Top 10 Pharmaceutical Stocks to Invest in 2024: Detailed Analysis

As we move into 2024, the pharmaceutical sector continues to be a promising area for investment, driven by advancements in medical technology, new drug approvals, and strategic acquisitions. Below are ten pharmaceutical stocks that are projected to perform well in 2024, along with their current prices, recent performance, historical growth over the past five years, upcoming drug approvals, and potential impacts.

1. Eli Lilly and Co. (LLY)

Eli Lilly has been a standout performer, thanks to its successful diabetes and obesity drugs, including Mounjaro and Zepbound. The company’s stock has shown robust growth, driven by high demand and a strong pipeline.

  • Current Price: $445.21
  • Market Cap: $420.65 billion
  • P/E Ratio: 47.9

Upcoming Drug Approvals

Eli Lilly is awaiting FDA approval for Donanemab, a treatment for early Alzheimer’s disease. This beta-amyloid targeting antibody could significantly impact the Alzheimer’s treatment market, potentially generating substantial revenue if approved in 2024​ (Visible Alpha)​.

Stock Prediction

Approval of Donanemab could drive Eli Lilly’s stock price up by 10-15%, given the high unmet need for Alzheimer’s treatments and the potential for Donanemab to become a blockbuster drug.

2. Novo Nordisk (NVO)

Novo Nordisk continues to lead in diabetes care and weight management therapies. Its popular drugs, Wegovy and Ozempic, have driven significant revenue growth, and the company is expanding its production capacity to meet rising demand.

  • Current Price: $102.71
  • Market Cap: $453.35 billion
  • P/E Ratio: 48.63

Upcoming Drug Approvals

Novo Nordisk is focusing on expanding the labels of its diabetes and obesity drugs, particularly Wegovy and Ozempic. These drugs have already seen significant market success, and further approvals could continue to drive revenue growth​ (SingleCare)​.

Stock Prediction

Expansion approvals for Wegovy and Ozempic could boost Novo Nordisk’s stock by 8-12%, reflecting continued strong sales and market expansion in obesity and diabetes treatments.

3. Johnson & Johnson (JNJ)

Johnson & Johnson remains a stable investment with a diversified portfolio and a long history of dividend increases. The company recently spun off its consumer health division, Kenvue, to focus more on pharmaceuticals and medical devices.

  • Current Price: $154.35
  • Market Cap: $408.75 billion
  • P/E Ratio: 24.8

Why Johnson & Johnson Stock Fluctuated and Dropped in the Past

Johnson & Johnson’s stock price has experienced drops due to litigation risks, particularly related to its talc-based products, and regulatory challenges impacting its medical device and pharmaceutical segments.

Upcoming Drug Approvals

Johnson & Johnson is enhancing its oncology portfolio and is involved in developing innovative treatments like CAR-T therapies. These advancements could significantly boost the company’s revenue and stock performance​ (InvestorPlace)​​ (Pharmacy Times)​.

Stock Prediction

FDA approvals for new CAR-T therapies and other oncology treatments could lead to a 5-8% increase in Johnson & Johnson’s stock price, driven by the potential for these high-margin therapies to capture significant market share.

4. Merck & Co., Inc. (MRK)

Merck has made significant strides with its cancer immunotherapy drug, Keytruda, and its HPV vaccine, Gardasil. The company continues to innovate in various therapeutic areas, making it a solid choice for investors.

  • Current Price: $109.84
  • Market Cap: $277.23 billion
  • P/E Ratio: 23.5

Upcoming Drug Approvals

Merck is awaiting FDA approval for an expanded use of Keytruda for certain types of bladder cancer. This approval could further enhance Merck’s market presence and stock value​ (InvestorPlace)​​ (SingleCare)​.

Stock Prediction

Approval of Keytruda for additional indications could increase Merck’s stock price by 7-10%, as expanded usage of this leading immunotherapy would drive substantial revenue growth.

5. AbbVie Inc. (ABBV)

Despite facing patent expiration for Humira, AbbVie has diversified its portfolio with new immunology drugs like Skyrizi and Rinvoq, which are expected to generate substantial revenue in the coming years.

  • Current Price: $154.00
  • Market Cap: $315.30 billion
  • P/E Ratio: 65.66

Upcoming Drug Approvals

AbbVie is focusing on its oncology and immunology pipeline, with several drugs in late-stage trials. Approvals in these areas could significantly bolster its revenue and stock performance​ (Visible Alpha)​.

