13 High Growth Pharma Stocks that are Profitable
In this piece, we will take a look at 13 high growth pharma stocks that are profitable. For more stocks, head on over to 5 High Growth Pharma Stocks that are Profitable.
One industry that has rapidly evolved with time and impacted millions, if not billions, of lives is the pharmaceutical sector. Within a hundred years, humanity has managed to cure and prevent diseases that were the cause of death in the pre technological era. One disease that is thought to be mild today but caused widespread loss of life in the early 20th century was syphilis, and data from the Centers for Disease Control (CDC) shows that pneumonia, tuberculosis, and diarrhea consistently ranked among the top four causes of death in the United States between 1900 and 1923 - with millions of people seeing a premature end to their lives.
However, by 1998, only pneumonia ranked in the top ten causes of death in the U.S., and the latest CDC data for 2021 shows that the picture has completely changed as pneumonia is out of the list. This complete shift in the list of causes of death is due to rapid advances made by the pharmaceutical industry, which have reduced deadly diseases of the past to manageable or avoidable illnesses today. This is evidenced by the fact that a Federal Trade Commission (FTC) study that attempted to look into the effects of antibiotics on American health found that between 1946 and 1955, tuberculosis deaths ended up dropping by a stunning 75%.
These days, the pharmaceutical industry has moved forward from simple diseases to leveraging advanced technologies such as gene editing to combat complex illnesses such as cancer. A research report from McKinsey points out the growing role of mRNA technologies in the industry, outlining that these combined with gene and cell therapies have grown from 11% of the total drug development efforts to 21% - in a first for the industry. It adds that this shift in modalities combined with innovational pressure and a loss of power from individual players will be the driving factors for the sector in the future.
Today, we'll take a look at pharmaceutical companies that are both growing and generating profits. Out of these, the top players are SIGA Technologies, Inc. (NASDAQ:SIGA), Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA), and Precigen, Inc. (NASDAQ:PGEN).
Photo by Spencer Davis on Unsplash
Our Methodology
We used a stock tracker to first list down healthcare companies that have a profit margin higher than 25% and an annual quarterly sales growth higher than 20%. These curated companies were then analyzed to determine if they are pharmaceutical firms, such as those that make vaccines, drugs, or therapies, or others such as medical device manufacturers. Then, the constraints were relaxed to firms with a 15% or higher sales growth and the selection process was repeated. Out of all these, the top fifteen were selected and ranked through their sales growth, which was manually calculated to verify the screener's figures with the latest earnings reports of the firms.
High Growth Pharma Stocks that are Profitable
13. United Therapeutics Corporation (NASDAQ:UTHR)
Q/Q Sales Growth: 16%
Number of Hedge Fund Holders in Q3 2022: 47
United Therapeutics Corporation (NASDAQ:UTHR) is an American biotechnology firm headquartered in Silver Spring, Maryland. The firm manufactures drugs for a variety of complications related to pulmonary hypertension, such as lung and exercise capacity.
United Therapeutics Corporation (NASDAQ:UTHR)'s September quarter of 2022 saw the firm rake in $516 million in revenue, which marked a 16% annual growth. During the same quarter, 47 of the 920 hedge funds polled by Insider Monkey had also held a stake in the company.
United Therapeutics Corporation (NASDAQ:UTHR)'s largest investor is Kurt Von Emster's VenBio Select Advisor which owns 2.8 million shares that are worth $796 million.
Along with Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA), SIGA Technologies, Inc. (NASDAQ:SIGA), and Precigen, Inc. (NASDAQ:PGEN), United Therapeutics Corporation (NASDAQ:UTHR) is a high growth profitable pharma firm.
12. Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT)
Q/Q Sales Growth: 16.4%
Number of Hedge Fund Holders in Q3 2022: 20
Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) is a biopharmaceutical company headquartered in New York, New York. The company sells a treatment for biliary cholangitis - a liver disease that damages the bile duct. It is also developing other drugs.
Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) scored a win in January 2023 when the FDA accepted its new drug application for a liver fibrosis treatment. The firm's revenue grew by 16.4% during its fiscal quarter that ended in September 2022, and Insider Monkey's 920 hedge fund survey for the same time period revealed that 20 had bought its shares.
Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT)'s largest investor is Srini Akkaraju and Michael Dybbs's Samsara BioCapital which owns 640,688 shares that are worth $7.9 million.
11. Novo Nordisk A/S (NYSE:NVO)
Q/Q Sales Growth: 27%
Number of Hedge Fund Holders in Q3 2022: 40
Novo Nordisk A/S (NYSE:NVO) is one of the oldest pharmaceutical companies in the world since it was set up in 1923. The firm makes and sells drugs for diabetes, obesity, growth disorders, and other health issues.
