Sanofi, a healthcare company, engages in the research, development, manufacture, and marketing of therapeutic solutions in the United States, Europe, and internationally. It operates through Pharmaceuticals, Vaccines, and Consumer Healthcare segments. The company provides specialty care, such as DUPIXENT, neurology and immunology, rare diseases, oncology, and rare blood disorders; medicines for diabetes and cardiovascular diseases; and established prescription products. In addition, it offers poliomyelitis, pertussis, and hib pediatric vaccines; influenza, booster, meningitis, and travel and endemic vaccines, which includes hepatitis A, typhoid, cholera, yellow fever, and rabies vaccines. The company also provides cough, cold, and flu, allergy, and pain care products, as well as physical, mental, and digestive wellness products; and offers products for itching, hydration, aging, cracking, overnight, and specialty skincare needs like eczema. Further, it has a collaboration and license agreement with Exscientia to develop up to 15 novel small-molecule for oncology and immunology; ABL Bio, Inc. to develop ABL301, a treatment for alpha-synucleinopathies; Blackstone Life Sciences to develop pivotal studies and clinical development program; and Seagen Inc. to design, develop, and commercialize antibody-drug conjugates for cancer. Additionally, the company has a collaboration agreement with IGM Biosciences, Inc. to develop, manufacture, and commercialize IgM antibody; Skyhawk Therapeutics, Inc to discover and develop novel small molecules; and Adagene Inc., for the discovery and development of antibody-based therapies. It also has collaborations with Scribe Therapeutics Inc. to develop genome editing technologies; and co-promotion service agreement with Provention Bio, Inc. for the commercialization of teplizumab. The company was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011. Sanofi was founded in 1973 and is headquartered in Paris, France.

Sanofi демонстрирует интересные фундаментальные метрики, которые требуют внимательного анализа. P/E мультипликатор составляет 11.16, что значительно ниже медианы отрасли, что может указывать на недооцененность акций. Однако, наблюдается ухудшение ROE, который составляет 16.55 и ниже медианы, что может вызывать опасения относительно рентабельности. Долговая нагрузка компании низкая, с debt/equity на уровне 0.19, что является положительным фактором. Дивидендная доходность растет и на данный момент составляет 4.40%, что также создает привлекательность для инвесторов. Выручка компании значительно выше медианы отрасли, что указывает на сильные позиции на рынке. Однако, некоторые показатели, такие как P/FCF, находятся на высоком уровне, что может указывать на возможную переоцененность. В целом, несмотря на некоторые слабые стороны, компания выглядит достойной для инвестирования с потенциалом для роста, но необходимо учитывать и риски, связанные с изменением ROE и долговой нагрузкой.

Sanofi

(RTTNews) - At its February 2026 meeting, the Committee for Medicinal Products for Human Use of the European Medicines Agency adopted positive opinions for Moderna's combined COVID-19 -Influenza vaccine, Sanofi's single-dose therapy for Human African trypanosomiasis, and Ipsen's targeted treatment for pediatric low-grade glioma, moving the therapies a step closer to European approval.
Moderna Inc. (MRNA)
On February 27, 2026, the European Medicines Agency's Committee for Medicinal Products for Human Use, or CHMP, recommended marketing authorization for Moderna's mCOMBRIAX, a combination vaccine indicated for COVID-19 and influenza vaccine for people 50 years and older.
mCOMBRIAX is the world's first flu plus COVID combination vaccine to receive a positive CHMP opinion and represents Moderna's fourth vaccine to receive a positive CHMP opinion.
The European Commission will consider the recommendation and is expected to adopt a final decision on the marketing authorization. The adoption of the decision should take place within 67 days of the recommendation.
Upon approval, the marketing authorization of the European Commission will be valid in all EU Member States as well as in the European Economic Area (EEA) countries of Iceland, Liechtenstein and Norway.
Sanofi (SNY)
On February 27, 2026, the European Medicines Agency's CHMP adopted a positive opinion on Acoziborole Winthrop for the treatment of human African trypanosomiasis, also known as sleeping sickness.
The human African trypanosomiasis is spread through the bite of tsetse flies infected with the parasite Trypanosoma brucei gambiense.
Acoziborole is the first single-dose oral treatment for both stages of T.b. gambiense sleeping sickness, the most common form of the disease, in adults as well as in adolescents 12 years and older weighing at least 40 kilograms.
Drugs for Neglected Diseases initiative (DNDi), a not-for-profit medical research organization, and Sanofi are collaborating in the development of Acoziborole Winthrop.
Ipsen (IPSEY)
On February 27, 2026, Ipsen's Ojemda received a positive opinion from the European Medicines Agency's Committee for Medicinal Products for Human Use, recommending conditional marketing authorization to treat children aged six months and older with relapsed or refractory pediatric low-grade glioma, a brain tumor driven by BRAF alterations.
Ipsen licensed the ex-US rights to Ojemda from Day One Biopharmaceuticals Inc. (DAWN) in 2024.
Following the positive opinion, the European Commission will review the CHMP recommendation, with a final decision expected in the coming months.
If approved, Ojemda is expected to be the first and only targeted medicine in European Union for children with relapsed or refractory BRAF-altered pediatric low-grade glioma, irrespective of the type of BRAF alteration.
In the U.S., Ojemda was granted accelerated approval by the FDA for the treatment of patients 6 months of age and older with relapsed or refractory pediatric low-grade glioma harboring a BRAF fusion or rearrangement, or BRAF V600 mutation in April 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

EMA Panel Backs Moderna's COVID-Flu Shot, Sanofi's Sleeping Sickness Drug, Ipsen's Cancer Drug

(RTTNews) - Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries (TEVA) and funds managed by Blackstone Life Sciences announced a $400 million strategic funding agreement spread across four years to support the continued clinical development of duvakitug. Blackstone Life Sciences will provide Teva $400 million to fund ongoing and future development costs for duvakitug, spread over four years. Subject to the approval of duvakitug by the FDA, Teva will pay BXLS a milestone payment. Blackstone Life Sciences will also be eligible to receive commercial milestones and low single-digit royalties on duvakitug worldwide sales.
