SOURCE: Paragon Financial Limited

Paragon Financial Limited

August 22, 2012 08:20 ET

Pharmaceutical Companies Begin to Offer Copayment Coupons to Help Compete With Generic Versions of Top Selling Drugs

The Paragon Report Provides Stock Research on GlaxoSmithKline and Merck

NEW YORK, NY--(Marketwire - Aug 22, 2012) - Pharmaceutical stocks have performed admirably in 2012, despite having to cope with major patent expirations making way for a rise in generic competition. The iShares Dow Jones U.S. Pharmaceuticals Index Fund (IHE) -- which measures the performance of the pharmaceuticals sector of the United States equity market -- has gained nearly 13 percent year-to-date outperforming Dow Jones industrial average by roughly 5 percent. The Paragon Report examines investing opportunities in the Drug Manufacturers -- Major Industry and provides equity research on GlaxoSmithKline plc (NYSE: GSK) and Merck & Co., Inc. (NYSE: MRK).

Access to the full company reports can be found at:

In an attempt to lower prices to compete with generic versions of their top selling drugs, major pharmaceutical companies have begun offering U.S. patients coupons to reduce copayments on brand-name drugs. Popular drugs such as -- Lipitor, Plavix, and Diovan -- are among the drugs U.S. patients have been receiving coupons for. Analysts predict that more companies will follow suit to help offset big revenue drops as a result of patent expirations. The coupons being given out currently only work with private insurers. Pharmaceutical Care Management Association in study done last year estimates that over the next 10 years copayment coupons could increase prescription drug spending by as much as $32 billion.

Paragon Report releases regular market updates on the Drug Manufacturers -- Major Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

GlaxoSmithKline is one of the world's leading research-based pharmaceutical and healthcare companies. The company earlier this month completed the acquisition of Human Genome Sciences for approximately $3 billion net of cash and debt. All outstanding shares of HGS were acquired for US$14.25 per share in cash. 

Merck currently offers investors an annual dividend of $1.68 per share for a yield of around 3.8 percent. The company recently reported worldwide sales were $12.3 billion for the second quarter of 2012, an increase of 1 percent, or 5 percent excluding foreign exchange, compared with the second quarter of 2011. Shares of Merck are up over 16 percent year-to-date.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: