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U.S. Pharma Industry Analysis

UpdatedAug 03, 2026
DataAggregated Company Financials
Companies319
  • 7D-2.1%
  • 3M12.1%
  • 1Y45.6%
  • YTD12.8%

Over the last 7 days, the Pharma industry has dropped 2.1%, driven by a pullback from Eli Lilly of 3.9%. Meanwhile, Bristol-Myers Squibb actually outperformed within the industry, gaining 5.2% in the last week. This takes the industry's 12 month performance to a gain of 46%. As for the next few years, earnings are expected to grow by 15% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 03 Aug 2026US$2.6tUS$427.5bUS$67.8b15.4x37.6x6x
Wed, 01 Jul 2026US$2.6tUS$425.2bUS$65.7b15.1x39.6x6.1x
Fri, 29 May 2026US$2.4tUS$424.1bUS$66.3b15.2x35.8x5.6x
Sun, 26 Apr 2026US$2.2tUS$408.1bUS$66.8b15.9x32.6x5.3x
Tue, 24 Mar 2026US$2.2tUS$406.1bUS$72.0b16.5x30.6x5.4x
Thu, 19 Feb 2026US$2.4tUS$411.5bUS$73.9b20.1x32.3x5.8x
Sat, 17 Jan 2026US$2.3tUS$402.6bUS$71.5b20.7x31.8x5.7x
Mon, 15 Dec 2025US$2.2tUS$402.7bUS$71.4b19.7x30.8x5.5x
Wed, 12 Nov 2025US$2.0tUS$402.7bUS$71.3b18.1x28.2x5x
Fri, 10 Oct 2025US$1.9tUS$387.6bUS$61.0b18.8x31.3x4.9x
Sun, 07 Sep 2025US$1.8tUS$387.9bUS$61.0b19x29.2x4.6x
Tue, 05 Aug 2025US$1.7tUS$382.0bUS$54.8b18.2x31.5x4.5x
Thu, 03 Jul 2025US$1.7tUS$382.7bUS$61.3b18.3x28.4x4.5x
Sat, 31 May 2025US$1.7tUS$382.7bUS$61.2b17.8x27.2x4.4x
Mon, 28 Apr 2025US$1.8tUS$379.6bUS$63.1b16.2x28.5x4.7x
Wed, 26 Mar 2025US$1.9tUS$381.1bUS$41.3b17x46.1x5x
Fri, 21 Feb 2025US$1.9tUS$381.0bUS$39.0b18.3x47.8x4.9x
Sun, 19 Jan 2025US$1.8tUS$369.3bUS$31.2b18.9x56.1x4.7x
Tue, 17 Dec 2024US$1.8tUS$373.8bUS$30.7b18.9x59.3x4.9x
Thu, 14 Nov 2024US$1.9tUS$373.8bUS$30.7b20.5x61x5x
Sat, 12 Oct 2024US$2.0tUS$364.2bUS$25.3b18.7x79.2x5.5x
Mon, 09 Sep 2024US$2.0tUS$364.1bUS$25.5b17.8x79x5.5x
Wed, 07 Aug 2024US$1.9tUS$358.7bUS$21.7b15.5x85.8x5.2x
Fri, 05 Jul 2024US$1.9tUS$357.6bUS$13.8b15x140.4x5.4x
Sun, 02 Jun 2024US$1.9tUS$358.3bUS$14.1b15.9x133.4x5.2x
Tue, 30 Apr 2024US$1.8tUS$359.6bUS$17.5b23x102.8x5x
Thu, 28 Mar 2024US$1.9tUS$355.3bUS$22.6b19.4x84.3x5.4x
Sat, 24 Feb 2024US$1.9tUS$355.2bUS$24.0b24.1x80x5.4x
Mon, 22 Jan 2024US$1.8tUS$375.2bUS$33.9b27.7x51.8x4.7x
Wed, 20 Dec 2023US$1.7tUS$375.1bUS$33.9b26.9x49.4x4.5x
Fri, 17 Nov 2023US$1.6tUS$375.4bUS$33.7b25.8x48.5x4.3x
Sun, 15 Oct 2023US$1.7tUS$381.8bUS$43.8b18.3x38.9x4.5x
Tue, 12 Sep 2023US$1.8tUS$381.8bUS$43.9b18x40x4.6x
Thu, 10 Aug 2023US$1.8tUS$381.3bUS$44.5b19x40x4.7x
Price to Earnings Ratio

40x


Total Market Cap: US$1.8tTotal Earnings: US$44.5bTotal Revenue: US$381.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Pharma Industry Price to Earnings3Y Average 54.5x202420252026
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 37.6x which is lower than its 3-year average PE of 54.5x.
  • 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 15% per year over the last three years.
  • Revenues for these companies have grown 3.9% 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 Market0.85%
Healthcare-0.58%
Pharma-2.08%
Pharma-2.08%
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
BMY Bristol-Myers SquibbUS$65.315.2%
+US$6.6b		47.7%PE14.4x
TEVA Teva Pharmaceutical IndustriesUS$35.0113.6%
+US$4.9b		127.6%PE57.8x
PFE PfizerUS$25.011.9%
+US$2.7b		6.5%PE19.1x
CORT Corcept TherapeuticsUS$114.4920.1%
+US$2.1b		65.9%PE228x
BHC Bausch Health CompaniesUS$6.8955.5%
+US$918.8m		20.7%PS0.2x

