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3 Pharma Stocks That Could Make Your Grandchildren Rich
LLYLilly(LLY) Investor Place·2024-07-10 18:34

Core Viewpoint - Pharmaceutical stocks have generally underperformed since the end of the pandemic, with the S&P Pharmaceuticals Index down 5% this year compared to an 18% gain in the S&P 500 Index, although some stocks are showing promise and potential for growth [1] Group 1: Eli Lilly (LLY) - Eli Lilly has seen a remarkable stock increase of 756% over the past five years, including a doubling in the last 12 months, with shares trading near 1,000[2]Thecompanysgrowthisattributedtotwonewblockbusterdrugs:theweightlossdrugZepboundandtheAlzheimerstreatmentDonanemab,withZepboundsignificantlyboostingsales[2][3]Group2:NovoNordisk(NVO)NovoNordisksstockhasrisennearly5001,000 [2] - The company's growth is attributed to two new blockbuster drugs: the weight loss drug Zepbound and the Alzheimer's treatment Donanemab, with Zepbound significantly boosting sales [2][3] Group 2: Novo Nordisk (NVO) - Novo Nordisk's stock has risen nearly 500% over the past five years, with a year-to-date gain of 38%, driven by its weight loss medication Wegovy [4] - The approval of Wegovy for sale in China, a market with over 1.4 billion people, is expected to further enhance sales, as more than half of China's population is considered overweight [5] - To meet increasing demand, Novo Nordisk is investing 4.1 billion to expand its manufacturing capacity in the U.S., with a new plant set to be completed in 2027 [5] Group 3: Moderna (MRNA) - Moderna's stock has declined 75% from its all-time high in September 2021, primarily due to falling sales of its COVID-19 vaccine and a lack of commercially available medications [6] - The company is working on new products, including a combination COVID-19/influenza vaccine and several cancer vaccines, and has received a $176 million contract from the U.S. government to develop a bird flu vaccine [6][7] - Moderna's stock may have significant upside potential with the introduction of new medications, despite a 5% decline in the last 12 months [7]