Barclays initiated coverage of U.S. large-cap biopharmaceutical companies with a Neutral industry view, naming Eli Lilly, Merck, Bristol-Myers Squibb, and AbbVie as top picks. The bank sees pharma as a safe haven in uncertain macroeconomic conditions, with investors potentially returning to the sector in 2026.

Analysts highlighted improved policy clarity following MFN agreements, aging demographics, rising chronic disease prevalence, and healthcare spending growth. They also view AI as a tailwind rather than threat, noting 30% efficiency gains in R&D and clinical trials through AI implementation.

Eli Lilly stands as the firm's top pick due to obesity treatments representing a "durable structural shift." Merck received Overweight for earnings upside, while Bristol-Myers Squibb was rated Overweight despite facing a patent cliff, as "green shoots" emerge from its pipeline. AbbVie rounded out the preferred list, with analysts suggesting the Street may be underestimating its operating leverage.

Barclays initiated Gilead Sciences, Biogen and Amgen at Equal Weight, while starting Pfizer at Underweight citing major patent headwinds. The coverage launch comes as investors seek stability in volatile markets, with pharma's defensive qualities being rediscovered after historically outperforming during major market drawdowns.