How can investors benefit from this shift?

Investors can closely monitor company-specific announcements and focus on companies with clear catalysts such as promising clinical trials.

Morgan Stanley: Biopharma Sector to Shift to Fundamentals in H2

Q: Which major stocks are affected by this forecast?

Major stocks include Eli Lilly (LLY), Johnson & Johnson (JNJ), AbbVie (ABBV), Amgen (AMGN), Gilead Sciences (GILD), and Regeneron Pharmaceuticals (REGN).

Morgan Stanley analysts predict that biopharma sector performance in the second half will be driven by company fundamentals rather than macroeconomic factors. The note covers major stocks like LLY, JNJ, and ABBV.

July 8, 2026

2 min read

Source: MT Newswires

Morgan Stanley analysts said in a research note that the biopharma sector's performance in the second half of the year is expected to be driven more by company fundamentals rather than macroeconomic factors. This shift comes as the impact of monetary policy and inflation on the sector fades.

Details of the Forecast

Analysts believe investors will focus more on clinical trial results, FDA approvals, and sales performance of existing products. This means stocks with strong fundamentals may outperform their peers.

Stocks Affected

Major stocks in the sector include Eli Lilly (LLY), Johnson & Johnson (JNJ), AbbVie (ABBV), Amgen (AMGN), Gilead Sciences (GILD), and Regeneron Pharmaceuticals (REGN). These companies are expected to see divergent performance based on their specific developments.

Context

The forecast comes after a period of high volatility in the sector due to macro factors like interest rates and inflation. As these factors stabilize, attention returns to fundamentals.

What It Means for Investors

Investors should closely monitor company-specific announcements, as news about clinical trials and regulatory approvals could lead to significant price movements. Diversifying portfolios and focusing on companies with clear catalysts is recommended.

Frequently Asked Questions

It means that biopharma stock performance will depend more on individual company results like clinical trials and regulatory approvals rather than macroeconomic factors.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.