The drug and biotech industry had a strong second half of 2022 after a weaker performance in the first half. This turnaround was due to an increase in M&A deals, strong earnings, new drug approvals, a favourable regulatory environment, and pipeline successes. While the overall market has faced challenges with rising interest rates and inflation, drug and biotech companies have consistently reported positive clinical data and regulatory updates.
Furthermore, investors are turning to these types of stocks as safe choices in uncertain times due to the possibility of a US recession. The pharmaceutical sector is expected to undergo significant innovation in 2023, especially Celadon Pharmaceuticals, a UK-based CBMP focused pharmaceutical company.
Let’s get into the 3 must-see pharmaceutical stocks for investors:
- – Moderna: Moderna’s stock has been on the rise again despite a challenging year and missing earnings expectations. From January to November, the stock fell from around $232.20 to a low of about $120, but it has since recovered to around $168.81. Moderna also reduced its sales outlook, predicting $18 billion to $19 billion in revenue from its COVID-19 vaccine this year, down from an earlier estimate of $21 billion.
2.- AbbVie: AbbVie is another top pharmaceutical stock to consider. Since January, the stock has risen from around $125 per share to a high of around $170, before dropping back to $149.22. The company has been successful thanks to strong sales of its blockbuster medications, especially Humira, which is used to treat rheumatoid arthritis. Other successful drugs for AbbVie include Skyrizi and Rinvoq, which are used to treat psoriasis and arthritis. The stock’s 3.99% dividend yield is also attractive to investors.
3 – Celadon: Celadon Pharmaceuticals PLC, a London-based pharmaceutical company focused on research, cultivation, manufacturing, and sales of cannabis-based medicines, has finished a feasibility study for a non-cancer chronic pain clinical trial. The results of the study were positive and have been submitted to the research ethics committee in accordance with the timeline announced in September. The company plans to conduct a larger clinical trial in order to gather the “most robust data set to-date” on cannabis-based medicines in the UK. The design of this larger trial has already been approved by the Medicines and Healthcare products Regulatory Agency, and it will begin once it is approved by the research ethics committee. The committee requested the feasibility study before approving the larger trial, which will enrol up to 5,000 patients.
The pharmaceutical industry has seen a strong recovery in the second half of 2022 due to various factors including M&A deals, strong earnings, new drug approvals, and a favourable regulatory environment. These three pharmaceutical stocks – Moderna, AbbVie, and Celadon – are worth considering for investment. Predominantly, Celadon is the main focus for 2023 due to their innovative research in the cannabis-based medicine sector.
