Pfizer Inc. (PFE), Johnson & Johnson (JNJ): The Next Frontier?

Investors are already imagining what could be possible in the newly opened obesity market. The Food and Drug Administration approved Qsymia from VIVUS, Inc. (NASDAQ:VVUS) and Belviq from Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) in 2012. These treatments may or may not take off on their own — each offers weight loss of 6% to 8% over one year — but they could certainly be a good starting point for future, more effective compounds.

Additionally, stem cell therapies have remained elusive as the industry’s ultimate Holy Grail. Osiris Therapeutics, Inc. (NASDAQ:OSIR) received Canadian approval for the world’s first stem cell drug, Prochymal, for children battling acute graft-versus-host disease, or GvHD, last year. The approval meant more symbolically than to the bottom line, but it definitely put the potential of stem cells front and center for investors.

It is easy to see the magnitude that the world’s first major stem cell approval (not Prochymal) would merit, although perhaps difficult to comprehend. Imagine a therapy that could safely and effectively treat heart attack or stroke patients just days after arriving in a hospital. Or how much safer organ transplants could become if a broad GvHD treatment was developed. Stem cells could not only treat diseases that damage important muscles such as the brain and hear, but could actually reverse the damage altogether. Unfortunately, most companies dabbling in stem cell research are very small and the best approach has yet to be determined (perhaps it has yet to be created). The potential is there, but the results are lacking.

Foolish bottom line
Is the Golden Age of Blockbusters over? This one may be history, but investors cannot rule out the possibility of future game changers. Drug development is such a lengthy and costly process that no company can target blockbusters from the beginning. Consider that research into adalimumab (Humira) first began in 1993 — 20 years ago! Simply put, we don’t know what we don’t know. However, investors can be pretty certain that more Golden Ages await the pharmaceutical industry.

The article Is the Golden Age of Blockbusters Over? originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool has no position in any of the stocks mentioned.

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