What makes a drug a 'blockbuster' in the pharmaceutical industry?

A blockbuster drug is typically one that generates over $1 billion in annual sales. These are breakthrough treatments that address large patient populations or unmet medical needs, often becoming the standard of care in their therapeutic area and driving significant revenue growth for pharmaceutical companies.

What are rare genetic diseases and why do companies focus on them?

Rare genetic diseases affect small patient populations, typically fewer than 200,000 people. Companies focus on these areas because there's often little to no competition, allowing for premium pricing. Additionally, regulatory agencies provide incentives like faster approval processes and market exclusivity to encourage development of treatments for these underserved conditions.

What does 'analyst rating' mean for pharmaceutical stocks?

Analyst ratings are professional assessments from financial experts who study pharmaceutical companies. They evaluate factors like drug pipeline strength, clinical trial results, market potential, and financial health to provide buy, hold, or sell recommendations. These ratings help investors understand professional sentiment about a stock's prospects.

How do contract development and manufacturing organisations (CDMOs) benefit from blockbuster drugs?

CDMOs provide manufacturing and development services to pharmaceutical companies. When a drug becomes a blockbuster, demand increases dramatically, requiring more manufacturing capacity. CDMOs benefit from long-term contracts to produce these successful drugs, providing steady revenue streams as pharmaceutical companies scale up production.

What is 'potential profit %' and how should I interpret it?

Potential profit % represents analysts' expectations for how much a stock price might increase over a specific period, typically 12 months. It's calculated by comparing the current stock price to analysts' average target price. However, this is a projection based on current information and actual results may vary significantly.

16 handpicked stocks

Sanofi Dupixent Success Overview | Pharma Investment

Sanofi's recent profit surge, driven by its blockbuster drug Dupixent, highlights a powerful investment theme. This idea focuses on innovative pharmaceutical companies with high-growth drugs and the broader ecosystem that supports their success.

Han Tan | Market Analyst

Published on October 24

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Sanofi

SNY

Current price

$43.98

Sanofi's blockbuster drug Dupixent is the cornerstone of this investment theme, driving significant profit growth.

Vertex Pharmaceuticals Incorporated

VRTX

Current price

$466.10

Vertex is a major biotechnology firm with a portfolio of successful drugs, particularly for cystic fibrosis, and a robust pipeline, aligning with the ...

Vertex is a major biotechnology firm with a portfolio of successful drugs, particularly for cystic fibrosis, and a robust pipeline, aligning with the theme of innovative, high-growth pharmaceuticals.

Bristol-Myers Squibb Co.

BMY

Current price

$59.71

Bristol-Myers Squibb is a global biopharmaceutical leader with a strong portfolio of blockbuster drugs in oncology and immunology, representing the ki...

Bristol-Myers Squibb is a global biopharmaceutical leader with a strong portfolio of blockbuster drugs in oncology and immunology, representing the kind of innovative company the theme focuses on.

Royalty Pharma plc

RPRX

Current price

$46.10

GSK PLC-SPON ADR.

GSK

Current price

$53.77

Novartis AG

NVS

Current price

$154.87

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Your Basket's Financial Footprint

Market capitalisation breakdown for the user's stock basket 'Pharma's Blockbuster Bets'.

Key Takeaways for Investors:

Large-cap dominance generally implies lower volatility and returns closer to broad-market performance.
Better suited as a core holding for diversification rather than a speculative, high-growth allocation.
Expect steady long-term appreciation rather than rapid, short-term explosive gains.

Total Market Cap

SNY: $122.84B
VRTX: $109.29B
BMY: $90.66B
Other

12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+14.52%

≈

About This Group of Stocks

Our Expert Thinking

Sanofi's recent success with Dupixent demonstrates how a single blockbuster drug can transform a pharmaceutical company's fortunes. This group focuses on innovative biopharma companies developing breakthrough therapies in oncology, immunology, and rare diseases, plus the supporting ecosystem that helps bring these treatments to market.

What You Need to Know

These companies operate in high-risk, high-reward areas of medicine, developing novel treatments that can generate substantial revenues for years. The group includes both established pharmaceutical giants and emerging biotech firms, offering exposure to different stages of drug development and commercialisation.

Why These Stocks

Each company was selected for its potential to develop or benefit from blockbuster drugs. They represent leaders in cutting-edge medical research, companies with promising drug pipelines, or firms that support the pharmaceutical supply chain through innovative technologies and manufacturing capabilities.

Group Performance Snapshot

14.52%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 14.52% over the next year.

13 of 15

Stocks Rated Buy by Analysts

13 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🧬

Breakthrough Innovation

These companies are developing cutting-edge treatments for diseases that currently have limited options. When successful, these innovations can create entirely new markets and generate billions in revenue.

🚀

Pipeline Potential

Many of these firms have multiple drugs in development, meaning success isn't dependent on just one treatment. A strong pipeline can provide sustained growth opportunities for years to come.

⭐

Market Leadership

This group includes both established pharmaceutical giants and innovative biotech pioneers. These companies often set the standard for treatment in their respective therapeutic areas, commanding premium pricing for their breakthrough drugs.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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Sanofi Dupixent Success Overview | Pharma Investment

Top Picks from This Group

Your Basket's Financial Footprint

12 Month Growth Potential

About This Group of Stocks

Our Expert Thinking

What You Need to Know

Why These Stocks