Large Cap Biopharmaceuticals: Still A Core Position For Your Portfolio

Rod Raynovich
By Raynovich Rod of Raygent
CEO of Raygent Associates •

Large-cap biopharma remains a core portfolio staple, driven by oncology innovation and robust M&A potential.

kelly-chiang-fS6oRcdiIis-unsplash.jpg

Photo by Kelly Chiang on Unsplash

Large Cap Biopharmaceuticals: A Core Position for Your Portfolio Offers Value plus Innovation

Some Key Points:

  1. Large Cap Biopharma continues to outperform S&P 500 over one year-17% vs 20% worse case.

  2. Biotech ETFS outperform: up 21-29%; but Fidelity Biotech Fund (FBIOX) still leads up 33%.

  3. Assumes industry conflicts with the Administration on pricing has abated.

  4. Several lagging stocks have made nice gains: BMY MRK REGN.

  5. Pfizer still has good value with a yield of 6+%.

  6. Momentum is a good trading tool and remains robust.

  7. Oncology is strong on innovation with next generation diagnostics (MRD)

  8. Healthcare (XLV) performance led by these stocks whereas MedTech is a laggard.

  9. International stocks have done well: AZN, NVS ,RHHBY.

  10. M&A potential in 2026 brings stronger pipelines.

Analyst

p

PRICE

PRICE

52 wk

Top Biopharmas

TICKER

PICK

TECH

Fwd/PE

Summ

2022

11/23

7/12/25

1/4/26

2/27/28

1 yr %

YTD

div %

RSI

high

Abbvie

ABBV

B

F

14.34

1.85

161.64

138.59

192.45

229.31

232.08

13.2

3.29

2.9

58.4

244.8

Amgen

AMGN

H/B

U

16.64

2.24

275

303

292.27

327.64

388

26.86

18.53

2.49

67.16

253

nh

Astra Zeneca

AZN

H/B

U

18

1.65

68

63.17

71.13

91.57

208.5

38

12.66

1.53

63.43

212.7

nh

Bristol Myers Sq

BMY

B

U

10.2

2.44

71.05

50.61

59

55.05

62.37

6.07

15.63

4.04

54

66.97

Eli Lilly

LLY

B

F

25.23

1.62

447.71

597.71

793.01

1080.4

1052

16.22

-2.11

0.59

52.39

1199

Gilead Science

GILD

H/B

U

15.46

1.75

85.39

75.92

109.64

123.4

148.95

33

21.35

2.2

56.66

157

nh

Merck

MRK

H/B

U

12.77

1.97

110.95

103

106.45

91.45

123.82

36.7

17.63

2.75

64.99

125.1

n/h

Pfizer

PFE

B

U

9.66

2.66

51.24

29.48

25.18

25.87

27.65

5.94

11.04

6.22

60

27.94

Regeneron

REGN

F

U

14.84

1.69

725

798

567.74

776.3

781.67

11.23

1.27

0.48

44.56

793

Vertex

VRTX

H/B

U

22.45

1.72

289

373.65

468.85

452.13

496.83

4.71

9.59

0

61.9

519

Van Eck ETF

PPH

B

U

103.72

111.7

20.87

8.27

1.72

62.76

112.58

LLY,NVS,MRK, NVO

iShares

IBB

B

F

169

175.37

29.44

3.91

0.22

54.38

174.4

VRTX,GILD, AMGN REGN

Disclosure:

LONG: ABBV, BMY, LLY, GILD, REGN, VRTX.;FBIOX and PPH.

STOCKS IN THIS ARTICLE

ABBVAMGNAZNGILDLLYMRKPFEREGNVRTXXLV
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