Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Pharma Industry Analysis

UpdatedDec 24, 2025
DataAggregated Company Financials
Companies310
  • 7D1.4%
  • 3M28.4%
  • 1Y24.2%
  • YTD26.0%

Last week, the Pharma industry hasn't moved much but Merck is up 6.9% in that time. The past year has been better, since the industry has gained 25% in that time. Looking forward, earnings are forecast to grow by 15% annually.

Industry Valuation and Performance

Has the U.S. Pharma Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 24 Dec 2025US$2.3tUS$402.8bUS$71.4b19.7x31.6x5.6x
Fri, 21 Nov 2025US$2.1tUS$402.7bUS$71.4b19.4x30.1x5.3x
Sun, 19 Oct 2025US$1.9tUS$389.2bUS$63.5b17.6x29.4x4.8x
Tue, 16 Sep 2025US$1.8tUS$387.9bUS$60.9b18.8x29.3x4.6x
Thu, 14 Aug 2025US$1.7tUS$387.8bUS$60.6b19.8x27.3x4.3x
Sat, 12 Jul 2025US$1.8tUS$382.7bUS$61.3b18.2x28.8x4.6x
Mon, 09 Jun 2025US$1.7tUS$382.7bUS$61.2b17.1x28.1x4.5x
Wed, 07 May 2025US$1.8tUS$382.9bUS$63.7b16.8x27.7x4.6x
Fri, 04 Apr 2025US$1.8tUS$379.9bUS$41.3b15.7x43.5x4.7x
Sun, 02 Mar 2025US$2.0tUS$381.1bUS$39.3b16.7x49.8x5.1x
Tue, 28 Jan 2025US$1.8tUS$370.4bUS$30.5b19x59.2x4.9x
Thu, 26 Dec 2024US$1.8tUS$369.4bUS$31.1b17.3x58.4x4.9x
Sat, 23 Nov 2024US$1.8tUS$373.8bUS$30.6b20.5x59.2x4.8x
Mon, 21 Oct 2024US$2.0tUS$365.3bUS$23.7b18.6x85.8x5.6x
Wed, 18 Sep 2024US$2.1tUS$364.3bUS$25.3b19x81x5.6x
Fri, 16 Aug 2024US$2.0tUS$362.0bUS$21.9b17.3x91.7x5.5x
Sun, 14 Jul 2024US$2.0tUS$357.7bUS$13.8b15.9x146.2x5.7x
Tue, 11 Jun 2024US$1.9tUS$358.3bUS$14.1b19x138x5.4x
Thu, 09 May 2024US$1.9tUS$358.2bUS$13.9b21x133.4x5.2x
Sat, 06 Apr 2024US$1.9tUS$355.2bUS$22.7b24.7x82x5.2x
Mon, 04 Mar 2024US$1.9tUS$355.3bUS$22.5b24.1x85x5.4x
Wed, 31 Jan 2024US$1.8tUS$351.7bUS$24.9b28.7x71.3x5.1x
Fri, 29 Dec 2023US$1.7tUS$375.2bUS$33.8b32.1x49.8x4.5x
Sun, 26 Nov 2023US$1.7tUS$375.1bUS$33.9b26.2x48.8x4.4x
Tue, 24 Oct 2023US$1.6tUS$382.7bUS$44.7b14.7x36.7x4.3x
Thu, 21 Sep 2023US$1.7tUS$381.8bUS$43.9b18.3x39.1x4.5x
Sat, 19 Aug 2023US$1.8tUS$381.6bUS$44.1b18.5x40.3x4.6x
Mon, 17 Jul 2023US$1.7tUS$392.8bUS$60.2b18.3x27.7x4.2x
Wed, 14 Jun 2023US$1.7tUS$392.8bUS$60.1b18.6x28.8x4.4x
Fri, 12 May 2023US$1.7tUS$395.0bUS$57.5b20.3x30.3x4.4x
Sun, 09 Apr 2023US$1.7tUS$401.2bUS$69.7b15.9x23.7x4.1x
Tue, 07 Mar 2023US$1.6tUS$401.0bUS$69.4b17x22.7x3.9x
Thu, 02 Feb 2023US$1.7tUS$403.0bUS$70.8b18x23.5x4.1x
Sat, 31 Dec 2022US$1.8tUS$403.7bUS$70.7b16.8x24.8x4.3x
Price to Earnings Ratio

24.8x


Total Market Cap: US$1.8tTotal Earnings: US$70.7bTotal Revenue: US$403.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Pharma Industry Price to Earnings3Y Average 52.9x202320242025
Current Industry PE
  • Investors are pessimistic on the American Pharmaceuticals industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 31.3x which is lower than its 3-year average PE of 52.9x.
  • The 3-year average PS ratio of 4.8x is lower than the industry's current PS ratio of 5.5x.
Past Earnings Growth
  • Both revenue and earnings for companies in the Pharmaceuticals industry have remained mostly flat over the last three years.
  • This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.

