The table below shows the long-term pharma stocks based on the Highest Market Capitalization.
Name | Market Cap (Cr) | Close Price | 5Y CAGR % |
Sun Pharmaceutical Industries Ltd | 376311.7 | 1554.25 | 33.52 |
Cipla Ltd | 121927.14 | 1491.0 | 22.53 |
Zydus Lifesciences Ltd | 116969.67 | 1162.45 | 38.81 |
Dr Reddy’s Laboratories Ltd | 108584.02 | 6550.0 | 20.28 |
Torrent Pharmaceuticals Ltd | 97847.96 | 2891.1 | 30.42 |
Lupin Ltd | 80706.24 | 1781.5 | 19.37 |
Aurobindo Pharma Ltd | 76380.03 | 1308.45 | 17.34 |
Alkem Laboratories Ltd | 60542.34 | 5230.0 | 24.13 |
Abbott India Ltd | 59122.89 | 27929.7 | 26.33 |
GlaxoSmithKline Pharmaceuticals Ltd | 43008.8 | 2518.0 | 16.42 |
Content:
- What is Long Term Pharma Stock?
- Features Of Long Term Pharma Stocks
- Best Long Term Pharma Stocks
- Top Long Term Pharma Stocks
- Long Term Pharma Stocks List
- Factors To Consider When Investing In Long Term Pharma Stocks
- How To Invest In Long Term Pharma Stocks?
- Advantages Of Investing In Long Term Pharma Stocks?
- Risks Of Investing In Long Term Pharma Stocks?
- Introduction to Long Term Pharma Stocks
- Long Term Pharma Stocks – FAQs
What is Long Term Pharma Stock?
Long-term pharma stocks refer to investments in pharmaceutical companies held over an extended period. These stocks are chosen for their potential to provide consistent growth and returns, driven by the continuous demand for medical treatments, advancements in drug research and development, and the stability provided by an aging global population and healthcare needs.
Features Of Long Term Pharma Stocks
The main features of long-term pharma stocks include a combination of stability and growth potential, often influenced by the industry’s unique characteristics and market dynamics.
1. Consistent Revenue Streams: Pharma companies often benefit from patents on high-demand drugs, ensuring steady income over time.
2. Strong Research and Development (R&D): Continuous investment in R&D drives innovation and potential breakthroughs, supporting long-term growth.
3. Regulatory Approvals: Successful navigation of regulatory hurdles can significantly enhance a company’s market position and profitability.
4. Global Market Presence: Diversified geographical reach helps in mitigating regional risks and tapping into emerging markets.
5. Robust Pipeline: A well-stocked pipeline of new drugs in various stages of development signals future growth and sustained market relevance.
6. Dividend Yields: Many established pharma companies offer attractive dividend payouts, providing regular income to investors.
Best Long Term Pharma Stocks
The table below shows the best long-term pharma stocks based on the highest day Volume.
Name | Close Price | Daily Volume (Shares) |
Laurus Labs Ltd | 475.55 | 4122210.0 |
Zydus Lifesciences Ltd | 1162.45 | 2734011.0 |
Cipla Ltd | 1491.0 | 1514530.0 |
Lupin Ltd | 1781.5 | 1442106.0 |
Aurobindo Pharma Ltd | 1308.45 | 1440897.0 |
Wockhardt Ltd | 908.6 | 1139249.0 |
Sun Pharmaceutical Industries Ltd | 1554.25 | 1098036.0 |
Granules India Ltd | 521.45 | 1021769.0 |
Glenmark Pharmaceuticals Ltd | 1351.6 | 900225.0 |
Natco Pharma Ltd | 1200.0 | 700954.0 |
Top Long Term Pharma Stocks
The table below shows the top long-term pharma stocks based on the PE Ratio.
Name | Close Price | PE Ratio |
Glenmark Pharmaceuticals Ltd | 1351.6 | 7.43 |
Natco Pharma Ltd | 1200.0 | 16.44 |
Dr Reddy’s Laboratories Ltd | 6550.0 | 19.27 |
Caplin Point Laboratories Ltd | 1424.0 | 23.55 |
Sanofi India Ltd | 6490.05 | 27.61 |
Alembic Pharmaceuticals Ltd | 981.3 | 28.72 |
Cipla Ltd | 1491.0 | 28.83 |
Granules India Ltd | 521.45 | 28.99 |
Zydus Lifesciences Ltd | 1162.45 | 34.1 |
Eris Lifesciences Ltd | 1032.85 | 34.21 |
Long Term Pharma Stocks List
The table below shows the long-term pharma stocks list based on 1 Year Return.
