Identifying promising pharma stocks is no small feat in the dynamic and competitive realm of pharmaceuticals. The industry is replete with businesses boasting robust pipelines, each vying for a breakthrough that could potentially revolutionize healthcare.
Today’s article sheds light on three high-potential pharma stocks that hold strong promise for the future. These companies are among the cream of the crop regarding R&D pipeline size as of 2023, demonstrating a powerful blend of innovation and growth potential.
The journey towards significant medical advancements is akin to a marathon, where incremental progress can eventually lead to transformative therapies. This landscape offers compelling opportunities for investors willing to delve deeper. So, let’s explore these pharma stocks to watch, each armed with a powerful pipeline poised to shape the future of healthcare.
Promising Pharma Stocks: Pfizer (PFE)
Pfizer (NYSE:PFE) is a renowned pharmaceutical business, viewed as an undervalued blue-chip stock with massive long-term growth potential. Further enhancing its appeal as an income stock is its attractive dividend yield of more than 4.5%, which could offer investors steady income in the coming years.
Certainly, Pfizer is grappling with a myriad of uncertainties, including concerns over its growth prospects post-pandemic. Naturally, it was one of the biggest pharma players during the pandemic, and the steep comps significantly impacted its financials. However, the company is confronting these challenges head-on by investing aggressively in research and development.
These R&D efforts are projected to produce a robust pipeline, potentially generating more than $20 billion in incremental sales from new molecular entities by the conclusion of the current decade. Furthermore, new business developments are expected to contribute another $25 billion in revenue by the same timeline.
Merck (MRK)
Merck (NYSE:MRK) the powerhouse behind treatments such as Keytruda and Gardasil, poses a fruitful opportunity for discerning investors. It’s a stalwart that’s not just recognized for its healthcare solutions but an attractive quarterly dividend yield of more than 2.58%.
Despite the slower sales of Lagevrio, Merck’s coronavirus antiviral pill tugged revenues down 9% to $14.5 billion in the first quarter this year. A look into its R&D pipeline reveals a focus on a broad spectrum of diseases, spotlighting oncology, infectious diseases, cardio-metabolic disorders, and neuroscience. Some noteworthy candidates, such as gefapixant for overactive bladder, filodesin for type 2 diabetes, and others, point to its massive long-term potential.
Merck’s market position remains sturdy, with nearly half its robust pipeline close to regulatory approval. Apart from that, its existing product offerings are generating sales of more than $40 billion, making it a name to watch in the pharma sphere.
AstraZeneca (AZN)
AstraZeneca (NASDAQ:AZN) is anticipated to make a promising rebound despite the recent sluggishness attributed to decreased demand for its Covid products. The UK-based pharmaceutical giant stands out among the best dividend-paying growth stocks, prepped to entice investors with predicted high single-digit to low double-digit earnings growth this year. The projected growth is linked to flourishing drugs such as its cancer treatment Calquence and the diabetes therapy Farxiga, set to balance dwindling sales of its Covid-related offerings effectively.
The company’s future looks even more radiant when peering further down the timeline. With a low double-digit CAGR projected through 2025, AstraZeneca plans to blow past industry averages and maintain its reputation for robust growth.
An impressive phase three pipeline of 30 drugs slated for 2023 lends credibility to these projections and 10 potential blockbusters in the mix. The company’s hefty pipeline of 178 projects and robust global presence casts a ray of optimism on AstraZeneca’s prospects.
On the date of publication, Muslim Farooque 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.