Big Pharma is in trouble. Generic competition, patent expirations and slowing sales are all eating into profits.

So how can you turn a profit in this turbulent sector? By investing in contract research organisations, or CROs, says biotech expert Rob Fannon. When the big pharmaceutical companies outsource research to CROs they get paid whether or not the new drugs ever make it to market.

There’s another way to profit too - contract sales organizations, or CSOs. They’re another way for Big Pharma to outsource, but instead of doing research they sell.

It’s no secret I’m a Big Pharma bear. And my favorite target is Pfizer, the world’s largest drug company.

One of the drug industry’s biggest superstars right now is a cancer drug called Sutent.

Within the first few months of 2008, shares of a billion-dollar biotech ran back and forth between $20 and $30… losing 50% one week only to pick it back up the next.

It’s no secret America’s health care system has problems. As I wrote last week, tens of thousands of people die unnecessarily every year due to medical errors… many of which could be prevented if hospitals and doctors adopted technology to track prescriptions and handle health care records.