Name | Close Price | 1Y Return % |
Wockhardt Ltd | 908.6 | 271.69 |
Glenmark Pharmaceuticals Ltd | 1351.6 | 103.62 |
Zydus Lifesciences Ltd | 1162.45 | 99.87 |
Lupin Ltd | 1781.5 | 97.76 |
Jubilant Pharmova Ltd | 743.85 | 92.76 |
Astrazeneca Pharma India Ltd | 6732.5 | 85.59 |
GlaxoSmithKline Pharmaceuticals Ltd | 2518.0 | 80.2 |
Aurobindo Pharma Ltd | 1308.45 | 77.9 |
Natco Pharma Ltd | 1200.0 | 75.48 |
Caplin Point Laboratories Ltd | 1424.0 | 73.25 |
Factors To Consider When Investing In Long Term Pharma Stocks
The primary factors to consider when investing in long-term pharma stocks include evaluating the company’s research and development pipeline to understand potential future products and innovations.
1. Regulatory Environment: Assess the company’s ability to navigate complex regulatory approvals and maintain compliance with international standards.
2. Financial Health: Examine the company’s balance sheet, revenue growth, profit margins, and cash flow to ensure financial stability.
3. Market Position and Competition: Analyze the company’s market share, competitive advantages, and the strength of its product portfolio.
4. Patent Expiry and Litigation Risks: Consider the impact of patent expiries on revenue and any ongoing or potential litigation that could affect financial performance.
5. Strategic Partnerships and Acquisitions: Look at the company’s history and strategy for partnerships and acquisitions, which can drive growth and expand capabilities.
How To Invest In Long Term Pharma Stocks?
To invest in long-term pharma stocks, research companies with strong R&D pipelines, solid financial health, and a competitive market position. Assess regulatory and patent risks, and consider strategic partnerships. Open an account with a reputable stock broker. For a seamless start, complete your KYC with Alice Blue.
Advantages Of Investing In Long Term Pharma Stocks?
The main advantages of investing in long-term pharmaceutical stocks include the potential for substantial growth due to ongoing advancements in medical research and development, which drive the creation of innovative drugs and therapies, leading to increased revenue and market share.
1. Stable Demand: The pharmaceutical industry benefits from a consistent demand for medications and treatments, providing a steady revenue stream.
2. High-Profit Margins: Pharma companies often enjoy high-profit margins due to patented drugs, allowing for significant profitability over time.
3. Defensive Investment: Pharmaceuticals are considered a defensive sector, performing well even during economic downturns as healthcare remains a priority.
4. Dividend Potential: Many established pharma companies offer attractive dividends, providing a reliable income stream for investors.
5. Mergers and Acquisitions: The industry frequently sees mergers and acquisitions, which can lead to increased market share and enhanced shareholder value.
Risks Of Investing In Long Term Pharma Stocks?
The risk of investing in long-term pharmaceutical stocks includes potential regulatory changes that could affect drug approval processes, pricing, and market access.
1. Patent Expiry: When drug patents expire, generic competitors can enter the market, significantly reducing profit margins.
2. R&D Costs: High research and development costs with no guarantee of successful new drug approvals can lead to financial losses.
3. Market Volatility: Pharma stocks can be highly volatile due to changes in healthcare policies, market sentiment, and global health crises.
4. Litigation Risks: Pharmaceutical companies face significant litigation risks from drug recalls, side effects, and other legal challenges.
5. Competitive Pressure: The industry is highly competitive, and breakthroughs by competitors can quickly diminish the market share of existing drugs.
Introduction to Long Term Pharma Stocks
Sun Pharmaceutical Industries Ltd
The Market Cap of Sun Pharmaceutical Industries Ltd is Rs. 376311.70 crore. The stock’s monthly return is 3.50%. Its one-year return is 48.73%. The stock is 5.44% away from its 52-week high.
Sun Pharmaceutical Industries Limited is an India-based specialty generic pharmaceutical company. The Company is engaged in the business of manufacturing, developing, and marketing a wide range of branded and generic formulations and active pharmaceutical ingredients (APIs). It produces a comprehensive, diverse, and complementary portfolio of generic and specialty medicines targeting a wide spectrum of chronic and acute treatments.
The Company’s vertically integrated network enables it to produce a wide range of pharmaceuticals, including oncology, hormones, peptides, and steroidal drugs. The Company also has a product portfolio in RoW markets, including injectables, hospital products, and retail products. It offers a variety of dosage forms, including orals, creams, ointments, injectables, sprays, and liquids.
Cipla Ltd
The Market Cap of Cipla Ltd is Rs. 121927.14 crores. The stock’s monthly return is 0.25%. Its one-year return is 46.65%. The stock is 6.10% away from its 52-week high.
