Pharma stocks comprise companies involved in the research, development, production and distribution of medicines, vaccines and healthcare solutions. This industry includes major pharmaceutical corporations, biotechnology firms, generic drug producers and businesses specialising in active pharmaceutical ingredients (APIs).
The demand for pharma stocks is influenced by factors such as population growth, increasing healthcare awareness, advancements in medical technology and supportive government policies aimed at making healthcare more affordable.
When assessing pharma stocks, investors consider aspects like regulatory approvals, research and development spending, patent life cycles, global market dynamics and competition from both domestic and international companies. Although the industry presents strong long term growth opportunities, it also faces challenges such as regulatory scrutiny and pricing pressures.