Xin Lang Cai Jing·2025-11-19 11:08Core Viewpoint - The pharmaceutical sector, particularly companies like Eli Lilly and Amgen, has seen significant stock price increases, driven by a shift in investor focus from AI-related stocks to more stable growth stocks in healthcare [2][3][4]. Group 1: Market Trends - The S&P 500 index reached a historical high on October 28, with Eli Lilly's stock rising by 25% and Amgen's by 17% [2]. - AI-related stocks, such as Oracle and Meta, have experienced significant declines, with Oracle down 22% and Meta down 20% [3]. - Investors are reallocating funds from large-cap tech stocks to defensive sectors like healthcare, which are perceived as offering stable growth [3][4]. Group 2: Policy Impact - Concerns over potential drug price reductions under the Trump administration had previously suppressed healthcare stocks, but these fears have begun to ease [4][5]. - A recent agreement between Pfizer and the U.S. government to control drug prices has shifted market perceptions, leading to a more favorable outlook for pharmaceutical companies [4][5]. Group 3: Company Performance - Eli Lilly reported strong earnings for Q3 2025, with its diabetes drug Mounjaro and obesity drug Zepbound exceeding market expectations [5]. - Other companies like Merck and Amgen also reported earnings surpassing market forecasts, contributing to rising stock prices [5]. - Analysts, including Morgan Stanley's Michael Wilson, have a positive outlook on healthcare stocks due to earnings growth, reduced policy uncertainty, and low valuations [5].