US Biopharmaceuticals: Tales from the Biotape, vol 4: Is it time to reassess Biopharma?

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US Biopharmaceuticals: Tales from the Biotape, vol 4: Is it time to reassess Biopharma?

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US Biopharmaceuticals

Tales from the Biotape, vol 4: Is it time to

reassess Biopharma?

Industry Overview

Fundamentals improving… but are we there yet? 08 June 2026

Despite some recent traction, Biopharma continues to lag the broader market (NBI +2%, Equity

DRG +5% vs. SPX +8%). We acknowledge key overhangs remain—including inflation/ United States

rates, limited generalist engagement, and structural challenges within the broader Health Biopharmaceuticals

Care sector (see our large- and SMiD-cap analyses). That said, several early major Jason Zemansky

concerns are easing: policy/ pricing pressures are more contained, regulatory dynamics Research Analyst

are stabilizing, M&A has proven more resilient, and fundamentals are showing signs of BofAS+1 646 855 4280

improving. Against this backdrop—with the short thesis weakening (see our short thesis jason.zemansky@bofa.com

note) and the Energy trade potentially less a challenge than feared (see our oil overhang Jacqueline Plesset

note)—investors may want to reconsider the case for Biopharma. ResearchBofAS Analyst

+1 646 855 0014

Policy/ regulatory risks easing with Biopharma also cheap jacqueline.plesset@bofa.com

Savita Subramanian

Perhaps the biggest disconnect reflects the easing of Biopharma-specific overhangs— Equity & Quant Strategist

some of the recent, primary drivers of negative sentiment. Despite concerns around BofAS

+1 646 855 3878

FDA, the number of approvals is on track to meet, if not modestly exceed, the 5-year savita.subramanian@bofa.com

annual average of ~48 (Exhibit 7). Capital markets have also remained open: IPO count

has already matched 2025 levels, with YTD proceeds up +129% vs.