Should Investors Be Angry With Big Pharma?

Some of the most prominent pharmaceutical companies -- including Dow Jones Industrial Average components Johnson & Johnson, Pfizer, and Merck -- heavily invest in marketing. In fact, the sales, marketing, and administrative expenses at many pharma companies exceed the R&D budget. As blockbuster drugs continue to lose patent exclusivity, is this really the best way for big pharma players to spend money? Should investors be upset, or is this a strategy that will build shareholder wealth over the long term?

In the following video, analyst Max Macaluso examines how large marketing budgets affect consumer behavior in the health-care sector and urges shareholders to think about this issue as they make investing decisions.

Large-cap health-care stocks like Johnson & Johnson, Pfizer, and Merck are traditionally known as defensive plays, but it'll take more than a few investments to save up for your retirement. Don't make the same mistakes as the masses and learn about The Shocking Can't-Miss Truth About Your Retirement. It won't cost you a thing, but keep in mind that this report won't be available forever. Click here now to grab your copy today.

The article Should Investors Be Angry With Big Pharma? originally appeared on

Max Macaluso has no positions in the stocks mentioned above. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services recommend Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.