Sanofi SA (ADR) (NYSE:SNY)’s first U.S. patent for Lantus expires in 2014. However, it has other patents, including one for its injection pen, that Sanofi SA (ADR) (NYSE:SNY) hopes will allow it to fend off competition to some degree. Keeping Lantus going strong will be important for the French drugmaker. The product is its top-seller and accounts for 20% of total pharmaceutical revenue.
5. Avastin
Cancer drug Avastin is our fifth top-selling medication for 2013 so far. The drug generated sales of around $3.3 billion for Roche during the first half of the year.
Avastin is currently approved for several types of cancer, including metastatic colorectal cancer, advanced nonsquamous non-small-cell lung cancer, metastatic kidney cancer, and glioblastoma. Roche is also conducting clinical studies for the drug in treating cervical cancer and newly diagnosed glioblastoma.
Roche isn’t quite as dependent on its biggest drug as some of the other companies, although Avastin still accounted for 13% of total sales during the first six months of 2013. The company should be able to look forward to several more years of solid revenue. Avastin doesn’t go off patent in the U.S. until 2019 and retains patent protection in Europe through 2022.
Looking ahead
I expect that all of these drugs will keep their top five ranking at the end of the year. However, there could be a few changes of positions along the way. Also, there is a decent possibility that Roche’s Herceptin and Johnson & Johnson‘s Remicade could nudge their way into the group and displace Avastin and Lantus.
In terms of investment opportunities among the group, AbbVie seems poised to continue exhibiting the strongest growth for the next couple of years. If you’re looking for the best value play, Sanofi SA (ADR) (NYSE:SNY) would likely be the best pick. It sports a low price-to-earnings multiple along with a decent 2.5% dividend yield.
That’s how things look for now. We’ll check back in at the end of 2013 to see which drugs came out on top for the full year.
Definitely pay attention to the dividends with any of these stocks — or any other stock you’re considering. Dividend stocks can make you rich. It’s as simple as that. While they don’t garner the notoriety of high-flying growth stocks, they’re also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine.
The article The 5 Best-Selling Medications of 2013 (So Far) originally appeared on Fool.com is written by Keith Speights.
Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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