The biopharma sector has faced uncertainty around the drug-pricing reform, regulatory surprises, and COVID-19. As a result, many biotech stocks are trading below their long-term business values, creating opportunities for investors to enter the market. Moreover, some uncertainties have started to abate.
On top of it, earnings for companies in the biopharma industry have grown 38% per year over the last three years, and their revenues have increased 10% per year, which means that these companies are subsequently increasing their profits. Moreover, analysts are bullish on pharma, expecting annual earnings growth of 10% over the next five years.
