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Innovation Supports Growth at Big Pharma/Big Biotech Companies

Moats and returns on invested capital look stable for companies with a solid list of pipeline drugs.

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Most Big Pharma and Big Biotech companies in our coverage support wide moats as a result of their ability to generate new drugs to replace mature ones losing patent protection.

We project 4.7% annual average sales growth through 2024 (similar to consensus) for the 18 moatiest pharma and biotech names we cover, as innovation more than counters generic/biosimilar and branded competitive threats. Overlaying our growth analysis with valuation, we see underappreciated areas. 

Damien Conover does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.