Top Pharmaceutical Stocks for Q1 2022

The pharmaceutical market is made from business that research study, establish, make, and offer drugs and treatments utilized to deal with or eliminate illness, and immunize individuals. This consists of a few of the biggest and best-known business worldwide, such as Pfizer Inc. (PFE), Merck & Co. Inc. (MRK), and AbbVie Inc. (ABBV). A variety of pharmaceutical business, consisting of Pfizer, have actually seen a rise in their sales after winning approval from U.S. and foreign federal governments for vaccines focused on avoiding the COVID-19 infection.

Over the last 12 months, pharmaceutical stocks, based upon the iShares U.S. Pharmaceuticals ETF (IHE), have actually lagged the efficiency of the general market. IHE’s overall return over the duration was 9.1% compared to the Russell 1000’s overall return of 24.4%. These market efficiency figures and all data in the tables listed below are since Jan. 6, 2022.

Here are the leading 3 pharmaceutical stocks with the very best worth, the fastest development, and the most momentum.

These are the pharmaceutical stocks with the most affordable 12-month routing price-to-earnings (P/E) ratio. Due to the fact that revenues can be gone back to investors in the type of dividends and buybacks, a low P/E ratio reveals you’re paying less for each dollar of earnings produced.

Finest Worth Pharmaceutical Stocks
  Rate ($) Market Cap ($B) 12-Month Routing P/E Ratio
Ironwood Pharmaceuticals Inc. (IRWD) 11.65 1.9 3.6
Organon & Co. (OGN) 31.51 8.0 5.3
Collegium Pharmaceutical Inc. (COLL) 19.13 0.7 7.3

Source: YCharts

  • Ironwood Pharmaceuticals Inc.: Ironwood Pharmaceuticals establishes and makes substance abuse to deal with intestinal and heart diseases. On Dec. 6, Sravan K. Emany was selected senior vice president and primary monetary officer of Ironwood. Emany is accountable for monetary preparation and reporting, tax, accounting, and financier relations for the business. Emany was formerly business vice president, industrial quality and chief technique officer of Integra LifeSciences Holdings Corp. (IART).
  • Organon & Co.: Organon is an international females’s health care business that establishes and produces medications and other items throughout a series of locations, consisting of reproductive health, cardiovascular disease, dermatology, allergic reactions, and asthma. On Dec. 13, Organon revealed that it had actually finished its acquisition of Forendo Pharma, a clinical-stage drug advancement business concentrated on unique treatments for females’s health. Forendo’s lead prospect, FOR-6219, is an investigational drug getting in Stage 2 scientific advancement for endometriosis, a tissue condition associated to the uterus. The overall factor to consider for the acquisition depends on $954 million.
  • Collegium Pharmaceutical Inc.: Collegium Pharmaceutical is a pharmaceutical business concentrating on discomfort management. It establishes medications to deal with intense and persistent discomfort.

These are the leading pharmaceutical stocks as ranked by a development design that ratings business based upon a 50/50 weighting of their newest quarterly YOY portion income development and their newest quarterly YOY earnings-per-share (EPS) development. Both sales and incomes are crucial consider the success of a business. For that reason ranking business by just one development metric makes a ranking prone to the accounting abnormalities of that quarter (such as modifications in tax law or restructuring expenses) that might make one or the other figure unrepresentative of business in basic. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.

Fastest Growing Pharmaceutical Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Takeda Pharmaceutical Co. Ltd. (TAK) 13.74 43.2 991.0 3.3
Dynavax Technologies Corp. (DVAX) 13.11 1.6 N/A (see company description) 707.1
Amphastar Pharmaceuticals Inc. (AMPH) 23.18 1.1 637.5 34.5

Source: YCharts

  • Takeda Pharmaceutical Co. Ltd.: Takeda Pharmaceutical Co. is a Japan-based company that researches, develops, manufactures, and sells pharmaceutical products, general medical products, and other healthcare items. The company focuses on treatments in the fields of oncology, digestive system diseases, and neurology.
  • Dynavax Technologies Corp.: Dynavax Technologies is a biopharmaceutical company specializing in developing immunotherapy treatments. It develops and commercializes novel vaccines and is collaborating with other biopharmaceutical business to develop vaccines to treat COVID-19. The company reported a net loss in Q3 2021, ended Sept. 30, versus net income for the prior-year quarter. Total revenues for Q3 2021 were more than 8 times higher than Q3 2020, driven by strong revenue growth for the company’s CpG 1018 adjuvant contained in the company’s FDA-approved hepatitis B vaccine. Net losses were impacted by a change in fair value of warrant liability. Because the company’s EPS went from positive in the year-ago quarter to negative in the most recent quarter, an EPS growth rate could not be calculated for the table above.
  • Amphastar Pharmaceuticals Inc.: Amphastar Pharmaceuticals is a biopharmaceutical company that develops, manufactures, and sells generic and injectable, inhalation, and intranasal products. It also sells an insulin active pharmaceutical ingredient. Net income attributable to Amphastar for Q3 2021, ended Sept. 30, grew more than sevenfold YOY, as revenues surged to record levels. The company attributed the growth to the strength of its glucagon, Primatene Mist, and epinephrine products.

These are the pharmaceutical stocks that had the highest total return over the last 12 months.

Pharmaceutical Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Dynavax Technologies Corp. (DVAX) 13.11 1.6 185.0
Evolus Inc. (EOLS) 6.13 0.3 61.3
Eli Lilly and Co. (LLY) 259.33 248.1 60.2
Russell 1000 N/A N/A 24.4
iShares U.S. Pharmaceuticals ETF (IHE) N/A N/A 9.1

Source: YCharts

  • Dynavax Technologies Corp.: See company description above.
  • Evolus Inc.: Evolus is a medical aesthetics company. The company’s FDA-approved commercial product is Jeuveau, a prescription medicine for the facial aesthetics market. On Dec. 20, the company announced that it had been added to the Nasdaq Biotechnology Index, effective immediately.
  • Eli Lilly and Co.: Eli Lilly is a drug manufacturing company that develops, makes, and sells pharmaceutical products. The company’s offerings include diabetes and other endocrinology products, immunology, neuroscience, and other products.

The comments, opinions and analyses expressed herein are for informational purposes just and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content might not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses included within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We likewise reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our
editorial policy.

Jobber Wiki author Frank Long contributed to this report.