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The pharmaceutical industry is experiencing rapid growth due to rising healthcare costs, an aging population, several technological advances, and a favorable regulatory environment. Therefore, investing in high-quality pharmaceutical stocks like Perrigo (PRGO), Optinose (OPTN), and Teva Pharmaceuticals (TEVA) is ideal for guaranteed profits. Continue reading….
The pharmaceutical industry continues to experience steady growth and expansion due to increased adoption of biologics, increased demand for personalized medicine, and consistent research and development (R&D) efforts. Additionally, Pharma 4.0 has the potential to revolutionize the industry by leveraging cutting-edge technology.
Given the industry tailwinds, investors are looking at fundamentally solid pharmaceutical stock Perrigo Company PLC (PRGO), Optinose Co., Ltd. (opt-in), and Teva Pharmaceutical Industries Limited (Teva) for potential profit.
The pharmaceutical industry continues to grow due to the increasing demand for healthcare amid an aging population, rising prevalence of chronic diseases, and rapid urbanization. According to IQVIA, global drug use has increased by 14% in the past five years; Expected to rise another 12% by 2028the annual usage will be a prescribed amount of 3.8 trillion per day.
Several Key trends driving significant growth Key drivers for the pharmaceutical market in 2024 include the continued dominance of small molecule drugs, increasing adoption of biologics, high demand for personalized medicine, outsourcing of drug development and manufacturing, and several technological advances. will appear.
The projected revenue of the pharmaceutical market is expected to reach $1.15 trillion in 2024. The market is expanding rapidly, with it estimated that it will reach a size of $1.47 trillion by 2028. CAGR 6.2% During the forecast period (2024-2028). The cancer drug market is also expected to become the largest segment, with the market size expected to reach $214.1 billion in 2024.
With advanced medical infrastructure and strong research and development capabilities, the United States leads the world in terms of revenue, with revenue expected to reach $636.9 billion in 2024.
The pharmaceutical industry is increasingly adopting digital technology in various aspects of its operations, from research and development to marketing and sales. The adoption of emerging technologies such as AI, machine learning, automation, and robotics will help industry players drive innovation, improve efficiency, and improve the quality of patient care.
According to the McKinsey Global Institute (MGI), Generative AI could generate $60 billion to $110 billion annually This is primarily because it can improve productivity by accelerating the process of identifying new drug compounds, speeding development and approval, and enhancing marketing methods.
The global Pharma 4.0 market size is expected to reach $54.43 billion by 2031, with the potential to transform the pharmaceutical industry by providing innovative technologies. CAGR 18.3% During the forecast period.
Additionally, investors’ interest in pharmaceutical stocks has increased significantly with the Invesco Dynamic Pharmaceuticals ETF (PJP) has returned 9.6% over the past three months.
Given these positive trends, let’s take a look at the top fundamentals. Medical – Pharmaceuticals Stocks, let’s start with the third option.
Stock #3: Perrigo Company plc (PRGO)
Based in Dublin, Ireland, PRGO provides over-the-counter health and wellness solutions to improve the well-being of individuals in the United States, Europe, and around the world. The company operates through the Consumer Self-Care Americas and Consumer Self-Care International segments.
On February 26, 2024, PRGO’s Board of Directors approved a 1% increase in the company’s quarterly dividend from $0.273 per share to $0.276 per share, or $1.10 on an annual basis. The cash dividend will be paid on March 26, 2024 for stockholders of record as of March 8, 2024.
PRGO’s annual dividend is $1.10, giving it a yield of 4.04% at the current stock price. The average dividend yield over four years is 2.50%. Furthermore, the company’s dividends have increased at a CAGR of 7.5% over the past five years. Perrigo has increased his dividend for his 20th consecutive year.
For the fourth quarter ended December 31, 2023, PRGO’s net sales Revenue increased slightly from the previous year to $1.15 billion. The company’s adjusted gross profit increased 3.8% year over year to $460.3 million. Consumer Self Care Americas’ adjusted operating income was $464.4 million, an increase of 5.4% from the prior year period.
Additionally, the Company’s cash and cash equivalents and restricted cash amounted to $751.3 million at December 31, 2023, compared to $600.7 million at December 31, 2022. I am.
Based on its fiscal 2024 outlook, PRGO expects organic and gross net sales growth to be flat at 1% to 3% each. The company also expects adjusted diluted EPS to be in the range of $2.50 to $2.65, representing mid-teens adjusted diluted EPS growth excluding infant formula.
Analysts expect PRGO’s third-quarter sales (ending September 2024) to increase 3.7% year over year to $1.17 billion. The company’s EPS for the same period is expected to be $0.81, up 26% year-over-year. Additionally, the company beat consensus EPS estimates in each of his four subsequent quarters.
PRGO stock has fallen 20.9% over the past month, closing at $26.41.
PRGO’s solid outlook power rating. The stock has an overall rating of “B”, which equates to a “buy” according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, each weighted to the best degree.
The stock has a Growth Rating of A grade and a Value Rating of B. PRGO is ranked #42 out of 164 stocks. Medical – Pharmaceuticals industry.
click here Access additional PRGO ratings on sentiment, quality, stability, and momentum.
Stock #2: OptiNose, Inc. (opt-in)
OPTN is a specialty pharmaceutical company focused on developing and commercializing products for patients treated by ear, nose, throat and allergy specialists. The company offers a therapeutic product, His XHANCE, and a powdered EDS device, Onzetra Xsail.
On January 18, 2024, OPTN announced that both ReOpen1 and ReOpen2 results will be peer-reviewed and published in the Journal of Allergy and Clinical Immunology: In Practice. The ReOpen program considered his XHANCE in the treatment of adults with chronic sinusitis (chronic sinusitis).
