8 Best Pharma Stocks to invest in 2023

This post reviews the top 8 pharma stocks to invest in in 2023. We have examined the business fundamentals and development potential of the shortlisted best pharma stocks to invest in in 2023.

These businesses have robust drug pipelines and many treatments that are almost ready for approval. The new medications are anticipated to strengthen these businesses’ financial position over time and provide investors with excellent returns. We have also discussed the analysts’ predictions for the future growth of these equities. The equities were ranked based on how many hedge funds own shares of them as of Q2 2022.

1. Pfizer Inc. (NYSE: PFE)

Number of Hedge Fund Holders: 70

One of the Best Pharma Stocks to invest in 2023 is Pfizer Inc. (NYSE: PFE), a pharmaceutical giant headquartered in New York. As of October 21, Pfizer Inc. (NYSE: PFE) stock offers an attractive forward dividend yield of 3.63% and has increased its dividend for the previous 12 years.

In addition, the business has paid quarterly dividends for the last 335 quarters in a row. Pfizer Inc. (NYSE: PFE) has boosted its dividend by more than 82% during the past ten years.

2. Amgen Inc. (NASDAQ: AMGN)

Number of Hedge Fund Holders: 55

Amgen Inc. (NASDAQ: AMGN) is a biotech business headquartered in Thousand Oaks, California that focuses on innovation and distinctiveness when creating medications to treat chronic illnesses. The company is ranked second on our list of the ten best pharma stocks to invest in in 2023.

Amgen Inc.’s (NASDAQ: AMGN) stock was upgraded by Morgan Stanley’s Matthew Harrison on October 11 from Equal Weight to Overweight, and the target price was raised from $257 to $279.

3. Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)

Number of Hedge Fund Holders: 45

The development and marketing of a cystic fibrosis therapy have been made possible by the Boston, Massachusetts-based biotech business Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) (CF). The business is also engaged in sophisticated gene therapy research.

Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) is developing non-opioid analgesics to treat persistent neuropathic pain. The market for pain medications is substantial, but many pharmaceutical companies have had difficulty creating an effective non-opioid analgesic.

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4. Moderna, Inc. (NASDAQ: MRNA)

Number of Hedge Fund Holders: 45

The creator of mRNA technology is Moderna, Inc. (NASDAQ: MRNA), a biotech business headquartered in Cambridge, Massachusetts.

Moderna, Inc. (NASDAQ: MRNA) is developing tailored cancer vaccinations (PCVs). The business gained momentum earlier this month when pharmaceutical behemoth Merck decided to work with Moderna, Inc. (NASDAQ: MRNA) to develop and market Moderna’s PCV. The alliance was a development of an earlier cooperative agreement. Analysts anticipate excellent Phase-II results from the PCV study for adjuvant melanoma treatment.

Moderna, Inc. (NASDAQ: MRNA) trades at 3.5X earnings and has a return on invested capital (ROIC) of 36%. These fundamentals and the company’s shallow debt levels, according to analysts, place it among the best pharma stocks to invest in in 2023.

5. Cardinal Health, Inc. (NYSE:CAH)

Number of Hedge Fund Holders: 44

Cardinal Health, Inc. (NYSE: CAH) is a manufacturer and distributor of medical laboratory goods with its headquarters in Dublin, Ohio.

As of October 21, Cardinal Health, Inc. (NYSE: CAH) provides investors with a forward dividend yield of 2.91%. Due to its 25-year history of dividend increases, the company is a member of the Dividend Aristocrat list. Cardinal Health, Inc. (NYSE: CAH) is transitioning as it concentrates on maximizing the performance of its robust pharmaceutical division and may eventually spin off the medical devices segment. Revenues for the company’s pharmaceutical division rose 14% YoY in 2021.

6. Sarepta Therapeutics, Inc. (NASDAQ: SRPT)

Number of Hedge Fund Holders: 41

Sarepta Therapeutics, Inc. (NASDAQ: SRPT), a biotech company in Cambridge, Massachusetts, is dedicated to creating precision medicines to cure rare diseases using gene therapy and editing.

On September 7, Morgan Stanley’s Matthew Harrison added Sarepta Therapeutics, Inc. (NASDAQ: SRPT) stock to the “Catalyst Driven Idea” after the company disclosed its intentions to request accelerated approval for SRP-9001 for the treatment of patients of ambulatory with Duchenne muscular dystrophy (DMD). On September 29, Sarepta Therapeutics, Inc. (NASDAQ: SRPT) filed a Biologics License form (BLA) with the FDA. The company hopes to hear back by the end of 2022. SRP-9001 has demonstrated efficacy in clinical trials even after one, two, and four years of therapy, along with a consistent safety profile.

7. Amylyx Pharmaceuticals, Inc. (NASDAQ: AMLX)

Number of Hedge Fund Holders: 15

The Cambridge, Massachusetts-based firm Amylyx Pharmaceuticals, Inc. (NASDAQ: AMLX) specializes in treating neurological illnesses. Neena Bitritto-Garg at Citi raised the target price for Amylyx Pharmaceuticals, Inc. (NASDAQ: AMLX) from $48 to $50 in a research note published on October 3 and kept a Buy rating on the stock.

Following the FDA’s full approval of Relyvrio for treating amyotrophic lateral sclerosis (ALS), widely known as Lou Gehrig’s disease, the analyst adjusted her financial model. Garg commented favourably on the treatment’s net annual price of $158,000, which is 7% less than the yearly net price of $170,000 for competitor Edaravone.

8. Grifols, S.A. (NASDAQ: GRFS)

Number of Hedge Fund Holders: 12

With operations in more than 110 nations, Grifols, S.A. (NASDAQ: GRFS), a chemical and pharmaceutical company established in Barcelona, Spain, is regarded as a leader in plasma-derived therapies.

Grifols, S.A. (NASDAQ: GRFS) seeks to strengthen the company’s financial position by reducing debt and boosting its capacity to produce solid cash flows. As plasma collection has surpassed pre-pandemic levels, the business predicts that revenue during the second half of 2022 will climb by double over the same period last year. By 2028, the market for plasma-controlled medications is anticipated to grow by an average of 6.8% per year to reach $53.14 billion.

Conclusion

If you are an investor wondering about the Best Pharma Stocks to invest in 2023, this article on the 8 Best Pharma Stocks to invest in 2023 will be helpful to you as we have also discussed the analysts’ predictions for the future growth of these equities. Share your thoughts on this article in the comment section and ask some questions.

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