After a long, dark 10+ year secular bear market for mega cap drug companies plagued with expiring patents on blockbuster medications, a new secular bull market has now emerged. We are currently in year II of the massive uptrend if you consider that XLV posted new multi-year highs in 2012. JNJ is the ultimate bellwether for the health care sector and is also well on its way to higher highs. Other mega cap drug companies (PFE, MRK and BMY) are nearing their old 2000 era highs now. They will likely pause before smashing through these levels in the coming months (but one can never be too sure). The biotechnology companies are leading the entire health care sector and will likely dominate the industry in the years to come.
