For a long time, the main favorites of investors were pharmaceutical stocks. During this period, the shares of various companies experienced both quite significant rises and falls. Such market fluctuations may have been due to political opposition in the United States market to the calculated pricing strategies of pharmaceutical corporations. Significant and sharp price increases implemented by many drug manufacturers have brought a huge wave of customer outrage. In addition, pricing has also been affected by patent expirations and extensions for many important drugs. And so, against the background of such fluctuations, most investors ask themselves the question whether it is worth investing in the best pharmaceutical stocks?
The best pharmaceutical stocks campaigns
In order to really understand the state of the companies, let’s make a little excursion into how the state of the companies and the prices of their shares changed in the recent past.
Bristol-Myers Squibb (BMY)
The Bristol-Myers Business and Squibb Corporation merged to form Bristol-Myers Squibb, an American pharmaceutical company, in 1989 (ISIN: US1101221083; BMY; USD). The NYSE-listed corporation concentrates its efforts on the treatment of HIV, hepatitis B, cardiovascular illness, and oncology. About $83 billion is Bristol-Myers Squibb’s current market worth. The stock is currently going for about $60. A number of the pharmaceuticals in Bristol-Myers Squibb have a patent on recently came up for renewal. Fortunately, the overwhelming success of the two newly introduced sales hits offset the losses. The first is a drug called Eliquis, which prevents clotting. The Pfizer brand’s leading next-generation anticoagulant is called Eliquis. All rival medications, including Xarelto, are gradually being phased out of the market in favor of Eliquis. Eliquis’ overall sales increased 32% in 2018 from $5 billion to $6.4 billion.
Opdivo as a part of the Bristol-Myers Squibb
Opdivo is another “miracle medication” from Bristol-Myers Squibb. Eleven different cancers have already been given the go-ahead for their use in treatment. The sales revenue for Opdivo in 2018 went from $5 billion to $6.7 billion, an increase of about 36%. Opdivo is most frequently used to treat cancers of the liver, stomach, kidney, and lungs. The company’s two main medicines are undoubtedly Eliquis and Opdivo, but Bristol-Myers Squibb also offers a wide range of other profitable drugs with double sales growth rates.
These include:
- rheumatoid arthritis treatment Orencia;
- cancer medications like Sprycel;
- Yervoy;
- Empliciti.
Together, these medications bring in an additional $6 billion in revenue for the business. And earnings keep rising. In our perspective, buying BMS stock may be considered a foundational investment in the pharma industry. The company has a very broad range of products and is quite diverse. The quarterly payout of $0.41 produces A respectable dividend payout of 3.2%.
Novo Nordisk (NOVC) shares
The Danish business created and marketed pharmaceutical goods and services, Novo Nordisk (ISIN: DK0060534915; NOVC; EUR). The business, which was established in 1923, has recently emerged as the unchallenged market leader for diabetes treatment on a global scale. The corporation also produces medications for growth hormone therapy, hormone replacement therapy, and blood coagulation, with a total value of EUR 107 billion. For the company, a new study on the promising medication Semaglutid is encouraging. It’s insulin, and it may be taken orally. They did the first trial in 2019, and its remarkable Phase III results point to highly positive outcomes. Analysts predict that the medicine might get the go-light to go on sale in the third quarter of 2019.
If the Danes are successful in commercializing oral insulin, it will not only represent a slight advancement in the management of diabetes but also a significant competitive advantage. The firm will be worth $1 billion if the product is a success in the market. The medication would probably end up becoming the company’s signature product. However, because of its strong portfolio, the corporation is not entirely dependent on the new medicine.
Over the last three years, Novo Nordisk’s sales growth has averaged 3%. Additionally, profit climbed by 9% on average throughout the same time frame. Only a 2% modest gain is anticipated in 2019 overall. The possibility of semaglutide’s re-registration in 2020 is predicted to boost growth to at least 14%.
AbbVie Shares (ABBV)
AbbVie, a biotechnology and pharmaceutical company, was founded in 2013 to take over from Abbott Laboratories. Its ISIN is US00287Y1091 and its currency is the US dollar. For some of the most complex and critical diseases in the world, AbbVie specializes in the study of and creation of novel medications. The corporation, which has a market valuation of USD 120 billion, is one of the major participants in this sector.
AbbVie has experience treating hepatitis C (HCV), illnesses of the immune system (such as rheumatoid arthritis), the central nervous system (including Alzheimer’s disease, Parkinson’s disease, and multiple sclerosis), cancer, chronic renal disease, or gynecological conditions. Adalimumab, which is sold under the brand name Humira and is the most popular medication in the world, with annual sales of almost $20 billion, is AbbVie’s top-selling item.
The business introduced the 97% successful Viekirax and Exviera medications for the treatment of long-term hepatitis C in January 2015. A cannabis-based drug called AbbVie Marinol has been successfully released on the market. A medication that, for instance, helps chemotherapy patients who are experiencing nausea or vomiting, has been approved by the US Food and Drug Administration.
Medicine, on the other hand, represents a far smaller portion of sales for the business. But AbbVie will probably emerge as a major vendor of cannabis-based medications. AbbVie would make a good addition to an equity portfolio for investors hoping to profit from, among other things, a marijuana boom. Over 20 medications are now being developed by the company in the second and third phases. Many of them could become popular products. The business was successful in registering Mavyret for hepatitis C last year. Elagolix, a medication for endometriosis, was also approved by the FDA (Food and Drug Administration).
In the upcoming years, the corporation will release several new items that it has planned. It is anticipated that AbbVie will dominate the pharmaceutical business. Long-term investors can currently open a stake in AbbVie stocks due to an adjustment. The corporation is also impressive because its dividend yield is close to 5%.
