Investing in big pharma – where are the opportunities?

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Sales sparked by the pandemic have started falling away, but is there more opportunity in pharmaceuticals for the clued-in investor?

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

6 October 2023

Global sales of pharmaceutical products tend to increase year on year whatever the financial weather. That’s due to the importance we place on our health and the constant product innovation inherent in the sector.

The industry response to COVID-19 has been one of the biggest stories in drug development over recent years, seeing some companies rewarded with bumper sales and profits. But as the pandemic has faded, sales of these products have started to dramatically fall away with it, although past performance isn’t a guide to the future.

Added to the fall in sales, an ominous ‘patent cliff’ that the industry is facing. Some $200bn of revenue is at risk out to 2030, as some of the world’s best-selling drug patents exit their exclusivity periods,