We recently announced a list of 10 best pharma stock to buy for long -term growth. In this article, we're going to look at where AstraZeneca PLC (NASDAQ: AZN) stands against other best pharma stocks to buy for long -term growth.
With major American pharmaceutical corporations always looking for medicines in China, the US pharmaceutical industry is going through a unique trend that has never been seen before. About 30% of Big Pharma's acquisitions included at least $ 50 million in advance in 2024 included Chinese corporations, according to Dealforma statistics, as reported by CNBC. This was a 20% increase the previous year and almost 0% only five years before.
Experts quote several cases over this trend. Some people think that Chinese pharmaceutical companies are drawing warning because of their sophisticated development skills, which enables them to produce powerful compounds in large quantities. As well as 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 that enables them to import medicines through licensing agreements, according to CNBC. The shortage of enterprise capital in China is an additional pressure on biotechnology companies to enter these agreements.
Experts believe that this situation is here to stay, although there are many possible cases for this trend. Although the US pharmaceutical industry is expected to be affected, it is uncertain how these effects would highlight. If large pharmaceutical companies find a good Chinese drug at a low price, some experts think it may destroy American startups; Others think the competition would benefit the sector. Tim Opler, Managing Director at the Stifel World Healthcare Group, noted the following about the circumstances:
“It's a kind of threshold moment where the pharma industry is like, 'We don't necessarily need to buy us biotechnologies. We'll be if it makes sense, but we can buy perfect biotechnology assets through licensing deals with Chinese companies.”
Emily Field, Head of European Pharmacy Research at Barclays, spoke to CNBC on February 20 about the performance of obesity medicines, the effects of US tariffs, and the dynamics of the pharmaceutical industry. According to her, at least in the first half of this year, the industry may not perform poorly. The effectiveness of obesity medicines is still the subject of debate, however, as leading companies in the field have shown inconsistent consequences in the past.
Speaking of the tariffs, he noted that since some businesses assembled their products in the US after their production abroad, their implementation raised several unanswered questions for the pharmaceutical industry. These businesses, therefore, have relatively low manufacturing costs, which are an important factor to consider when assessing the effects of tariffs. She thought these businesses could easily absorb the higher cost of the tariffs. The subject has not raised much on this quarter's earnings calls, and the market is approaching the end of the reporting season.
For this article, we screened for companies operating in the pharmaceutical industry. From that list, we identified stocks that have achieved positive revenue growth over the last five years. We then selected companies with 5 years revenue growth of 10% and rated the top 10 based on the hedgerow reservoir on CH4 2024, in line with the Insider Monkey database.
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AstraZeneca PLC (AZN) is the best pharma stock to buy for long -term growth?
A pharmaceutical worker who distributes prescription medicines to patients who operate treatment for oncology, cardiovascular, renal, metabolism and respiratory diseases.
Number of Hedgerow Fund Holders: 55
AstraZeneca PLC (NASDAQ: AZN) is sixth on our list of best pharmaceutical stocks. It was incorporated in 1992 and is based in Cambridge, UK. The company focuses on the discovery, development and provision of prescription medicines for cancer, heart and kidney diseases, respiratory conditions, and rare diseases.
AstraZeneca PLC (NASDAQ: AZN) revealed intentions on March 21 to create a R&D facility in Beijing, China, with an incremental investment of $ 2.5 billion dispersed over five years. This will strengthen collaborations in China's life sciences industry and serve as the company's second R&D site there. The company will establish its first vaccine manufacturing facility in China, cooperate with regional biotechnologies and medical facilities, and formulate a new laboratory dedicated to artificial intelligence.
The net cash of astraZeneca PLC operating activities (NASDAQ: AZN) increased $ 1.5 billion in 2024. Along with paying over $ 7 billion in debt, its business also grew through significant acquisitions such as amolyt, ICosavax, and Fusion. In 2024, the dividend was raised to $ 3.10 per share, and this year are expected to rise to $ 3.20. It is among the best stocks in the UK.
At CH4 2024, AstraZeneca PLC (NASDAQ: AZN) was included in 14 billionaire portfolios with a total of $ 2.20 billion in combined positions, while 55 hedge funds were positive on the company as a whole. At CH4, billionaire Ken Griffin increased his holdings of AZN by a stunning 842%, accumulating 4.2 million shares for $ 276.6 million.
On the whole, azn rank 6th On our list of best pharma stocks to buy for long -term growth. While we recognize the potential of pharmaceutical companies, our conviction lies in the belief that AI stocks are more promised for achieving higher gains, and doing so within a shorter time frame. There has been AI stock that has risen since the beginning of 2025, while popular AI stocks lose about 25%. If you are looking for AI stock more promising than AZN but trading at less than 5 times its earnings, check out our report on this Cheapest AI Stock.
