Four biotech giants hit new 52-week highs as sector rallies 9%

Eli Lilly, AbbVie, Johnson & Johnson and Biogen each touched new 52-week highs on June 26, propelled by a broader biotech rally that has lifted the S&P Healthcare Index 9% in the past month while the S&P 500 fell 3.4%.

The SPDR S&P Biotech ETF (XBI) surged 16.4% and the iShares Biotechnology ETF (IBB) rose 10.6% over the same period, as strong quarterly results, pipeline milestones, accelerating M&A and favorable macroeconomic data converged to boost investor confidence in the sector.

"Strong quarterly results, pipeline and regulatory successes, accelerating M&A activity, and favorable macroeconomic data are the major factors driving growing investor confidence," according to a Zacks Investment Research note published June 29.

Eli Lilly led the group, reaching an intraday 52-week high of $1,215.76. The $1 trillion-plus drugmaker, whose shares trade above $1,000, has one of the strongest growth profiles in big pharma, anchored by its dominance in the obesity and diabetes market. Its blockbuster GLP-1 drugs Mounjaro (tirzepatide) for type II diabetes and Zepbound (tirzepatide) for obesity have become among the fastest-growing medicines in pharmaceutical history.

Lilly gained FDA approval for Foundayo (orforglipron), a once-daily oral GLP-1 pill for obesity, in April 2026. The company also announced details of its Medicare GLP-1 Bridge program, offering eligible Part D beneficiaries access to Foundayo and Zepbound at $50 per month starting July 1, 2026, through Dec. 31, 2027 — the first broad Medicare Part D coverage pathway for GLP-1 obesity medicines. The European Medicines Agency's CHMP issued a positive opinion recommending approval of Lilly's cancer drug Jaypirca (pirtobrutinib) for chronic lymphocytic leukemia across all lines of therapy.

Lilly's next-generation candidate retatrutide, a triple-acting incretin targeting GLP-1, GIP and glucagon pathways, demonstrated approximately 28% weight loss in late-stage studies. The company plans to seek approval for obesity and knee osteoarthritis pain in 2026. Lilly has also announced more than $20 billion in biotech deals this year across oncology, neuroscience, cardiovascular disease, gene editing and vaccines.

AbbVie hit $253.35, its current 52-week high, after the FDA approved Skyrizi (risankizumab) for pediatric patients with moderate-to-severe plaque psoriasis. The European Commission approved the same indication last week. AbbVie has successfully navigated the loss of exclusivity of Humira, which once generated more than 50% of total revenue, by scaling Skyrizi and Rinvoq (upadacitinib) across new indications. The company's $10.9 billion proposed acquisition of Apogee Therapeutics strengthens its long-term immunology pipeline. AbbVie expects total revenue to rise approximately 10% in 2026 and high single-digit growth through 2029, with no significant loss-of-exclusivity events for the rest of the decade.

Johnson & Johnson reached $255.11, an all-time high, closing at $255.08. CHMP recommended approval of an expanded indication for J&J's oncology drug Tecvayli (teclistamab) in combination with daratumumab for relapsed or refractory multiple myeloma after at least one prior therapy. J&J's Innovative Medicine unit is growing despite the Stelara patent expiration, driven by Darzalex (daratumumab), Erleada (apalutamide) and Tremfya (guselkumab), along with newer drugs Carvykti (ciltacabtagene autoleucel), Tecvayli and Spravato (esketamine). The company expects both its pharmaceuticals and MedTech segments to deliver stronger growth in 2026, targeting approximately $100 billion in total revenue.

Biogen touched $218.06, its 52-week high, as investor sentiment improved following a proposed $1 billion acquisition of RayThera to expand its immunology pipeline and an FDA breakthrough therapy designation for salanersen in spinal muscular atrophy. After years of declining multiple sclerosis revenue and concerns about Alzheimer's commercialization, Biogen's multiyear turnaround is gaining traction. The company closed its acquisition of Apellis Pharmaceuticals in April 2026, adding commercial-stage drugs Empaveli (pegcetacoplan) and Syfovre (pegcetacoplan) for immune-mediated retinal disease and nephrology. In May, Biogen acquired exclusive rights to felzartamab in China from TJ Biopharma. However, newer products Leqembi (lecanemab, partnered with Eisai) for Alzheimer's, Skyclarys (omaveloxolone) for Friedreich's ataxia and Zurzuvae (zuranolone) for depression remain insufficient to fully offset the near-term decline of the multiple sclerosis franchise.

The coordinated 52-week highs across four biotech bellwethers signal strong sector-wide momentum that could attract further institutional capital into healthcare. For investors, the key question is whether the rally can sustain itself through the second half of 2026. Lilly's GLP-1 pipeline faces potential competition from Novo Nordisk's oral amycretin and other entrants, while AbbVie and J&J must demonstrate that their post-patent-expiration growth trajectories are durable. Biogen's turnaround hinges on whether Leqembi adoption accelerates and whether its newly acquired immunology assets can meaningfully contribute to revenue. All four stocks carry a Zacks Rank #3 (Hold), suggesting the market has already priced in much of the positive news.

This article is for informational purposes only and does not constitute investment advice.