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During good times, pharma stocks are often great buys thanks to their steady cash flow, high-profit margins, dedication to research and development, and market exclusivity from drug patents. In a global pandemic, however, pharma companies become even better buys, because of the essential nature of their business.
Steady demand for prescription drugs is why investors look to the sector for stocks that are recession-proof and COVID-19-proof. Let's take a look at two stocks that fit this category and why you should consider holding them for the long term.