Published on 5 Mar 2024 on Insider Monkey via Yahoo Finance
In this piece, we will take a look at the 11 best small cap pharma stocks to invest in. If you want to skip our overview of the global pharmaceutical and healthcare industry, which is one the most unique sectors in the world, then you can check out 5 Best Small Cap Pharma Stocks to Invest In.
The global pharmaceutical industry is simultaneously one of the most stable and most dynamic in the world. While high growth sectors such as semiconductors and artificial intelligence computing are quite size-ably at the mercy of global risk appetite and macroeconomic winds, others, often dubbed consumer defensive have an aura of stability due to operating in markets that are indispensable to global well being.
For pharma stocks, these can be either big ticket and stable names such as Pfizer Inc. (NYSE:PFE) and Johnson & Johnson (NYSE:JNJ) can leverage markets for developed pharmaceutical products, high growth players the likes of Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) can try to develop treatments for tricky ailments such as bipolar depression, leukemia, and multiple sclerosis. These pharma stocks, like other healthcare firms such as biotechnology stocks, are dependent on the performance of their products. Stable revenues mean stable share price performance, and if any products are delayed, then the impact of considerable money spent on R&D costs leads to sharp drops in the stock market.