The pharmaceutical industry has faced numerous challenges over the past couple of years due to the COVID-19 pandemic, economic pressures, and political uncertainties. However, there are still many promising drugmakers whose stocks are positioned for growth in 2024. In this in-depth article, we will explore 10 pharmaceutical companies that investors should keep a close eye on in the new year.
Johnson & Johnson (JNJ)
Market Cap: $452B
Johnson & Johnson (JNJ) remains one of the largest and most diversified healthcare companies in the world. In 2023, JNJ approved a 2-for-1 stock split, which could boost its appeal to retail investors. Beyond aesthetic medical devices and consumer health products, JNJ is also a leader in pharmaceuticals. Some key drugs and pipeline assets to watch include:
– Darzalex (multiple myeloma): Projected sales of $7.4B by 2026
– Stelara (psoriasis, Crohn’s disease): Projected sales of $9.4B by 2026
– Esophageal cancer drug Bepsi: Phase 3 trial readouts expected in 2023/2024
– 2 Alzheimer’s drugs (lecanemab and atabecestat) with Phase 3 data in 2023/2024
JNJ also recently acquired Abiomed for its Impella heart pumps. Overall, JNJ’s diversification helps mitigate risks while still offering growth from numerous pharmaceutical opportunities. Its dividend growth streak tops 60 years as well.
Eli Lilly (LLY)
Market Cap: $353B
Eli Lilly has developed considerable momentum over the past two years thanks to the success of its COVID-19 antibody therapies. Going forward, strong sales from key drugs like Trulicity (diabetes), Taltz (psoriasis), and Jardiance (heart disease) are expected to drive continued growth. Some areas of focus for LLY in 2024 include:
– Tirzepatide for type 2 diabetes: Blockbuster potential if approved, with an advisory committee meeting set for January 2023
– Donanemab for Alzheimer’s disease: Phase 3 readout expected in late 2023/early 2024
– Retifanlimab for lung cancer: Phase 3 trial started in 2022
– mirikizumab for ulcerative colitis: Phase 3 trial expected to start in 2023
With a robust pipeline and organic growth still outpacing industry averages, Eli Lilly may prove prescient for patients and profitable for investors next year. Its commitment to innovation and dividends also make it appealing long-term.
Vertex Pharmaceuticals (VRTX)
Market Cap: $74B
Vertex Pharmaceuticals has transformed into a real drug development powerhouse, propelled by the success of its cystic fibrosis franchise. Its existing CF portfolio containing Kalydeco, Orkambi, Symdeko and Trikafta generated $7.3 billion in 2021 sales and will likely keep growing globally. For 2024, VRTX’s key catalysts include:
– Expanding CF franchise into younger patient populations
– Approval potentially for beta-thalassemia and sickle cell anemia treatments
– Progress in kidney disease and pain pipeline programs
– Pursuing new genetic disease targets like AADC deficiency
With a strong balance sheet, dedicated focus on niche diseases, and improved commercial capabilities, Vertex looks positioned to continue extending its leadership in life-changing genetic medicines beyond CF. Early pipeline successes could fuel further gains.
Merck & Co (MRK)
Market Cap: $210B
Merck has enjoyed a notable resurgence since approving its COVID-19 antiviral treatment molnupiravir in late 2021. However, internal momentum predates the pandemic as oncology drugs like Keytruda, Lynparza and Lenvima have become major sales drivers. Areas of interest in 2024 that could buoy MRK shares include:
– Keytruda label expansions across tumor types including adjuvant settings
– Verzenio and Lenvima gaining ground in breast and liver cancer indications
– Progress of V114, an investigational 15-valent pneumococcal conjugate vaccine
– Phase 3 data for V114 and V116, an Ebola vaccine candidate
– Updates on islatravir, an experimental HIV treatment and prevention agent
With ambitions to become a top 5 biopharma by 2030, MRK is also actively pursuing high-value acquisitions. Solid cash flows should sustain dividend payments and fuel new product launches next year and beyond.
