2 Market Beating Stocks to Buy in 2023 and Hold Forever

The companies that have managed to beat the market and stay in the green during this challenging year are rare, but they do exist. But investors shouldn’t rush to buy shares in such companies just for that reason. Outperforming during a bear market is great. What is more important is to offer returns that exceed the market in the long term. And luckily, some of the recent outperformers seem capable of doing just that. Let’s consider two examples: new nordisk (NGO 0.28%) Y Amgen (AMGN -0.51%).

1. New Nordisk

Novo Nordisk is a Denmark-based pharmaceutical giant specializing in diabetes care. It has been a leader in this area for several decades, which partly explains its performance to date. Diabetes patients will not stop taking the medications they need to control this chronic disease, nor will doctors stop prescribing these therapies.

Novo Nordisk had a 31.6% share of the diabetes care market in August, up 1.7% year-over-year. Novo Nordisk should continue its momentum into next year. Some of their products still work well, especially the diabetes drugs Rybelsus and Ozempic. In the first nine months of the year, Rybelsus’ sales soared 140% year-over-year to DKK 7.2 billion (about $1 billion).

Ozempic’s revenue increased 86% year-over-year to DKK 42.8 billion (about $6.1 billion). Novo Nordisk’s total sales for the period were DKK 128.9 billion ($18.4 billion), up 26% from the prior-year quarter. The company is also looking at a critical regulatory development that could rock its share price next year. Novo Nordisk is working on icodec, a new insulin product that could greatly simplify the lives of diabetes patients as it is a once a week option.

Icodec has already obtained solid results in several late-stage clinical trials. Novo Nordisk plans to file regulatory applications in the first half of next year. This once again highlights Novo Nordisk’s ability to innovate within its core therapeutic area. And that will serve you well for years to come. The prevalence of chronic diseases, including diabetes, is growing as the world’s population ages.

These two factors will only increase the need for more innovative diabetes treatments. Few have been able to keep up with Novo Nordisk in this area. The company is also developing therapies in other areas, including several rare diseases, Alzheimer’s disease, and more. Having conquered the market for years, Novo Nordisk will not stop now as its ability to develop new therapies, a key factor behind its success, is alive and well.

2.Amgen

Although Amgen has outperformed the stock market this year, the company’s financial results have not been as impressive. In the third quarter, the drugmaker’s revenue fell about 1% year-over-year to $6.7 billion. Some of the company’s legacy products are seeing sales drop due to competition. That includes the rheumatoid arthritis drug Enbrel, whose third-quarter revenue fell 14% year-over-year to $1.1 billion.

Despite these headwinds, it is essential to focus on the long game. Amgen has obtained significant approvals in the last two years and is well positioned to continue to do so. Some of her biggest new drugs include the cancer drug Lumakras, which first got the green light in the US in May 2021.

Tezspire, an asthma treatment, received the go-ahead for the first time in the country in December 2021. And in addition to its ya rich pipe, Amgen recently announced some acquisitions that will help it in the future. In October, the biotech acquired ChemoCentryx, a drugmaker focused on autoimmune diseases, for $3.7 billion in cash.

The key asset in this transaction is Tavneos, which was first approved in October 2021 in the US to treat vasculitis, a rare autoimmune disorder. Some analysts see the annual potential for Tavneos at approximately $2 billion by 2030. Most recently, Amgen announced that it would acquire horizon therapeuticsa biotech focused on rare diseases, for $27.8 billion in cash.

The transaction should close in the first half of 2023 and help Amgen expand its line and portfolio. Another of Amgen’s business units looks promising, namely its biosimilar segment. According to a study by the Kaiser Family Foundation, in the US, 83% of adults say that the cost of prescription drugs is unreasonable. Biosimilars often offer cheaper options for innovative but expensive drugs, and as such have helped save US patients and healthcare billions over the years.

Amgen is currently working on several biosimilars, including one for the cancer drug Stelara, marketed by johnson and johnsonanother for Eylea eye disease therapy, marketed by they regeneratedand another for Soliris, which is owned by a subsidiary of AstraZeneca and treats a rare blood-related disease called paroxysmal nocturnal hemoglobinuria.

Whether through new drug development or biosimilars, Amgen has many candidates to replace its older products and drive revenue growth. That will allow the pharmaceutical company stay successful for a while.

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