Cipla Limited is an India-based company, which is primarily engaged in the business of pharmaceuticals. The Company operates through two segments: Pharmaceuticals and New ventures. The Pharmaceuticals segment is engaged in developing, manufacturing, selling, and distributing generic or branded generic medicines, as well as Active Pharmaceutical Ingredients (API).
The New ventures segment includes the operations of the Company, consumer healthcare, Biosimilars, and specialty businesses. The Company’s product portfolio spans complex generics, as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, and central nervous system (CNS). The Company’s geographical segments include India, the United States, South Africa, and the Rest of the World.
Zydus Lifesciences Ltd
The Market Cap of Zydus Lifesciences Ltd is Rs. 116,969.67 crore. The stock’s monthly return is 9.05%. Its one-year return is 99.87%. The stock is 0.86% away from its 52-week high.
Zydus Lifesciences Ltd. is an India-based life sciences company. The Company is engaged in the research and development, manufacturing, marketing, and selling of finished dosage human formulations, such as generics and specialty formulations, including biosimilars and vaccines; active pharmaceutical ingredients (APIs); animal healthcare products, and consumer wellness products.
Its products include Bilypsa (saroglitizar), Oxemia (desidustat), Ujvira (biosimilar Kadcyla), and Exemptia. It offers Bilypsa drugs for non-alcoholic fatty liver disease (NAFLD) and non-alcoholic steatohepatitis (NASH). Desidustat is an oral, small-molecule hypoxia-inducible factor-prolyl hydroxylase (HIF-PH) inhibitor, which is used for the treatment of anemia in chronic kidney disease (CKD) patients.
Dr Reddy’s Laboratories Ltd
The Market Cap of Dr. Reddy’s Laboratories Ltd is Rs. 108584.02 crore. The stock’s monthly return is 8.18%. Its one-year return is 27.06%. The stock is 0.38% away from its 52-week high.
Dr. Reddy’s Laboratories Limited is an India-based global pharmaceutical company. The Company offers a portfolio of products and services, including active pharmaceutical ingredients (APIs), generics, branded generics, biosimilars, and over-the-counter (OTC).
Its major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management, and dermatology. The Company segments include Pharmaceutical Services and Active Ingredients, Global Generics, and Others. The Pharmaceutical Services and Active Ingredients segment primarily consists of the Company’s business of manufacturing and marketing APIs and intermediates.
Torrent Pharmaceuticals Ltd
The Market Cap of Torrent Pharmaceuticals Ltd is Rs. 97,847.96 crores. The stock’s monthly return is 1.25%. Its one-year return is 51.21%. The stock is 3.07% away from its 52-week high.
Torrent Pharmaceuticals Limited is an India-based pharmaceutical company. The Company is focused on various therapeutic segments, such as cardiovascular (CV), central nervous system (CNS), gastrointestinal (GI), vitamins minerals nutrients (VMN), anti-diabetes (AD), pain, gynecology, and dermatology. The Company is engaged in research, development, manufacturing, marketing, and distribution of branded and generic pharmaceutical formulations in India and internationally.
Its pediatric product brands include Tedibar, Atogla, Spoo, and B4 Nappi. Its acne/facecare products brands include Clinmiskin, ACNEMOIST, TRACNILO, and Fash. The Company’s hair/scalp care products brands include Proanagen, Perlice, Permite, and NOSKURF.
Lupin Ltd
The Market Cap of Lupin Ltd is Rs. 80,706.24 crores. The stock’s monthly return is 7.63%. Its one-year return is 97.76%. The stock is 0.21% away from its 52-week high.
Lupin Limited is an India-based pharmaceutical company. The Company is engaged in producing, developing, and marketing a range of branded and generic formulations, biotechnology products, and active pharmaceutical ingredients (APIs) globally.
The Company has a presence in the Cardiovascular, Diabetology, Asthma, Pediatrics, Central Nervous System, Gastro-Intestinal, Anti-Infectives, and Nonsteroidal Anti Inflammatory Drug therapy segments and is engaged in the Anti-TB and Cephalosporins segments. The Company along with its subsidiaries has manufacturing locations spread across India, the United States of America, Mexico, and Brazil with trading and other incidental and related activities extending to the global markets.
Aurobindo Pharma Ltd
The Market Cap of Aurobindo Pharma Ltd is Rs. 76,380.03 crores. The stock’s monthly return is 2.66%. Its one-year return is 77.90%. The stock is 1.47% away from its 52-week high.
Aurobindo Pharma Limited is an India-based pharmaceutical company. The Company is principally engaged in the manufacturing and marketing of active pharmaceutical ingredients, branded pharmaceuticals, generic pharmaceuticals, and related services.
