As the pharmaceutical sector continues to grow with rising chronic diseases and increased investments, we think it could be wise to scoop up the shares of cheap yet quality pharmaceutical stocks Vertex Pharmaceuticals (NASDAQ:VRTX) and Takeda Pharmaceutical (TAK). Both names are down more than 20% in price year-to-date. So, read on.The pharmaceutical sector continues to attract increased investor attention due to the rising prevalence of chronic diseases, an aging population, and significant investments. Investors’ interest in this space is evidenced by the Invesco Dynamic Pharmaceuticals ETF’s (PJP) 5% returns over the past month, and 12.8% gains year-to-date.
Governments worldwide have also been focusing more on research and development in the pharmaceutical space. In the U.S. Democrats in Congress are contemplating a cut in prescription drug costs for older Americans as a part of President Biden's Build Back Better social spending plan. Furthermore, according to a Linchpin report, the pharmaceutical industry is expected to increase to $1.50 trillion by 2023.
Therefore, we think it could be wise to add fundamentally sound pharmaceutical stocks Vertex Pharmaceuticals Incorporated (VRTX) and Takeda Pharmaceutical Company Limited (NYSE:TAK) to one’s portfolio now. These stocks have declined more than 20% in price year-to-date and are trading at significant discounts to their peers.