Barclays Assigns Merck Overweight Citing 30% AI-Driven R&D Efficiency Gains
Barclays initiated U.S. large-cap biopharma coverage with a Neutral industry view and named Merck an Overweight pick citing expected earnings upside and multiple expansion from upcoming launches and readouts. Analysts highlighted improved U.S. drug pricing policy clarity and 30% R&D cost efficiency gains from AI as sector catalysts.
1. Barclays Initiates U.S. Biopharma Coverage
Barclays launched coverage of U.S. large-cap biopharmaceuticals with a Neutral industry view and selected Merck among four preferred picks.
2. Merck Awarded Overweight Rating
Merck received an Overweight rating based on expectations for earnings upside and potential multiple expansion driven by upcoming drug launches and clinical readouts.
3. Sector Catalysts and Risks
Barclays highlighted improved U.S. drug pricing policy clarity, aging demographics, rising healthcare spending and 30% R&D cost efficiency gains from AI as tailwinds, while noting a relatively incremental 2026 pipeline calendar and fluid policy environment pose risks.