Duvakitug is a human monoclonal antibody targeting TL1A. Duvakitug is currently in phase 3 clinical studies for the treatment of ulcerative colitis and Crohns disease. Under a separate and independent agreement, Teva is co-developing and, subject to regulatory approval, will be co-commercializing this asset with Sanofi.
At last close, shares of Teva were trading at $32.28, down 4.41%.
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Teva: Blackstone Life Sciences To Provide $400 Mln To Support Development Of Duvakitug

For Immediate Release
Chicago, IL – March 3, 2026 – Today, Zacks Equity Research discusses Eli Lilly LLY, Johnson & Johnson JNJ, Sanofi SNY and Bayer BAYRY.
Industry: Large-Cap Pharma
Link: https://www.zacks.com/commentary/2877179/4-large-cap-pharma-stocks-to-watch-as-industry-recovery-gains-steam
The drug and biotech sector has recovered somewhat in 2026 after remaining muted for most of 2025. Drug pricing agreements of Big Pharma with the Trump administration, strong quarterly results, bullish outlook for 2026, robust pipeline activity and a flurry of M&A deals have led to the industry’s recovery.
However, it faces its share of headwinds like regular pipeline setbacks, slow ramp-up of newer drugs, patent cliffs, regulatory risks and policy and pricing uncertainty. Despite the headwinds, the industry’s focus on innovation and positive pipeline/regulatory developments signals a favorable long-term outlook. Overall, large drugmakers have several robust revenue streams and are mostly profitable companies, making them safe havens for long-term investment.
Among the large drugmakers, Eli Lilly, Johnson & Johnson, Sanofi and Bayer are worth retaining in one’s portfolio.
Industry Description
The Zacks Large Cap Pharmaceuticals industry comprises some of the largest global companies that develop multi-million-dollar drugs for several therapeutic areas, like neuroscience, cardiovascular and metabolism, rare diseases, immunology and oncology. Some of these companies also make vaccines, animal health products, medical devices and consumer-related healthcare products.
They invest millions of dollars in their product pipelines and line extensions of their already-marketed drugs. Continuous innovation is a defining characteristic of large pharma companies. They constantly invest in drug development and the discovery of new medicines. Regular mergers and acquisitions, and collaboration deals are other key features of large drugmakers.
What's Shaping the Future of the Large-Cap Pharma Industry?
Innovation and Pipeline Success: For big drugmakers, an innovative pipeline is a competitive necessity and key to top-line growth. Pharma companies are continually striving to ramp up innovation and allocate a significant portion of their revenues to R&D. Drugmakers are integrating artificial intelligence (AI) to accelerate the drug discovery process for delivering more effective therapies. New technologies, such as gene editing, mRNA vaccines, precision medicine and next-generation sequencing, are revolutionizing the drug and biotech industries.
Innovation is at its peak with key spaces like rare diseases, next-generation oncology treatments, obesity, immunology and neuroscience attracting investor attention.
Successful innovation and product line extensions in key therapeutic areas, along with strong clinical study results, may serve as important catalysts for these stocks.
Aggressive M&A & Collaboration Activity: The sector is characterized by aggressive M&A activities. Given that it takes several years and millions of dollars to develop new therapeutics from scratch, large pharmaceutical companies, sitting on substantial cash reserves, regularly acquire innovative small and mid-cap biotech companies to expand their pipelines.
Also, sloppy sales of mature drugs, dwindling in-house pipelines, government scrutiny of drug prices and the growing use of AI for drug discovery whet the M&A appetite of large drugmakers.Moreover, collaborations and partnerships with smaller companies are in full swing. M&A activity has shot up in 2026 after a lull in the past couple of years.
Fast-growing and lucrative markets such as oncology, rare disease and gene therapy are focus areas for M&A activities. Recently, areas such as obesity and inflammatory bowel disease have been attracting buyout interest.
Among some recent deals, Pfizer, Novo Nordisk and Roche announced multi-billion-dollar deals targeting the fast-growing, lucrative metabolic and obesity-related disease space. In other areas, some key recent deals include Gilead-Arcellx, Sanofi-Dynavax and BioMarin-Amicus.
Pipeline Setbacks & Other Headwinds: The failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be setbacks for large drug companies and significantly hurt their share prices. Other headwinds for the industry include pricing and competitive pressure, generic competition for blockbuster treatments, a slowdown in sales of some of the most high-profile older drugs, Medicare drug price negotiations and increasing FTC scrutiny of M&A deals.
Macroeconomic Uncertainty: Uncertain macroeconomic conditions, including the risk of inflation, a slowing labor market and instability in the financial system, along with escalating geopolitical tensions in various parts of the world, have increased broader economic woes.
Uncertainty around tariffs and trade protection measures in the United States remains. President Trump has threatened to impose a 100% tariff on pharmaceutical imports unless a company builds pharmaceutical plants in the United States. Trump’s repeated threats to impose tariffs on pharmaceutical imports are aimed at pushing American pharma companies to shift pharmaceutical production back to the United States, primarily from European and Asian countries.
Zacks Industry Rank Indicates a Dull Outlook
The Zacks Large Cap Pharmaceuticals industryis an 11-stock group within the broader Medical sector. The group’s Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Large Cap Pharmaceuticals industry currently carries a Zacks Industry Rank #172, which places it in the bottom 29% of 243 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few large drug stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s performance and its current valuation.
