İstanbul Journal of Pharmacy

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DOI :10.26650/IstanbulJPharm.2025.1491350   IUP :10.26650/IstanbulJPharm.2025.1491350    Full Text (PDF)

Investment analysis and risk management in pharmaceutical companies

Mustafa Özyeşil, Havane Tembelo

Background and Aims: The pharmaceutical industry, which is known for its high levels of innovation and substantial research and development efforts, is crucial for global healthcare advancement. Developing new drugs requires significant R&D investments, which involve high levels of uncertainty and high costs. This study analyzes the investment strategies and risk management practises of leading pharmaceutical companies, Pfizer and Novartis.

Methods: Financial performance indicators, investment trends, and risk mitigation techniques for Pfizer and Novartis were examined. The analysis focused on how these companies balance innovation with mitigating risks through substantial R&D investments.

Results: This study found that significant R&D investments drive revenue growth, profitability, and stock prices. Specifically, 67.7% of the variability in revenue, 70.9% of the variability in net profit margin, and 48.3% of the variability in stock price growth are attributed to R&D expenditures.

Conclusion: These findings highlight the critical role of continuous innovation and strategic investment in maintaining a competitive advantage and financial health in the pharmaceutical industry. R&D investments are essential for driving revenue growth, enhancing profitability, and boosting stock prices, underscoring the need for strategic risk management practises.

Keywords: Pharmaceutical Industry, R&D Investment, Financial Performance, Risk Management, Innovation

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APA

Özyeşil, M., & Tembelo, H. (2025). Investment analysis and risk management in pharmaceutical companies. İstanbul Journal of Pharmacy, 55(1), 10-18. https://doi.org/10.26650/IstanbulJPharm.2025.1491350


AMA

Özyeşil M, Tembelo H. Investment analysis and risk management in pharmaceutical companies. İstanbul Journal of Pharmacy. 2025;55(1):10-18. https://doi.org/10.26650/IstanbulJPharm.2025.1491350


ABNT

Özyeşil, M.; Tembelo, H. Investment analysis and risk management in pharmaceutical companies. İstanbul Journal of Pharmacy, [Publisher Location], v. 55, n. 1, p. 10-18, 2025.


Chicago: Author-Date Style

Özyeşil, Mustafa, and Havane Tembelo. 2025. “Investment analysis and risk management in pharmaceutical companies.” İstanbul Journal of Pharmacy 55, no. 1: 10-18. https://doi.org/10.26650/IstanbulJPharm.2025.1491350


Chicago: Humanities Style

Özyeşil, Mustafa, and Havane Tembelo. “Investment analysis and risk management in pharmaceutical companies.” İstanbul Journal of Pharmacy 55, no. 1 (Aug. 2025): 10-18. https://doi.org/10.26650/IstanbulJPharm.2025.1491350


Harvard: Australian Style

Özyeşil, M & Tembelo, H 2025, 'Investment analysis and risk management in pharmaceutical companies', İstanbul Journal of Pharmacy, vol. 55, no. 1, pp. 10-18, viewed 17 Aug. 2025, https://doi.org/10.26650/IstanbulJPharm.2025.1491350


Harvard: Author-Date Style

Özyeşil, M. and Tembelo, H. (2025) ‘Investment analysis and risk management in pharmaceutical companies’, İstanbul Journal of Pharmacy, 55(1), pp. 10-18. https://doi.org/10.26650/IstanbulJPharm.2025.1491350 (17 Aug. 2025).


MLA

Özyeşil, Mustafa, and Havane Tembelo. “Investment analysis and risk management in pharmaceutical companies.” İstanbul Journal of Pharmacy, vol. 55, no. 1, 2025, pp. 10-18. [Database Container], https://doi.org/10.26650/IstanbulJPharm.2025.1491350


Vancouver

Özyeşil M, Tembelo H. Investment analysis and risk management in pharmaceutical companies. İstanbul Journal of Pharmacy [Internet]. 17 Aug. 2025 [cited 17 Aug. 2025];55(1):10-18. Available from: https://doi.org/10.26650/IstanbulJPharm.2025.1491350 doi: 10.26650/IstanbulJPharm.2025.1491350


ISNAD

Özyeşil, Mustafa - Tembelo, Havane. “Investment analysis and risk management in pharmaceutical companies”. İstanbul Journal of Pharmacy 55/1 (Aug. 2025): 10-18. https://doi.org/10.26650/IstanbulJPharm.2025.1491350



TIMELINE


Submitted28.05.2024
Accepted14.10.2024
Published Online07.05.2025

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