Key Points
- AstraZeneca is the top analyst pick with major cancer trial results coming soon.
- Novartis is using new drug launches to offset expiring patents on older products.
- Sanofi’s stock is considered undervalued despite an ongoing tax investigation.
- Genmab relies on three upcoming 2026 trials to secure future profits. Grifols is expected to recover from pandemic-era financial struggles.
Bank of America analysts have identified five European pharmaceutical companies poised for a major growth spurt over the next few years. According to the bank, these companies have strong pipelines of new drugs and stock prices that look like bargains for investors.
AstraZeneca sits at the very top of the list. Analysts named it their number one pick, noting that its stock is currently cheap relative to the company’s expected earnings. The next year will be crucial for the British drugmaker, with results from major trials treating lung and breast cancer expected.
While some investors worry about these outcomes, the bank sees more potential reward than risk. Financially, the company remains confident, with its finance chief recently stating they can handle new pricing rules in the United States without taking a heavy hit.
Novartis also earned a “Buy” rating. The Swiss company faces a common industry problem: its older bestsellers’ patents are expiring soon. However, Bank of America believes the company’s pipeline of new treatments will fill that gap.
Drugs like Pluvicto and Scemblix are already selling well, and the company recently paid $120 million to partner with Monte Rosa Therapeutics to develop new treatments for immune diseases.
French giant Sanofi made the list because its stock price is considered very low relative to its future growth. While the company faces fewer big headlines in the immediate future, a recent trial for its eczema drug showed excellent results. However, the company is currently navigating a tax fraud investigation at its Paris headquarters.
Genmab is another favorite, largely because of three major trial results expected in 2026. These results could prove that their new cancer treatments work, which is vital given that their current top drug is losing market protection.
Finally, Grifols rounds out the top five. The company is still recovering from the financial mess caused by the pandemic and some accounting questions. However, with the stock trading at a very low price, analysts believe it will bounce back as the company proves it can stick to its business plan.
