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How are high-tech pharmaceuticals similar to Kraft's ( KFT , quote ) Macaroni & Cheese?

They're both good ways for savvy investors to profit from the growth of the middle class in emerging markets.

The recent $3.5 billion bid for Amlyn Pharmaceuticals ( AMLN , quote ) by Bristol Myers Squibb ( BMY , quote ) is a perfect example of Big Pharma positioning itself for the world's changing demographics.

The global population is aging, especially in affluent nations like Japan and Germany, and accordingly requires increasing amounts of health care goods and services. This is particularly true of the pharmaceutical products which biotechnology firms produce.

Economic growth around the world will also increase the need for biotechnology and pharmaceutical products. It's another example of how the expanding middle class is an important trend .

Generic drug companies such as Teva Pharmaceuticals Industry ( TEVA , quote ) and Dr. Reddy's Laboratories ( RDY , quote ) are especially well-positioned to benefit from the trend, due to increases in health care costs far outpacing inflation - forcing many to save with generic products.

Year to date, Teva Pharmaceuticals has risen 11.89%. On a quarterly basis, sales are up almost 30%. Sales and earnings-per-share growth is also in the double digits for Dr. Reddy's, and its price-to-earnings growth ratio is a bullish 0.89.

The wealthiest countries spend the most on health care, led by the United States and the richest European nations. As consumers around the world become more affluent, it is inevitable that they will spend more for better health. They'll live longer, and TEVA and RDY shareholders will prosper.

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