Back to pharma ?

Pharma stocks had yesterday one of their strongest days in years. The S&P 500 Pharma Index surged over 5% yesterday, pushing the sector back into positive territory for 2025 (see chart).

Tariffs that first looked threatening ended up favouring companies with strong local production, Pfizer struck a pragmatic deal with Washington, and the new TrumpRx platform promised more transparent pricing.

At ECP, we see value in pharmaceuticals. One example is Sanofi, trading at just 10.5x forward earnings with a dividend yield above 5%.