Goldman’s Top Healthcare Picks Gain Fresh Catalysts

Several companies highlighted as top healthcare stocks by Goldman Sachs (GS) have reported important regulatory and pipeline developments, spanning oncology, immunology, and virology. Recent announcements from AstraZeneca (AZN), Gilead Sciences (GILD), and Pfizer (PFE) include US regulatory milestones and supportive analyst actions that focus on near-term product opportunities and longer-term growth prospects.

On March 9, AstraZeneca (AZN) and Daiichi Sankyo received US Food and Drug Administration Priority Review for Enhertu in patients with HER2-positive early breast cancer. The filing is supported by the Phase III DESTINY-Breast05 trial and follows the FDA’s earlier Breakthrough Therapy Designation for the drug, reflecting its potential to significantly improve on existing treatment options for a serious condition.

According to trial results cited in the filing, Enhertu reduced the risk of invasive disease recurrence or death by 53% compared with trastuzumab emtansine (T‑DM1), with a safety profile described as consistent and without new safety concerns. The FDA’s priority review underscores the possibility that Enhertu could become a new standard of care in this early breast cancer setting.

Enhertu is already approved in more than 90 countries for HER2-positive metastatic breast cancer. Susan Galbraith, AstraZeneca’s Executive Vice President of Oncology Haematology R&D, said the review moves the companies closer to offering Enhertu in the post-neoadjuvant setting for higher-risk patients, with the aim of more sustained long-term outcomes and a potential path to cure.

AstraZeneca, described as a global science-led biopharmaceutical company, focuses on prescription medicines across oncology, cardiovascular, renal, metabolism, respiratory, and immunology, and generates significant revenue from these therapeutic areas.

On March 10, Jefferies initiated coverage of Gilead Sciences (GILD) with a Buy rating and a $180 price target. The firm highlighted expectations for earnings-per-share growth and margin expansion, and noted that Gilead is not facing any near-term intellectual property cliffs or significant operating leverage issues.

Jefferies cited Gilead’s HIV franchise and prospects for follow-on products as key strengths, and expressed optimism about the launch of Yetzugo in pre-exposure prophylaxis. The firm also pointed to progress across Gilead’s broader pipeline in virology, oncology, and inflammation.

Gilead’s Phase 3 RAINIER trial for povetacicept in immunoglobulin A nephropathy met both primary and secondary endpoints, marking an advance in its renal portfolio. In oncology, Gilead agreed to acquire blood cancer drug developer Arcellx in a $7.8 billion deal, building on a partnership dating back to 2022 to commercialize medicines for multiple myeloma.

The company is described as a US-based biopharmaceutical group known for therapies targeting HIV, hepatitis B and C, and COVID-19, with efforts to expand its global impact, including in Asia.

Pfizer (PFE), another Goldman Sachs (GS) top healthcare stock, also drew favorable analyst commentary following new clinical data. On March 9, BMO analysts reiterated an Outperform rating and a $30 price target after the company released positive Phase 2 results for its tri-specific antibody tilrekimig in adults with atopic dermatitis.

In the trial, the once-monthly inhibitor achieved a placebo-adjusted high of 51.9% improvement in the middle-dose group, compared with a high of 36% at 16 weeks reported for Regeneron’s (REGN) Dupixent. Tilrekimig met its primary endpoint, and the data suggest a potentially stronger competitive profile with higher efficacy than the current treatment from Sanofi (SANp) and Regeneron (REGN).

The Phase 2 outcome is described as strengthening Pfizer’s position in immunology and inflammation and providing a potential catalyst as it works to rebuild momentum across its pipeline. Pfizer is characterized as a leading global biopharmaceutical company with over 150 products, focused on oncology, inflammation, immunology, and vaccines, including major COVID-19 vaccines and treatments.