The pharmaceutical industry was the center of attention in 2020 and 2021 after the deadly coronavirus pandemic ravaged the globe and disrupted the way of living. As countries played hide and seek with lockdowns, it was left to pharmaceuticals to come up with a cure for a disease that in the early stages of the pandemic had flooded hospitals and overwhelmed graveyards.
Fast forward to 2023 and the pandemic is a thing of the past. Vaccines such as those from Moderna, Inc. (NASDAQ:MRNA) and Pfizer Inc. (NYSE:PFE) are among some of the most advanced products in the world since they are capable of influencing cell function in the human body, making them perfect for developing long term immunity against the virus. The technology also reaped billions in dividends for the companies, particularly Moderna whose shares are up by a massive 826% over the past five years as the company which was a relatively unknown firm was transformed into a global household name.
These days, the pharmaceutical industry is focusing on rising technologies such as artificial intelligence to crack the puzzle to defeat diseases such as cancer and thalassemia. Estimates made by the healthcare giant Bayer Aktiengesellschaft (OTCMKTS:BAYZF) show that the world’s population is aging at a remarkable rate, with individuals aged 65 and above set to double to 1.5 billion by 2050. At the same time, the growth in noncommunicable and serious diseases, such as heart problems or cancer, is expected to grow at an equally fast rate, with China alone seeing such diseases to account for 80% of all deaths of people aged 60 or higher by 2030. Bayer goes on to estimate a compounded annual growth rate (CAGR) for the pharmaceutical industry, and keeping the aforementioned factors in mind, it believes that the sector can grow as fast as by 6% through 2025.
Another research report, this time from Facts and Factors, has similar estimates for the market. It lays down a 5.7% CAGR for the industry from 2022 to 2028 and believes that the sector, which was worth $1.4 billion last year, will be worth $2 billion by the end of the forecast period. Like Bayer, Facts and Factors also believes that diseases such as cancer and diabetes will fuel this growth and that growth in the population of elderly people will result in a higher demand for pharmaceutical products. It adds that companies are using machine learning, artificial intelligence, and cloud computing to enhance their manufacturing processes, and states that North America was the largest pharmaceutical market in 2021.
Today’s piece will look at some well performing pharmaceutical firms, with the top picks being Johnson & Johnson (NYSE:JNJ), Pfizer Inc. (NYSE:PFE), and Merck & Co., Inc. (NYSE:MRK).
Photo by National Cancer Institute on Unsplash
Our Methodology
We sifted through the pharmaceutical industry to pick the biggest firms in terms of both market capitalization and revenue. Then, their net income was calculated and the top twelve were chosen.
For a peak at some great biotechnology companies, head on over to 11 Most Undervalued Biotech Stocks To Buy According To Hedge Funds.
Most Profitable Pharmaceutical Stocks Now
12. Bristol-Myers Squibb Company (NYSE:BMY)
Trailing Twelve Month Net Income: $6.3 billion
Number of Hedge Fund Holders in Q3 2022: 68
Bristol-Myers Squibb Company (NYSE:BMY) is an American pharmaceutical company. The firm sells treatments for different diseases such as cancer, neurological problems, and diabetes. It is headquartered in New York, New York.
Bristol-Myers Squibb Company revealed in February 2023 that its treatment for myeloma is capable of reducing the risk of the disease progressing or of death by a whopping 51% when compared to standard treatments. 68 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had invested in the firm.
Bristol-Myers Squibb Company’s largest investor is Richard S. Pzena’s Pzena Investment Management which owns 3.8 million shares that are worth $277 million.
11. Amgen Inc. (NASDAQ:AMGN)
Trailing Twelve Month Net Income: $6.5 billion
Number of Hedge Fund Holders in Q3 2022: 53
Amgen Inc. (NASDAQ:AMGN) is one of the world’s largest and oldest biotechnology companies. It develops medicines for a host of different diseases such as anemia, arthritis, osteoporosis, asthma, cancer, and migraines. The firm is based in Thousand Oaks, California.
Amgen Inc. faced a setback in February 2023 when a federal magistrate judge ruled that it is liable to face charges of monopolizing the market for an anticholesterol drug by offering rebates. Insider Monkey took a look at 920 hedge fund portfolios for last year’s third quarter to determine that 53 had bought the company’s shares.
