4 Large-Cap Pharma Stocks to Watch as Industry Recovery Gains Steam

The drug and biotech sector has recovered somewhat in 2026 after remaining muted for most of 2025. Drug pricing agreements of Big Pharma with the Trump administration, strong quarterly results, bullish outlook for 2026, robust pipeline activity and a flurry of M&A deals have led to the industry’s recovery. However, it faces its share of headwinds like regular pipeline setbacks, slow ramp-up of newer drugs, patent cliffs, regulatory risks and policy and pricing uncertainty. Despite the headwinds, the industr ...