Industry Versus S&P 500 & Sector
The industry has outpaced the Zacks Medical Sector but underperformed the S&P 500 in the past year.
Stocks in this industry have collectively risen 10.8% in the past year compared with the Zacks Medical Sector’s increase of 1.5%. The Zacks S&P 500 composite has risen 20.5% in the said time frame.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), a commonly used multiple for valuing large pharma companies, the industry is currently trading at 18.70X compared with the S&P 500’s 20.77X and the Zacks Medical Sector's 21.38X.
Over the last five years, the industry has traded as high as 20.80X, as low as 13.09X and at a median of 16.40X.
4 Large Drugmakers to Watch
Eli Lilly: It has seen tremendous success with Mounjaro and Zepbound, with demand rising rapidly. In 2025, the drugs generated combined sales of $36.5 billion, comprising around 56% of the company’s total revenues.
In addition to Mounjaro and Zepbound, Lilly has secured approvals for several other new therapies over the past few years. These include Omvoh, Jaypirca, Ebglyss and Kisunla. These newly approved drugs are also contributing to Lilly’s revenue growth. Lilly expects its new drugs, Mounjaro, Zepbound, Ebglyss, Jaypirca, Inluriyo, Kisunla and Omvoh to drive sales growth in 2026.
Lilly is investing broadly in obesity and has several new molecules currently in clinical development with a range of oral and injectable medications with different mechanisms of action. A key drug in its obesity pipeline is the once-daily oral GLP-1 small molecule called orforglipron. Lilly has filed regulatory applications in the United States, the EU, and several other countries seeking approval for orforglipron in obesity.
Lilly expects to launch orforglipron for obesity in the United States during the second quarter of 2026 and in most international markets during 2027. Rival Novo Nordisk has already launched an oral version of its obesity drug, Wegovy.
In the past couple of years, Lilly upped its efforts to diversify beyond GLP-1 drugs by expanding into cardiovascular, oncology and neuroscience areas. In 2025, it announced several M&A deals.
Lilly has its share of problems. Prices of most of Lilly’s products are declining in the United States. Rising competition in the GLP-1 diabetes/obesity market is a key headwind. Also, sales of late-life cycle products like Trulicity, Taltz and Verzenio are expected to be flat to down in 2026.
Lilly has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
The stock has risen 13.2% in the past year. Estimates for Eli Lilly’s 2026 earnings have improved from $33.15 per share to $33.86 per share in the past 60 days.
J&J: The company has shown steady revenue and EPS growth for years. J&J outperformed financial expectations in 2025 and looks optimistic for continued strong momentum in 2026, with a target to generate around $100 billion in revenues in the year.
The Innovative Medicine unit is showing a growth trend. The segment’s sales rose 4.1% on an organic basis in 2025 despite Stelara's loss of exclusivity (LOE) and the negative impact of the Part D redesign. Growth was driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.
J&J’s MedTech business has also improved in the past three quarters. MedTech sales rose 4.3% on an organic basis in 2025. J&J expects sales growth in both segments to be higher in 2026.
The company also rapidly advanced its pipeline in 2025, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. J&J has also been on an acquisition spree and acquired Intra-Cellular Therapies and Halda Therapeuticsin 2025.
J&J faces its share of headwinds, like the legal battle surrounding its talc lawsuits, the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi and softness in MedTech China.
J&J has a Zacks Rank #3 at present.
The stock has risen 48.5% in the past year. The Zacks Consensus Estimate for 2026 earnings has risen from $11.49 per share to $11.54 per share over the past 60 days.
Sanofi: Its Specialty Care unit is on a strong footing, particularly with the outstanding growth trajectory of its blockbuster immunology drug, Dupixent, a key top-line driver. Dupixent enjoys strong demand across all approved indications and geographies.Sanofi possesses a leading vaccine portfolio and continues to expand its vaccine business further with its pipeline comprising multiple programs across pneumococcal disease, yellow fever, meningitis, RSV and pandemic preparedness.
Sanofi is also seeing good uptake of its new medicines and vaccines. Sales of its newly launched medicines and vaccines grew 34% in 2025. Sanofi has some potentially transformative therapies in oncology, immunology, hematology, neurology, and vaccines. It has also been active on the M&A front.
However, the generic erosion of Aubagio in all key markets, lower sales from mature products, competitive pressure on influenza vaccines and regular pipeline setbacks are key headwinds.
Sanofi has a Zacks Rank #3 at present. The Zacks Consensus Estimate for the French drugmaker’s 2026 EPS has risen from $4.89 per share to $4.97 per share over the past 60 days. The stock has declined 13.9% in the past year.
Bayer: The company’s key drugs, Nubeqa for cancer and Kerendia for chronic kidney disease associated with type II diabetes, are fueling growth in its Pharmaceuticals division, making up for the decline in sales of oral anticoagulant Xarelto. Bayer is also working to expand the labels of Nubeqa and Kerendia, which, if successful, can further drive growth.
Multiple high-impact launches across oncology, cardiology, and women’s health further extend the pharma division’s growth runway. Some key drug approvals in 2025 were Lynkuet (elinzanetant) for moderate-to-severe vasomotor symptoms (VMS) associated with menopause and Hyrnuo (sevabertinib) for HER2-mutant non-small cell lung cancer.
Bayer is making good pipeline progress. The company has expanded its pipeline in new modalities of cell therapy through the acquisition of BlueRock, and in gene therapy, through the AskBio buyout.
However, sales in the Crop Science division declined significantly in the past couple of years due to lower volumes and prices for glyphosate-based products.
