Which Canadian Healthcare Stocks Could Make You Rich? – July 23, 2018

Victoria Hetherington of fool.ca wrote a very interesting article about investors can get rich off the Canadian health care system. Click the link below to read the article in full.

Which Canadian Healthcare Stocks Could Make You Rich?

Now, what’s interesting about this article to me is how it relates to Medications now free for anyone under 25 in Ontario. Now, Ontario already offers drug coverage to seniors, as well as to those with exceptionally high drug costs, although these programs include deductibles. Now am I saying that we should simply throw Canadians under the bus with these costs?

Well here’s the thing…What Universal health does in the free market is it allows big companies to lobby for excessive regulations and protections. Why do big pharmaceutical companies do this you ask? Well, it assures them that there will be fewer competitors, which then leads to higher drug costs, which then leads to the companies that can afford to lobby Government to put warning labels on their drugs of side effects. Because of course at this point, once a pharmaceutical company has a government-created monopoly on an industry there’s no incentive for the company to find cures for things?

Because at this point find a cure for a disease could mean death to big pharmaceutical industries. This is why often some of the smaller drug companies have to list side effects that may not even exist using their medication. It’s big Pharma companies dictating government rules. Majority of the times this stuff is so blatantly in your face, but of course, Humans have been trained to believe that the Health Care industry is doing everything necessary to save lives and hey let’s be honest, it’s better to have a corrupt universal health care system than no health care system at all. Am I right? Am I right?

Now as it relates to stocks and being an investor fool.ca has a point consider investing in Aurinia Pharmaceuticals Inc. (TSX:AUP)(NASDAQ:AUPH), Medical Facilities Corp. (TSX:DR), Sienna Senior Living Inc. (TSX:SIA) because at the end of the day the healthcare industry in Canada is still a for-profit business, the government are merely the entity that negotiates prices for us.

What’s that you ask? Are all these drugs made in Canada? Can Canada force outsiders to bring the price of health care down? Well, my dear reader, the answer is NO! The Canadian government can’t control the Free Market it can, however, regulate the hell out of it and limit peoples options. Universal healthcare is simply the people pushing the responsibility of the healthcare industry to the government to manage. Of course, the government doesn’t want to get sued (haha), so the Government will, of course, limit the drugs that are allowed into and out of Canada.

This, of course, creates a whole new set of problems that result in higher prices, the incentive for an investor in this type of atmosphere, however, should have a resemblance of security that revolves around what politician is ruling Canada. Because similar to real estate if you’re an investor in the Canadian health care system all you have to do is pay attention too is what are the policies of the current ruling party of Canada are, who will their health care policies benefit the most, what company will get the most money from taxpayers and how much will it cost that private company.

Once you understand those numbers investing in any government controlled industry becomes very easy, you, of course, need to know when to dump stocks related to government policies, but I’m sure by now you get my point. This is why forcing people to pay for things is never a good idea and if you’re going to implement it you’re going to have to pay corruptible people to enforce it, being that these types of smart people are hard to find, once one becomes the decision maker of the Canadian market, to save time it would be in these government peoples best interests to simply do deals with the biggest companies which in turn will lobby for more protections.

I mean let’s be honest if you’re a big company and you have the opportunity to control prices in a country why not do it? Plus if you’re a government worker, why complicate your well being with these little upstart companies when you can work with big Pharma.

Interesting times ahead.