In this article, we will take a look at some of the best dividend stocks.
Drug pricing has become one of the biggest pressure points for pharmaceutical companies this year, as the U.S. moves to rein in what consumers pay at the pharmacy counter.
For most drugmakers, the US is the largest single market. Prices there are often close to three times higher than in other developed countries. Branded medicines carry even steeper premiums. That gap explains why so much of the industry’s revenue still depends on American sales.
Donald Trump has pushed to lower drug prices through a so-called Most Favored Nations pricing model. Under that approach, US prices would be tied to the lowest levels paid by other wealthy countries. If implemented at scale, the impact on pharmaceutical balance sheets could be significant.
According to a report by CNBC, five of the 10 largest biopharmaceutical companies in the Stoxx 600 Health Care generate the majority of their total sales from the US. That exposure helps explain why pricing reform remains such a sensitive issue for the sector.
Market performance has held up so far. The S&P 500 Health Care is up more than 13% this year. Bloomberg reported that in the third quarter of 2025, health-care companies led all 11 S&P 500 sectors in earnings beats. It marked the industry’s strongest quarter in more than four years.
In an interview, Kevin Caliendo, senior health-care analyst at UBS, said that looking ahead, attention will shift to how pharmaceutical companies adjust now that drug pricing uncertainty has started to ease.
Given this, we will take a look at some of the best dividend stocks in the pharma sector.
Our Methodology:
For this article, we screened for pharma companies that develop, manufacture, and sell prescription drugs and vaccines. We also identified companies that offer contract manufacturing to other pharma and biotech companies. From that list, we picked 14 companies that were most popular among hedge funds, as per Insider Monkey’s database of Q3 2025, and ranked them accordingly.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. Viatris Inc. (NASDAQ:VTRS)
Number of Hedge Fund Holders: 55
Dividend Yield as of December 29: 3.87%
Viatris Inc. (NASDAQ:VTRS) is among the best dividend stocks from the pharma sector.
On December 9, Barclays analyst Glen Santangelo initiated coverage of Viatris Inc. (NASDAQ:VTRS) with an Overweight rating and a $15 price target. The firm launched coverage of the specialty pharmaceuticals industry with a neutral view, noting that investor sentiment is starting to improve as companies place more emphasis on innovation, margin expansion, and de-leveraging. In a research note, the analyst said pricing pressure across the group is easing, while debt leverage is moving lower. Barclays sees “plenty of opportunity” in the space, adding that the sector “remains in a transition phase.” That transition, in the firm’s view, is beginning to show through both balance sheets and operating focus.
Earlier in December, Viatris Inc. (NASDAQ:VTRS) announced it had entered into definitive agreements with Biocon Limited to sell its equity stake in Biocon Biologics Limited. Under the terms, Biocon will acquire all of Viatris’ convertible preferred equity in Biocon Biologics for total consideration of $815 million. The transaction includes $400 million in cash and $415 million in newly issued equity shares of Biocon.
Scott A. Smith, Chief Executive Officer, Viatris, made the following statement:
“This agreement is another important step in Viatris’ evolution. Monetizing the value of our equity stake in Biocon Biologics and regaining access to the biosimilars market globally provides significant additional optionality as we continue to build a portfolio of generics, established brands and innovative brands that can contribute to our future growth.”
Citi is acting as financial advisor to Viatris. Cravath, Swaine & Moore LLP and Indian law firm Khaitan & Co. are serving as legal advisors to the company.
Viatris Inc. (NASDAQ:VTRS) is a global pharmaceutical company that provides a wide range of medicines, including generics, branded drugs, biosimilars, OTC products, and active pharmaceutical ingredients (APIs).
13. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 61
Dividend Yield as of December 29: 2.54%
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best dividend stocks to invest in.
On December 29, Gilead Sciences, Inc. (NASDAQ:GILD) announced an agreement with the US government aimed at lowering drug costs for Americans. The move reinforces the company’s long-standing focus on US-based innovation, affordability, and global health leadership.