Jim Simons’ Renaissance Technologies is Amgen Inc.’s largest investor. It owns 1.6 million shares that are worth $422 million.
10. Novartis AG (NYSE:NVS)
Trailing Twelve Month Net Income: $6.9 billion
Number of Hedge Fund Holders in Q3 2022: 26
Novartis AG (NYSE:NVS) is a Swiss pharmaceutical giant which directly sells prescription medicines and also provides products to third parties. The firm is headquartered in Basel, Switzerland.
Novartis AG scored a win in February 2023 when a French court sided with the firm and canceled a massive 444 million Euro fine against the company by the country’s anti trust regulator. As last year’s September quarter ended, 26 of the 920 hedge funds polled by Insider Monkey had invested in the company.
Novartis AG’s largest hedge fund shareholder in our database is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital which owns 4.1 million shares that are worth $374 million.
9. Sanofi (NASDAQ:SNY)
Trailing Twelve Month Net Income: $7.16 billion (1EUR = 1.07USD)
Number of Hedge Fund Holders in Q3 2022: 31
Sanofi (NASDAQ:SNY) is a French pharmaceutical company. The firm makes and sells both prescription and over the counter medicines that focus on heart disease, nervous system disorders, diabetes, cancer, and vaccines. It is headquartered in Paris, France.
Sanofi became another firm to cut costs in the ongoing inflationary wave as it announced in February 2023 that it is considering shutting down two vaccine plants in India which employ roughly 800 people. The review came as the firm failed to win a UNICEF contract. As of September 2022, 31 of the 920 hedge funds polled by Insider Monkey had bought the firm’s shares.
Sanofi’s largest investor is Ken Fisher’s Fisher Asset Management which owns 13 million shares that are worth $667 million.
8. Novo Nordisk A/S (NYSE:NVO)
Trailing Twelve Month Net Income: $7.89 billion (1EUR = 0.14USD)
Number of Hedge Fund Holders in Q3 2022: 40
Novo Nordisk A/S (NYSE:NVO) is a Danish company specializing in producing products for diabetes, obesity, growth disorders, hemophilia, and other diseases. It is headquartered in Bagsvaerd, Denmark.
Novo Nordisk A/S gained a foothold in the British market in February 2023 when the firm’s obesity treatment became available at pharmacies. After scouring through 920 hedge fund portfolios for last year’s third quarter, Insider Monkey discovered that 40 had bought the firm’s shares.
Out of these, Jim Simons’ Renaissance Technologies is Novo Nordisk A/S’s largest hedge fund shareholder. It owns 12.6 million shares that are worth $1.7 billion.
7. BioNTech SE (NASDAQ:BNTX)
Trailing Twelve Month Net Income: $11 billion
Number of Hedge Fund Holders in Q3 2022: 18
BioNTech SE (NASDAQ:BNTX) is a German company that rose to fame during the coronavirus pandemic for its vaccine developed in partnership with Pfizer. Its vaccine was the first MRNA COVID vaccine authorized for use and saw a 91% reduction in infection probability.
BioNTech SE, Pfizer, and Moderna are currently locked in the battle to decide who developed the first coronavirus vaccine. Moderna claims that the other two infringed on its patents, while Pfizer has claimed that Moderna is trying to rewrite history and emerge as the only company that could develop a product to combat the deadly virus which disrupted the way of life all over the world.
Insider Monkey’s Q3 2022 survey of 920 hedge funds revealed that 18 had invested in BioNTech SE.
BioNTech SE’s largest investor is Ken Fisher’s Fisher Asset Management which owns 398,753 shares that are worth $16 million.
6. Moderna, Inc. (NASDAQ:MRNA)
Trailing Twelve Month Net Income: $11.76 billion
Number of Hedge Fund Holders in Q3 2022: 44
Moderna, Inc. is an American biotechnology company headquartered in Cambridge, Massachusetts. The firm’s MRNA coronavirus vaccine is among the best known in the world, but this isn’t the only vaccine that Moderna, Inc. makes. The firm has dozens of other products in its portfolio, out of which several are already in clinical trials.
