Anticipation: Potential Top Performers Among Pharmaceutical and Biotechnology Shares Until 2030
Pharmaceutical and biotech firms are commonly viewed as stable and secure investments due to a particular factor. Individuals require medications regardless of economic conditions, ensuring these organizations usually maintain some degree of revenue stability. However, it's essential to acknowledge that these firms can also present opportunities for growth.
Drugmakers often experience growth phases as they progress with potential treatment candidates or market promising new products. By investing in specific biotech and pharmaceutical companies and holding on to shares for an extended period, you can benefit from these growth spurts.
Looking ahead to the upcoming year, let's delve even further into the future, taking into account the development and launch timeframes required for these product catalysts. I will anticipate the following three companies may exhibit exceptional performance within the pharmaceutical and biotech sector through 2030.
1. Viking Therapeutics
Viking Therapeutics (VKTX 4.30%) currently lacks marketed products, yet it's making substantial headway into late-stage clinical development within a high-demand area: weight loss. Viking's drug contender, VK2735, aligns with the same class as cart drugs such as Eli Lilly's high-performing Zepbound; it impacts hormonal pathways to control blood sugar levels and appetite.
VK2735 is scheduled to enter phase 3 trials in injectable form, while the oral version is on the verge of phase 2 trials. Viking's stock typically soars on favorable news from the project, which led to a 121% increase in trading session shares following the announcement of phase 2 results for the injectable formulation back in February. Further positive news from the trials could push the stock even higher as Viking proceeds through late-stage trials over the ensuing years.
Although Eli Lilly and Novo Nordisk dominate the weight loss market, Viking could grab a slice. The market demand for these drugs surpasses supply, and Goldman Sachs Research projects it may reach $130 billion by 2030. This could propel Viking Therapeutics' growth in the coming years.
2. Vertex Pharmaceuticals
Vertex Pharmaceuticals (VRTX 0.33%) leads the global market in cystic fibrosis drug development and has amassed billions in revenue and profit, boasting an impressive $11 billion cash reserve in the most recent quarter. This substantial cash reserve empowers Vertex to branch into other treatment areas.
A promising program to watch is Vertex's candidate aimed at addressing pain. Currently, consumers rely on over-the-counter painkillers or opioids with addiction risks. Vertex's non-opioid candidate suzetrigine tackles moderate-to-severe acute pain while preventing addiction. Regulatory approval is imminent, with a decision expected on January 30.
Vertex continues to develop suzetrigine for specific pain indications, most notably lumbosacral radiculopathy, which causes sciatica, following the successful completion of a phase 2 trial.
Vertex attributes suzetrigine's potential to a multibillion-dollar opportunity. Combined with its robust cystic fibrosis portfolio, this combination could drive the stock's long-term growth.
3. Pfizer
Pfizer (PFE -0.07%) has witnessed decreased revenue from its COVID-19 treatment and vaccine as the pandemic effects have started to subside. However, Pfizer's recent launch of 19 products in a short 18-month span has provided a plethora of growth drivers to sustain revenue momentum through the next decade. Pfizer has also bolstered its capabilities through strategic acquisitions, such as its focus on oncology.
Pfizer's acquisition of Seagen, a specialist in antibody-drug conjugates (ADCs), positions the firm to gain a formidable edge in the oncology market. ADCs utilize monoclonal antibodies to directly target cancer cells with potent cancer drugs. Pfizer is poised to become a leading oncology player, current industry statistics indicate it as the third-largest oncology company in the U.S. by revenue. Moreover, robust demand across the Seagen and Pfizer portfolios has driven a 31% increase in oncology product revenue in the most recent quarter.
With an ambitious goal set for 2030, Pfizer aims to have eight or more blockbuster oncology drugs and serve double the number of patients with its oncology medicines. If the company successfully achieves these milestones and new products spur growth, Pfizer's struggling stock may be slated for a resurgence in the upcoming years.
- The potential success of Viking Therapeutics' weight loss drug candidate, VK2735, could attract significant investment funds in the finance sector, as the market demand for weight loss medications is projected to reach $130 billion by 2030.
- As Vertex Pharmaceuticals expands into new treatment areas, such as pain management with its non-opioid candidate suzetrigine, investors may see this as a promising opportunity for financial growth, given Vertex's strong financial position and the potential multibillion-dollar market for non-opioid pain relief drugs.
