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The future of the U.S. economy appears promising, with robust growth and strong corporate performance. This economic strength has propelled the stock market to record highs, signaling confidence in the economy’s resilience. The well established pharmaceutical industry continues to assert its economic dominance through resolute financials. In 2022, pharma stocks brought in $510.5 billion, with forecasts for the sector to reach $863.6 billion in revenue by 2030. Between 2023 and 2030, the industry is expected to hold a solid CAGR of 7.8%. Investing in pharma stocks is very beneficial, especially for these top three companies.
Bristol-Myers Squibb (BMY)
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Bristol-Myers Squibb (NYSE:BMY) is one of the world’s largest pharmaceutical companies. In Q4 2023, Bristol exceeded analyst expectations for the top and bottom lines. The company saw revenue increase 1% year-over-year (YOY) to $11.48 billion. And, BMY reported EPS of $1.70 adjusted versus $1.53 expected. This was primarily driven by a staggering $1.07 billion in sales for its new product portfolio, which was up 66% YOY. Finally, management is optimistic for the future, forecasting single-digit 2024 revenue growth and full-year adjusted earnings of $7.10 to $7.40 per share.
Furthermore, a bundle of three recent multi-billion-dollar acquisitions, RayzeBio, Mirati Therapeutics and Karuna Therapeutics, will continue to boost the company’s growth. CEO Chris Boerner expressed particular excitement over the Karuna deal, emphasizing its potential to accelerate Bristol’s business in neuropsychology. Karuna’s KarXT, used to treat schizophrenia and psychosis in Alzheimer’s patients, poses a commercially attractive opportunity which could allow BMY to enter the neurodegeneration market.
Novo Nordisk (NVO)
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Novo Nordisk (NYSE:NVO) is a Danish pharmaceutical company focused on developing hemostasis and hormone regulation medicine. In Q4 2023, NVO reported significant financial figures number-wise and YOY growth compared to 2022. In revenue, NVO’s yearly total reached $232.3 billion. Similar success is also in net income and diluted EPS, with NVO earning $22 billion and $4.91, respectively.
The largest catalyst behind NVO’s cause comes from their headline drug, Ozempic, which they released in 2017 for diabetic use. In the past year, Ozempic uses have skyrocketed due to its use for weight loss-related purposes. In a year of drug shortages in 2023, Ozempic sold $13.9 billion worth of sales, with 66% located in the U.S. alone. As Ozempic reaches a more extensive patient base and an increase in medical ingredients, expect revenue to skyrocket for NVO.
AstraZeneca (AZN)
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AstraZeneca (NASDAQ:AZN) is a global biopharmaceutical company focused on discovering, developing and commercializing prescription medicines. AZN’s largest market, Oncology, accounts for 30% of its revenue. The Oncology market in the U.S. expects to grow at a CAGR of 13.55% from 2022 to 2028, showing tremendous opportunity for AstraZeneca’s profits to grow.
AstraZeneca ended the fiscal year 2023 with a revenue of $45.811 billion, a 3.29% increase from the previous year. Net income and Diluted EPS grew to $5.955 billion and $3.81. The company became well known after its vaccine development for Covid-19, shooting its revenue figures to insane heights.
Moreover, AstraZeneca dominates drug development market. It has one of the world’s largest research and development pipelines. The company aims to focus on an innovation-driven strategy in research and development. Combining its solid financial figures and market edge, AZN is one of the best pharma stocks currently available.
On the date of publication, Michael Que did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The researchers contributing to this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
Michael Que is a financial writer with extensive experience in the technology industry, with his work featured on Seeking Alpha, Benzinga and MSN Money. He is the owner of Que Capital, a research firm that combines fundamental analysis with ESG factors to pick the best sustainable long-term investments.
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