Big Pharma Stocks: Who’s Leading the Race and Who’s Slipping?

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Eli Lilly And Company Notícia

Merck & Company Inc,Johnson & Johnson,Procter & Gamble Company

Stocks Analysis by The Tokenist (Timothy Fries) covering: Eli Lilly and Company, Merck & Company Inc, Johnson & Johnson, Procter & Gamble Company. Read The Tokenist (Timothy Fries)'s latest article on Investing.com

Over the last decade, the pharma sector has undergone significant restructuring. On the upside, big data, machine learning, and predictive analytics have streamlined drug pipelines, enabling greater technology fragmentation into new drug product cycles.

Lastly, the Inflation Reduction Act provision allowing Medicare to negotiate drug prices placed pressure on how biotech companies value drug returns. With all these trials, relative newcomer Viking Therapeutics has been the most performant biopharma stock in 2024 at 244% YTD gains. In contrast, pharma giant Merck & Company Inc .

Of the four drugs, VK2735 is the company’s main valuation driver. This is not surprising given the total addressable market for anti-obesity medications of up to $100 billion by 2030 , according to Goldman Sachs. Conversely, VKTX stock presents investors with a high reward, high risk exposure.Presently priced at $66.25, VKTX stock is still closer to its 52-week average of $40.09 than to its 52-week high of $99.41 per share.

Presently priced at $114.57 per share, MRK stock is down 12.65% over the last three months, or up 1.2% YTD. Against the 52-week average of $117.73, the average MRK price target is $143.45. With the low estimate of $125 above the current price level, MRK also presents an enticing exposure but with a much wider pharma moat.

 

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