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Der Invesco Pharmaceuticals ETF bietet eine höhere Dividendenrendite und einen niedrigeren fünfjährigen Beta-Wert als der State Street SPDR S&P Biotech ETF. Der State Street SPDR S&P Biotech ETF hält 155 Titel im Vergleich zu 30 in Invesco Pharmaceuticals ETF. Der Invesco Pharmaceuticals ETF hat eine signifikant kleinere Maximalabstinenz von 17,5 % über die letzten fünf Jahre gegenüber 54 % für den State Street SPDR S&P Biotech ETF.

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Jefferies empfiehlt die Besitzung von Qualität- und Stress-Auslastungsaktien, um die Sommermonate zu überstehen, da Märkte aufgrund erhöhter Sorgen im Zusammenhang mit der Investition in künstliche Intelligenz (KI) zunehmend volatil werden. Die KI-bezogenen Fragen reichen von potenzieller Überkapazität bis hin zu den Gewinnen, die sich aus dem Investieren von geschätzten 700 Milliarden US-Dollar durch Hyperscaler ergeben und steigenden Kosten für Token, die an AI-Modelle gezahlt werden. Als Beweis für die Popularität aller Dinge KI hat der S&P 500-Momentum-Index das breitere Aktienmarkt seit 2024 um mehr als 70% übertrifft, nahezu auf dem Niveau während des Dotcom-Booms in den 1990er Jahren. Jefferies empfiehlt eine Liste von Unternehmen mit hohen Qualitätswerten und niedriger Momentum, um potenzielle KI-bezogene Stürme zu überstehen.

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Der iShares Core High Dividend ETF (NYSEMKT: HDV) ist kein großer oder bekannter Dividenden-ETF. Trotzdem hat er dieses Jahr den S&P 500 überboten. Während dieser breiten Marktindex im ersten Halbjahr um 9% zuleitete, lag HDV bei mehr als 15%. Der ETF ist ein passiv geführter Fonds, der einen Index von hochrentierenden US-Dividendenaktien (Morningstar Dividend Yield Focus Index) nachbildet. Dieser Index filtert nicht nur Unternehmen aufgrund ihres Dividendenrendite aus, sondern auch aufgrund ihrer finanziellen Qualität, einschließlich eines breiten wirtschaftlichen Vorteils (sachhaltiger Wettbewerbsvorteil) und einer hohen Abstandsquote zur Insolvenz (starke finanzielle Gesundheit). Der Index wählt die höchsten renditeführenden Aktien aus denen, die seine Qualitätsscreens passieren. Die Gewichtung der Aktien erfolgt im Verhältnis zu den von ihnen gezahlten Dividenden. Das Ergebnis ist ein ETF, der derzeit 75 Aktien hält. Der iShares Core High Dividend ETF hat eine Rendite von 2,9% basierend auf seinem aktuellen Preis und den Dividendenzahlungen über die letzten 12 Monate. Dies entspricht fast dreimal so viel wie die aktuelle Rendite des S&P 500 von 1,1%. Die Top-5-Holdings des ETF sind: ExxonMobil (7,1% Gewichtung im ETF), AbbVie (6,6%), Chevron (5,4%), Verizon (5,1%) und Home Depot (4,9%). Obwohl zwei seiner Top-3-Holdings Energieaktien sind, beträgt der Gesamtanteil des Energie-Sektors nur 12,2% (drittwichtigster Sektor). Der größte Sektor ist die Verbrauchsgüterindustrie mit 24,5%, gefolgt von der Gesundheitsbranche mit 23,9%. Was treibt die starke Leistung des Fonds im Jahr 2026 an? Die relativ hohe Ausrichtung auf den Energie-Sektor hat dazu beigetragen, dass er dieses Jahr überboten hat. Der Iran-Konflikt trieb zunächst die Ölpreise in die Höhe und führte zu einem Rallye in Ölaktien. Zum Beispiel sind die Aktien von ExxonMobil und Chevron um 14% bzw. 11% gestiegen, was sie gegenüber dem S&P 500 überboten hat. Allerdings ist Öl nicht der einzige Faktor, der HDV's leise Überlegenheit dieses Jahr getrieben hat. Der ETF hat auch von seiner hohen Ausrichtung auf Gesundheitsaktien profitiert, insbesondere AbbVie und Merck (NYSE: MRK), letzteres mit einer Gewichtung von 4,1%. Die Aktien von AbbVie haben mehr als 14% zuleitete, während Merck um 23% gestiegen ist. AbbVie meldete eine Zuwachs von 12,4% in den ersten Quartalsergebnissen, getrieben durch die Stärke seiner Immunologie- (auf 16,4%) und Neurologieportfolios (auf 26%). AbbVie hat auch einen Schritt unternommen, um seine Immunologie-Portfoliobestände zu vertiefen, indem es kürzlich Apogee Therapeutics für 10,9 Mrd. $ gekauft hat. In der Zwischenzeit meldete Merck eine Umsatzsteigerung von 5% im ersten Quartal, getrieben durch einen Zuwachs von 12% in den Keytruda-Umsätzen. Das Unternehmen stärkte auch seine Onkologie-Pipeline, indem es Terns Pharmaceutical für 6,7 Mrd. $ erwarb.

