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

U.S. Pharma Industry Analysis

UpdatedMar 12, 2026
DataAggregated Company Financials
Companies315
  • 7D-1.2%
  • 3M6.8%
  • 1Y26.4%
  • YTD3.0%

Over the last 7 days, the Pharma industry has dropped 1.2%, driven by Merck declining 3.4%. This takes the industry's 12 month performance to a gain of 26%. Looking forward, earnings are forecast to grow by 11% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 13 Mar 2026US$2.3tUS$406.1bUS$71.9b18x32.4x5.7x
Sun, 08 Feb 2026US$2.4tUS$411.7bUS$74.2b21.2x32.4x5.8x
Tue, 06 Jan 2026US$2.2tUS$402.6bUS$71.5b19.6x31.1x5.5x
Thu, 04 Dec 2025US$2.2tUS$402.7bUS$71.4b20x30.5x5.4x
Sat, 01 Nov 2025US$1.9tUS$396.3bUS$71.7b18.1x26.5x4.8x
Mon, 29 Sep 2025US$1.7tUS$387.9bUS$60.9b18.3x28.7x4.5x
Wed, 27 Aug 2025US$1.7tUS$387.8bUS$61.0b19.7x28.6x4.5x
Fri, 25 Jul 2025US$1.8tUS$384.0bUS$62.1b18.4x29.1x4.7x
Sun, 22 Jun 2025US$1.7tUS$382.7bUS$61.2b17.6x28.4x4.5x
Tue, 20 May 2025US$1.7tUS$382.6bUS$61.2b17.7x27.4x4.4x
Thu, 17 Apr 2025US$1.7tUS$380.5bUS$48.4b14.9x34.4x4.4x
Sat, 15 Mar 2025US$1.8tUS$380.5bUS$35.2b16.1x52.3x4.8x
Mon, 10 Feb 2025US$1.9tUS$380.7bUS$39.1b19.5x48x4.9x
Wed, 08 Jan 2025US$1.8tUS$369.3bUS$31.3b18.3x56.9x4.8x
Fri, 06 Dec 2024US$1.9tUS$373.8bUS$30.6b19.4x61.1x5x
Sun, 03 Nov 2024US$1.9tUS$373.2bUS$29.3b19.6x64.9x5.1x
Tue, 01 Oct 2024US$2.0tUS$364.1bUS$25.3b19.3x78.5x5.4x
Thu, 29 Aug 2024US$2.1tUS$363.3bUS$19.2b18x106.9x5.6x
Sat, 27 Jul 2024US$1.9tUS$356.5bUS$13.2b16.3x147.5x5.4x
Mon, 24 Jun 2024US$2.0tUS$358.2bUS$14.1b16.5x139x5.5x
Wed, 22 May 2024US$1.9tUS$358.3bUS$14.1b18.3x133.6x5.2x
Fri, 19 Apr 2024US$1.8tUS$357.7bUS$29.8b20.3x60.2x5x
Sun, 17 Mar 2024US$1.9tUS$355.4bUS$22.5b19.8x82.7x5.2x
Tue, 13 Feb 2024US$1.9tUS$354.7bUS$22.8b33.3x81.7x5.2x
Thu, 11 Jan 2024US$1.8tUS$375.2bUS$33.9b27.8x52.3x4.7x
Sat, 09 Dec 2023US$1.7tUS$375.1bUS$33.9b26.6x48.8x4.4x
Mon, 06 Nov 2023US$1.6tUS$376.9bUS$33.9b18.5x48.1x4.3x
Wed, 04 Oct 2023US$1.6tUS$381.8bUS$43.8b19x37.6x4.3x
Fri, 01 Sep 2023US$1.7tUS$381.4bUS$43.8b19.7x39.4x4.5x
Sun, 30 Jul 2023US$1.7tUS$393.6bUS$61.5b18.5x27.8x4.3x
Tue, 27 Jun 2023US$1.7tUS$392.8bUS$60.1b18.6x28.8x4.4x
Thu, 25 May 2023US$1.7tUS$392.9bUS$60.5b18.3x28.1x4.3x
Sat, 22 Apr 2023US$1.7tUS$402.6bUS$63.3b17.8x26.3x4.1x
Mon, 20 Mar 2023US$1.5tUS$401.1bUS$69.3b15.5x22.2x3.8x
Price to Earnings Ratio

