How to invest in pharmaceutical stocks

Pharmaceutical companies are key to the life science sector, advancing new cures and improving treatments for patients.

However, diseases aren't easily targeted; there's no specific cure for all types of cancer, or a direct method for stopping all the infectious disease variants that affect humanity.

Medicine stock

Focus on the Drug Pipeline.

U.s. pharma stocks

Consider Diversification With Pharma ETFs.

Choose the Right Brokerage Account.

For that reason, companies in the pharmaceutical industry try to expand potential treatments and seek new ways to work with medicine that already exists. As an example, a pharmaceutical company might develop drugs for multiple indications or could look at addressing broader categories, such as pain.

The US is the world's leader in pharmaceutical research and development (R&D).

According to Statista, since 1995, R&D efforts in the country have grown significantly, rising from US$15.2 billion to a record high of US$102.3 billion in 2021.

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The US is also the largest pharma market globally, and drug sales in the nation are robust — spending on prescription drugs grew from US$516 billion in 2020 to US$605 billion in

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