This Zacks Rank #3 company’s shares have risen 95.6% in the past year. Estimates for its 2026 earnings per share have been stable at $1.41 over the past 60 days.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zacks Industry Outlook Highlights Eli Lilly, Johnson & Johnson, Sanofi and Bayer

Key Points
Teva Pharmaceutical Industries has more than doubled in price over the past year.
The Israeli drugmaker, formerly known for producing generics, has made a major move into the specialty drugs space.
Shares could keep rising as the company grows and valuation expands further.
When you think "top-performing pharma stock," Eli Lilly may first come to mind. Yet while Lilly's shares have surged over the past few years, they've only gained around 14% over the past year.
Contrast that with Teva Pharmaceutical Industries (NYSE: TEVA). The Israel-based drugmaker, best known for its focus on generics, has more than doubled in price over this time frame. Better yet, as the key driver of Teva's strong performance has only started to emerge, further gains may lie ahead.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
With its strengthening growth prospects, Teva may be the best healthcare stock to put $1,000 into right now. Here's why.
Teva has knocked it out of the park
On Jan. 28, Teva released its latest earnings report, for the fourth quarter and the full year 2025. For the quarter, it reported stronger-than-expected results. Revenue came in at $4.7 billion, up 11% year over year.
Adjusted earnings per share (EPS) came in at $0.96, well above analyst forecasts averaging $0.64. For the full year, the company reported revenue growth of 5%, and non-GAAP (adjusted) earnings growth of 19%.
That said, $500 million in milestone payments from Sanofi for drug candidate duvakitug -- a potential treatment for ulcerative colitis and Crohn's disease -- skewed results for the quarter and the full year. Excluding these payments, revenue and earnings were up by just a few percentage points compared to 2024.
Guidance also calls for 2026 to be a transitory year, with total revenue expected to decline. However, the expectation of sluggish overall results belies major changes underway.
The longtime generic-drug maker plans to continue its pivot into specialty drugs. Strong sales of branded drugs like Austedo, Ajovy, and Uzedy are, for now, countering flat generics sales. In the years ahead, these products will become an increasingly larger share of Teva's revenue mix, leading investors to anticipate improved revenue, margins, and earnings growth.
Long-term investors haven't missed the boat
Much of Teva's rise throughout 2025 was because of the company's ongoing transformation. However, that hasn't become fully baked into the stock's valuation. Based on analyst forecasts for 2026, Teva currently trades for around 12.5 times forward earnings.
This is on the middle to lower end of the valuation range for pharmaceutical stocks. However, if you have a multiyear time horizon, you've yet to miss the boat. If the company's growth accelerates starting in 2027, shares could rise due to both earnings growth and multiple expansion.
Beyond further growth for Teva's aforementioned trio of branded specialty drugs, other pipeline candidates are poised to generate significant revenue in the years ahead. Management anticipates that duvakitug will eventually hit $2 billion to $5 billion in peak annual sales. Add in other candidates, and peak sales potential for the pipeline exceeds $10 billion.
Analysts may be anticipating EPS to fall 8.5% this year, before rising 12.3% in 2027, but in time these forecasts could prove conservative. Even if forecasts are on the money, a move to more than $3 per share in annual earnings, expected next year, could mean serious additional price appreciation for this stock. Consider Teva Pharmaceutical Industries a buy at current prices, and a screaming buy should the stock price unexpectedly tumble.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best Healthcare Stock to Invest $1,000 in Right Now

The drug and biotech sector has recovered somewhat in 2026 after remaining muted for most of 2025. Drug pricing agreements of Big Pharma with the Trump administration, strong quarterly results, bullish outlook for 2026, robust pipeline activity and a flurry of M&A deals have led to the industry’s recovery. However, it faces its share of headwinds like regular pipeline setbacks, slow ramp-up of newer drugs, patent cliffs, regulatory risks and policy and pricing uncertainty. Despite the headwinds, the industry’s focus on innovation and positive pipeline/regulatory developments signals a favorable long-term outlook. Overall, large drugmakers have several robust revenue streams and are mostly profitable companies, making them safe havens for long-term investment.
Among the large drugmakers, Eli Lilly LLY, Johnson & Johnson JNJ, Sanofi SNY and Bayer BAYRY are worth retaining in one’s portfolio.
Industry Description
The Zacks Large Cap Pharmaceuticals industry comprises some of the largest global companies that develop multi-million-dollar drugs for several therapeutic areas, like neuroscience, cardiovascular and metabolism, rare diseases, immunology and oncology. Some of these companies also make vaccines, animal health products, medical devices and consumer-related healthcare products. They invest millions of dollars in their product pipelines and line extensions of their already-marketed drugs. Continuous innovation is a defining characteristic of large pharma companies. They constantly invest in drug development and the discovery of new medicines. Regular mergers and acquisitions, and collaboration deals are other key features of large drugmakers.
What's Shaping the Future of the Large-Cap Pharma Industry?
Innovation and Pipeline Success: For big drugmakers, an innovative pipeline is a competitive necessity and key to top-line growth. Pharma companies are continually striving to ramp up innovation and allocate a significant portion of their revenues to R&D. Drugmakers are integrating artificial intelligence (AI) to accelerate the drug discovery process for delivering more effective therapies. New technologies, such as gene editing, mRNA vaccines, precision medicine and next-generation sequencing, are revolutionizing the drug and biotech industries.
Innovation is at its peak with key spaces like rare diseases, next-generation oncology treatments, obesity, immunology and neuroscience attracting investor attention.
Successful innovation and product line extensions in key therapeutic areas, along with strong clinical study results, may serve as important catalysts for these stocks.
