Jefferies’ Pharma 2026 Outlook: Where Should Investors Look?

Pharma enters 2026 with mixed signals. Jefferies expects a weak H1CY26 for export-heavy pharma companies, especially those exposed to Revlimid, as competition intensifies from February and margins come under pressure. A key overhang remains the Section 232 ruling on US pharma imports, expected in Q1CY26, which could add policy risk for export-oriented players. Despite near-term uncertainty, Jefferies remains constructive on select pockets. Domestic-focused pharma, CDMO players like Syngene-type businesses, and specialty segments such as GLP-1 weight-loss drugs are seen as key growth drivers. Hospitals continue to offer steady earnings visibility, while biosimilars remain a structural long-term opportunity. Jefferies has upgraded Entero Healthcare to a Buy, highlighting selective but compelling opportunities within the sector despite headline risks.