Tag: pharmaceutical industry

An investment advisor believes that the pharmaceutical industry has greater profitability than the IT services industry. This is due to the fact that pharmaceutical companies have higher gross margins and lower operating expenses than IT services companies. Pharmaceutical companies also have a longer product lifecycle than IT services companies. As a result, the advisor believes that pharmaceutical companies have a greater ability to generate profits and cash flow than IT services companies. This could lead to outperformance in the coming years, as investors increasingly favor companies with strong profitability and cash flow.