Aggressive M&A & Collaboration Activity: The sector is characterized by aggressive M&A activities. Given that it takes several years and millions of dollars to develop new therapeutics from scratch, large pharmaceutical companies, sitting on substantial cash reserves, regularly acquire innovative small and mid-cap biotech companies to expand their pipelines.
Also, sloppy sales of mature drugs, dwindling in-house pipelines, government scrutiny of drug prices and the growing use of AI for drug discovery whet the M&A appetite of large drugmakers.Moreover, collaborations and partnerships with smaller companies are in full swing. M&A activity has shot up in 2026 after a lull in the past couple of years.
Fast-growing and lucrative markets such as oncology, rare disease and gene therapy are focus areas for M&A activities. Recently, areas such as obesity and inflammatory bowel disease have been attracting buyout interest.
Among some recent deals, Pfizer, Novo Nordisk and Roche announced multi-billion-dollar deals targeting the fast-growing, lucrative metabolic and obesity-related disease space. In other areas, some key recent deals include Gilead-Arcellx, Sanofi-Dynavax and BioMarin-Amicus.
Pipeline Setbacks & Other Headwinds: The failure of key pipeline candidates in pivotal studies and regulatory and pipeline delays can be setbacks for large drug companies and significantly hurt their share prices. Other headwinds for the industry include pricing and competitive pressure, generic competition for blockbuster treatments, a slowdown in sales of some of the most high-profile older drugs, Medicare drug price negotiations and increasing FTC scrutiny of M&A deals.
Macroeconomic Uncertainty: Uncertain macroeconomic conditions, including the risk of inflation, a slowing labor market and instability in the financial system, along with escalating geopolitical tensions in various parts of the world, have increased broader economic woes.
Uncertainty around tariffs and trade protection measures in the United States remains. President Trump has threatened to impose a 100% tariff on pharmaceutical imports unless a company builds pharmaceutical plants in the United States. Trump’s repeated threats to impose tariffs on pharmaceutical imports are aimed at pushing American pharma companies to shift pharmaceutical production back to the United States, primarily from European and Asian countries.
Zacks Industry Rank Indicates a Dull Outlook
The Zacks Large Cap Pharmaceuticals industryis an 11-stock group within the broader Medical sector. The group’s Zacks Industry Rank is basically the average of the Zacks Rank of all the member stocks.
The Zacks Large Cap Pharmaceuticals industry currently carries a Zacks Industry Rank #172, which places it in the bottom 29% of 243 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Before we present a few large drug stocks that are well-positioned to outperform the market based on a strong earnings outlook, let’s take a look at the industry’s performance and its current valuation.
Industry Versus S&P 500 & Sector
The industry has outpaced the Zacks Medical Sector but underperformed the S&P 500 in the past year.
Stocks in this industry have collectively risen 10.8% in the past year compared with the Zacks Medical Sector’s increase of 1.5%. The Zacks S&P 500 composite has risen 20.5% in the said time frame.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E), a commonly used multiple for valuing large pharma companies, the industry is currently trading at 18.70X compared with the S&P 500’s 20.77X and the Zacks Medical Sector's 21.38X.
Over the last five years, the industry has traded as high as 20.80X, as low as 13.09X and at a median of 16.40X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
4 Large Drugmakers to Watch
Eli Lilly: It has seen tremendous success with Mounjaro and Zepbound, with demand rising rapidly. In 2025, the drugs generated combined sales of $36.5 billion, comprising around 56% of the company’s total revenues.
In addition to Mounjaro and Zepbound, Lilly has secured approvals for several other new therapies over the past few years. These include Omvoh, Jaypirca, Ebglyss and Kisunla. These newly approved drugs are also contributing to Lilly’s revenue growth. Lilly expects its new drugs, Mounjaro, Zepbound, Ebglyss, Jaypirca, Inluriyo, Kisunla and Omvoh to drive sales growth in 2026.
Lilly is investing broadly in obesity and has several new molecules currently in clinical development with a range of oral and injectable medications with different mechanisms of action. A key drug in its obesity pipeline is the once-daily oral GLP-1 small molecule called orforglipron. Lilly has filed regulatory applications in the United States, the EU, and several other countries seeking approval for orforglipron in obesity. Lilly expects to launch orforglipron for obesity in the United States during the second quarter of 2026 and in most international markets during 2027. Rival Novo Nordisk has already launched an oral version of its obesity drug, Wegovy.
In the past couple of years, Lilly upped its efforts to diversify beyond GLP-1 drugs by expanding into cardiovascular, oncology and neuroscience areas. In 2025, it announced several M&A deals.
Lilly has its share of problems. Prices of most of Lilly’s products are declining in the United States. Rising competition in the GLP-1 diabetes/obesity market is a key headwind. Also, sales of late-life cycle products like Trulicity, Taltz and Verzenio are expected to be flat to down in 2026.
Lilly has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
The stock has risen 13.2% in the past year. Estimates for Eli Lilly’s 2026 earnings have improved from $33.15 per share to $33.86 per share in the past 60 days.
Price and Consensus: LLY
J&J: The company has shown steady revenue and EPS growth for years. J&J outperformed financial expectations in 2025 and looks optimistic for continued strong momentum in 2026, with a target to generate around $100 billion in revenues in the year.
The Innovative Medicine unit is showing a growth trend. The segment’s sales rose 4.1% on an organic basis in 2025 despite Stelara's loss of exclusivity (LOE) and the negative impact of the Part D redesign. Growth was driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.
J&J’s MedTech business has also improved in the past three quarters. MedTech sales rose 4.3% on an organic basis in 2025. J&J expects sales growth in both segments to be higher in 2026.
The company also rapidly advanced its pipeline in 2025, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. J&J has also been on an acquisition spree and acquired Intra-Cellular Therapies and Halda Therapeuticsin 2025.
