Key Players and Their Performance
Large-cap pharmaceutical stocks, including McKesson, Eli Lilly, and Johnson & Johnson, have seen impressive gains on Wall Street in 2025, while Pfizer and Merck lag behind.
- McKesson: The world’s largest biopharmaceutical company has experienced a 45.2% increase, with shares trading at $827.33.
- Johnson & Johnson: The world’s largest and most diversified healthcare company has seen a 43.1% rise, with shares currently priced at $206.91.
- Eli Lilly: With a 39.9% gain, Eli Lilly’s stock is valued at $1,079.75.
- Pfizer: Pfizer, known for developing and manufacturing innovative medications and vaccines, has seen a 5.8% decrease, with shares trading at $24.99.
Positive Factors Driving Growth
Eli Lilly’s stock surge has boosted its market capitalization close to $1 trillion, a first for a healthcare stock. This success is attributed to their progress in obesity treatment.
- Zepbound Injection: Although successful, Lilly’s Zepbound injection is not the primary driver of growth.
- Orforglipron Pill: The anticipated FDA approval of Lilly’s weight-loss pill, orforglipron, in 2026 could make the drug available by mid-2026 if everything proceeds as planned.
Johnson & Johnson’s stock performance is attributed to improved technology medical business performance and the planned separation of its orthopedics unit. The company expects to submit its surgical robot, Ottava, to the FDA for approval by early 2026.
Merck’s Potential for Growth
BMO Capital Markets analyst Evan David Seigerman predicts a positive shift for Merck’s stock. He upgraded Merck to “outperform” in early December, stating, “Some of the best stories are still yet to be written.”
- Keytruda Sales: Seigerman believes Merck can achieve 90% of Keytruda’s maximum sales potential by mid-2030.
Pfizer’s Underperformance
Pfizer has fallen behind due to disappointments in its weight-loss product portfolio and competition with Novo Nordisk for Metsera, a medication manufacturer against obesity. A successful weight-loss drug does not guarantee success, as demonstrated by Novo Nordisk’s 40% drop this year.
