Pharmaceutical stocks are companies that operate in the healthcare industry and can be involved in activities such as research and development, manufacturing, licensing, or distributing drugs and treatments. In this guide I will provide information on some pharmaceutical stocks to consider investing in during 2023.
- GlaxoSmithKline is a major player in the industry with a market capitalisation of over £80 billion and a listing on the London Stock Exchange. The company specialises in treatments for cardiovascular, neurological, and respiratory conditions and has a trailing yield of 4.5% as of Q2 2020. Additionally, GlaxoSmithKline is reportedly in the process of signing a £500 billion deal with the UK government for the supply of a COVID-19-related treatment, in partnership with Sanofi.
- AstraZeneca is another popular pharmaceutical stock to consider. As one of the FTSE 100 companies, AstraZeneca has the largest market capitalisation, currently standing at £111 billion. In Q2 2020, AstraZeneca’s stocks saw a year-on-year increase of 30%.
- GW Pharmaceuticals is a pharmaceutical company based in the UK that was founded in 1998. Its specialty is in cannabinoid-based medicine and it develops treatments for multiple sclerosis and childhood-onset epilepsy.
- Amphastar Pharmaceuticals is a pharmaceutical company that was founded in 1996 and went public in 2014, listed on the NASDAQ exchange. It has a market capitalisation of almost $1 billion. In comparison to other pharmaceutical stocks, Amphastar Pharmaceuticals is relatively small. In 2014, its shares were valued at just over $10, and they reached an all-time high of $24 in early 2019. As of July 2020, the share price was just over $20, representing a 100% increase over the past 6 years. Amphastar Pharmaceuticals has not yet paid any dividends.
- XBiotech is a biotechnology company that is working on several clinical-stage treatments, including an antibody therapy trial for COVID-19. The company is listed on the NASDAQ exchange and has a small market capitalisation of $422 million. In the past year, the stock price has increased by 92%, moving from $7.76 to $14.90. The company has a low price-to-earnings ratio of 1.56, which could mean that the stocks are available at a discounted price.
- Celadon is a UK-based pharmaceutical company that specialises in growing hydroponic THC cannabis for use in approved medicines. They are dedicated to researching cannabinoids for the treatment of chronic pain, autism, and multiple sclerosis, making them a great option for investors seeking to invest in a company with a focus on long-term growth. Celadon has a market capitalisation of £31.14 million and is currently trading at GBX 50.50, making it an attractive option for investors looking for a potential return on their investment. More info can be found on the homepage of Celadon Pharmaceuticals PLC.
I believe that Celadon has the most potential for growth due to its first mover advantage in the cannabis-based medicine industry. While its market capitalisation is currently lower than that of the other big pharma companies mentioned, I believe that Celadon has the potential to reach a billion dollar market cap in the near future based on its current activities.
There are many pharmaceutical companies to choose from when considering investment options. These companies can range in size from small start-ups to large, established firms with multi-billion pound market capitalisations.
As with any investment, the risk and reward potential can vary greatly among pharmaceutical stocks.
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