J&J faces its share of headwinds, like the legal battle surrounding its talc lawsuits, the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi and softness in MedTech China.
J&J has a Zacks Rank #3 at present.
The stock has risen 48.5% in the past year. The Zacks Consensus Estimate for 2026 earnings has risen from $11.49 per share to $11.54 per share over the past 60 days.
Price and Consensus: JNJ
Sanofi: Its Specialty Care unit is on a strong footing, particularly with the outstanding growth trajectory of itsblockbuster immunology drug, Dupixent, a key top-line driver. Dupixent enjoys strong demand across all approved indications and geographies.Sanofi possesses a leading vaccine portfolio and continues to expand its vaccine business further with its pipeline comprising multiple programs across pneumococcal disease, yellow fever, meningitis, RSV and pandemic preparedness. Sanofi is also seeing good uptake of its new medicines and vaccines. Sales of its newly launched medicines and vaccines grew 34% in 2025. Sanofi has some potentially transformative therapies in oncology, immunology, hematology, neurology, and vaccines. It has also been active on the M&A front.
However, the generic erosion of Aubagio in all key markets, lower sales from mature products, competitive pressure on influenza vaccines and regular pipeline setbacks are key headwinds.
Sanofi has a Zacks Rank #3 at present. The Zacks Consensus Estimate for the French drugmaker’s 2026 EPS has risen from $4.89 per share to $4.97 per share over the past 60 days. The stock has declined 13.9% in the past year.
Price and Consensus: SNY
Bayer: The company’s key drugs, Nubeqa for cancer and Kerendia for chronic kidney disease associated with type II diabetes, are fueling growth in its Pharmaceuticals division, making up for the decline in sales of oral anticoagulant Xarelto. Bayer is also working to expand the labels of Nubeqa and Kerendia, which, if successful, can further drive growth.
Multiple high-impact launches across oncology, cardiology, and women’s health further extend the pharma division’s growth runway. Some key drug approvals in 2025 were Lynkuet (elinzanetant) for moderate-to-severe vasomotor symptoms (VMS) associated with menopause and Hyrnuo (sevabertinib) for HER2-mutant non-small cell lung cancer.
Bayer is making good pipeline progress. The company has expanded its pipeline in new modalities of cell therapy through the acquisition of BlueRock, and in gene therapy, through the AskBio buyout.
However, sales in the Crop Science division declined significantly in the past couple of years due to lower volumes and prices for glyphosate-based products.
This Zacks Rank #3 company’s shares have risen 95.6% in the past year. Estimates for its 2026 earnings per share have been stable at $1.41 over the past 60 days.
Price and Consensus: BAYRY
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4 Large-Cap Pharma Stocks to Watch as Industry Recovery Gains Steam

Shares of Moderna MRNA rose about 4% on Friday after the company announced that the EMA’s Committee for Medicinal Products for Human Use (CHMP) recommended granting marketing authorization to mCombriax (mRNA-1083), its mRNA-based combination vaccine against COVID-19 and influenza.
The CHMP’s recommendation will now be reviewed by the European Commission and a final decision is expected shortly. If approved, mCombriax would be the company’s fourth marketed product in the European Union, after two COVID-19 vaccines, Spikevax and mNexspike, and RSV vaccine mResvia.
This recommendation was supported by data from a pivotal phase III study, which met its primary endpoints. Data from the study showed that a single dose of mCombriax elicited higher immune responses against COVID-19 and influenza compared with licensed standalone COVID and influenza vaccines.
These results are based on a study that evaluated the vaccine in about 8,000 adults, divided equally into two independent age group cohorts. The first cohort includes adults aged 65 and older and compares mCombriax with the co-administration of Fluzone HD, a high-dose influenza vaccine marketed by Sanofi SNY, and Spikevax. The second group consists of adults aged 50 to 64, comparing the combination vaccine with Fluarix, a standard-dose influenza vaccine marketed by GSK plc GSK, co-administered with Spikevax.
MRNA Stock Price Performance
Year to date, the stock has surged about 82% compared with the industry’s 10% growth.
Image Source: Zacks Investment Research
More on Moderna’s mCombriax
mCombriax combines Moderna’s two vaccines, mNexspike and mRNA-1010, an investigational influenza vaccine. Regulatory filings are currently under review seeking approval in the United States, Europe, Canada and Australia. A final decision by the FDA is expected by Aug. 5, 2026.
Moderna had initially submitted a regulatory filing for mCombriax with the FDA. This filing was voluntarily withdrawn in May 2025 after the agency requested additional efficacy data for the flu component. The requested data has been submitted as one of the studies supporting the mRNA-1010 filing. The company is currently awaiting further guidance from the FDA for a potential filing of mCombriax.
The heightened level of scrutiny against vaccines in the United States has been weighing on overall vaccine demand. Initially, the FDA refused to review the regulatory filing for mRNA-1010. Per the agency, the late-stage study supporting the filing was not adequate and well-controlled because the licensed standard-dose seasonal influenza vaccine that the company used as the comparator was not “the best-available standard of care.”
The FDA reversed its decision after Moderna proposed a regulatory pathway for mRNA-1010’s approval, based on age. The regulatory filing was subsequently modified, which now seeks full approval for the vaccine in adults aged 50-64 years and an accelerated approval for adults aged 65 years and above.
Moderna, Inc. Price
MRNA’s Zacks Rank
Moderna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MRNA Stock Gains After CHMP Endorses COVID-19-Influenza Combo Shot

(RTTNews) - Sanofi (SNY, SAN.PA, SNYNF) announced that the Ministry of Health, Labour and Welfare (MHLW) in Japan has granted orphan drug designation to Rilzabrutinib for IgG4-related disease (IgG4-RD). The designation was backed by the positive data from a Phase 2 study of Rilzabrutinib in IgG4-RD.
