.
I think the severity of the flu season as a reason to look at them again.
Because everybody anticipates the flu season with the investment community everybody expects some seasonality in the results but the magnitude of this flu season.
As much worse than it was last year.
And what's important about this is.
Typically when we she a short blip in increased demand and investors potentially look through it but what's important this time is there's technology.
On the forefront of the next generation of vaccine second cover a broader spectrum of the flu strains so that should enable the firms that -- have these next generation of vaccines.
The price and higher I think the investment community just -- be increased demand this quarter and into next quarter.
And some benefit but really it will shine a light on the next generation of vaccines that have a longer runway that should really increase the valuation of certain certain stocks.
We're saying more.
Market chatter filled about companies like right -- at Walgreens.
That there actually getting a business not just because of the pharmacy side of their businesses but also the over the counter.
Anymore tissues are going to be sold frankly -- people are set -- you look at something like that when you evaluate that sector.
Yes definitely I think whenever there is an increased outbreak of flu -- can have a benefit of utilization increasing within the health care system so.
There should be -- -- bullish for a lot of the retail pharmacies specially also some of the other companies that make need also Becton Dickinson you've got a few other secondary plays out there that just.
Benefit from increased utilization.
Sometimes those increased bombs from just an increase flu outbreak.
Sometimes -- look through by investors -- in the C a nice benefit for the quarter but maybe not award a bigger better stock price for those companies.
I sit also -- -- -- above lines dating her apart from Boston hospital -- are going to be another thing to watch this is really interesting Damien Conover from Morningstar thank you Damien.
Great thanks for having me.
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