Should you buy these pharma stocks with over 80% return in a year?

September 30, 2021 03:09 PM BST | By Nidhi Gupta
 Should you buy these pharma stocks with over 80% return in a year?
Image source: Hparatlala, Shutterstock.com

Highlights 

  • For the half-year ended 30 June 2021, Oxford Biomedica’s revenue increased by 139% year-on-year to £81.3 million compared to £34.0 million in H1 2020.
  • Indivior Plc’s operating profit for Q2 2021 increased by 192% to $73 million from $25 million in Q2 2020.

UK’s pharmaceutical industries are a major global hub for the production of medicines and is a critical component of the economy. It offers plenty of opportunities for firms with sufficient supply chain capability.

The country’s pharma R&D expertise for medicine, advanced therapy, vaccine development offers strong future growth prospects. Investors keen on leveraging the promising growth avenues in the sector may invest in these pharma stocks.

Oxford Biomedica (OXB) & Indivior (INDV): market cap & one year return

(Data source: Refinitiv)

Let us review the investment potential in the two FTSE listed pharma stocks - Oxford Biomedica & Indivior.

Oxford Biomedica Plc (LON: OXB)

FTSE 250 listed Oxford Biomedica specialist cell and gene therapy company and developer of gene-based medicines. It is also one of the key COVID-19 vaccine manufacturers for AstraZeneca. Recently, Oxford Biomedica received an investment of £50 million from the Serum Institute of India.

For the half-year ended 30 June 2021, Oxford Biomedica’s revenue increased by 139% year-on-year to £81.3 million compared to £34.0 million in H1 2020.

The shares of the company are currently up by 2.86% at GBX 1,512.00 at 12:15 PM BST on 30 September 2021. Oxford Biomedica shares have a market capitalisation of £1,265.32 million, and it gave a return of 86.67% to shareholders in the last one year, as of 30 September 2021.

Oxford Biomedica’s cash was £61.3 million as of 30 June 2021, up from £46.7 million as of 31 December 2020, representing an increase of £14.6 million.

Indivior Plc (LON: INDV)

Indivior is an international pharmaceutical company engaged in developing opioid addiction treatment drugs. Net revenues of the company for Q2 2021 ended 30 June was $201 million compared to $150 million in Q2 2020. Its operating profit for Q2 2021 increased by 192% to $73 million from $25 million in Q2 2020. It recorded net cash of $750 million at the end of 30 June 2021 compared to $623 million in the previous year. 

The shares of the company are currently up by 2.06% at GBX 218.40 at 12:39 PM BST on 30 September 2021.

Indivior share has a market capitalisation of £1,549.84 million, and it gave a return of 91.08% to shareholders in the last one year, as of 30 September 2021.


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