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

U.S. Pharma Industry Analysis

UpdatedAug 18, 2026
DataAggregated Company Financials
Companies318
  • 7D-1.2%
  • 3M14.2%
  • 1Y50.7%
  • YTD15.8%

Over the last 7 days, the Pharma industry has remained flat, although notably Merck gained 3.9%. As for the the longer term, the industry is up 50% over the past 12 months. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 18 Aug 2026US$2.6tUS$437.5bUS$59.6b16.4x43.9x6x
Thu, 16 Jul 2026US$2.5tUS$425.2bUS$66.0b15.1x37.8x5.9x
Sat, 13 Jun 2026US$2.5tUS$425.3bUS$66.0b15.2x37.4x5.8x
Mon, 11 May 2026US$2.2tUS$424.3bUS$65.9b16.1x33.5x5.2x
Wed, 08 Apr 2026US$2.3tUS$405.9bUS$72.5b16.5x31.3x5.6x
Fri, 06 Mar 2026US$2.4tUS$406.1bUS$72.5b18.8x32.5x5.8x
Sun, 01 Feb 2026US$2.3tUS$405.1bUS$73.9b20.4x31.1x5.7x
Tue, 30 Dec 2025US$2.3tUS$402.8bUS$71.4b19.9x31.7x5.6x
Thu, 27 Nov 2025US$2.3tUS$402.7bUS$71.4b20.6x31.6x5.6x
Sat, 25 Oct 2025US$1.9tUS$389.2bUS$63.5b17.7x29.7x4.8x
Mon, 22 Sep 2025US$1.8tUS$387.9bUS$60.9b18.4x29x4.6x
Wed, 20 Aug 2025US$1.7tUS$387.8bUS$61.1b19.1x28.4x4.5x
Fri, 18 Jul 2025US$1.8tUS$384.0bUS$62.1b18x28.5x4.6x
Sun, 15 Jun 2025US$1.8tUS$382.7bUS$61.2b17.8x29.1x4.7x
Tue, 13 May 2025US$1.7tUS$382.6bUS$61.0b17.1x27.1x4.3x
Thu, 10 Apr 2025US$1.6tUS$379.9bUS$40.6b16.1x40.1x4.3x
Sat, 08 Mar 2025US$2.0tUS$381.1bUS$39.2b16.5x49.8x5.1x
Mon, 03 Feb 2025US$1.9tUS$370.4bUS$29.8b18.4x62x5x
Wed, 01 Jan 2025US$1.8tUS$369.3bUS$31.3b16.5x56.9x4.8x
Fri, 29 Nov 2024US$1.9tUS$373.8bUS$30.6b19.8x60.9x5x
Sun, 27 Oct 2024US$2.0tUS$365.3bUS$23.7b17.9x83.2x5.4x
Tue, 24 Sep 2024US$2.0tUS$364.2bUS$25.3b18.9x80.4x5.6x
Thu, 22 Aug 2024US$2.0tUS$362.1bUS$21.8b18x93.3x5.6x
Sat, 20 Jul 2024US$1.9tUS$356.5bUS$13.1b15.9x148.2x5.4x
Mon, 17 Jun 2024US$1.9tUS$358.3bUS$14.1b15.3x137.4x5.4x
Wed, 15 May 2024US$1.9tUS$358.2bUS$13.8b18.1x134.6x5.2x
Fri, 12 Apr 2024US$1.8tUS$355.1bUS$23.9b23.4x76.9x5.2x
Sun, 10 Mar 2024US$1.9tUS$355.3bUS$22.4b22.5x84x5.3x
Tue, 06 Feb 2024US$1.8tUS$352.8bUS$22.8b28.1x79.4x5.1x
Thu, 04 Jan 2024US$1.8tUS$375.2bUS$33.8b27.7x51.7x4.7x
Sat, 02 Dec 2023US$1.7tUS$375.2bUS$33.9b27.2x48.6x4.4x
Mon, 30 Oct 2023US$1.6tUS$383.5bUS$46.6b14.2x34.1x4.1x
Wed, 27 Sep 2023US$1.7tUS$381.8bUS$43.9b18.5x38.1x4.4x
Fri, 25 Aug 2023US$1.8tUS$381.6bUS$44.1b19.8x39.9x4.6x
Price to Earnings Ratio

39.9x


Total Market Cap: US$1.8tTotal Earnings: US$44.1bTotal Revenue: US$381.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Pharma Industry Price to Earnings3Y Average 54.6x202420252026
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 43.9x which is lower than its 3-year average PE of 54.6x.
  • The 3-year average PS ratio of 5.1x is lower than the industry's current PS ratio of 6.0x.
Past Earnings Growth
  • The earnings for companies in the Pharmaceuticals industry have grown 11% per year over the last three years.
  • Revenues for these companies have grown 4.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market0.11%
Healthcare-0.86%
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
MRK MerckUS$135.973.9%
+US$12.5b		61.4%PE105.7x
JNJ Johnson & JohnsonUS$262.370.2%
+US$1.3b		48.9%PE30.1x
ELAN Elanco Animal HealthUS$23.616.0%
+US$664.5m		33.4%PS2.3x
RPRX Royalty PharmaUS$59.452.6%
+US$659.0m		65.5%PE32.6x
ETON Eton PharmaceuticalsUS$61.7341.4%
+US$568.2m		277.1%PE139.1x

