As the healthcare sector continues to grow, it has become a great place for long-term stock investment. In order to stay successful, companies in the sector need to continually innovate. Two top healthcare stocks for the long haul are Bristol Myers Squibb (BMY) and Novo Nordisk (NVO).
Bristol Myers Squibb
Bristol Myers Squibb is one of the largest pharmaceutical companies in the world with a portfolio that focuses on oncology and immunology, the two largest and fastest-growing therapeutic areas. The company had seven products that generated more than $1 billion in revenue last year, with six growing on a year-over-year basis.
While revenue dropped slightly in 2022 due to generic competition for cancer drug Revlimid and currency exchange fluctuations, Bristol Myers’ new product portfolio generated about $2 billion in sales last year, an increase of 87% YoY. The company has a large pipeline with more than 50 clinical compounds in development.
Bristol Myers has proven its ability to navigate patent cliffs, and its competitive 3.45% dividend yield makes it an attractive stock for income-seeking and patient investors looking for a reliable company to invest in for the long haul. The company’s ability to innovate and its strong dividend yield make it an excellent buy-and-forget option.
Novo Nordisk
Novo Nordisk is a leading pharmaceutical company in the diabetes medicines market. The company held a 46.7% share of the insulin market and a 54.9% share of the GLP-1 agonists market as of November, making it one of the few drugmakers that dominate this therapeutic area. One could argue that Novo Nordisk is the frontrunner in the industry.
Novo Nordisk has continued to innovate in diabetes care and is looking to diversify its lineup with products like icodec, a potential once-weekly insulin that has produced excellent results in clinical trials. Patients typically take insulin daily, and a once-a-week option is much more convenient, reduces human error risk, and could help patients achieve better outcomes while simplifying their lives.
Novo Nordisk intends to file applications for icodec with regulatory authorities in the United States and China, which has a diabetic patient population of 120 million, during the first six months of the year. If approved, icodec will undoubtedly attract a large number of patients.
The company is also awaiting approval for brand-new products, including concizumab, a potential hemophilia therapy, and nedosiran, an investigational treatment for primary hyperoxaluria, a rare genetic condition that causes kidney and bladder stones.
Novo Nordisk has numerous programs, with many focused on diabetes or obesity, while others address both common and rare diseases, such as Alzheimer’s, which has been a challenging research area for a considerable period.
Novo Nordisk’s revenue in 2022 increased by 26% year over year to 177 billion Danish kroner (about $25.1 billion), and its net income was 55.5 billion DKK ($7.8 billion), 16% higher than the previous fiscal year. The company is expected to generate similarly impressive financial results regularly as it maintains a solid lead in diabetes and increasingly ventures into new therapeutic areas.
Bristol Myers Squibb and Novo Nordisk are two excellent buy-and-forget options for investors seeking long-term growth in the healthcare sector. These companies have proven their ability to innovate and can continue to do so in the future. Both stocks have strong fundamentals and are well-positioned to continue delivering impressive financial results.