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Der Fidelity MSCI Gesundheit Index-ETF bietet breite Sektorenausrichtung zu einem niedrigeren Kostenpunkt als der State Street SPDR S&P Biotechnologie-ETF. Der SPDR-ETF erlebte einen tiefen Maximumsverlust von 54% über die letzten fünf Jahre im Vergleich zum Fidelity-Fonds. Während der SPDR-Fonds sich in den letzten zwölf Monaten um 89,3% erhöhte, bietet Fidelity's ETF eine höhere Trailing-Dividendenrendite.

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Johnson & Johnson JNJ and AbbVie ABBV are among the world's leading drugmakers, with strong franchises in immunology, oncology and neuroscience. In addition to these core therapeutic areas, J&J has a broad portfolio spanning cardiovascular and metabolic diseases, pulmonary hypertension and infectious diseases, while also operating one of the industry's largest medical devices businesses. AbbVie, meanwhile, strengthened its presence beyond pharmaceuticals by entering the aesthetics market through its 2020 acquisition of Allergan, the maker of Botox.

J&J's key growth drivers include blockbuster drugs like Stelara and Darzalex, while AbbVie relies on Humira and newer immunology assets, Skyrizi and Rinvoq. However, both face patent headwinds — AbbVie from Humira biosimilars and J&J from Stelara's loss of exclusivity (LOE) — making pipeline execution and business development critical for sustained growth.

So, which stock appears to be the better investment today? The answer depends on several factors, including balance sheet strength, pipeline depth and each company's ability to offset patent-related revenue declines. Let's take a closer look.

The Case for J&J Stock

J&J's biggest strength is its diversified business model, as it operates through pharmaceuticals and medical devices divisions. It has more than 275 subsidiaries and boasts 28 platforms or products with more than $1 billion in annual sales, with the aim of adding even more. Its diversification helps it withstand economic cycles more effectively. It also boasts strong cash flows and has increased its dividends for 64 consecutive years. J&J believes that the depth of its portfolio and pipeline is stronger than ever.

J&J's Innovative Medicine unit is showing a growth trend despite Stelara LOE, driven by J&J's key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth. The company's MedTech business has improved in the past four quarters.

J&J also rapidly advanced its pipeline in the past year, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. Key new drugs approved recently are Inlexzoh/TAR-200, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer, Imaavy (nipocalimab) for generalized myasthenia gravis and J&J and partner Protagonist Therapeutics' PTGX oral targeted peptide inhibitor of the IL-23 receptor, Icotyde (icotrokinra) for treating moderate-to-severe plaque psoriasis (PsO).

Story Continues

Backed by regular pipeline success, J&J expects a more pronounced impact from new products in 2026 than in 2025.

J&J believes 10 of its new products/pipeline candidates in the Innovative Medicine segment have the potential to deliver peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, Caplyta, Inlexzo, Rybrevant, Lazcluze and Icotyde.

J&J expects 2026 to be a year of accelerated growth. The company expects both its Innovative Medicines and MedTech segments to deliver stronger growth this year. The company is confident that it can achieve its target of generating around $100 billion in revenues in 2026. It expects sales to continue to improve in 2027, with a "line of sight" to double-digit growth by the end of the decade. J&J believes that it is already achieving this growth. Though J&J's total revenues are currently rising in a mid-single-digit range, excluding Stelara, J&J's top line grew in a double-digit range in the first quarter.

However, J&J faces its share of headwinds like the legal battle surrounding its talc lawsuits, the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi, and softness in MedTech China.

The Case for AbbVie Stock

AbbVie has successfully navigated the LOE of its blockbuster drug, Humira, which once generated more than 50% of its total revenues. It has accomplished this by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications, and should support top-line growth in the next few years.

In 2026, AbbVie expects combined Skyrizi and Rinvoq sales of more than $31 billion. Combined, Skyrizi and Rinvoq are expected to deliver more than 20% growth in 2026. However, AbbVie expects a low single-digit pricing headwind for both Skyrizi and Rinvoq in 2026 and over the next few years. Moreover, the launch of J&J's new oral pill for moderate-to-severe plaque psoriasis, Icotyde, has increased competitive pressure on Skyrizi, which may affect the product's prescribing trends. However, AbbVie seems confident that it can navigate competition from Icotyde.

