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List of the best pharmaceutical stocks for Q1 2022

 

There are many companies in the pharmaceutical industry. The research, develop, make, and sell drugs and treatments that are used to treat or get rid of diseases, as well as vaccines that protect people from disease. Among them are Pfizer Inc. (PFE), Merck and Co. Inc. (MRK), and AbbVie Inc. These are some of the world’s biggest and most well-known companies (ABBV). Companies like Pfizer have seen a big rise in sales after getting vaccines for the COVID-19 virus approved by the US and other governments.

iShares U.S. Pharmaceuticals ETF (IHE) stocks haven’t done as well as the rest of the market over the last year. Overall, I made a profit of 9.1% over the period. The Russell 1000 made a profit of 24.4 percent. These market performance figures and all of the statistics in the tables below are from Jan. 6, 2022, when they were written down in the text.

The top 3 pharmaceutical stocks with the best value, fastest growth, and most momentum are shown here in this list

 

List of pharmaceutical stocks with the lowest P/E ratio for the last 12 months. If a company has a low P/E ratio, that means you’re paying less for each dollar of profit it makes. This is because profits can be given back to shareholders in the form of dividends and buybacks.

Best Value Pharmaceutical Stocks
Price ($) Market Cap ($B) 12-Month Trailing 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

    • Ironwood Pharmaceuticals Inc; Ironwood Pharmaceuticals is a pharmaceutical company that creates and manufactures medications for the treatment of gastrointestinal and cardiovascular illnesses. Sravan K. Many was named senior vice president and chief financial officer of Ironwood on December 6. Many is in charge of the company’s financial planning and reporting, as well as tax, accounting, and investor relations. Many previously served as Integra LifeSciences Holdings Corp.’s corporate vice president of commercial excellence and chief strategy officer (IART).

      Organon & Co.; Organon is a global women’s healthcare firm that develops and manufactures drugs and other products for a variety of conditions, including reproductive health, cardiovascular disease, dermatology, allergies, and asthma. Organon announced the completion of its acquisition of Florendo Pharma, a clinical-stage drug development firm focused on innovative treatments for women’s health, on December 13th. FOR-6219, Forendo’s flagship candidate, is an investigational medication in Phase 2 clinical development for endometriosis, a uterine tissue condition. The transaction might be worth up to $954 million in total.

      Collegium Pharmaceutical Inc.; Collegium Pharmaceutical is a pain management-focused pharmaceutical firm. It creates painkillers for both acute and chronic pain.

      These are the best pharmaceutical stocks, according to a growth model that evaluates firms based on a 50/50 weighting of their most recent quarterly year-over-year percentage sales growth and earnings-per-share (EPS) growth. Sales and earnings are both important variables in a company’s success. As a result, evaluating organizations based on only one growth indicator exposes them to accounting irregularities (such as changes in tax law or restructuring charges) that may render one or the other figure unrepresentative of the business as a whole. Outliers were defined as companies with a quarterly EPS or revenue growth of more than 2,500 percent.

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

    • Takeda Pharmaceutical Co. Ltd. is a Japanese pharmaceutical firm that investigates, develops, manufactures, and sells pharmaceuticals, general medical products, and other healthcare products. The company specializes in oncology, gastrointestinal illnesses, and neurology treatments.
      Dynavax Technologies Corp. is a biopharmaceutical business that specializes in the development of immunotherapy medicines. It creates and sells new vaccines and is cooperating with other biopharmaceutical companies to produce COVID-19 vaccines. In the third quarter of 2021, which concluded on September 30, the company recorded a net loss, compared to a net profit in the previous quarter. The company’s CpG 1018 adjuvant, which is used in the company’s FDA-approved hepatitis B vaccine, saw excellent sales growth in Q3 2021, more than doubling from Q3 2020. A change in the fair value of warrant liabilities had an impact on net losses. An EPS growth rate could not be computed for the table above since the company’s EPS went from positive in the previous quarter to negative in the most recent quarter.

      Amphastar Pharmaceuticals Inc. is a biopharmaceutical firm that develops, manufactures, and sells generic and injectable pharmaceuticals, as well as inhalation and intranasal treatments. It also sells an active medicinal ingredient for insulin. Amphastar’s net income for the third quarter of 2021, which ended on September 30, increased by more than a sevenfold year over year as revenues soared to new highs. The growth was attributable to the company’s glucagon, Primatene Mist, and epinephrine products.

       

      The pharmaceutical stocks with the highest total return over the last 12 months are listed below.

      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
  • Dynavax Technologies Corp.: For further information, see the company described above.
    Evolus Inc. is a corporation that specializes in medical aesthetics. Juneau, a prescription drug for the facial aesthetics industry, is the company’s FDA-approved commercial product. The company announced on Dec. 20 that it had been added to the Nasdaq Biotechnology Index, with immediate effect.
    Eli Lilly and Company (Eli Lilly and Company): Eli Lilly is a pharmaceutical firm that develops, manufactures, and sells products. Diabetes and other endocrinology treatments, immunology, neuroscience, and other products are among the company’s offers.

    The comments, opinions, and analyses presented here are for informational purposes only and should not be construed as personalized investment advice or recommendations to buy or sell any security or pursue any investment plan. While we believe the information provided below is accurate and thorough, we cannot guarantee it. Our content’s viewpoints and strategies may not be suited for all investors. Because market and economic conditions are constantly changing, all of our content’s comments, opinions, and analyses are current as of the date of publication and are subject to change without notice. The information is not intended to be a comprehensive examination of all relevant facts about any country, area, market, industry, investment, or strategy.

About the author

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Kathy Lewis

Kathy Lewis is an all-around geek who loves learning new stuff every day. With a background in computer science and a passion for writing, she loves writing for almost all the sections of Editorials99.

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