Large Cap Biopharmaceuticals Are in Buying Range with Good Value

Large Cap Biopharma stocks are in Buying Range

• Large cap biopharma stocks have attractive valuations and a growing pipeline of new products .The stocks are about 10% off prices from February, a seasonal peak.
• Among the strongest areas for product growth are oncology and autoimmune diseases so look for M&A and licensing deals to boost revenues.
• Watch for rising momentum changes with this group as the RSIs are neutral.(about 50) Rallies through ASCO and Q2 earnings can be bought.

Diversify your portfolio with a biopharma stock Below is our quarterly review of large cap biopharmaceuticals. Most of these stocks reached their highs in February of Q1, here values reflect all news and prices as of Friday 5/15. Notice today’s updated news on the Regeneron Phase 3 disappointing results for their Melanoma drug with REGN down 9% today, with two upgrades.

The oncology market is the most important sector of biopharma with 2.1M new  cancer cases annually in the US with over 600,000 deaths. Innovation  is transforming care with new targeted therapies, bispecific antibodies, specialized diagnostics like MRDs, CAR-T therapies , and cancer vaccines that can leverage the immune system to fight disease. Emerging technologies such as genomic sequencing, artificial intelligence and machine learning are accelerating biomarker and drug discovery, improving patient selection, and enabling earlier and more accurate diagnosis.

Here are some general comments on the sector large cap biopharmaceuticals:

1. The overall market for large cap biopharma stocks is flat down about 1% as represented by the  IBB. The best fund the FBI0X is down 1% YTD after a nice run in 2025 up 44% over one year.
2. Our current holdings of stocks which we would favor through June 2026 are: ABBV, BMY, GILD, MRK ,and PFE.
3. Pfizer has been a disappointing stock but offers good value and a 6+% Div yield, with good potential growth from antibody drug conjugates (ADC).
4. Merck was a top performer over one year of 44% , has good value with a P/S of 4.23 and a Fwd PE of 11.63.Keytruda remains a gold stanrdard.
5. BMY is one of our best picks for 2026, is up over 5% YTD, pays a 4.4% div. and has signed a $15B R&D deal with China.
6. ABBV has lagged but has a Fwd PE of 12.83, a Pfc of 18.45  and has leadership in autoimmune products with Skyrizi and a pipeline of products in neurodegenerative diseases. Compeition from JNJ in the autoimmune are is a concern.
7. Regeneron took a 9.8% hit on the Phase 3 results for their pivotal Melanoma trial.
8. We have been adding shares of NOVARTIS (NVS) a Swiss ADR, to our portfolio. The Fwd PE is 15.3, and the P/FCF is 15.48.
9. Here is our last post on Large Cap Biopharma from March 2026.