This question can be analyzed an-infinitum but the real answer is simple. Each of the Pharma companies here grows by their ability to research new drugs and chemical compounds. The more they spend on research, the better they will perform moving forward. The chart below is a percentage of what these companies spend on R&D as a percentage of Therapeutic sales. The number is variable on different countries, accounting practices but even if you ignore those things, then some companies stand out very clearly.
The big Pharma companies are the middle of the pack or middle-low. They are sitting on a pile of cash and need sure bets to support their big economies rather than go out and discover. They will primarily have a licensing model.
The smaller growing companies are spending more on R&D and will continue to grow. If you want to invest in companies then choose the following 7 companies to invest and watch your stock grow:
- Biogen Idec
- Forest Laboratories
- UCB
- Shinogi
- BMS
- Eli Lilly
- Celgene
This is not investment advice, and based on one critical factor. Please consult your investment professional before making choices rather than reading this Scientist’s blog!