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US large-cap biopharma stocks underperformed S&P 500 despite strong fundamentals, with mixed investor sentiment for 2025. Obesity treatments and drug innovations remain key focuses. JPMorgan highlights positive outlooks for Gilead Sciences and Merck, anticipating increased M&A activity in 2025.

U.S. large-cap biopharma stocks underperformed the S&P 500 for two years, with mixed 2025 outlooks. JP Morgan remains positive, highlighting obesity treatments and key drug launches. M&A activity is expected to increase in 2025, focusing on mid-sized deals for lower-risk assets.

U.S. large-cap biopharma stocks underperformed the S&P 500 for two years, with mixed 2025 outlook. Obesity treatments and new drug launches, like Eli Lilly's orforglipron and Bristol Myers Squibb's Cobenfy, are key. JP Morgan anticipates M&A activity to increase in 2025, focusing on mid-sized deals.

U.S. large-cap biopharma stocks underperformed the S&P 500 for two years, with mixed 2025 outlooks due to political uncertainty and sector rotation. Despite a 9.6% rise in 2024, JP Morgan remains optimistic, highlighting obesity treatments, new drug launches, and expected M&A activity in 2025.

The FDA aims to clarify requirements for confirmatory trials for therapies seeking accelerated approval, emphasizing AI's risks in drug development. Novo Nordisk contests compounding for liraglutide. Key FDA decisions include Vertex's pain drug and Sanofi's hemophilia therapy. Recent approvals include Merck's Winrevair and BMS's cancer drug. Ionis's Tryngolza approval seen as less impactful than olezarsen's potential.

The FDA approved 50 new drugs in 2024, including first-ever treatments for MASH and Niemann-Pick disease type C, and novel therapies for schizophrenia, hemophilia, and pulmonary arterial hypertension. Notable approvals include Rezdiffra, Miplyffa, Aqneursa, Cobenfy, Hympavzi, Winrevair, and Imdelltra. Smaller biotech companies are increasingly bringing products to market independently.

The FDA approved 50 new drugs in 2024, including first-ever treatments for MASH and Niemann-Pick disease type C, and novel therapies for schizophrenia, hemophilia, pulmonary arterial hypertension, and small-cell lung cancer. Many approvals were from smaller biotech firms, indicating a shift towards independent market entry. Transcarent announced a $621M acquisition of Accolade, aiming to enhance personalized healthcare.

Axsome plans FDA approval filing by late 2025 after successful trials. UK approved Merck’s Winrevair; FDA approved BMS’s cancer drug. Vertex’s Alyftrek aims to surpass Trikafta’s $8.9B sales, offsetting recent clinical setbacks.

In 2024, 19 notable drugs were approved in the U.S., including Dupixent for COPD, Cobenfy for schizophrenia, FluMist nasal vaccine, Neffy for allergies, Yorvipath for hypoparathyroidism, Zunveyl for Alzheimer's, Voquezna for GERD, Kisunla for Alzheimer's, Ohtuvayre for COPD, Wakix for pediatric narcolepsy, Capvaxive vaccine, mRESVIA mRNA vaccine, Winrevair for pulmonary hypertension, Nexletol for cholesterol, Tryvio for high blood pressure, Wegovy for cardiovascular risk, Xolair for food allergies, Amtagvi for melanoma, and Dupixent for eosinophilic esophagitis in children.