The table and chart below illustrate some characteristics of the biopharma stocks.
The average price/earnings multiple for the group, using 2025 estimates, is 12.7 times versus 20.6 times for the S & P 500.
A major knock on the biopharma group is the limited productivity from their extremely expensive research efforts, other than obesity drugs, over the past twenty-five years.
The technology using AI might not be ready yet, particularly related to the complex biology of the human body.
Complex programs exist already, such as AlphaFold, which predicts the structure of three-dimensional compounds using data on protein sequences.
Persons:
Bristol Myers, Amgen, Eli Lilly, Lilly, Johnson
Organizations:
CNBC, Merck, Pfizer, Novo Nordisk, JPMorgan
Locations:
Bristol