Citi
May 18, 2026
European Pharmaceuticals and Biotechnology 1Q26 Wrap
Sector ReportEquitiesMacro Economic IndicatorsHealth Care
Citi Research maintains its positive stance on European Pharma post-1Q26, favoring AstraZeneca, Roche, and Novartis for their 2H26 catalysts and growth profiles. GSK, Sanofi, and Novo Nordisk remain Neutral due to patent cliffs, pipeline rebuilding needs, and pricing pressures.
Key Takeaways
- 1.Citi maintains a positive view on European Pharma with three Buys (AZN, Roche, Novartis) and three Neutrals (GSK, Novo, Sanofi).
- 2.AstraZeneca and Novartis have significant Phase III data readouts in 2H26 that offer positive risk-reward scenarios.
- 3.Roche is upgraded to a top pick as higher-risk pipeline events are now in the past, focusing investors on the $14.5bn giredestrant opportunity.
Table of Contents
- CITI'S TAKE
- Minimal changes to ratings/EPS post-1Q26
- Three Buys and three Neutrals
- Ratings and theses by stock
- AstraZeneca (Buy)
- Roche (Buy)
- Novartis (Buy)
- GSK (Neutral)
- Sanofi (Neutral)
- Novo Nordisk (Neutral)
Document Preview
Access the Full Report
Get unlimited access to institutional research reports with a 14-day free trial.
Authors
Graham ParryAmy Y MaoLeolie Telford-Cooke Ph.D.Jelena MilovicMahesh Mohankumar
Securities
AZN.LROG.SNOVN.SGSK.LSASY.PANOVOb.CO
Themes
Post-Earnings Sector Analysis2H26 Data CatalystsLoss of Exclusivity (LOE) and Patent CliffsObesity Market Competition
Regions
EuropeUnited KingdomSwitzerlandFrance