While the pharmaceutical industry’s upside potential based on its role in saving many lives from the deadly coronavirus virus is gradually diminishing, the continuing efforts of pharma companies in finding cures for critical diseases should keep driving the industry’s growth, with rising demand from an aging population. Despite huge industry competition, recent developments made by Merck (MRK) and Sanofi (NASDAQ:SNY) are likely to boost their growth substantially. But let’s find out which of these stocks is a better buy now.Merck & Co., Inc. (MRK) offers health solutions through its prescription medicines, vaccines, biologic therapies and consumer care products. The company operates through two segments—Pharmaceutical and Animal Health. Its products are marketed directly and through its joint ventures to drug wholesalers and retailers, hospitals, government agencies and managed health care providers.
Sanofi (SNY) is a healthcare company based in France that researches, develops, manufactures, and markets therapeutic solutions internationally. The company operates through three segments—Pharmaceuticals, Vaccines, and Consumer Healthcare. It also develops cardiovascular, thrombosis, metabolic disorder, central nervous system, and oncology medicines and drugs.
Because COVID-19 is almost under control in several countries, the pharmaceutical industry, which garnered significant attention because of its role in fighting the virus, may have little additional upside to offer investors based on COVID-19 related products and solutions. However, the continuing efforts of pharma companies in finding cures for other critical diseases should keep driving the industry’s growth. Consequently, the global pharmaceuticals market is expected to grow at an 8% CAGR to hit $1.70 trillion by 2025.