AbbVie is also benefiting from strong momentum outside immunology. The oncology franchise remains anchored by Venclexta and Elahere, while the neuroscience portfolio is also contributing to top-line growth, driven by higher sales of Botox Therapeutic, depression drug Vraylar, newer migraine drugs Ubrelvy and Qulipta and new Parkinson's disease drug, Vyalev.

The company has been on an acquisition spree over the past couple of years to bolster the early-stage pipeline that should drive long-term growth. It is signing several M&A deals in the immunology space, its core area, and some early-stage deals in oncology and neuroscience. A key recent acquisition announcement was that of Apogee Therapeutics APGE for a total equity value of approximately $10.9 billion, which is expected to strengthen its long-term immunology pipeline.

AbbVie also boasts a robust pipeline and expects important data readouts, regulatory submissions and approvals throughout 2026

The company faces some near-term headwinds like Humira's biosimilar erosion, slowdown in oncology sales and soft sales of its Aesthetics unit for the past couple of years due to continued macro challenges and weakened consumer sentiment.

How Do Estimates Compare for JNJ & ABBV?

The Zacks Consensus Estimate for J&J's 2026 sales and EPS implies a year-over-year increase of 7.02% and 7.23%, respectively. The Zacks Consensus Estimate for 2026 earnings has been stable at $11.57 per share over the past 60 days, while that for 2027 earnings has gone up from $12.58 per share to $12.61 over the same time frame.

JNJ Estimate MovementZacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AbbVie's 2026 sales and EPS implies a year-over-year increase of 10.06% and 42.8%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $14.27 to $14.28 per share over the past 60 days, while that for 2027 has declined from $16.25 per share to $16.03 per share over the same timeframe.

ABBV Estimate MovementZacks Investment Research

Image Source: Zacks Investment Research

Price Performance and Valuation of J&J & ABBV

Stocks of both JNJ and ABBV have risen so far this year. While J&J's stock has risen 24.1%, AbbVie's stock has risen 11.7% compared with the industry's increase of 12.7%Zacks Investment Research

Image Source: Zacks Investment Research

AbbVie looks more attractive than JNJ from a valuation standpoint. Going by the price/earnings ratio, AbbVie's shares currently trade at 16.51 forward earnings, lower than 18.70 for the industry, but higher than its 5-year mean of 13.94. J&J's shares currently trade at 21.01 forward earnings, which is higher than the industry as well as the stock's 5-year mean of 15.65.Zacks Investment Research

Image Source: Zacks Investment Research

Both companies offer almost similar dividend yields. J&J's dividend yield is 2.08%, while AbbVie's is around 2.11%.Zacks Investment Research

Image Source: Zacks Investment Research

JNJ or ABBV: Which is a Better Pick?

AbbVie and J&J have a Zacks Rank #3 (Hold) each, which makes choosing one stock a difficult task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

AbbVie has faced its biggest challenge — Humira's patent cliff — quite well and looks well-positioned for continued strong growth in the years ahead. ABBV delivered robust net sales growth in 2025, which was just the second full year following the Humira LOE in the United States. AbbVie expects another year of robust growth in 2026. It expects total revenues to rise around 10% in 2026. It expects high single-digit revenue growth through 2029, as the company has no significant LOE events for the rest of this decade.

Similarly, J&J has shown steady revenue and EPS growth for years and expects further growth in 2026. Despite headwinds like the legal battle surrounding its talc lawsuits, the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi and softness in MedTech China, J&J looks quite confident that it will be able to navigate these challenges.

As you can see, both companies have done well in the past and look poised for continued growth in 2026. J&J has a slight edge over AbbVie simply on the basis of a better stock performance and stronger estimate revisions, which reflect analysts' optimistic outlook for future growth. Increased costs related to recent acquisitions have resulted in downward estimate revisions for AbbVie.

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This article originally published on Zacks Investment Research (zacks.com).

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Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the best non-tech stocks to buy according to analysts. RBC Capital maintained a Sector Perform rating on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) on June 22, setting a $707 price target. However, the firm noted that AbbVie's acquisition of Apogee Therapeutics, announced that morning, is a net negative for the company. It further told investors in a research note that the deal brings a significantly more commercially capable operator with deep dermatology market relationships and decades of experience selling Humira and Skyrizi behind Zumi, which is Apogee's long-acting IL-13 antibody in atopic dermatitis, and a potential next-gen competitor to Dupixent.Regeneron (REGN) Draws Higher Target From TD Cowen

In a separate development, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced on May 28 that maftivimab has been recommended by the World Health Organization's (WHO) Therapeutics Advisory Group to be prioritized for evaluation in clinical trials of investigational treatments for Bundibugyo ebolavirus. Maftivimab is the most potent neutralizing antibody included in Inmazeb®, according to the company, and has exhibited broad activity in vitro against multiple Ebola species, including Bundibugyo.