Latest News

JNJ
US$262.37
Johnson & Johnson
7D
0.2%
1Y
48.9%
EYPT
US$4.87
EyePoint
7D
-62.7%
1Y
-57.0%
LLY
US$1,183.16
Eli Lilly
7D
-4.0%
1Y
69.5%
PFE
US$26.87
Pfizer
7D
-0.7%
1Y
7.2%
ETON
US$61.73
Eton Pharmaceuticals
7D
41.4%
1Y
277.1%
ZTS
US$72.97
Zoetis
7D
-2.5%
1Y
-52.1%
TEVA
US$36.46
Teva Pharmaceutical Industries
7D
0.9%
1Y
101.9%
JAZZ
US$248.36
Jazz Pharmaceuticals
7D
-3.2%
1Y
111.1%
Narrative Update • Aug 15

JAZZ: HER2 GEA Approval And Rare Epilepsy Deal Will Reshape Oncology Leadership

Analysts have lifted their fair value estimate for Jazz Pharmaceuticals from $257.00 to $281.35, citing higher modeled revenue growth, stronger profit margins, and a richer future P/E assumption that reflect recent price target increases across the Street and confidence in the company's expanding oncology and rare-epilepsy portfolio. Analyst Commentary Street research on Jazz Pharmaceuticals has been active, with a cluster of higher price targets and fresh coverage reflecting updated views on execution, growth mix, and risk around key franchises and pipeline assets.
BMY
US$64.63
Bristol-Myers Squibb
7D
-0.3%
1Y
34.1%
Narrative Update • Aug 14

BMY: 2026 Pipeline And M&A Noise Will Not Mitigate Patent Cliff

Analysts have lifted their blended price targets for Bristol-Myers Squibb toward the $70 to $75 range, citing improving sentiment around growth products, recent Q2 earnings updates, and ongoing debate around potential M&A interest as key drivers behind the reassessment of fair value from about $45.67 to roughly $49.02 per share. Analyst Commentary Recent research coverage on Bristol-Myers Squibb highlights a mix of improving sentiment and lingering concerns.
LQDA
US$77.70
Liquidia
7D
-14.6%
1Y
180.3%
AXSM
US$216.27
Axsome Therapeutics
7D
-2.1%
1Y
94.6%
Analysis Article • Aug 13

Axsome Therapeutics, Inc. (NASDAQ:AXSM) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

The second-quarter results for Axsome Therapeutics, Inc. ( NASDAQ:AXSM ) were released last week, making it a good time...
ELAN
US$23.61
Elanco Animal Health
7D
6.0%
1Y
33.4%
Seeking Alpha • Aug 12

Elanco: Innovation Is Turning A Leveraged Portfolio Into A Share-Taking Platform

Summary Elanco Animal Health is transitioning from a leveraged consolidator to an innovative competitor, with new products driving EBITDA growth and market share gains. ELAN's innovation portfolio, including Zenrelia, Credelio Quattro, and Befrena, is capturing share in dermatology and parasiticide markets, challenging Zoetis' key franchises. Margin expansion and deleveraging are underway, supported by the Ascend program and strong cash flow; net leverage is targeted below 3.0x by 2027. Valuation remains discounted versus peers on sales and book multiples, despite innovation-driven growth and a more balanced, diversified business model. Read the full article on Seeking Alpha
MRK
US$135.97
Merck
7D
3.9%
1Y
61.4%
Narrative Update • Aug 12

MRK: Pipeline Execution And Patent Cliff Response Will Shape Future Earnings Balance

Merck's updated analyst price target framework now points to a fair value of $136.85, up from $132.78. Analysts link this shift to a series of higher Street targets that emphasize the company's dividend profile, pipeline progress, and M&A optionality.
RPRX
US$59.45
Royalty Pharma
7D
2.6%
1Y
65.5%
CORT
US$117.17
Corcept Therapeutics
7D
2.6%
1Y
63.3%
Narrative Update • Aug 06

CORT: Elevated Expectations Around Cushing’s Decision Will Shape Bearish Risk Outlook

Corcept Therapeutics' updated fair value estimate has moved from $88 to $50. This reflects analysts' wider range of views after several firms sharply raised their price targets into the $95 to $165 band, based on stronger recent results, expanded 2026 revenue guidance, and growing confidence in Lifyorli, Korlym, and the broader pipeline.
OCUL
US$10.65
Ocular Therapeutix
7D
15.3%
1Y
-13.5%
Analysis Article • Aug 06

Here's What Analysts Are Forecasting For Ocular Therapeutix, Inc. (NASDAQ:OCUL) After Its Second-Quarter Results

A week ago, Ocular Therapeutix, Inc. ( NASDAQ:OCUL ) came out with a strong set of second-quarter numbers that could...