Bristol-Myers Squibb (BMY)
Market Cap: $149B
Bristol-Myers Squibb made big splashes in 2020 by acquiring Celgene and its major assets like Revlimid, Pomalyst and Opdivo. Now well into the post-merger integration stage, BMY’s performance will depend on its ability to maximize this portfolio in combination with a pipeline spanning oncology, immunology, fibrosis and more. Areas to monitor in 2024 include:
– Opdivo and Yervoy combo progress across tumor types in ongoing late-stage studies
– Relatlimab (anti-LAG-3 immunotherapy) Phase 3 melanoma and lung cancer data
– Deucravacitinib for alopecia areata, ulcerative colitis and lupus Phase 3 readouts
– Zeposia growth in ulcerative colitis and Crohn’s disease indications
– Potential entry into new therapeutic classes via business development
As one of the few “Big Pharma” companies focusing squarely on innovative biologics and combination immuno-oncology, BMY could outperform peers with pipeline advancements.
Regeneron Pharmaceuticals (REGN)
Market Cap: $66B
Regeneron has thrived by pairing its powerful VelociSuite technology with savvy business development to build a diverse pipeline. Late-stage data expected in 2024 that could further validate this strategy includes:
– Fasinumab for osteoarthritis pain (Phase 3 complete, filing targeted for 2023)
– REGN5458 for Ebola virus disease (Phase 3 interim analysis expected Q1 2024)
– Odronextamab for hematologic malignancies (Phase 2 trials ongoing)
– Selpercatinib for RET-altered lung cancer (Phase 3 ongoing)
Meanwhile, established franchises will continue growing with new Eylea label expansions possible, as well as Dupixent for more asthma phenotypes. Regeneron also benefits enormously from royalties on Regen-COV/Ronapreve, an important COVID therapy. Share buybacks and quarterly dividends add investor returns.
Vertex Pharmaceuticals (VRTX)
Market Cap: $74B
Vertex Pharmaceuticals has transformed into a real drug development powerhouse, propelled by the success of its cystic fibrosis franchise. Its existing CF portfolio containing Kalydeco, Orkambi, Symdeko and Trikafta generated $7.3 billion in 2021 sales and will likely keep growing globally. For 2024, VRTX’s key catalysts include:
– Expanding CF franchise into younger patient populations
– Approval potentially for beta-thalassemia and sickle cell anemia treatments
– Progress in kidney disease and pain pipeline programs
– Pursuing new genetic disease targets like AADC deficiency
With a strong balance sheet, dedicated focus on niche diseases, and improved commercial capabilities, Vertex looks positioned to continue extending its leadership in life-changing genetic medicines beyond CF. Early pipeline successes could fuel further gains.
Novavax (NVAX)
Market Cap: $4.8B
Novavax saw its fortunes transformed thanks to its Covid-19 vaccine Nuvaxovid receiving emergency use authorization in over 40 countries. However, it still awaits a U.S. decision that could significantly boost capacity and revenues. Meanwhile, its seasonal flu vaccine candidate NanoFlu achieved positive Phase 3 results, potentially giving NVAX a new commercial asset for 2024. Areas to watch include:
– Final production agreements and uptake for Nuvaxovid global rollout
– Regulatory submission timelines for Nuvaxovid in the U.S.
– Phase 3 efficacy data for its ResVax RSV pediatric vaccine anticipated Q2 2024
– Progress in developing combination COVID/flu vaccines
– Licensing deals for additional platform technologies
Should Nuvaxovid gain U.S. approval and uptake rise internationally, NVAX could see sales takeoff. Success with its flu vaccine would also support ongoing diversification efforts.
BioNTech (BNTX)
Market Cap: $29B
BioNTech soared to prominence by teaming up with Pfizer to develop the hugely successful Comirnaty COVID-19 vaccine using mRNA technology. As it works to establish other mRNA therapies, next year could bring multiple clinical milestones including:
– Phase 2 data for its shingles vaccine candidate
– Initial efficacy data for its flu/COVID combination vaccine in phase 1
– Phase 2b interim analysis of its personalized cancer vaccine BNT111
– Progress in oncology pipeline including CAR-T cell immunotherapies
BioNTech is now well-funded to execute on its vision of mRNA becoming a mainstay of medicine. Future growth will depend on expanding its innovation beyond COVID to