Citi sees momentum in US pharma and biotech into 2026, updates ratings on top picks
06/01/2026 12:53
** Brokerage Citi expects dynamic drug launches and pipeline catalysts to sustain sector gains for U.S. biopharma in 2026 ** Expects continued headlines on U.S.-based R&D investments and updates surrounding the impact from the 2026 IRA drugs ** Brokerage prefers Eli Lilly LLY.N, Vertex VRTX.O, and Gilead GILD.O among large-cap names for higher growth ** LLY's oral GLP-1 orforglipron, VRTX's pain drug Journavx and cystic fibrosis drug Alyftrek, and GILD’s HIV treatment Yeztugo seen as key launches ** SMid-cap picks include Apogee, Arcellx, and NewAmsterdam on major data and approvals ** Citi expects further upside as policy headwinds recede and innovation accelerates, with investors advised to watch for clinical and regulatory catalysts across obesity, neuro and cardio/metabolic spaces ** Expects sector to grow their sales by about 5% per year and their earnings by about 8% per year over the next three years, with large-cap biopharma positioned as a viable alternative to tech
| Company | Old PT | New PT |
| Regeneron | $700 | $900 |
| Merck | $95 | $110 |
| Bristol Myers | $45 | $53 |
| Gilead | $135 | $140 |
| Biogen | $153 | $180 |
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