Latest News

BMY
US$65.31
Bristol-Myers Squibb
7D
5.2%
1Y
47.7%
JNJ
US$256.35
Johnson & Johnson
7D
-2.7%
1Y
53.2%
BIOA
US$9.04
BioAge Labs
7D
-58.5%
1Y
119.4%
LLY
US$1,148.84
Eli Lilly
7D
-3.9%
1Y
50.7%
PFE
US$25.01
Pfizer
7D
1.9%
1Y
6.5%
BHC
US$6.89
Bausch Health Companies
7D
55.5%
1Y
20.7%
PHAT
US$8.75
Phathom Pharmaceuticals
7D
-23.5%
1Y
4.8%
VTRS
US$17.56
Viatris
7D
1.9%
1Y
99.3%
Seeking Alpha • Jul 31

Low Growth Viatris Is Due For A Pullback After A Stellar 16-Month Run

Summary Viatris is rated a sell due to persistent risks, weak financials, and a likely profit-taking event post-Q2 2026 earnings. VTRS faces significant tariff and supply chain risks from heavy reliance on Indian manufacturing, with looming 2028–2029 US tariff threats. Despite positive free cash flow and a 5.3% shareholder return, VTRS remains unprofitable and burdened by high debt and rising R&D costs. Pipeline catalysts (Meloxicam, estrogen patch) are 9–12 months out, but near-term revenue growth is minimal and margin pressures persist. Read the full article on Seeking Alpha
CORT
US$114.49
Corcept Therapeutics
7D
20.1%
1Y
65.9%
TEVA
US$35.01
Teva Pharmaceutical Industries
7D
13.6%
1Y
127.6%
MRK
US$130.20
Merck
7D
-0.7%
1Y
64.2%
Narrative Update • Jul 29

MRK: Pipeline Execution And Policy Headwinds Will Restrain Multiple Expansion

Merck's updated analyst price target reflects a modest fair value move to about $108, with analysts pointing to refreshed pipeline assumptions, sector re-rating, and multiple expansion as key drivers behind the change. Analyst Commentary Recent commentary on Merck highlights a mix of optimism around the pipeline and sector setup alongside a more cautious tone on execution risks, earnings durability, and regulatory overhangs.
LGND
US$287.54
Ligand Pharmaceuticals
7D
-4.3%
1Y
116.7%
New Narrative • Jul 24

Royalty Aggregation And XOMA Acquisition Will Drive Powerful Long Term Earnings Compounding

Catalysts About Ligand Pharmaceuticals Ligand Pharmaceuticals focuses on acquiring and managing royalties tied to commercial and late stage biopharma assets rather than developing its own infrastructure heavy platforms. What are the underlying business or industry changes driving this perspective?
ELAN
US$26.37
Elanco Animal Health
7D
5.9%
1Y
91.2%
Narrative Update • Jul 23

ELAN: Blockbuster Launches And Sluggish Vet Visits Will Shape Fairly Valued Outlook

Elanco Animal Health's fair value estimate has increased from $25.39 to $26.82 as analysts factor in higher price targets, citing potential contributions from upcoming product launches and a diversified portfolio, while also expressing caution about sluggish visit trends in U.S. vet practices. Analyst Commentary Recent Street research on Elanco Animal Health reflects a mixed tone, with some firms lifting price targets while others highlight execution and growth risks that could weigh on valuation if they materialize.
ZTS
US$77.29
Zoetis
7D
2.6%
1Y
-47.6%
Narrative Update • Jul 22

ZTS: Premium Pet Health Portfolio Will Support Post Lawsuit And Guidance Reset

The analyst price target for Zoetis has been lowered, with the model fair value estimate moving from about $124.59 to $114.76, as analysts temper revenue growth assumptions while slightly improving profit margin and applying a lower future P/E multiple in response to a broad series of recent target cuts and more cautious commentary following Q1 results. Analyst Commentary Recent research on Zoetis shows a clear reset in expectations, with most analysts cutting price targets and recalibrating models after a difficult Q1 and updated guidance.
AXSM
US$217.99
Axsome Therapeutics
7D
-9.5%
1Y
111.6%
Narrative Update • Jul 22

AXSM: Alzheimer’s Agitation Launch Will Drive Future CNS Portfolio Upside

Axsome Therapeutics' analyst fair value estimate has been nudged higher from $276.47 to $282.51, as analysts factor in recent price target increases around $300 to $310 that highlight Auvelity's new Alzheimer's disease agitation indication and potential contributions from products like Sunosi and Symbravo. Analyst Commentary Recent Street research on Axsome Therapeutics has focused heavily on Auvelity's new indication in Alzheimer's disease agitation and the contribution of the broader commercial portfolio, with several firms adjusting price targets into the US$300 to US$310 range.
EWTX
US$38.43
Edgewise Therapeutics
7D
-5.9%
1Y
168.6%