Global Healthcare Pharmaceuticals Friday Fodder Inconsistent Dynamics Through the First Week of Peak Earnings

Equity Research 31 July 2026 | 5:24PM EDT

Global Healthcare: Pharmaceuticals: Friday Fodder: Inconsistent Dynamics Through the First Week of Peak Earnings

Following a busy week of 2Q results for LC Biopharma, we note a handful of themes Asad Haider, CFA | stood out at the highest-level: (1) Positioning dynamics were a key driver of Goldman Sachs & Co. LLC

print-day stock reactions (BMY +3% rewarded for beat/raise and the catalyst path Salveen Richter, CFA | reframing; ABBV -2%/GSK +3% on broadly inline, but solid, 2Qs; TEVA +10% on a Goldman Sachs & Co. LLC strong quarter); (2) Pipeline execution is paramount, with setbacks getting punished (Novo -8% on the ZEUS trial miss) and valuation not proving to be a James Quigley | backstop (Sanofi traded off ~-9% despite a strong 2Q beat/guidance uplift as Goldman Sachs International sentiment continues to be weighed down by the string recent of R&D failures and Rajan Sharma need for clearer evidence of pipeline transformation - BD/M&A will be key to | rebuilding investor confidence); (3) the biotech “launch-trade” remains under Goldman Sachs International

pressure where 2Q prints/updates failed to satisfy across a range of names (ALNY Matt Dellatorre, Ph.D. | -30%; AGIO -5%; MDGL -10%; NBIX -11%; UCB -13% -- we see the pullback in ALNY Goldman Sachs & Co. LLC as overdone), and (4) exogenous/factor-related variables continue to play into Nick Jennings price action where LC biopharma’s inverse relationship with Tech has remained both | notable and frustrating. Goldman Sachs & Co. LLC

Jeff Su The week ahead features another heavy-calendar of 2Q results, including from LLY | Goldman Sachs & Co. LLC on which we have received multiple inbounds from investors looking to understand the setup/bars — related, we fielded concerns on the comments made by Cigna this week citing moderating GLP-1 volumes though we believe these might be getting misconstrued (see within). Separately, at a higher level, amidst broader market uncertainty headed into August, we note emerging interest in a “Quality-bid” trading thematic — we highlight JNJ here, particularly in the context of ongoing positive company-specific newsflow (solid 2Q results followed by earlier-than-expected approval for its surgical robot product cycle, unprecedentedly strong bispecific data in rrMM, talc overhang settlement proposal). Next week, we will also be hosting our Boston Biotech Bus Tour (please reach out for agenda/details).

See within for more detail, including brief one-liners on setups/narratives for LC Biopharma names reporting next week.

One-Liners on US Large Cap Pharma Narratives in 2Q Results n MRK (Aug 4th). Expectations are for an inline set of 2Q26 results, though the key question we are getting on this name has less to do with quarterly numbers, but more on navigating the multi-dimensional event path in the coming months which will be more key to the stock trajectory, as we outlined this week in Merck & Co. (MRK): Navigating the Event Path to YE ‘26: Deep Dive, Illustrative Stock Impact.

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Global Healthcare: Pharmaceuticals

n PFE (Aug 4th). 2Q earnings could continue the recent trend of steady operational execution, and negative-leaning positioning suggests it may not take much to trigger a modest relief rally, though we expect rallies could remain fragile with sentiment squarely anchored to growing debates on the prospects for capital allocation, the dividend and pipeline execution where mevrometstat Ph3 data are imminent and represent a =/- ~3% swing factor on our valuation. See: Pfizer Inc. (PFE): 2Q26 Earnings Preview: Expecting In-Line Results with Soft COVID Franchise, Amidst…