Originally published on Best Stocks Category: best stocks to buy nowThe global healthcare sector is massive and covers a wide range of businesses and stocks. Healthcare investors can choose from the obvious big pharma names and more specialized or niche players in specific drug areas or disease types. In all cases, however, there are risks involved with investing in any healthcare stock. For example, drug manufacturers are almost always extremely volatile because they deal with fickle customers and fickle regulators. With that in mind, here are some top-performing pharmaceutical stocks over the past year. These companies have solid balance sheets, strong cash flows, and increasing earnings potential. That being said, they are also trading at reasonable valuations, which means they’re great candidates for value investors looking to invest in the sector. Novo Nordisk (NGO) Novo Nordisk is a global healthcare company that specializes in diabetes care. The company has two main products: the diabetes drug insulin degludec (ultra-long-acting insulin that enables more flexible dosing) and the once-weekly diabetes drug Saxenda. Novo’s insulin sales are expected to grow thanks to the increasing prevalence of diabetes and long-term growth in insulin sales. That being said, the company’s diabetes-related revenue growth is expected to come from Saxenda. Saxenda is a therapy that works by stimulating the release of the hormone GLP-1. The therapy is indicated for overweight or obese adults who have not achieved weight loss with exercise and a reduced-calorie diet alone. In short, Novo Nordisk is a diabetes specialist expected to grow thanks to its blockbuster Saxenda drug. Perrigo Company (PRGO) Perrigo is a healthcare company specializing in branded over-the-counter (OTC) drug products. The company also pursues a licensing strategy and has several partnerships in place. Perrigo has three main divisions: OTC pharmaceuticals, and infant nutrition. The company sells products like cough and cold remedies, supplements, analgesics, and treatments for insect bites and stings in the OTC pharmaceuticals division. Perrigo’s pharmaceuticals division is focused on supplying branded and generic injectable and infusion drugs to hospitals, clinics, and physician offices. Finally, the company’s infant nutrition division makes the Oragel and Giaever baby food products. Perrigo is expected to see rising sales due to an expanding U.S. population, increased demand for OTC products in emerging markets, and an overall trend toward more self-medication that drives up prescription sales. Corcept Therapeutics (CORT) Corcept Therapeutics is a biopharmaceutical company focused on developing and commercializing therapies for rare diseases. The company has three core drug development programs: Cometriq is a therapy indicated for metastatic breast cancer treatment in patients treated with at least one chemotherapy regimen. The therapy works by blocking the action of the proteins that promote cancer growth. Cronos is a therapy indicated for treating pediatric and adult patients with acute bladder bacterial infections, such as urinary tract infection (UTI). The therapy stabilizes bacterial membranes, making them less likely to cause infection. Finally, cortex is a therapy for treating hereditary angioedema (HAE) in adult and pediatric patients whose disease is inadequately controlled with other treatments. The therapy works by inhibiting the breakdown of a naturally occurring substance that helps reduce swelling. Corcept is expected to experience strong sales growth thanks to the expanding use of its existing products and the potential for new approvals. Pacira Biosciences (PCRX) Pacira Biosciences is a specialty pharmaceutical company developing and commercializing products for general surgery, orthopedic surgery, and urology. The company’s two most significant products are Exparel, a pain management drug given during surgery, and VIVA, a device used to minimize swelling after surgery. Pacira’s Exparel currently has a prescription label for managing pain associated with bone surgery and soft tissue surgeries that require a long incision. The company’s VIVA device is indicated for managing postoperative swelling following urologic surgery. Pacira’s products are widely used in many surgical specialties, which should help the company sustain strong sales growth. Conclusion To conclude, many things to consider when investing in pharmaceutical stocks. First, it is important to understand how different companies operate, their products, the competition, and how the company makes money. It is also important to analyze the recent financial performance of the company, as well as the future expectations for the stock. Pharmaceutical stocks can be risky but can also be very rewarding. Choosing strong companies with strong fundamentals can reduce the risk and increase the reward.