The pharmaceutical industry, or pharma industry, is responsible for the research, development, production, and distribution of medications.
Its market has experienced significant growth during the past two decades, and pharma industry revenues worldwide totaled 1.25 trillion U.S. dollars in 2019.
Pharmaceutical is a dynamic industry with rapid growth and the potential for high profits. Top-selling drugs have annual sales in the billions.
However, a new drug requires millions of dollars invested in research and development (R&D) and testing before it can be brought to market. The majority of new projects never receive approval from the Food & Drug Administration (FDA), resulting in large amounts of capital burned just to get one profitable product.
The most stable investments are those of major corporations with multiple products and large R&D budgets. However, the greatest returns come from smaller companies that achieve scientific breakthroughs.