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a pharmaceutical company that develops, discovers, and commercializes therapies for several diseases, including cancer, eye disorders, and allergic conditions.

While we acknowledge the potential of REGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.

READ NEXT:15 Stocks That Will Make You Rich in 10 Years AND12 Best Stocks That Will Always Grow.

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Wall Street's major indexes ended lower on Friday as the technology sector continued its selloff after mounting concerns over elevated AI-related valuations and OpenAI considering pausing its IPO until 2027.

The benchmark S&P 500 closed down 0.1%, while the Nasdaq Composite ended 0.2% lower, and the blue-chip Dow declined 0.1%.

However, the S&P 500 Health Care Index Sector (XLV [https://seekingalpha.com/symbol/XLV]) jumped 7.48% during the week.

The top S&P 500 healthcare gainers and losers for the last week are as follows:

TOP GAINERS:

Bio-Techne (TECH [https://seekingalpha.com/symbol/TECH]) +22.58%

AbbVie (ABBV [https://seekingalpha.com/symbol/ABBV]) +17.03%

Charles River Laboratories International (CRL [https://seekingalpha.com/symbol/CRL]) +16.62%

Incyte (INCY [https://seekingalpha.com/symbol/INCY]) +15.81%

IQVIA (IQV [https://seekingalpha.com/symbol/IQV]) +13.93%

TOP LOSERS:

Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) -3.65%

Zoetis (ZTS [https://seekingalpha.com/symbol/ZTS]) -3.33%

DexCom (DXCM [https://seekingalpha.com/symbol/DXCM]) -3.27%

Boston Scientific (BSX [https://seekingalpha.com/symbol/BSX]) -2.34%

Align Technology (ALGN [https://seekingalpha.com/symbol/ALGN]) -1.98%

Here are some of the important healthcare stories from this week:

BIO-TECHNE JUMPS AFTER MERCK KGAA STRIKES $11.3B BUYOUT DEAL

Shares of U.S. life sciences company Bio-Techne (TECH [https://seekingalpha.com/symbol/TECH]) jumped [https://seekingalpha.com/news/4607138-bio-techne-jumps-after-merck-kgaa-strikes-113b-buyout-deal] more than 20% on Thursday after Merck KGaA (MKGAF [https://seekingalpha.com/symbol/MKGAF]) (MKKGY [https://seekingalpha.com/symbol/MKKGY]) agreed to acquire the company for $73 per share in cash, valuing the deal at an enterprise value of approximately $11.3B (€9.9B).

The offer represents a 36% premium to Bio-Techne's one-month volume-weighted average trading price. The proposed transaction has been approved by Bio-Techne's board of directors and the relevant corporate bodies of Merck KGaA, Darmstadt, Germany, and is expected to close by late 2026 or early 2027.

The planned acquisition will be funded through a combination of existing cash on hand and proceeds from new debt. The deal is expected to be immediately accretive to sales growth and EBITDA pre-margin post-closing and EPS pre-accretive by year 3 after closing.

Merck expects annual cost synergies of approximately €140M, which are anticipated to be fully realized by year 3 after closing.

APOGEE JUMPS 52% ON $10.9B ABBVIE BUYOUT DEAL

AbbVie (ABBV [https://seekingalpha.com/symbol/ABBV]) agreed to acquire [https://seekingalpha.com/news/4605403-apogee-jumps-52-on-109b-abbvie-buyout-deal] Apogee Therapeutics (APGE [https://seekingalpha.com/symbol/APGE]) in an all-cash deal valued at $135.11 per share, adding Apogee’s portfolio of clinical-stage treatments for inflammatory and immunological diseases to its pipeline.

The transaction values Apogee at a total equity value of approximately $10.9B, the company said [https://seekingalpha.com/pr/20558453-abbvie-to-acquire-apogee-therapeutics-deepening-immunology-portfolio#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews], sending APGE shares rallying 52% in early trading.

The acquisition is expected to strengthen AbbVie’s immunology franchise and expand its presence in respiratory diseases, including atopic dermatitis and asthma, the company said. The deal is expected to close in the third quarter of 2026.

This acquisition holds potential for substantial shareholder value creation with mega-blockbuster peak sales potential across Apogee's pipeline of assets, including its lead asset, zumilokibart (APG777), a subcutaneous half-life extended monoclonal antibody targeting IL-13, being developed in AD and APG273, a combination of zumilokibart and APG333, an anti-TSLP half-life extended monoclonal antibody, being developed in asthma.