IgG4-RD is a progressive, relapsing, chronic immune-mediated rare disease which can manifest in almost every organ and can lead to organ damage and irreversible dysfunction with fatal outcomes sometimes.IgG4-RD has an estimated prevalence of about eight cases per 100,000 adults in Japan.
Rilzabrutinib is an investigational, oral, reversible, BTK inhibitor. BTK, expressed in B cells, macrophages, and other innate immune cells, plays a critical role in inflammatory pathways and multiple immune-mediated disease processes.
In the study of IgG4-RD patients, treatment with Rilzabrutinib for 52 weeks reduced disease flares and other disease markers and minimised the need for glucocorticoid treatment. The safety profile of Rilzabrutinib in the study was consistent with previous studies in other indications, with no new safety signals observed, according to the firm.
In 2025, Rilzabrutinib received approval for the treatment of immune thrombocytopenia (ITP) in the US, the EU, and the UAE. Additionally, Rilzabrutinib is currently under regulatory review for ITP in Japan. Rilzabrutinib is being studied across many rare immune-mediated diseases like Chronic spontaneous urticaria, Asthma and more.
SNY has traded between $44.62 and $60.12. The stock closed Friday's trade at $48.66, up 0.64%.
SNY is down 2.38% at $47.50 in the overnight trade.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sanofi's Rilzabrutinib Gets Orphan Drug Designation In Japan For IgG4-Related Disease

(RTTNews) - Sanofi (SNY, SAN.PA) announced the Ministry of Health, Labour and Welfare in Japan has granted orphan drug designation to rilzabrutinib, an oral, reversible covalent Bruton's tyrosine kinase inhibitor, for IgG4-related disease. Currently, rilzabrutinib in IgG4-RD is being evaluated in the RILIEF phase 3 study.
Rilzabrutinib is being studied across multiple rare immune-mediated diseases. In 2025, it received approval for immune thrombocytopenia in the US, the EU, and the UAE. Additionally, rilzabrutinib is currently under regulatory review for ITP in Japan.
At last close, Sanofi was trading at 82.20 euros.
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Sanofi: Rilzabrutinib Granted Orphan Drug Designation In Japan For IgG4-related Disease

Kymera KYMR reported a fourth-quarter 2025 loss of 97 cents per share, wider than the Zacks Consensus Estimate of a loss of 77 cents. In the year-ago quarter, Kymera reported a loss of 88 cents per share. The year-over-year deterioration was due to higher R&D expenses and lower collaboration revenues.
Collaboration revenues totaled $2.9 million, which missed the Zacks Consensus Estimate of $30 million. The revenues recognized in the reported quarter were attributable to the company’s collaboration with Gilead Sciences, Inc. GILD.
In the year-ago quarter, KYMR earned $7.4 million in collaboration revenues under its association with the pharma bigwig Sanofi SNY.
Shares of Kymera have rallied 214.2% in the past year compared with the industry’s rise of 18.6%.
Image Source: Zacks Investment Research
KYMR’s Operating Expenses Increase in Q4
Research and development expenses totaled $83.8 million, up 16.7% year over year. This was primarily due to increased expenses related to investments in the STAT6 program, platform, and discovery programs, as well as costs associated with continued growth in the research and development organization.
General and administrative expenses rose 3.7% year over year to $16.9 million, led by higher legal and professional service fees supporting growth, along with increased personnel, facility and related costs.
In December 2025, the company completed an underwritten equity offering that generated approximately $692 million in gross proceeds, including full exercise of the overallotment option. The financing increased year-end 2025 cash to about $1.6 billion and extended the cash runway into 2029.
KYMR’s 2025 results
Revenues decreased 16.8% to $39.2 million and missed the Zacks Consensus Estimate of $54.7 million.
Loss per share increased to $3.69 from $2.98 in 2024.
KYMR’s Pipeline Progress
Kymera is using targeted protein degradation (TPD), a next-generation small molecule therapeutic modality that engages the body’s natural cellular recycling system to selectively eliminate disease-causing protein.
In its STAT6 Degrader Program, KT-621 is a first-in-class, once-daily oral STAT6 degrader in phase 2 development for atopic dermatitis (AD) and asthma, targeting the central driver of type II inflammation.
In December 2025, the company reported positive data from the phase Ib BroADen study on KT-621, which showed deep STAT6 degradation, significant biomarker reductions and meaningful clinical improvements across AD and related conditions, with favorable safety.
In January 2026, the BROADEN2 phase IIb AD study was expanded to include adolescents, while dosing began in the mid-stage BREADTH study in eosinophilic asthma. Both global, placebo-controlled studies are ongoing, with data expected from mid- to late-2027.
KT-621 also received Fast Track designation for moderate-to-severe AD in December 2025.
In the IRF5 Degrader Program, KT-579 is a first-in-class oral IRF5 degrader in phase 1 development, designed to suppress pro-inflammatory cytokines, Type I interferons and autoantibody production while preserving normal immune function.
Earlier this month, following IND clearance from the FDA, dosing began in a first-in-human phase I study in healthy volunteers to evaluate safety, pharmacokinetics, and pharmacodynamics, with data expected in the second half of 2026.
Among partnered programs, KT-485/SAR447971 is a selective, potent oral IRAK4 degrader being co-developed with Sanofi for immuno-inflammatory diseases. The program has completed IND-enabling studies and is expected to enter clinical trials in 2026.
Preclinical work is ongoing under an exclusive option and license agreement with GILD to advance the company’s oral CDK2 molecular glue program for breast cancer and other solid tumors. If the option is exercised, Gilead will pay an option fee and assume full responsibility for development, manufacturing and commercialization.
