Barclays launched coverage of U.S. large-cap biopharmaceuticals with a Neutral industry stance, citing pharma’s defensive qualities and potential to regain investor focus in a volatile macro environment. The bank emphasized improved drug-pricing clarity from most-favored-nation agreements and structural tailwinds like aging demographics and rising healthcare spending.

Analysts highlighted that AI integration could compress R&D timelines and reduce clinical trial costs by up to 30%, positioning pharma as an AI winner rather than a disruptor. They also noted that the S&P Pharma index historically outperformed broader markets during major drawdowns, reinforcing the sector’s safe-haven appeal.

Within its preferred list, Barclays named Eli Lilly its top pick, citing the company’s market-leading obesity treatments as a durable structural shift. Despite acknowledging Lilly’s premium valuation, analysts expect sustained market leadership and revenue growth driven by its obesity portfolio.