Stock Prediction

Upcoming approvals for Skyrizi and Rinvoq in additional indications could drive AbbVie’s stock price up by 6-9%, reflecting their potential to offset the revenue loss from Humira’s patent expiration.

Subscribe to our newsletter!

6. Pfizer Inc. (PFE)

Pfizer’s robust pipeline and recent acquisitions position it well for future growth. The company’s vaccine and antiviral treatments have significantly boosted its revenue, and it continues to develop new therapies across various medical fields.

  • Current Price: $38.57
  • Market Cap: $217.25 billion
  • P/E Ratio: 9.7

Why Pfizer Stock Fluctuated and Dropped in the Past

Pfizer’s stock has dropped due to declining demand for its COVID-19 vaccine and antiviral treatments as the pandemic wanes, coupled with competition from other pharmaceutical companies and regulatory challenges.

Upcoming Drug Approvals

Pfizer is developing a combination vaccine for COVID-19 and influenza. This vaccine has shown robust immune responses in early trials, and its approval could streamline vaccinations for these diseases, potentially driving substantial sales​ (Pharmacy Times)​.

Stock Prediction

Approval of the combination COVID-19 and influenza vaccine could boost Pfizer’s stock price by 4-7%, driven by new revenue streams and strengthened market position in vaccines.

7. Roche Holding AG (RHHBY)

Roche is known for its oncology and diagnostics divisions. The company’s strong focus on personalized healthcare and innovative treatments makes it a compelling choice for long-term investment.

  • Current Price: $41.00
  • Market Cap: $281.34 billion
  • P/E Ratio: 15.6

Upcoming Drug Approvals

Roche is working on new cancer immunotherapies and diagnostic tools that could receive FDA approval in 2024, further enhancing its market position​ (SingleCare)​.

Stock Prediction

FDA approval of new cancer immunotherapies could lead to a 5-8% increase in Roche’s stock price, reflecting the high demand and profitability of innovative cancer treatments.

8. AstraZeneca (AZN)

AstraZeneca has a strong pipeline in oncology, cardiovascular, renal, and respiratory diseases. Its collaboration with Alexion has expanded its rare disease portfolio, enhancing its growth prospects.

  • Current Price: $67.50
  • Market Cap: $211.50 billion
  • P/E Ratio: 33.4

Upcoming Drug Approvals

AstraZeneca is expecting FDA approval for several oncology drugs that could significantly impact its revenue and stock performance in the coming years​ (Pharmacy Times)​.

Stock Prediction

Approval of new oncology drugs could drive AstraZeneca’s stock price up by 6-10%, given the high demand for effective cancer therapies and the company’s strong track record in this area.

9. GlaxoSmithKline (GSK)

GSK is focusing on vaccines and specialty medicines. The company’s restructuring efforts and spin-off of its consumer healthcare division are expected to drive growth in its core pharmaceutical business.

  • Current Price: $35.75
  • Market Cap: $90.25 billion
  • P/E Ratio: 15.5

Why GlaxoSmithKline Stock Fluctuated and Dropped in the Past

GlaxoSmithKline’s stock has dropped due to challenges in its vaccine division, competition in the respiratory market, and regulatory hurdles affecting new drug approvals.

Upcoming Drug Approvals

GlaxoSmithKline is awaiting approval for new vaccines and treatments in respiratory and oncology fields, which could boost its market performance significantly​ (SingleCare)​​ (Pharmacy Times)​.

Stock Prediction

FDA approvals for new respiratory and oncology treatments could lead to a 4-7% increase in GlaxoSmithKline’s stock price, driven by new revenue streams and market expansion.

10. Vertex Pharmaceuticals (VRTX)

Vertex is a leader in cystic fibrosis treatment and is expanding into other areas like gene editing. Its innovative therapies and strong revenue growth make it a top pick for investors.

  • Current Price: $345.27
  • Market Cap: $105.85 billion
  • P/E Ratio: 29.77

Upcoming Drug Approvals

Vertex is working on expanding the indications for its cystic fibrosis treatments and exploring new areas like gene editing. Its strong pipeline and innovative approaches could significantly boost its stock if approvals are secured​ (Pharmacy Times)​.

Stock Prediction

Approval of new cystic fibrosis treatments and gene editing therapies could boost Vertex’s stock price by 8-12%, reflecting strong market demand and the potential for these innovations.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.