SUPREME COURT HANDS BAYER MAJOR VICTORY IN ROUNDUP CANCER LITIGATION

The U.S. Supreme Court handed [https://seekingalpha.com/news/4607333-supreme-court-hands-bayer-major-victory-in-roundup-cancer-litigation] Bayer (BAYZF [https://seekingalpha.com/symbol/BAYZF]) (BAYRY [https://seekingalpha.com/symbol/BAYRY]) a sweeping legal victory, ruling that federal pesticide regulations shield the company from state-law claims alleging Roundup should have carried a cancer warning. The 7-2 decision overturns a $1.25 million Missouri jury verdict and is expected to sharply reduce a wave of lawsuits that has cost Bayer more than $10 billion over the past decade.

Writing for the majority, Justice Brett Kavanaugh said federal law requires uniform pesticide labeling, meaning states cannot impose additional warning requirements once the Environmental Protection Agency has approved a product's label. Justices Ketanji Brown Jackson and Neil Gorsuch dissented.

The ruling removes one of Bayer's biggest legal overhangs and could substantially reduce future litigation costs tied to Roundup. It also strengthens the legal position of companies in other federally regulated industries, including medical devices, cosmetics, and food products, where similar preemption arguments could limit state-law failure-to-warn lawsuits.

Bayer said the decision should lead to the dismissal of existing warning-based claims while blocking new ones. Shares surged as much as 17% in Frankfurt following the ruling, their biggest intraday gain in more than two decades.

LILLY INKS R&D DEAL WORTH UP TO $1.9B WITH CHINA’S ABBISKO

Chinese drug developer Abbisko Therapeutics entered into an R&D and licensing collaboration [https://seekingalpha.com/news/4606554-lilly-inks-rd-deal-worth-19b-with-abbisko] with Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]) worth up to $1.9B to develop and commercialize novel therapies across multiple disease targets.

Under the agreement, Abbisko will leverage its early-stage drug discovery platform and other R&D expertise to discover and conduct early research on drugs against targets selected by the Indiana-based pharma giant.

In exchange, the Shanghai-based cancer drug developer will receive an upfront payment and up to roughly $1.9B worth of milestone payments, subject to the achievement of development, regulatory, and commercial goals.

In other news of note, Eli Lilly plans [https://seekingalpha.com/news/4606275-eli-lilly-eyeing-european-launch-obesity-pill] to roll out its weight-loss pill orforglipron in Europe and Great Britain in the second half of 2026 or early 2027, Reuters reported on Tuesday, following an interview with Patrik Jonsson, the ​head of Lilly's international businesses.

NOVARTIS AND ANTARES TO DEVELOP CANCER DRUGS IN A DEAL WORTH UP TO $1.9B

Privately held Antares Therapeutics on Wednesday announced a collaboration with Novartis (NVS [https://seekingalpha.com/symbol/NVS]) (NVSEF [https://seekingalpha.com/symbol/NVSEF]) to develop and market cancer drugs [https://seekingalpha.com/news/4606769-novartis-inks-cancer-drug-deal-worth-19b] as part of a deal worth up to $1.9B with the Swiss pharma giant.

Under the agreement, the two companies will seek to develop small-molecule therapies against oncology targets, which they said have been difficult to therapeutically target in the past.

Per the terms, Boston, Massachusetts-based Antares will receive $105M upfront from Novartis (NVS [https://seekingalpha.com/symbol/NVS]) in addition to milestone payments worth up to $1.8B. Once the developed treatments reach the market, the company will be eligible to receive royalties ranging up to the low double digits based on global net sales.

MORE ON STATE STREET HEALTH CARE SELECT SECTOR SPDR ETF

* AI Revolutionizing Biopharma: Faster, Better, Cheaper [https://seekingalpha.com/article/4898092-ai-revolutionizing-biopharma-faster-better-cheaper]
* Trump's Psychedelics Stance Reignites Sector - How Investors Can Benefit [https://seekingalpha.com/article/4894631-trump-psychedelics-stance-reignites-sector-how-investors-can-benefit]
* Merck's Bio-Techne buyout put Life Sciences sector in focus: top quant-rated stocks [https://seekingalpha.com/news/4607355-mercks-bio-techne-buyout-put-life-sciences-sector-in-focus-top-quant-rated-stocks]
* 10 small-cap U.S. healthcare stocks with the weakest momentum grades [https://seekingalpha.com/news/4606480-10-small-cap-us-healthcare-stocks-with-the-weakest-momentum-grades]
* Seeking Alpha’s Quant Rating on State Street Health Care Select Sector SPDR ETF [https://seekingalpha.com/symbol/XLV/ratings/quant-ratings]

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Dealmaking is back with a vengeance in the pharmaceutical sector this year. According to a report by PwC, there were more than $65 billion in pharma and life sciences mergers & acquisitions in the first quarter, the best quarter for the sector since 2020. The report said the quarter had 16 M&A deals of at least $1 billion each.