Novo Nordisk A/S (NYSE:NVO) reported DKK 48 billion in revenues for its fourth quarter of 2022, which marked a 27% growth over the year ago quarter's DKK 38.3 billion. Insider Monkey's Q3 2022 survey of 920 hedge funds revealed that 40 had held a stake in the firm.
Out of these, Jim Simons' Renaissance Technologies is Novo Nordisk A/S (NYSE:NVO)'s largest investor. It owns 12.6 million shares that are worth $1.7 billion.
10. Avid Bioservices, Inc. (NASDAQ:CDMO)
Q/Q Sales Growth: 32.9%
Number of Hedge Fund Holders in Q3 2022: 15
Avid Bioservices, Inc. (NASDAQ:CDMO) is a contract manufacturing pharmaceutical company that produces drugs and other related products for different firms. These include making antibodies and proteins, alongside other services such as regulatory support. The firm is based in Tustin, California.
Avid Bioservices, Inc. (NASDAQ:CDMO)'s second quarter of its fiscal year 2023, which ended in October last year, saw the firm earn $34.7 million in revenue which marked a 32.9% annual growth. At the same time, the firm also increased its revenue guidance for fiscal 2023 to $150 million from $145 million. 15 of the 920 hedge funds polled by Insider Monkey for last year's third quarter had invested in the firm.
9. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)
Q/Q Sales Growth: 45%
Number of Hedge Fund Holders in Q3 2022: 27
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a pharmaceutical firm that focuses on making products for people with neurological problems such as sleep disorders. The firm is headquartered in Plymouth Meeting, Pennsylvania.
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) had a bumper third quarter last year when it reported a 45% annual revenue growth that pushed its revenue to $117 million. Insider Monkey scoured through 920 hedge fund holdings for the same time period and found out that 27 had bought its shares.
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)'s largest investor is Albert Cha and Frank Kung's Vivo Capital which owns 2.6 million shares that are worth $143 million.
8. Dynavax Technologies Corporation (NASDAQ:DVAX)
Q/Q Sales Growth: 53%
Number of Hedge Fund Holders in Q3 2022: 22
Dynavax Technologies Corporation (NASDAQ:DVAX) is a biopharmaceutical firm that is headquartered in Emeryville, California. The firm makes and sells hepatitis vaccines.
Dynavax Technologies Corporation (NASDAQ:DVAX)'s fiscal third quarter, which ended in September 2022, saw the firm post $167 million in revenues to mark a 53% annual growth. 22 of the 920 hedge funds part of Insider Monkey's survey for the same time period had invested in the firm.
Dynavax Technologies Corporation (NASDAQ:DVAX)'s largest investor is Ken Fisher's Fisher Asset Management which owns 4 million shares that are worth $43 million.
7. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)
Q/Q Sales Growth: 61%
Number of Hedge Fund Holders in Q3 2022: 18
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) develops and sells treatments for diseases such as muscular atrophy, pressure palsies, and a rare condition in children that harms the signals sent from the nerves to the muscles. It is headquartered in Coral Gables, Florida.
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) had a bumper fiscal year in 2022, as the firm posted a whopping 52% revenue growth by bringing in $214 million in revenues. For the fourth quarter, the growth was even stronger, as it stood at 61%. During Q3 2022, 18 of the 920 hedge funds polled by Insider Monkey had invested in the firm.
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)'s largest investor is James E. Flynn's Deerfield Management which owns 5.8 million shares that are worth $109 million.
6. Genmab A/S (NASDAQ:GMAB)
Q/Q Sales Growth: 73.9%
Number of Hedge Fund Holders in Q3 2022: 12
Genmab A/S (NASDAQ:GMAB) is a Danish biotechnology company that develops treatments for cancer, eye diseases, multiple sclerosis, solid tumors, atrophy, celiac disease, and other health problems. The firm was set up in 1999 and is headquartered in Copenhagen, Denmark.
Genmab A/S (NASDAQ:GMAB)'s on a high rolling path. Its third quarter of 2022 revenue saw it bring in DKK 4 billion in sales, marking a 73.9% increase. This growth came after the firm had posted a stunning 68% growth in the previous quarter. Insider Monkey's Q3 2022 survey of 920 hedge funds revealed that 12 had bought the firm's shares.
Peter Rathjens, Bruce Clarke, and John Campbell's Arrowstreet Capital is Genmab A/S (NASDAQ:GMAB)'s largest investor. It owns a $74 million stake that comes via 1.7 million shares.
SIGA Technologies, Inc. (NASDAQ:SIGA), Genmab A/S (NASDAQ:GMAB), Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA), and Precigen, Inc. (NASDAQ:PGEN) are some of the highest growth and profitable pharmaceutical companies.
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Disclosure: None. 13 High Growth Pharma Stocks that are Profitable is originally published on Insider Monkey.
