With large American pharmaceutical companies that are always looking for medicines in China, the American pharmaceutical industry goes through a unique trend that has never been seen before. About 30% of the acquisitions of large pharmaceutical acquisitions with at least $ 50 million in advance in 2024, Chinese companies, according to the dealforma statistics, as reported by CNBC. This was an increase of 20% the previous year and almost 0% just five years earlier.
Experts mention various causes for this tendency. Some people think that Chinese pharmaceutical companies draw notice because of their advanced developmental skills, so that they can produce powerful connections in large quantities. In addition to being able to start testing on human topics faster, these Chinese companies can charge a lower price for these medicines than the US. Buyers have developed a business strategy with which they can import medicines through license agreements, according to CNBC. The lack of risk capital in China is extra pressure on biotech companies to enter into these agreements.
Experts think that this situation is here to stay, even though there are various possible causes for this tendency. Although the American pharmaceutical industry is expected to be influenced, it is uncertain how these effects would manifest. If large pharmaceutical companies find a good Chinese medicine at a low price, some experts think that the American startups can destroy; Others think that competition would benefit the sector. Tim Soler, a director of Stifel’s Global Healthcare Group, stated the following with regard to circumstances:
“It is a kind of turning point on which the pharmaceutical industry is like:” We don’t really have to buy biotechs. We will not do so well if it makes sense, but we can buy perfectly good biotech assets through license agreements with Chinese companies. “
Emily Field, head of European Pharma Research at Barclays, spoke with CNBC on 20 February about the performance of obesity medicines, the effects of American rates and the dynamics of the pharmaceutical industry. According to her, at least in the first half of this year, the industry may not perform badly. However, the effectiveness of obesity medicines is still under discussion, since leading companies in the field have shown inconsistent results in the past.
Speaking of the rates, they stated that, since some companies collect their products in the US after they have produced them abroad, their implementation raises various unanswered questions for the pharmaceutical industry. These companies therefore have relatively low production costs, which is an important factor to take into account when assessing the effects of rates. She thought that these companies could easily absorb the higher costs of the rates. The subject did not get much of the profit calls this quarter and the market is approaching the end of the reporting season.
For this article we screened for companies that are active in the pharmaceutical industry. From that list we have identified shares that have achieved positive revenue growth over the past five years. We then chose companies with a sales growth of 5 years of 10% and ranked the top 10 based on hedge funds sentiment from Q4 2024, according to the database of Insider Monkey.
Why are we interested in the shares that stack hedge funds? The reason is simple: our research has shown that we can surpass the market by imitating the best share choices of the best hedge funds. The strategy of our quarterly newsletter selects 14 CAP and Large-CAP shares every quarter and has returned 373.4% since May 2014 and has reported its benchmark with 218 percentage points (See more details here).
Is Merck & Co., Inc. (MRK) The best pharmaceutical shares to buy for long -term growth?
A close-up from the hand of a person with a bottle of pharmaceutical products.
Number of holders of hedge funds: 91
Merck & Co., Inc. (NYSE: MRK) is a biopharmaceutical company that provides health solutions to promote the treatment and prevention of diseases in animals and people. Vaccines and pharmaceutical goods for human health, which usually include therapeutic and preventive substances, are available through the pharmaceutical section. The Animal Health division creates, finds, produces, produces and sells various vaccinations and veterinary medicines.
Merck & Co., Inc. (NYSE: MRK) ‘s Sales Outlook is adversely affected by certain factors. Due to the low discretionary expenditure, for example, it temporarily stopped the distribution of its HPV vaccine Gardasil to China to the mid-2025. The company maintains excellent activities despite these short-term problems, which are strengthened by a high demand for its inventive and varied portfolio. The Keytruda cancer treatment medication of the company is doing well, and the introduction of Winrevair, a medication for lungarterial hypertension (PAH) also helps to increase sales growth.
Asad Haider, an analysts from Goldman Sachs, remained optimistic about the shares and assessed it as a purchase on 8 April. The analyst believes that Merck & Co., Inc. (NYSE: MRK) The Animal Health Division of MRK), which earns a substantial amount of money and is expected to be expanded in the future, is undervalued by the current market rating, which is unreliable. If one of the Best Pharmaceutical SharesThe analyst believes that this investors offers a chance.
Greens keeper Asset Management, an investment management company, has released his Q3 2024 investor letter. Here Is what the fund said:
“Merck & Co., Inc. (NYSE: MRK) was our second largest detactor this quarter, from -8.3%. The leading HPV vaccine of MRK, Gardasil 9, was faced with challenges internationally because of the inventory structure within his Chinese distributor, the rest of the rest of the rest of the rest of the Rest, the proceeds for the avid shipments, the proceeds of the availability, Long -term hearing, the long -term Keytruda Cancer -Juggernaut continues to grow with a healthy clip, which means that profit growth is driven. “
Generally, MRK is in 2nd place On our list of best pharmaceutical shares to buy for long -term growth. Although we recognize the potential of pharmaceutical companies, our conviction is believing that AI shares have a greater promise for supplying a higher return, and to do this within a shorter period of time. There is an AI shares that have gone up since the beginning of 2025, while popular AI shares lost around 25%. If you are looking for an AI share that is promising than MRK, but that is traded in less than 5 times income, view our report on this Cheapest AI stock.