In the second quarter, the pace hasn't slowed, with Sun Pharmaceuticals announcing in April that it would acquire Organon for $11.75 billion and AbbVie reporting in June that it would acquire Apogee Therapeutics for $10.9 billion. Many deals focus on biotech stocks that use gene editing and other unique technologies. When a larger pharmaceutical company acquires a biotech stock, it is often at a premium to the biotech's stock price, rewarding its investors.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

If you're wondering which biotech stocks might be the next takeover targets, consider Legend Biotech (NASDAQ: LEGN) and BioNTech (NASDAQ: BNTX). Takeover or not, here are three reasons to consider each stock.Image source: Getty Images.

Legend has a successful commercial therapy in Carvykti

Legend Biotech has frequently been at the center of takeover rumors, and the stock regularly spikes on speculation that it has received formal buyout bids. It stands out as one of the most uniquely attractive targets in the oncology and cell-therapy landscape.

Unlike some clinical-stage biotechs valued purely on potential, Legend has a massive commercial asset on the market. Carvykti, its BCMA-targeted CAR-T therapy for multiple myeloma, is growing rapidly. Partner Johnson & Johnson has projected that Carvykti's peak annual sales could eclipse $5 billion. In the first quarter, the therapy had $597 million in sales, up 62%, year over year.

Legend has other potential therapies

The company recently turned heads with phase 1 data for its next-generation in vivo CAR-T therapy (LB2501) in non-Hodgkin lymphoma, posting a 100% objective response rate. Unlike traditional CAR-T therapies, which require harvesting cells outside the body, in vivo technologies aim to engineer T cells directly within the patient's body. If perfected, it turns an incredibly complex procedure into an off-the-shelf treatment.

Legend has solved the cell-therapy bottleneck

Historically, big pharma has been hesitant to acquire CAR-T companies because manufacturing complex autologous cell therapies (genetically modifying a patient's own T cells) can be difficult to manage.

Story Continues

Legend has eliminated this bear case, achieving a 99% manufacturing success rate and a 29-day turnaround. Legend's Raritan, New Jersey, facility is one of the largest cell-therapy manufacturing sites in the U.S., capable of scaling to support up to 10,000 patients annually. An acquirer wouldn't just be buying a drug; it would be buying a turnkey cell-manufacturing infrastructure.

BioNTech's huge cash pile makes it attractive

BioNTech has extended beyond its identity as a COVID-19 vaccine manufacturer. While its revenue has been steadily declining, including a 35.4% drop, year over year, to 118.1 million euros (roughly $134 million) in the first quarter, the German company reported 16.8 billion euros (approximately $18 billion) in cash, cash equivalents, and security investments. Any buyer would essentially be buying a world-class clinical platform at a steep structural discount, with BioNTech's own cash offsetting a large portion of the up-front purchase price.

BioNTech has a late-stage oncology and ADC pipeline

Rather than buying early-stage science, an acquirer would step into a mature oncology portfolio. BioNTech has more than 25 phase 2 and phase 3 clinical trials running. Some of the high-potential programs include Pumitamig, a bispecific immunomodulator currently being scaled into five new pivotal trials for lung, breast, and gastric cancers, and Gotistobart, a CTLA-4 antibody showing strong overall survival trends in non-small cell lung cancer, with pivotal phase III interim data due later this year.

A legacy pharma company facing its own patent cliffs could immediately absorb a late-stage portfolio spanning messenger RNA (mRNA) immunotherapies, next-gen immunomodulators, and highly sought-after antibody-drug conjugates (ADCs). BioNTech has six late-stage clinical readouts expected this year.

New BioNTech leadership may be more open to a buyout

Co-founders Uğur Şahin and Özlem Türeci hold voting control over the company's direction, and they have been committed to keeping BioNTech independent to realize their 2030 vision of becoming a fully integrated, multi-product oncology powerhouse.

However, with the co-founders scheduled to transition out of management by the end of 2026 to launch a separate, early-stage mRNA innovation spinoff, the corporate governance structure is shifting.

It's still a good time to buy this duo

Both companies have seen their shares drop by more than 13% over the past year. Neither is profitable, so they may find that taking a buyout makes more sense for the success of their promising pipelines.

It's easy to see Johnson & Johnson as a potential suitor for Legend Biotech, as the two companies already partner on Carvykti sales. BioNTech has partnered with Pfizer and Bristol Myers Squibb, so those two would be potential suitors.

There are other large pharmaceutical companies facing patent cliffs for their therapies and could benefit from acquiring Legend's or BioNTech's pipeline. There's a risk in buying any unprofitable biotech stock, but the potential upside is evident for these two.

Should you buy stock in Legend Biotech right now?