Industry Trends

Which industries have driven the changes within the U.S. Healthcare industry?

US Market2.62%
Healthcare1.21%
Pharma1.37%
Pharma1.37%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MRK MerckUS$105.046.9%
+US$16.8b		5.6%PE13.7x
LLY Eli LillyUS$1.07k1.6%
+US$15.5b		34.7%PE52.1x
RGC Regencell Bioscience HoldingsUS$25.2551.2%
+US$4.2b		18,448.3%PB2569x
TEVA Teva Pharmaceutical IndustriesUS$31.544.8%
+US$1.7b		40.7%PE50.8x
VTRS ViatrisUS$12.024.9%
+US$645.0m		-3.1%PS1x

Latest News

ELAN
US$22.22
Elanco Animal Health
7D
-1.2%
1Y
87.0%

ELAN: Margin Expansion Hurdles Will Cap Upside Despite Product Launch Momentum

We raise our fair value estimate for Elanco Animal Health to approximately $20 per share from about $14. This reflects analysts' higher price targets that emphasize accelerating revenue growth from recent product launches, meaningful margin expansion potential, and improving leverage and cash flow.
TLRY
US$10.53
Tilray Brands
7D
-24.5%
1Y
-25.3%
TEVA
US$31.54
Teva Pharmaceutical Industries
7D
4.8%
1Y
40.7%

TEVA: Shares Will Trade Sideways As IRA Pricing Clarity Drives Relief Rally

Analysts have raised their fair value estimate for Teva Pharmaceutical Industries to approximately $32.77 from about $28.61, citing recent price target increases to the mid 20 dollar range, expectations for stable Q3 performance, and a potential relief rally tied to upcoming Austedo IRA pricing clarity. Analyst Commentary Recent Street research reflects a generally constructive stance on Teva, with price targets moving higher in anticipation of stable near term execution and clearer visibility on Austedo economics under the Inflation Reduction Act.
PAHC
US$37.83
Phibro Animal Health
7D
-7.0%
1Y
74.8%

PAHC: Clearer Earnings Trajectory Will Support Margins And Strengthen Upside Potential

Analysts have raised their price target on Phibro Animal Health to $45 from $34, reflecting increased conviction in the company's earnings trajectory and valuation resilience. Analyst Commentary Analysts describe the higher price target as a reflection of improving confidence in Phibro Animal Health's ability to deliver on earnings expectations while maintaining a resilient valuation profile relative to sector peers.
LLY
US$1,071.64
Eli Lilly
7D
1.6%
1Y
34.7%
MRK
US$105.04
Merck
7D
6.9%
1Y
5.6%
JNJ
US$205.78
Johnson & Johnson
7D
-1.7%
1Y
41.1%

JNJ Future Portfolio Separation And Litigation Resolution Will Shape Balanced Risk Reward Outlook

Analysts have raised their average price target on Johnson & Johnson by about $7 to roughly $209, reflecting slightly faster expected revenue growth, a modestly higher future earnings multiple, and confidence that portfolio reshaping and pipeline execution can offset near term margin pressure. Analyst Commentary Street research on Johnson & Johnson has turned incrementally more constructive, with multiple firms lifting price targets in response to stronger fundamentals and portfolio actions that are viewed as supportive of a faster growth profile.
OCUL
US$12.96
Ocular Therapeutix
7D
-8.5%
1Y
51.4%
PFE
US$24.88
Pfizer
7D
-2.5%
1Y
-7.0%
VTRS
US$12.02
Viatris
7D
4.9%
1Y
-3.1%
RPRX
US$39.39
Royalty Pharma
7D
2.6%
1Y
56.1%
WVE
US$17.97
Wave Life Sciences
7D
11.5%
1Y
37.0%

Subdued Growth No Barrier To Wave Life Sciences Ltd. (NASDAQ:WVE) With Shares Advancing 128%

Dec 16
Subdued Growth No Barrier To Wave Life Sciences Ltd. (NASDAQ:WVE) With Shares Advancing 128%
TERN
US$41.53
Terns Pharmaceuticals
7D
-3.2%
1Y
616.0%
RGC
US$25.25
Regencell Bioscience Holdings
7D
51.2%
1Y
18,448.3%

Regencell Bioscience: Material Weaknesses Add To Woes

Dec 05
AXSM
US$154.70
Axsome Therapeutics
7D
5.8%
1Y
77.9%

AXSM: Commercial Execution And Late-Stage Pipeline Will Drive Strong Upside Potential

Axsome Therapeutics' fair value estimate has been raised by analysts from $176.84 to $181.58. This change reflects upward price target revisions, as analysts express optimism about the company's progress toward profitability and effective commercial execution following recent quarterly results.
BGM
US$4.31
BGM Group
7D
-14.0%
1Y
n/a