According to the publication, XHANCE significantly reduced both symptoms and sinus opacification in participants with chronic rhinosinusitis (chronic sinusitis) evaluated in two randomized controlled Phase 3 clinical trials (ReOpen1 and ReOpen2). Reduced. The trial also showed that XHANCE reduced the incidence of acute disease exacerbations by more than half.
On December 6, 2023, OPTN announced that the U.S. FDA has extended the review period for the supplemental new drug application (sNDA) seeking approval of XHANCE for the treatment of chronic rhinosinusitis by three months. The target date for the updated Prescription Drug User Fee Act (PDUFA) is March 16, 2024.
For the third quarter ended September 30, 2023, OPTN reported total revenue of $19.82 million. Their net losses for the quarter were $9.29 million and $0.08 per share, respectively. Additionally, as of September 30, 2023, cash and cash equivalents and total assets were $66.84 million and $101.41 million, respectively.
In line with its full-year 2023 corporate guidance, OPTN expects XHANCE’s net revenues to be between $66 million and $70 million. We also expect XHANCE’s average net revenue per prescription to be approximately $200.
Street expects OPTN’s first quarter revenue (ending March 2024) to be $18 million, up 52% from the same period last year. The company’s revenue for fiscal year 2024 is expected to be $95.71 million, an increase of 36.1% year over year. The company also beat consensus revenue estimates in all four of his trailing quarters, which is great.
OPTN stock has increased 27.8% over the past month and 45.2% over the past six months, closing at $1.82.
OPTN’s POWR Rating reflects its promising outlook. The stock has an overall rating of “B”, which equates to a “buy” according to our proprietary rating system.
The stock has an A grade for sentiment and a B grade for growth potential. OPTN is ranked #33 out of 164 stocks within the Medical/Pharmaceutical industry.
To see additional POWR ratings for OPTN’s Value, Quality, Stability and Momentum: click here.
Stock #1: Teva Pharmaceutical Industries Limited (Teva)
Headquartered in Tel Aviv, Israel, TEVA develops, manufactures, markets and distributes generic, specialty and biopharmaceutical products in North America, Europe, Israel and around the world. We offer generic drugs, sterile products, and generic products. It focuses on the areas of central nervous system (CNS), respiratory, and oncology.
On February 26, TEVA’s subsidiaries, Teva Pharmaceutical Investments Singapore Pte Ltd and Jiangsu Renhe Pharmaceutical Co., Ltd., announced that TEVA’s subsidiaries, Teva Pharmaceutical Investments Singapore Pte Ltd and Jiangsu Renhe Pharmaceutical Co., Ltd. Announced a marketing and sales partnership for Teva’s AUSTEDO drug. Adult dyskinesia (TD).
This strategic partnership aims to leverage Nhwa’s leadership in the field of neuropsychiatry in China to increase patient access to Teva’s AUSTEDO.
In addition, on February 24, Teva Pharmaceuticals, a U.S. affiliate of Teva & Albotech (ALVO), announced that the U.S. FDA has approved the FDA for adult rheumatoid arthritis, juvenile idiopathic arthritis, adult psoriatic arthritis, and adult ankylosing arthritis. announced that it has approved SIMLANDI injection as a biosimilar compatible with Humira for the treatment of. spondylitis, Crohn’s disease, etc.
“SIMLANDI’s approval marks the first highly concentrated citrate-free biosimilar of Humira to receive IC status,” said Dr. Eric Hughes, executive vice president of global R&D and chief medical officer at Teva. .
TEVA’s net revenue for the fourth quarter ended December 31, 2023 increased 14.7% year over year to $4.46 billion. The company’s non-GAAP gross profit increased 23.1% year over year to $2.59 billion. Non-GAAP operating income was $1.55 billion, an increase of 36.8% from the prior year period.
Additionally, non-GAAP net income and non-GAAP EPS of $1.13 billion and $1 attributable to TEVA represent year-over-year growth of 43.5% and 40.8%, respectively. Adjusted EBITDA increased 33.9% year over year to $1.66 billion.
According to its 2024 business outlook, TEVA expects revenue to be in the range of $15.7 billion to $16.3 billion, with non-GAAP operating income expected to be in the range of $4.0 billion to $4.5 billion. Masu. Additionally, the company’s adjusted EBITDA and non-GAAP EPS for the same period are estimated at $450 to $5 billion and $2.20 to $2.50, respectively.
Analysts expect TEVA’s revenue and EPS to increase 3% and 29.1% year over year to $3.77 billion and $0.52, respectively, in the first quarter (ending March 2024). Additionally, the company has surpassed consensus revenue estimates in each of his four trailing quarters, which is noteworthy.
Teva stock closed at $13.09, up 35.4% in the past six months and 32.1% in the past year.
The fundamentals of TEVA’s sound are reflected in its POWR ratings. The stock has an overall rating of ‘A’, which equates to a ‘Strong Buy’ according to our proprietary rating system.
The stock has a grade of “A” for “growth potential” and “value.” The stock also has a B sentiment grade. Teva is ranked 10th out of 164 stocks in its industry.
To access additional ratings for TEVA on Quality, Stability, and Momentum, please visit click here.
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TEVA stock rose $0.09 (+0.69%) in pre-market trading on Thursday. Year-to-date, TEVA has increased his 25.38%. In comparison, the benchmark S&P 500 index rose 6.51% over the same period.
About the author: Mangeet Kaur Bounds
Mangeet’s keen interest in the stock market led him to become an investment researcher and financial journalist. Using a fundamental approach to analyzing stocks, Mr. Mangeet seeks to help retail investors understand the underlying factors before making investment decisions.
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