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James Halley has positions in AbbVie, Johnson & Johnson, and Pfizer. The Motley Fool has positions in and recommends AbbVie, Bristol Myers Squibb, Legend Biotech, and Pfizer. The Motley Fool recommends BioNTech Se and Johnson & Johnson. The Motley Fool has a disclosure policy.

2 Biotech Stocks Worth Buying Before Their Potential Buyouts was originally published by The Motley Fool

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Key Points

AbbVie is aggressively expanding its pipeline to offset the impact of biosimilar competition for its top-selling drugs. Pfizer is utilizing substantial capital for acquisitions to diversify its revenue stream and combat upcoming patent expirations. Which pharmaceutical giant offers the best combination of growth and value for your portfolio today?10 stocks we like better than AbbVie ›

Investors seeking reliable dividends often look to the healthcare sector, but choosing between AbbVie Inc(NYSE:ABBV) and Pfizer Inc (NYSE:PFE) requires a close look at their post-pandemic growth strategies and pipelines.

AbbVie focuses on high-margin specialty medicines in immunology and oncology, while Pfizer operates a broader portfolio spanning vaccines, primary care, and specialized cancer treatments. Both companies are navigating significant patent expirations, making their current research pipelines and acquisition strategies the primary drivers for long-term shareholder value in 2026.

The case for AbbVie

AbbVie focuses on discovering and delivering innovative medicines for complex health issues through a global workforce of roughly 57,000 employees. Its U.S. pharmaceutical sales are heavily concentrated among three major wholesale distributors: McKesson Corporation (NYSE:MCK), Cardinal Health (NYSE:CAH), and Cencora (NYSE:COR). Customer concentration like this adds a layer of risk to the business because these three firms account for almost all domestic product sales.

In FY 2025, the company reported revenue of nearly $61.2 billion, representing growth of approximately 8.7% over the previous year. It achieved net income of roughly $4.3 billion during this period.

As of its most recent period, its debt level was $72.9 billion. During FY 2025, it generated more than $17.8 billion in free cash flow, defined as cash from operations minus capital expenditures.

The case for Pfizer

Pfizer applies its global resources to develop and manufacture a wide range of vaccines and medicines for patients in roughly 200 countries. The company relies on a network of wholesale distributors and pharmacy chains, while government entities such as the CDC are critical customers of its vaccine products. It is currently focused on expanding its oncology footprint to diversify away from its legacy pharmaceutical stocks portfolio.

During FY 2025, Pfizer generated revenue of nearly $62.6 billion, representing a slight decline of approximately 1.6% from the previous fiscal year. Despite the dip in sales, it reported net income of close to $7.8 billion for the period.

Its balance sheet shows a debt of $67.3 billion. It generated roughly $9.1 billion in free cash flow during FY 2025, which represents the cash remaining from operations after subtracting capital expenditures.

Risk profile comparison

AbbVie faces significant patent and exclusivity risks, particularly as biosimilar competition challenges legacy products like Humira. Pricing and regulatory pressure from the Inflation Reduction Act also target core revenue drivers like Imbruvica and Botox, potentially leading to government-mandated price cuts. Furthermore, the company must successfully integrate major acquisitions such as Apogee Therapeutics (NASDAQ:APGE) to achieve its growth targets and justify the capital spent.

Pfizer is approaching a patent cliff, with several blockbuster drugs set to lose exclusivity, inviting competition from generic manufacturers. The company is also managing heavy debt levels following its acquisitions of Seagen and Metsera and is facing thousands of lawsuits related to its legacy products. Additionally, it faces stiff competition in the vaccine market and specialized treatment space from rivals like Moderna (NASDAQ:MRNA) and Merck & Co (NYSE:MRK).

Valuation comparison

Pfizer currently trades at a lower Forward P/E and P/S ratio than AbbVie, indicating that investors are paying less for Pfizer's revenue and future earnings estimates. MetricAbbViePfizerSector BenchmarkForward P/E16.6x8.2x24.8xP/S ratio6.8x2.2xn/a

Sector benchmark uses the SPDR XLV sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

Pfizer has been in an odd spot in recent years, as the boost it got from its COVID-19 vaccines is wearing off, with fewer people getting them and competitors proliferating. Wall Street has also been concerned about a ”wall” of patent expirations facing the business in the next few years.

But there is reason for hope. Pfizer has made great strides in bringing its own GLP-1s to market. In December, it struck a deal with a Chinese pharmaceutical company to develop small-molecule GLP-1s that will lead to a daily pill. Its recent acquisitions have driven overall growth for the company.

For fiscal 2026, net income is seen jumping by some 40% to more than $11 billion, with sales increasing by a smaller margin to $61.7 billion. Sales beyond are expected to decline due to expiring patents, but the company is expecting three FDA decisions and multiple trial readouts and starts that should generate at least some new products to power the business.