Our Take on KYMR’s Performance
KYMR’s R&D expenses continue to increase as the company advances its pipeline.
The company remains well capitalized, ending 2025 with about $1.6 billion in cash and runway into 2029, supporting multiple mid- and early-stage programs. Kymera’s novel TPD strategy appears promising, and the pipeline progress is encouraging.
The investment thesis centers on pipeline execution in targeted protein degradation, led by KT-621 in phase 2 for atopic dermatitis and asthma. Additional positive pipeline updates on KT-621 will be a boost for the stock.
KYMR’s Zacks Rank & Stocks to Consider
Kymera Therapeutics currently carries a Zacks Rank #3 (Hold). A better-ranked biotech is Castle Biosciences CSTL, which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, Castle Biosciences’ 2026 loss per share estimates have narrowed from $1.06 to 96 cents. CSTL’s shares have rallied 26.2% over the past six months.
Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 66.11%.
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Kymera Q4 Loss Wider Than Expected, Cash Boost Extends Runway

Denali Therapeutics DNLI reported a fourth-quarter 2025 loss of 73 cents per share, narrower than the Zacks Consensus Estimate of a loss of 75 cents. The company reported a loss of 67 cents in the year-ago quarter.
The loss per share increased year over year due to a rise in total operating expenses.
In the absence of a marketed product, the company only recognizes revenues from ongoing collaborations. Denali did not generate collaboration revenues in the reported quarter. The Zacks Consensus Estimate for revenues was pegged at $18 million.
Shares of DNLI have gained 13.4% in the past year compared with the industry’s 11.5% growth.
Image Source: Zacks Investment Research
Highlights of DNLI’s Q4 Results
Research and development expenses decreased 1.9% to $97.9 million due to lower external expenses related to small molecule programs.
General and administrative expenses increased 31.3% to $39.5 million due to activities related to the preparations for a potential launch of tividenofusp alfa.
As of Dec. 31, 2025, cash, cash equivalents, and marketable securities amounted to approximately $966.2 million.
DNLI’s 2025 Results
The company did not generate revenues in 2025.
Loss per share in 2025 was $2.97, wider than $2.57 in 2024.
Updates on DNLI Lead Candidate
Denali is preparing for a commercial launch for lead candidate tividenofusp alfa.
The biologics license application (BLA) seeking accelerated approval of tividenofusp alfa for the treatment of mucopolysaccharidosis type II (MPS II), also known as Hunter syndrome, is under review in the United States.
The FDA had earlier extended its review timeline of the BLA to April 5, 2026, from Jan. 5, 2026.
The regulatory body granted tividenofusp alfa Breakthrough Therapy, Fast Track, Orphan Drug, and Rare Pediatric Disease designations.
Tividenofusp alfa is an investigational, next-generation enzyme replacement therapy designed to cross the blood-brain barrier (BBB) and deliver the iduronate-2-sulfatase (IDS) enzyme throughout the body and brain.
The BLA was extended after DNLI submitted updated clinical pharmacology information in response to an information request from the FDA as part of the standard review process. DNLI stated that the response was not related to efficacy, safety or biomarkers.
The FDA classified the submission as a major amendment to the BLA, leading to the extension of the target action date.
The ongoing global phase II/III COMPASS study is expected to generate confirmatory evidence and support global regulatory submissions while enrollment in Cohort A (neuronopathic participants) was completed in December 2025.
DNLI’s Other Pipeline Candidates
Denali is evaluating DNL126 for the treatment of Sanfilippo syndrome type A (MPS IIIA).
Earlier in the month, Denali presented preliminary phase I/II data at WORLDSymposium showing that DNL126 drove substantial reductions in key disease biomarkers in cerebrospinal fluid (heparan sulfate and GM3) and in the periphery (urinary heparan sulfate), with a safety profile broadly consistent with established enzyme replacement therapies. The findings support a potential accelerated approval pathway in Sanfilippo syndrome type A, while plans for a global phase III confirmatory study are underway.
Denali is also developing other candidates in partnership with Takeda TAK, Biogen BIIB and Sanofi SNY.
Denali and Takeda have collaborated to develop DNL593, an investigational therapeutic designed to deliver progranulin across the blood-brain barrier for the treatment of granulin (GRN) mutation-associated frontotemporal dementia (FTD-GRN).
Enrollment in the ongoing phase I/II study is complete with a total of 40 participants with FTD-GRN enrolled. Initial FTD-GRN patient data are expected in 2026.
Last month, Denali announced that the clinical trial application for the phase Ib study of DNL628 had been approved and study start-up activities are underway.
Denali and Biogen continue co-development of BIIB122.
Biogen is leading the global phase IIb LUMA study, evaluating BIIB122's impact on disease progression in early-stage PD. Data is expected in mid-2026.
Denali is conducting the phase IIa BEACON study, specifically enrolling participants with LRRK2-associated PD to assess how LRRK2 inhibition may impact this disease.
In October, Denali submitted an investigational new drug application (IND) for DNL952 (ETV:GAA) to begin clinical studies in Pompe disease. Last month, Denali announced that the FDA has lifted the clinical hold on the investigational new drug (IND) application for DNL952. Phase I study start-up activities are underway.
Sanofi is eclitasertib for moderate to severe ulcerative colitis. Data from the phase II study is expected in the first half of the year.
Our Take on DNLI’s Performance
A potential approval of tividenofusp alfa will significantly boost DNLI’s growth prospects. The company’s progress with DNL126 is encouraging as well.
The company’s sound cash position is a positive and underscores its ability to fund ongoing programs.
Zacks Rank
Denali currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.