2020 and the current year are the years of pharma companies. Companies who are in vaccine run or associated with other covid consumables or drugs are having a dream run which would mean tremendous short term returns for the investor but for life beyond, we present you with our top picks for solid returns.
AbbVie
With 175 countries, 14 manufacturing facilities and 8 R&D Centres AbbVie's focus area are Immunology, Oncology, Eyecare, Neuroscience and Virology. The company is also entering the devices market with 6 aesthetics devices and two eye care devices. Last year AbbVie, Harbour BioMed, Utrecht University and Erasmus Medical Center announced Collaboration to develop Monoclonal Antibody Therapy to prevent and treat COVID-19 and subsequent clinical development are on the way. The company also started I-SPY COVID Trial which will evaluate the efficacy of cenicriviroc,
a chemokine (CCR2 and CCR5) dual-receptor antagonist, Otezla(apremilast), a PDE4 inhibitor, and Firazyr
(icatibant injection), a bradykinin B2 receptor antagonist in severely ill, hospitalized COVID-19 patients who require high-flow oxygen. Businesswise AbbVie has reported growth in earnings by39%. And though Humira has lost patent exclusivity in Europe still AbbVie’s portfolio includes several impressive products, including cancer drug Imbruvica and Venclexta and anti-inflammatory drugs Rinvoq and Skyrizi. With over 20 programs in phase 3 clinical testing, AbbVie also has prom final stage candidates for treating migraine, myelofibrosis, and Parkinson’s disease. The stock which belongs to an elite group known as Dividend Aristocrats boasts of 49 years continuous dividend hike with 128% dividend increase over the last 5 years.
Bristol Myers Squibb
Bristol Myers Squibb (BMS) is an American pharmaceutical company, headquartered in New York City.Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, HIV/AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders.BMS's primary R&D sites are located in Lawrence, New Jersey (formerly Squibb, near Princeton), New Brunswick, New Jersey, and Redwood City, California; with other sites in Devens and Cambridge, Massachusetts, East Syracuse, New York, Braine-l'Alleud, Belgium, Tokyo, Japan, Bangalore, India and Wirral, United Kingdom.BMS previously had an R&D site in Wallingford, Connecticut (formerly Bristol-Myers). For the fiscal year 2017, Bristol Myers Squibb reported earnings of US$1.007 billion, with annual revenue of US$20.776 billion, an increase of 6.9% over the previous fiscal cycle. Bristol-Myers Squibb's shares traded at over $55 per share, and its market capitalization was valued at over US$81.6 billion in October 2018. In 2018, 85% of the company's revenues came from just five products.In 2018, Bristol-Myers Squibb spent 36% of its total revenue on R&D expenses. Bristol-Myers Squibb ranked 145th on the Fortune 500 list of the largest United States corporations by revenue in 2018.[80]With a jump of 16% in 2019 and corresponding Celgene acquisition; this deal gave it three successful cancer drugs -- Revlimid, Pomalyst, and Abraxane. The company already had several big winners, including blood thinner Eliquis and cancer drug Opdivo, which are likely to rank among the top sellers globally.The company has 50 late-stage programs, with potential for ozanimod in treating multiple sclerosis and for blood cancer drugs ide-cel and liso-cel.BMS has incremented its dividends for 12 consecutive years. Over the last five years, its dividend has grown by nearly 29%.3.
Johnson & Johnson
One of the oldest companies with 130 years in operation and a behemoth in OTC drugs and applications notwithstanding immunology drugs Stelara and Tremfya and prostate cancer drug Darzalex which would drive the future growth. According to last quarter results - sales clocked $21.1 billion reflecting an overall and operational increase of 1.7%, and adjusted operational increase of 2.0% despite the estimated negative impact of the COVID-19 pandemic.EPS of $1.33 increased 101.5%; adjusted EPS of $2.20 increased 3.8%. Company increasing guidance for Full Year Reported Sales by $1.0 billion and Adjusted EPS by $0.15 driven by the strength of the recovery and strong underlying business fundamentals The company is into 40 late-stage programs. It's most potential candidates include cancer drug amivantamab and multiple sclerosis drug ponesimod. J&J is also developing a COVID-19 vaccine candidate however, the healthcare giant is behind several others in advancing its candidate through clinical trials. Like AbbVie, J&J is a Dividend Aristocrat, having boosted its dividend by nearly 35% over the last five years.
Pfizer
A 171 years old company Pfizer is a favourite with long term investors. With the focus areas in Oncology, Rare Diseases, Vaccines, Anti Infectives, Internal medicines and Inflammation/Immunology it has nearly 30 programs in late-stage testing, including its blockbuster pneumococcal vaccine and chronic pain drug tanezumab.
Pfizer’s earnings increased by 46% in 2019 higher. The recent merger of Upjohn with Mylan to form Viatris for breast cancer drug Ibrance, blood thinner Eliquis (which Viatris comarkets with BMS), immunology drug Xeljanz, and COVID-19 vaccine BNT162b2 is going to give the stock solid growth.Pfizer increased its dividend in each of the last 10 years. The company has incremented its dividend by nearly 27% over the last five years. Moreover being the front runner in Covid vaccine with millions of doses already sold the company is all ready to post impressive short term growth also.