AbbVie is also buying itself growth with its recent buy of Apogee Therapeutics. Its two new-ish immunology products, Skyrizi and Rinvoq, have proven to be true growth drivers for the business, and investors are hopeful that an FDA decision on a Parkinson’s treatment later this year will bode well for the company.

Like Pfizer, AbbVie is expected to see screaming growth in net income this year, to $14.6 billion from $4.2 billion. Sales should grow to $67.2 billion.

Of these two healthcare giants, AbbVie is showing greater near-term success with new treatment introductions, while Pfizer is still relying on potential products (GLP-1s) and FDA approvals that may not turn out as investors hope. Abbvie gets the nod for 2026.

Should you buy stock in AbbVie right now?

Before you buy stock in AbbVie, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $387,428! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,221,398!

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*Stock Advisor returns as of June 25, 2026.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Merck, Moderna, and Pfizer. The Motley Fool recommends McKesson. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Shares of AbbVie ABBV rose more than 6% on Monday after the company announced that it entered into a definitive agreement to acquire clinical-stage biotech Apogee Therapeutics APGE for $135.11 per share, valuing the deal at about $10.9 billion. Shares of APGE also reached a 52-week high post this announcement.

The acquisition further strengthens AbbVie's dominant immunology franchise and represents another strategic step toward extending growth well into the next decade as blockbuster products Skyrizi and Rinvoq mature.

The centerpiece of the deal is Apogee's lead candidate, zumilokibart (APG777), a phase III-ready, long-acting anti-IL-13 monoclonal antibody being developed for atopic dermatitis (AD), commonly known as eczema. Earlier this year, APGE reported encouraging data from mid-stage studies highlighting the drug's sustained efficacy with both three- and six-month maintenance dosing regimens, significantly reducing injection frequency compared with currently available biologics.

Following the acquisition, AbbVie plans to explore zumilokibart's potential across additional IL-13-driven diseases, including prurigo nodularis, chronic spontaneous urticaria, eosinophilic esophagitis and chronic pruritus of unknown origin.

The deal also adds APG273, a fixed-dose combination candidate comprising zumilokibart and an anti-TSLP antibody, which the company plans to develop for asthma, COPD and chronic rhinosinusitis with nasal polyps.

The transaction, unanimously approved by the boards of both companies, is expected to close in the third quarter. While AbbVie expects the acquisition to become earnings accretive beginning in 2032, it anticipates the deal will dilute adjusted EPS by approximately 14 cents in 2026 and 46 cents in 2027 due to financing and development costs.

Notably, the Financial Times reported on the deal just days before the official announcement.

ABBV Stock Performance

Year to date, the company's shares have gained nearly 1% compared with the industry's 3% growth.Zacks Investment Research

Image Source: Zacks Investment Research

How Does AbbVie Benefit From the APGE Buyout

The intent behind this acquisition is clear — AbbVie is preparing for a future beyond Skyrizi and Rinvoq by building new growth platforms that can sustain performance well into the 2030s.

A key attraction is the large and rapidly expanding AD market. During the investor call, management highlighted that biologic penetration in eczema remains below 10% despite annual growth exceeding 15%. AbbVie also noted that the moderate-to-severe AD market is roughly two to two-and-a-half times larger than psoriasis, leaving substantial room for future expansion.

Story Continues

AbbVie also expressed confidence in competing against market leader Dupixent, which is jointly marketed by Sanofi SNY and Regeneron REGN. Management believes zumilokibart could offer a differentiated profile by combining Dupixent-like efficacy with significantly improved convenience through less frequent dosing. ABBV also said it does not need to replicate the SNY/REGN drug's entire label before gaining meaningful market share, citing its established commercial footprint in immunology and the large, underpenetrated nature of the AD market.

Some analysts on the call questioned whether zumilokibart could eventually cannibalize sales of Rinvoq. However, management pushed back against that concern, saying the company intends to replicate a "one-two punch" strategy it has successfully deployed in other immunology indications.

Under this approach, zumilokibart would be positioned as a preferred earlier-line biologic option, while Rinvoq would continue to serve patients requiring later-line treatment or those inadequately controlled on biologics. ABBV noted that this commercial strategy has already worked well in indications such as inflammatory bowel disease (IBD) and psoriatic arthritis.

Beyond dermatology, the acquisition also gives AbbVie a strategic entry point into respiratory diseases. During the call, management said the company had a stated goal of expanding into respiratory diseases and viewed asthma and COPD as large markets with significant unmet need. Through APG273, AbbVie plans to establish a presence in asthma, COPD and chronic rhinosinusitis with nasal polyps, creating another potential long-term growth driver.

AbbVie Inc. PriceAbbVie Inc. Price

AbbVie Inc. price | AbbVie Inc. Quote

ABBV's Zacks Rank

AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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