Discovery Healthcare Holdings will take advantage of several factors to drive its growth. There are approximately one million Americans who reside in senior care facilities and this number is expected to almost double by 2030. Due to the Great Recession, millions of Americans are postponing their retirement due to the affect it had on their income and assets. Many seniors are finding that they must postpone the transition into retirement communities because they can’t afford the $3,000 to $4,500 monthly cost of an Assisted Living Facility.
Discovery Healthcare Holdings has been able to negate this issue by focusing on those seniors receiving Medicaid. The Company is succeeding when others in the industry are struggling because it offers equal opportunity housing which results in significant market advantages of diversity, flexibility and stability in the marketplace.
Future industry growth and opportunities for the Company will be spurred by the 77 million Baby Boomers planning to retire over the next two decades. Baby Boomers represent more than 70% of U.S. financial assets and over half of all discretionary spending With life expectancy continuing to increase in the US, many individuals who retire at 65 will have to decide where to spend their remaining twenty or more years. This is expected to increase demand for assisted living services, and provides an exciting opportunity for the Company’s investors.
Clinical research investments has been shown to provide major gains in basic, disease-oriented and patient oriented research and has been proven to provide huge economic returns on investment whether measured in terms of jobs created, health costs saved, or the dollar value of lives saved. The United States will invest nearly $70 Billion on medical research this year.
Pharmaceutical company acquisitions will further enhance investment opportunities for our investors and allows us the opportunity to serve a captive market segment based on the residents housed in the assisted living communities that we own. The pharmaceutical industry net profit margin exceeds 20% for 2017 and is expected to rise 5.7% next year.
Durable medical equipment opportunities will benefit us in many ways; we again have the advantage of capturing an already pre-existing captive market as well as Medical equipment companies possess several features that give them unique advantages over other companies. In many ways, medical equipment companies are similar to the pharmaceutical industry, we will be able to take advantage of companies with newly formed or undiscovered patents and historically the company that is first to the market with a new product can win a substantial market share, which in turn will give investors a superior return on their money.
The company that is first to the market with a new product, especially if it can obtain a patent, can win substantial market share. Patents are important to protect key design elements that make the product unique and deserving of a premium price. Companies that receive a premium price for their products generate higher margins, which in turn give investors a superior return on their money.