The deepening of supply chain disruptions due to the continuing Russia-Ukraine war has led to increased production costs in the pharmaceutical industry. However, the industry continues to register solid growth with increasing demand from an aging population and breakthroughs in drug development.
Furthermore, with the resurgence of COVID-19 cases in several states, the pharmaceutical industry could attract heightened investor attention in the near term. Investors’ interest in the industry is evident in the SPDR S&P Pharmaceuticals ETF’s (XPH) 2.1% returns over the past three months. According to Firms World, the global pharmaceutical market is projected to grow at a 3 - 6% CAGR through 2024.
