3 Large-Cap Stocks to Watch as Drug & Biotech Sector Rebounds in 2026
Source: zacks

Large-cap pharmaceuticals have risen 22.6% year to date, outpacing the Medical sector (+8.5%) and S&P 500 (+7.2%); the article highlights Bayer (+41.7%), Eli Lilly (+26.0%) and Novartis (+17.9%) as stocks to watch. Growth drivers include new products, strong GLP-1 demand and renewed dealmaking, while Lilly has announced more than $20 billion in biotech deals this year. Risks include patent expirations, competition and pricing pressure—Lilly's worldwide realized prices fell 15% in Q3—as well as uncertainty over tariffs of up to 100% on certain imported patented pharmaceuticals and ingredients.⟂
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