Pharmaceutical stocks are now on track to hit their milestone $50bn milestone within three years, according to a report from financial analysts at AlixPartners.
AlixPartner, a global financial information provider, said the milestone would be achieved within three to four years if companies continue to invest in research and development (R&D) of new drugs.
“These new companies will generate annual revenues of at least $1 billion and a value of at or above $50 billion within three or four years,” said AlixPolicies analyst Matthew Schmitt.
Alistair Green, a leading investor in the sector, told Al Jazeera that “the growth and momentum of pharma is starting to look really good”.
“As a market, we are seeing the fastest growth in the pharmaceuticals sector in a decade.
The sector is going through a transformative phase.
I believe that the new medicines and therapies we are developing are going to have a huge impact on how we live our lives.”
AlixPoles research, development and acquisitions business has recently seen a surge in investment from global pharmaceutical companies, and the group is now a leading global pharma investment partner.
Its latest report also highlighted the importance of drug companies having a global presence.
It noted that “we believe this is a key strategic asset for the future, particularly given the rapidly growing demand for pharma-based medicines”.
It said that global pharmaceuticals companies are “currently the most valued by global investors, with a valuation of $7.2 trillion”.
AlixParts CEO Tim Schramm said that the milestone was “a milestone we are very proud of”.
“AlixPs pharmaceuticals R&D investment in the last three years has seen a significant increase in the amount of investments made and a record number of acquisitions.”
This is in line with our goal to continue to build upon this investment and accelerate our plans for the company,” he said.
AliZarq’s annual revenue rose from $1.5bn in 2016 to $2.3bn in 2017 and its net loss jumped from $13m in 2017 to $38m in 2018.
Alijal, a medical device company founded in 2014, recently announced a $5.2bn acquisition of the drug maker Tylenol and has also secured an additional $5bn of additional funding.
Alikomar, a pharmaceutical research and innovation company founded by former Google executives, has also been working with pharmaceutical companies to explore new treatments for a range of ailments.