22.2x


Total Market Cap: US$1.5tTotal Earnings: US$69.3bTotal Revenue: US$401.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Pharma Industry Price to Earnings3Y Average 53.5x202420252026
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 32.4x which is lower than its 3-year average PE of 53.4x.
  • The 3-year average PS ratio of 4.9x is lower than the industry's current PS ratio of 5.7x.
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 Market-1.47%
Healthcare-2.46%
Pharma-1.24%
Pharma-1.24%
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
JNJ Johnson & JohnsonUS$242.041.0%
+US$5.8b		48.5%PE21.8x
PFE PfizerUS$26.860.9%
+US$1.4b		4.9%PE19.7x
MAZE Maze TherapeuticsUS$51.8414.4%
+US$314.5m		358.7%PB6.6x
LQDA LiquidiaUS$37.588.9%
+US$269.6m		167.9%PS20.9x
TERN Terns PharmaceuticalsUS$44.245.3%
+US$243.6m		1,182.3%PB16.9x

Latest News

LQDA
US$37.58
Liquidia
7D
8.9%
1Y
167.9%
RLMD
US$6.15
Relmada Therapeutics
7D
38.8%
1Y
2,162.7%
JNJ
US$242.04
Johnson & Johnson
7D
1.0%
1Y
48.5%
EWTX
US$29.94
Edgewise Therapeutics
7D
5.5%
1Y
18.4%
PFE
US$26.86
Pfizer
7D
0.9%
1Y
4.9%
BMY
US$58.95
Bristol-Myers Squibb
7D
-2.9%
1Y
-2.2%
ELAN
US$22.68
Elanco Animal Health
7D
-5.2%
1Y
120.0%
LLY
US$977.25
Eli Lilly
7D
-0.6%
1Y
21.9%

LLY: Obesity Drug Leadership And Pipeline Catalysts Will Sustain Premium Positioning

The updated analyst price target for Eli Lilly has increased to $1,490.52 from $1,429.89. Analysts highlight the obesity and GLP-1 franchise, premium valuations tied to weight loss leadership, and potential upside from pipeline and acquisition catalysts as key factors supporting this change.
MRK
US$115.91
Merck
7D
-0.1%
1Y
22.4%
AXSM
US$154.12
Axsome Therapeutics
7D
-4.5%
1Y
26.7%

AXSM: Priority Review In Alzheimer’s Agitation Will Drive Future Upside

Analysts have lifted their average price target on Axsome Therapeutics by about $6 to roughly $222, citing continued Auvelity traction, expectations around AXS-05 in Alzheimer's disease agitation, and operating leverage supported by an expanding neuroscience pipeline. Analyst Commentary Recent Street research on Axsome Therapeutics points to a generally constructive view, with a series of price target increases clustered around the low to mid US$200s and a mix of Outperform, Buy, Equal Weight, and Overweight ratings.
VTRS
US$13.80
Viatris
7D
-5.0%
1Y
53.7%

VTRS: FY26 Guidance And Cost Savings Will Test Rich Earnings Expectations

Analysts have lifted their price target on Viatris by $2 to $20, citing the company hitting recent cost saving goals, issuing FY26 guidance above consensus, and outlining a path toward revenue and earnings growth. They believe this could support a lower future P/E multiple.
ZTS
US$115.46
Zoetis
7D
-5.5%
1Y
-27.9%

ZTS: Fair View Balances Growth Concerns With Innovation Air Pocket Risk

Zoetis's analyst price target holds steady at $130, as analysts balance concerns about organic growth and an innovation "air pocket" with stable margin expectations and a lower future P/E assumption. Analyst Commentary Recent Street research on Zoetis points to a more cautious tone, with several bearish analysts questioning the near term growth setup and how that lines up with the current valuation.
TEVA
US$29.30
Teva Pharmaceutical Industries
7D
-7.7%
1Y
78.0%

TEVA: Affordable Medicines And 2026 Pipeline Catalysts Will Drive Bullish Outlook

Analysts have nudged their price target for Teva Pharmaceutical Industries up to $38 from $37, reflecting a slightly higher fair value estimate and updated assumptions around long term revenue growth, margins, and the potential for duvakitug to reach $3b in peak sales following recent Phase 2 data with Sanofi. Analyst Commentary Recent research updates on Teva Pharmaceutical Industries highlight a mix of enthusiasm around the pipeline and affordability theme, alongside caution around execution risk and legal overhangs.
TERN
US$44.24
Terns Pharmaceuticals
7D
5.3%
1Y
1,182.3%
MANE
US$51.57
Veradermics
7D
6.1%
1Y
n/a
MAZE
US$51.84
Maze Therapeutics
7D
14.4%
1Y
358.7%