Over the past year and a half, investors have focused more on adding pharmaceutical stocks to bolster their portfolios. This happens when several large-capped pharmaceutical populations have dominated the news as they competed to develop an effective vaccine against COVID-19.
Renowned pharmaceutical companies, included Pfizer (NYSE: PFE), Modern (NASDAQ: MRNA) i Johnson & Johnson (NYSE: JNJ) who successfully developed a vaccine, have now become well-known names if they weren’t already.
In addition to the COVID-19 vaccine, there are some pretty amazing innovations happening in the pharmaceutical industry. These shares have the potential to generate substantial profits for shareholders. Let’s take a look at some of the best pharmaceutical stocks to add to your portfolio right now.
The best pharmaceutical stocks for your portfolio
Pharmaceuticals and prescription drugs are increasingly an integral part of society than ever before. Baby boomers are estimated to represent 73 million citizens who will turn 65 by 2030. That’s why the pharmaceutical industry is preparing for a major transition.
New pharmaceutical companies are being created all the time to meet the growing needs of society. However, there are some pharmaceutical stocks that have consistently added value to shareholders. This includes:
- AbbVie (NYSE: ABBV)
- Regeneron Pharmaceuticals (NASDAQ: REGN)
- Eli Lilly (NYSE: LLY)
- Pfizer (NYSE: PFE)
Let’s take a look at what makes these pharmaceutical stocks unique and find out what excites investors about the future of the pharmaceutical industry.
- Market capitalization: 210B
- 2020 revenue: $ 45.78 million
- Revenue growth: 37.6%
AbbVie has been one of the most exciting companies to see grow and expand its product line. The company has one of the most successful prescription drugs of all time at HUMIRA. Used to treat rheumatoid arthritis and plaque psoriasis, HUMIRA is now the number one immunological drug. HUMIRA alone generated nearly 20 billion in revenue in 2020, with growth of 8.4% in the US
However, internationally, the drug has lived a different history. Increased competition has reduced drug sales, falling by about 13% in 2020 and another 6% in Q2 2021.
The good news for ABBV investors is that the company’s new pipeline is starting to generate additional revenue. AbbVie CEO Richard A. González recently mentioned in the company’s financial results during the second quarter, “AbbVie’s new immune assets contributed more than $ 1 billion in sales” in the second quarter.
Investors looking for dividend stocks should be happy to note that AbbVie is part of the Aristocratic Dividend Index. An exclusive list of companies that have increased their dividend each year for at least 25 years.
Since the company split from Abbott Laboratories (NYSE: ABT) in 2013, it has increased its dividend by 225%. And if that’s not enough, Warren Buffett’s Berkshire Hathaway has more than $ 2.3 billion from manufacturer HUMIRA.
- Market capitalization: 71B
- 2020 revenue: $ 8.5 million
- Revenue growth: 8.1%
Regeneron is another pharmaceutical stock that is worth watching with impressive growth in recent years and a solid drug channel.
EYLEA is the company’s largest drug in terms of sales, with 1.45 billion units sold in the second quarter. The company’s antibody cocktail, REGEN-VOC, has just been expanded for emergency use by the U.S. Food and Drug Administration. The new approval allows more people who consider themselves “at risk” to use the product.
Compared to some of his peers, Regeneron’s 8% revenue growth may not seem like much. But in the last financial records of the second quarter of the company, the pharmaceutical manufacturer reported a very different result. Total revenue grew to $ 5.14 billion, up 163% from the previous year. Net income also increased significantly and rose 245% to 3,101 million.
- Market capitalization: 259.1B
- 2020 revenue: $ 24.5 million
- Revenue growth: 10%
Eli Lily was also in the COVID-19 vaccine race until the FDA revoked the emergency use of the company’s excavated therapy, Bamlanivimab.
The disappointing news has not scared investors, as this pharmaceutical stock has still risen more than 65% to date. Compared to the 16% growth in the NYSE Arca pharmaceutical index, Eli Lily is in greater demand among investors than its competitors.
Some of Eli Lily’s most prescribed medications include Trulicity for diabetes, Humalog for diabetes, Alimta for cancer, Forteo for osteoporosis, Cialis for men’s health and Jardiance for diabetes.
In the second quarter, the drug maker increased its revenue by 23% to $ 6.7 billion. This includes 12% growth, excluding the company’s Covid-19 antibody treatment.
Revenue growth can be attributed mainly to higher product sales of the company’s key products: Jardiance, Cyramza, Trulicity, and more. Growing product sales are a good sign for LLY investors as they show that their products are in high demand worldwide.
Growing sales will be a key factor in keeping LLY’s stock running in the long run.
- Market capitalization: 274.1B
- 2020 revenue: $ 41.9 million
- Revenue growth: (-19)%
Pfizer is a powerful pharmaceutical stock to buy in 2021, with PFE shares above 35% this year. Pfizer is a well-known name now after its Covid vaccine with BioNTech (NASDAQ: BNTX) caught national headlines. After a new briefing at the White House, outlining the use of booster inventors and a resurgence of Covid variants, PFE shares are back in the minds of investors.
The pharmaceutical manufacturer had a strong second-quarter profit report with 92% revenue growth over the previous year. Pfizer was quick to raise its focus for the year, noting higher projected earnings and earnings per share.
Aside from the vaccine, Pfizer also features a wide range of products with sales of Vyndaqel at 81%, Eliquis 13% and Prevnar-13 another 34% in the quarter.
Add pharmaceutical stocks to your portfolio
As you can see, the world around us needs pharmaceuticals to survive and function in a “normal” way. These pharmaceutical stocks are changing the world we live in, which makes it safer for everyone. In addition, the demand for these prescription drugs is growing. The pharmaceutical industry continues to develop new technologies to improve the development process. This will reduce costs for everyone.
As boomers age, now may be a good time for investors to acquire pharmaceutical stocks. In any case, recent years have shown society’s continued confidence in pharmaceuticals. These are just some of the companies that investors should control to take advantage of the coming boom.
About Pete Johnson
Pete Johnson is an experienced financial writer and content creator specializing in research on equity and derivatives. He has more than ten years of experience in personal investment. Digging through 10K forms and finding hidden gems is your favorite pastime. When Pete doesn’t research actions or write, you’ll find him enjoying the outdoors or exercising.
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