Moderna, Inc. won an ally in the form of the Justice Department in February 2023 when the latter outlined in a court filing that instead of Moderna being liable for a patent infringement lawsuit, the U.S. government should be held responsible instead. Moderna also argues that it is not liable for patent infringement in emergency vaccine production. As of last year’s third quarter, 44 of the 920 hedge funds part of Insider Monkey’s research had held a stake in the company.
Out of these, Phillipe Laffont’s Coatue Management is Moderna, Inc.’s largest investor. It owns 6.3 million shares that are worth $1.1 billion.
Johnson & Johnson, Moderna, Inc., Pfizer Inc., and Merck & Co., Inc. are some of the most profitable pharmaceutical companies in the world.
5. AbbVie Inc. (NYSE:ABBV)
Trailing Twelve Month Net Income: $11.8 billion
Number of Hedge Fund Holders in Q3 2022:
AbbVie Inc. (NYSE:ABBV) is an American pharmaceutical company with treatments for several diseases such as psoriasis, different kinds of cancers, and arthritis, among others. The firm is headquartered in North Chicago, Illinois.
AbbVie Inc. had some disappointing news for investors in February 2023 when it announced that sales of its arthritis drug in the U.S. will drop by 37% this year due to competition from cheaper alternatives. 80 of the 920 hedge funds polled by Insider Monkey in Q3 2022 had invested in the company.
AbbVie Inc.’s largest investor is Cliff Asness’ AQR Capital Management which owns 1.4 million shares that are worth $228 million.
4. Roche Holding AG (SWX:ROG.SW)
Trailing Twelve Month Net Income: $13.44 billion (1CHF = 1.08USD)
Number of Hedge Fund Holders in Q3 2022: N/A
Roche Holding AG (SWX:ROG.SW) is a Swiss healthcare and pharmaceutical company that is headquartered in Basel. The firm makes and sells a wide variety of drugs for cancer, ulcers, heart problems, insomnia, and other diseases. Roche Holding AG (SWX:ROG.SW) won a major reprieve in February 2023 when a French court canceled a $528 million fine against the company for allegedly engaging in anticompetitive practices related to eye treatment.
3. Merck & Co., Inc. (NYSE:MRK)
Trailing Twelve Month Net Income: $14.5 billion
Number of Hedge Fund Holders in Q3 2022: 82
Merck & Co., Inc. is an American healthcare giant that is a Fortune 500 company and makes and sells products to treat cancer, diabetes, chickenpox, and other diseases.
Merck & Co., Inc. announced a $1 billion deal in February 2023 through which it will team up with another firm to develop treatments for immune system disorders. Insider Monkey took a look at 920 hedge fund portfolios for last year’s third quarter to determine that 82 had bought the firm’s shares.
Merck & Co., Inc.’s largest investor is Ken Fisher’s Fisher Asset Management which owns 12 million shares that are worth $1.3 billion.
2. Johnson & Johnson (NYSE:JNJ)
Trailing Twelve Month Net Income: $17.9 billion
Number of Hedge Fund Holders in Q3 2022: 85
Johnson & Johnson is a healthcare and pharmaceutical company that makes and sells drugs and other products such as supplements. The firm is based in New Brunswick, New Jersey.
Johnson & Johnson scored a big win in February 2023 when Alcon announced that it will pay the firm $199 million to settle legal disputes surrounding laser eye treatments. Insider Monkey’s third quarter of 2022 survey covering 920 hedge funds revealed that 85 had bought the company’s shares.
Johnson & Johnson’s largest investor is Ken Fisher’s Fisher Asset Management which owns six million shares that are worth $1 billion.
1. Pfizer Inc. (NYSE:PFE)
Trailing Twelve Month Net Income: $31 billion
Number of Hedge Fund Holders in Q3 2022:
Pfizer Inc. is an American pharmaceutical giant that is one of the oldest companies of its kind after being set up in 1849. It sells medicines and vaccines for a wide variety of diseases such as heart problems, mental health, and liver disorders.
Pfizer Inc. announced in February 2023 that it will stop trials of a vaccine due to to a breach of guidelines by a third party. As September 2022 ended, 77 of the 920 hedge funds polled by Insider Monkey had invested in the firm.
Pfizer Inc.’s largest investor is Cliff Asness’ AQR Capital Management which owns 9.8 million shares that are worth $502 million.
Suggested Articles:
This article is originally published at Insider Monkey.
