The aging population in much of the world and continued innovations lead to increased demand for drug manufacturing companies. Pfizer (PFE) and AstraZeneca (NASDAQ:AZN) should benefit from this. But which of these two stocks is a better buy now? Read more to find out.Pfizer Inc. (NYSE:PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas. In addition, the company is involved in the contract manufacturing business. On the other hand, Cambridge-based AstraZeneca PLC (AZN) discovers, develops, manufactures, and commercializes prescription medicines in oncology, cardiovascular, renal and metabolism, respiratory, infection, neuroscience, and gastroenterology worldwide.
The resurgence of COVID-19 cases and rising concerns over the highly transmissible omicron coronavirus variant is driving the demand for vaccines, booster shots, and other related solutions. An aging population is expected to be a key growth driver for the drug manufacturing industry. Increasing patient pool for many chronic diseases and continued innovations to treat critical conditions should keep driving the industry’s growth. According to a report by Research and Markets, the global pharmaceuticals market is expected to grow at a CAGR of 8% from 2021 to 2025. Therefore, both PFE and AZN should benefit.
PFE has gained 20.8% over the past year, while AZN has returned 0.8%. Also, PFE’s 39.6% gains year-to-date are significantly higher than AZN’s 10.3% returns. Moreover, PFE is the clear winner with 49.6% gains versus AZN’s 14.4% returns in terms of the past nine months’ performance.