The top-performing pharma and biotech stocks as group sees resurgence

[Young female scientist working in laboratory]
Solskin

Pharmaceutical (PJP [https://seekingalpha.com/symbol/PJP]), (XPH [https://seekingalpha.com/symbol/XPH]), (PPH [https://seekingalpha.com/symbol/PPH]) and biotechnology stocks (XBI [https://seekingalpha.com/symbol/XBI]), (BBH [https://seekingalpha.com/symbol/BBH]) have officially returned to favor on Wall Street, according to Michael Yee, global head of biotechnology equity research at UBS.

In an interview with CNBC, Yee highlighted a renewed investor appetite for beaten-down healthcare names, even as individual companies like Moderna (MRNA [https://seekingalpha.com/symbol/MRNA]) navigate significant headwinds including regulatory setbacks and substantial cash burn [https://seekingalpha.com/news/4552065-moderna-outlines-up-to-10-percent-revenue-growth-for-2026-amid-international-expansion-and] exceeding $2B annually.

“Pharma and biotech are back,” Yee said. “The investor base out there on Wall Street continues to want to come back to some of these names that have been beaten down and hated.”

He noted that the sector has reacted positively to recent developments, including favorable pricing deals signed by the Trump administration.

Moderna’s stock (MRNA [https://seekingalpha.com/symbol/MRNA]) has surged in recent months, driven largely by short covering and optimism around the company’s pipeline turnaround. However, Yee expressed caution, pointing to the FDA’s recent rejection [https://seekingalpha.com/news/4551861-moderna-reaffirms-2026-growth-q4-beat] of Moderna’s flu vaccine application as a sign of broader regulatory challenges. The company’s revenues remain a fraction of their 2022 peak during the height of COVID-19 vaccine demand.

A major catalyst on the horizon is Moderna’s (MRNA [https://seekingalpha.com/symbol/MRNA]) cancer vaccine data readout later this year, developed in partnership with Merck (MRK [https://seekingalpha.com/symbol/MRK]).

Yee said there is a “good chance it will be positive,” potentially generating around $1B in revenue. Still, he noted that such results alone would not be enough to offset the company’s ongoing losses. “They’re really in the business of conserving cash right now. I think they need to pivot to other areas,” he said.

Beyond Moderna, Yee identified several “comeback stories” that he finds compelling, including Merck (MRK [https://seekingalpha.com/symbol/MRK]), Bristol Myers Squibb (BMY [https://seekingalpha.com/symbol/BMY]), Amgen (AMGN [https://seekingalpha.com/symbol/AMGN]), and Gilead (GILD [https://seekingalpha.com/symbol/GILD]).

He described these stocks as cheap relative to their potential and noted they are beginning to break out. Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]) remains a top pick in the GLP-1 space, where Yee expects the company to beat and raise its guidance.

The broader political landscape continues to cast uncertainty over vaccine-focused companies. Yee suggested that firms like Moderna (MRNA [https://seekingalpha.com/symbol/MRNA]) may need to shift their focus away from respiratory vaccines toward rare diseases and other applications of their technology to navigate the current environment successfully.

Top-performing biotech and pharma stocks:

* Climb Bio, Inc. (CLYM [https://seekingalpha.com/symbol/CLYM]) +11.76%
* Cellectis S.A. (CLLS [https://seekingalpha.com/symbol/CLLS]) +9.60%
* Vertex Pharmaceuticals Incorporated (VRTX [https://seekingalpha.com/symbol/VRTX]) +7.35%
* Foghorn Therapeutics Inc. (FHTX [https://seekingalpha.com/symbol/FHTX]) +6.46%
* Alto Neuroscience, Inc. (ANRO [https://seekingalpha.com/symbol/ANRO]) +5.90%
* Lyell Immunopharma, Inc. (LYEL [https://seekingalpha.com/symbol/LYEL]) +5.71%
* ADC Therapeutics SA (ADCT [https://seekingalpha.com/symbol/ADCT]) +4.98%
* Vext Science Inc. (VEXTF [https://seekingalpha.com/symbol/VEXTF]) +4.67%
* Halozyme Therapeutics, Inc. (HALO [https://seekingalpha.com/symbol/HALO]) +4.63%
* Fortress Biotech, Inc. (FBIO [https://seekingalpha.com/symbol/FBIO]) +4.39%
* Septerna, Inc. (SEPN [https://seekingalpha.com/symbol/SEPN]) +4.35%
* Oramed Pharmaceuticals Inc. (ORMP [https://seekingalpha.com/symbol/ORMP]) +4.10%
* Sera Prognostics, Inc. (SERA [https://seekingalpha.com/symbol/SERA]) +4.04%
* Swedish Orphan Biovitrum AB (publ) (SWOBY [https://seekingalpha.com/symbol/SWOBY]) +3.97%
* BioAge Labs, Inc. (BIOA [https://seekingalpha.com/symbol/BIOA]) +3.76%

MORE ON PHARMACEUTICALS, BIOTECH

* Big Pharma's Earnings Week: Strong Performance, Obesity Wars, LOE Management And More [https://seekingalpha.com/article/4867322-big-pharmas-earnings-week-strong-performance-obesity-wars-loe-management-and-more]
* BBH: Mature Biotech Exposure, But Limited Growth Ahead [https://seekingalpha.com/article/4861625-bbh-mature-biotech-exposure-but-limited-growth-ahead]
* XPH: Healthcare Dashboard For January [https://seekingalpha.com/article/4860530-xph-healthcare-dashboard-for-january]
* Most and least shorted mid-to mega-cap healthcare stocks in January [https://seekingalpha.com/news/4551065-most-and-least-shorted-mid-to-mega-cap-healthcare-stocks-in-january]
* FDA opens fast-track program to speed U.S. drug plant construction [https://seekingalpha.com/news/4545112-fda-opens-fast-track-program-to-speed-u-s-drug-plant-construction]