Barclays Names AbbVie Among Four Top U.S. Biopharma Picks With Neutral View
Barclays initiated coverage of U.S. large-cap biopharma with a Neutral industry view, identifying AbbVie among its four preferred picks alongside Eli Lilly, Merck and Bristol-Myers Squibb. The firm cited AbbVie’s underappreciated operating leverage and untapped pipeline optionality as key drivers for potential multiple expansion.
1. Barclays Initiates U.S. Biopharma Coverage
Barclays began covering U.S. large-cap biopharma with a Neutral industry view, highlighting improved drug pricing policy clarity from most-favored-nation agreements and structural tailwinds such as aging demographics and rising healthcare spending.
2. AbbVie Named Among Four Preferred Picks
AbbVie rounded out Barclays’ top four picks alongside Eli Lilly, Merck and Bristol-Myers Squibb, reflecting the stock’s defensive profile and potential for earnings leverage.
3. Analysts Cite Operating Leverage and Pipeline Optionality
Barclays analysts pointed to AbbVie’s underappreciated operating leverage and untapped pipeline optionality, noting that AI-driven R&D efficiencies could cut clinical trial costs by up to 30%, accelerating drug development timelines.