Success in 2025 for the pharma sector will hinge on the success of key drug pipeline developments, according to JPMorgan’s latest research.
With concerns over US drug pricing policies easing and significant patent expirations on the horizon, the focus shifts to pipeline progress to drive growth, the American investment bank reckons.
And it says Novo Nordisk (NYSE:NVO) and AstraZeneca PLC (LSE:AZN) are set to lead the way, bolstered by strong mid-term growth and promising news flow.
Novo is expected to report positive results from its REDEFINE trials in obesity and diabetes, while AZ's Enhertu breast cancer data could bring significant gains. Novartis (NOVN) also holds potential, though with less impact compared to Novo and Astra.
In contrast, GSK PLC (LSE:GSK, NYSE:GSK) and Roche are destined for a quieter year, with limited or less promising data expected.
Sanofi SA (ADR) (NYSE:SNY) may see some pipeline progress, though its most critical updates are forecasted for 2026 and beyond.
JPMorgan names Novo and AZ as its top large-cap picks, alongside biotech favourites ZEAL and UCB.
In late morning trading, AZ's shares were up 1.5% at 10,718p.