Despite the global logistical bottlenecks, the pharmaceutical sector has produced significant revenues over the past year across various segments, including diagnostics, research, and healthcare. Also, an aging, global population is generating rising demand for pharma products. According to a report from IQVIA, the global pharmaceutical market could surpass $1.5 trillion by 2023. Also, the U.S. is expected to spend more than $600 billion on drugs in 2023.
Increasing pharma business collaborations and an increasing number of bio-medical trials are expected to contribute to the global pharma sector’s growth. Investors' interest in the pharmaceutical industry is evident from the VanEck Vectors Pharmaceutical ETF's (PPH) 8.2% returns over the past six months.
