Big Pharma: The Patient Will Thrive

Drug development is a challenging business. Yet, the market is growing, and areas such as oncology and obesity present tremendous long-term opportunities. AI will accelerate drug development and reduce its costs. From a macroeconomic standpoint, Pharma tends to outperform the market when economic growth slows. While the industry group is hardly cheap, we will stay overweight thanks to its defensive characteristics, and long-term earnings potential.