Its product portfolio is spread over seven therapeutic/product areas encompassing Central nervous systems (CNS), Antiretrovirals (ARVs), Cardiovascular (CVS), SSP – Orals & Sterile, Anti-infectives, Anti-diabetics and Cephalosporins – Orals. It is engaged in developing a range of oncology and hormonal products. It is developing topical as well as transdermal products in the dermatology therapeutic segment. It is also developing about three depot injections based on the microsphere and nano-suspension technology platforms.
Alkem Laboratories Ltd
The Market Cap of Alkem Laboratories Ltd is Rs 60,542.34 crore. The stock’s monthly return is 2.14%. Its one-year return is 45.19%. The stock is 6.67% away from its 52-week high.
Alkem Laboratories Limited is an India-based company, which is engaged in the pharmaceutical business with global operations. The Company is engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products.
The Company offers its products across various therapeutic areas, such as Anti Infective, Dermatology, Diabetology, Cardiology, Gastroenterology, Osteoporosis, Rheumatology, central nervous system (CNS), Oncology, Urology, Gynecology, and Vitamins, Mineral and Nutrition. Its product range includes Rx Products, Alkem Generics, and OTC Products. The Company operates through a segment, Pharmaceuticals.
Abbott India Ltd
The Market Cap of Abbott India Ltd is Rs. 59,122.89 crore. The stock’s monthly return is 0.78%. Its one-year return is 18.55%. The stock is 6.12% away from its 52-week high.
Abbott India Limited is an India-based company that is engaged in the pharmaceuticals business. The Company has a portfolio of offerings in diagnostics, medical devices, nutrition products, and branded generic medicines. It provides products and solutions across various therapeutic areas, such as women’s health, gastroenterology, central nervous system, metabolic, multi-specialty, and vaccines, among others.
Its products include Colospa (irritable bowel disease), Ganaton (gastrointestinal motility), Librax (irritable bowel disease), Zolfresh (insomnia), Thyronorm (hypothyroidism), Duphaston (miscarriage and IVF), Duphalac (constipation), and others. It offers various products under brands, such as Similac, PediaSure, Pedialyte, EleCare, Ensure, Glucerna, and others.
GlaxoSmithKline Pharmaceuticals Ltd
The Market Cap of GlaxoSmithKline Pharmaceuticals Ltd is Rs. 43,008.80 crore. The stock’s monthly return is -0.12%. Its one-year return is 80.20%. The stock is 9.61% away from its 52-week high.
GlaxoSmithKline Pharmaceuticals Limited is an India-based global healthcare company. The Company is engaged in the business of manufacturing, distributing, and trading in pharmaceuticals. It has three product areas: vaccines, specialty, and general medicines. Its general medicines business has a portfolio of medicines in anti-infectives, pain, dermatology, and vitamins.
Its general medicines brands include Augmentin, Calpol, Ceftum, Eltroxin, CCM, Neosporin, Betnovate, T-bact, and Physiogel. Its T-bact brand products are used in specific types of bacterial skin infections. The Company’s vaccine brands include Shingrix, Infanrix Hexa, Synflorix, Boostrix, Havrix, Menveo, Fluarix Tetra and Varilrix. Its specialty medicines business is focused on developing medicines for respiratory diseases and human immunodeficiency virus.
Long Term Pharma Stocks – FAQs
Long-term pharma stocks are investments in pharmaceutical companies that develop, manufacture, and market medications and healthcare products over an extended period. These stocks offer the potential for steady growth and dividends, leveraging the continuous demand for healthcare innovations and treatments.
The Best Long Term Pharma Stocks #1:Sun Pharmaceutical Industries Ltd
The Best Long Term Pharma Stocks #2:Cipla Ltd
The Best Long Term Pharma Stocks #3:Zydus Lifesciences Ltd
The Best Long Term Pharma Stocks #4:Dr Reddy’s Laboratories Ltd
The Best Long Term Pharma Stocks #5:Torrent Pharmaceuticals Ltd
The top 5 stocks are based on market capitalization.
The top long-term pharma stocks based on one-year returns are Wockhardt Ltd, Glenmark Pharmaceuticals Ltd, Zydus Lifesciences Ltd, Lupin Ltd, and Jubilant Pharmova Ltd.
Investing in long-term pharma stocks can be advantageous due to the sector’s potential for growth, driven by ongoing medical advancements and increasing healthcare needs. However, it also carries risks, including regulatory challenges and market competition. Careful research and diversification are essential to assess if this investment aligns with your goals.
To invest in long-term pharma stocks, begin by researching pharmaceutical companies and industry trends. Open an account with a reputable stock broker who can facilitate stock transactions. Evaluate the financial health and growth potential of targeted companies, and diversify your portfolio to manage risks and maximize returns.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change to time The securities quoted are exemplary and are not recommendatory.