Under the three-year agreement, Gilead agreed to all requests by President Trump to adopt a new pricing strategy that prioritizes American patients. The goal is to ensure the US no longer carries a disproportionate share of global healthcare costs. The agreement also supports America’s role in global health and biomedical innovation. It builds on Gilead Sciences, Inc. (NASDAQ:GILD)’s recently announced partnership with the US Department of State to provide its breakthrough HIV prevention medicine, lenacapavir, at no profit to up to two million people in the countries most affected by the disease over the next three years.
Daniel O’Day, Chairman and Chief Executive Officer, Gilead Sciences, made the following statement:
“This agreement reflects a foundational commitment to both affordability and future innovation, a commitment that we have long seen as essential to shaping the future of healthcare. The progress toward expanding access and increasing investment in U.S. innovation will meaningfully contribute to America’s health and economic priorities. Gilead Sciences will continue to work with the Administration in service of these priorities for the benefit of generations to come.”
Alongside these efforts, Gilead Sciences, Inc. (NASDAQ:GILD) recently said it plans to invest $32 billion in US-based manufacturing, research and development, and infrastructure over the next five years. The company expects this investment to generate $43 billion in national economic value and create more than 3,000 direct and indirect jobs.
Gilead Sciences, Inc. (NASDAQ:GILD) is a major biopharmaceutical company that researches, develops, and sells innovative medicines, with a focus on treating life-threatening diseases.
12. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 62
Dividend Yield as of December 29: 3.05%
Amgen Inc. (NASDAQ:AMGN) is among the best dividend stocks to invest in.
Amgen Inc. (NASDAQ:AMGN) has outperformed the broader market this year, supported by strong financial results and steady clinical progress, even as investors keep an eye on upcoming patent expirations. The stock is up more than 27% since the start of 2025.
In the third quarter, revenue rose 12% from a year earlier to $9.6 billion. Several of the company’s key growth drivers delivered solid numbers. Repatha, a treatment for high cholesterol, generated $794 million in sales during the period, a 40% increase from the prior year. Tezspire, Amgen’s asthma therapy, posted revenue of $377 million, also up 40% year over year.
Growth may slow over the next few quarters as biosimilar competition for denosumab, a bone-health drug sold under the Prolia and Xgeva brands, begins to gain traction. That pressure is real, and it is already on investors’ radar. Amgen Inc. (NASDAQ:AMGN) still has multiple ways to offset that impact. Several existing products continue to offer years of sales growth, and the pipeline remains active. One of the more closely watched programs is MariTide, a long-acting investigational treatment for weight management. The company has moved MariTide into phase 3 studies across obesity, type 2 diabetes, and other conditions.
Steady financial performance and an ability to refresh its pipeline support Amgen’s dividend outlook. The company has raised its dividend every year since initiating the program in 2011. The stock now offers a forward yield of about 3%, compared with the S&P 500 average of roughly 1.2%. With a cash payout ratio near 46%, there is still room for further increases.
Amgen Inc. (NASDAQ:AMGN) is a leading global biotechnology company that discovers, develops, manufactures, and delivers innovative medicines for serious illnesses.
11. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 68
Dividend Yield as of December 29: 3.05%
Abbott Laboratories (NYSE:ABT) is among the best dividend stocks to invest in.
On December 22, Abbott Laboratories (NYSE:ABT) said the US Food and Drug Administration has approved the company’s Volt™ PFA System to treat patients with atrial fibrillation, or AFib. The company plans to begin commercial PFA cases in the United States soon and will continue expanding sites across the European Union, following Volt’s CE Mark approval earlier this year.
AFib affects roughly 12 million people in the US over the age of 65, and that number is expected to double over the next 20 years. People living with the condition face a fivefold higher risk of stroke, and AFib has been a contributing cause of death in the United States for more than two decades. When medications and other treatment options fall short, many patients turn to minimally invasive cardiac ablation procedures to stop irregular heart rhythms.
The FDA approval was based on results from Abbott Laboratories (NYSE:ABT)’s VOLT-AF IDE study, which enrolled 392 patients across 40 centers in the United States, Europe, Canada, and Australia. The data showed that the Volt PFA System delivered clinically meaningful safety and effectiveness in two patient groups: people with paroxysmal atrial fibrillation, where episodes come and go, and those with persistent AFib.
Abbott Laboratories (NYSE:ABT) is a global healthcare leader that helps people live more fully at every stage of life. Its portfolio of life-changing technologies spans diagnostics, medical devices, nutritionals, and branded generic medicines.
10. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 72
Dividend Yield as of December 29: 1.68%
Zoetis Inc. (NYSE:ZTS) is among the best dividend stocks to invest in.
On December 15, BofA downgraded Zoetis Inc. (NYSE:ZTS) to Neutral from Buy and lowered its price target to $135 from $165.
In other news, on December 5, Zoetis Inc. (NYSE:ZTS) announced that Health Canada approved Portela™ (relfovetmab injection) for the relief of pain linked to osteoarthritis, or OA, in cats. Portela is designed to deliver up to three months of OA pain relief with a single injection. The treatment targets anti-nerve growth factor (NGF), a key driver of OA pain and inflammation.
In a nine-month field trial conducted in Europe, Portela showed it could effectively reduce OA pain and was generally well tolerated. That included cats diagnosed with kidney disease at IRIS stage 1, 2, or 3. Portela is already approved in the European Union, and Zoetis expects to make it commercially available in Canada and the EU in 2026.
Rob Polzer, Ph.D., Executive Vice President and President, Research and Development at Zoetis, made the following comment:
“Health Canada’s approval of Portela marks a significant step forward in managing osteoarthritis-related pain in cats. Thanks to Portela’s long-lasting antibody and its unique binding site to NGF, veterinarians and cat owners in Canada now have a new, innovative way to address osteoarthritis pain. This achievement underscores our ongoing dedication to developing new therapies that improve the health and quality of life for companion animals.”
Zoetis Inc. (NYSE:ZTS) continues to expand its animal health portfolio through lifecycle innovation, geographic expansion, and new product development. Portela adds to the company’s growing lineup of OA pain treatments for cats, alongside Solensia® (frunevetmab injection).
Zoetis Inc. (NYSE:ZTS) is the largest global animal health company, focused on advancing care for animals worldwide.
9. McKesson Corporation (NYSE:MCK)
Number of Hedge Fund Holders: 73
Dividend Yield as of December 29: 0.40%
McKesson Corporation (NYSE:MCK) is among the best dividend stocks in the pharma sector.
On December 10, Deutsche Bank analyst George Hill raised the firm’s price target on McKesson Corporation (NYSE:MCK) to $904 from $861 and kept a Buy rating on the shares. In a research note, the analyst said the company reiterated plans to exit its med-surgical business through an initial public offering, followed by a spin-off or split-off. Management expects the separation to be completed by the end of 2027. The firm acknowledged the move could be dilutive, but said the stock “can still perform through the transaction.”
Earlier in November, McKesson Corporation (NYSE:MCK) raised its fiscal 2026 profit forecast, leaning on continued strength in oncology and specialty drug distribution. Across the US, drug distributors are pushing deeper into specialty medicines that treat complex conditions such as rheumatoid arthritis and cancer. These products tend to carry higher margins and more stable demand. McKesson now expects adjusted earnings per share of $38.35 to $38.85 for fiscal 2026, up from its prior outlook of $38.05 to $38.55. Analysts, on average, were looking for $38.33 per share, based on LSEG data.
The most recent quarter showed similar momentum. On an adjusted basis, the company earned $9.86 per share, well above estimates of $9.02. Revenue came in at $103.15 billion, slightly below expectations of $104.13 billion.
The US pharmaceutical unit, McKesson’s largest business by revenue, posted sales of $86.5 billion. That was an 8% increase from last year, though it fell short of the $87.40 billion consensus forecast.
In September, the company said it would reorganize into four operating segments. The goal is to sharpen its focus on higher-margin areas, including cancer medicines, and support longer-term growth.
McKesson Corporation (NYSE:MCK) is a leading healthcare company across wholesale medical supplies and equipment, pharmaceutical distribution, and healthcare technology solutions.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 76
Dividend Yield as of December 29: 4.66%
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best dividend stocks to invest in.
On December 15, Goldman Sachs raised the firm’s price target on Bristol-Myers Squibb Company (NYSE:BMY) to $57 from $51 and kept a Neutral rating on the shares.
Bristol-Myers Squibb Company (NYSE:BMY) presents a measured balance between risk and reward. The stock offers a 4.6% dividend yield, and the payout ratio sits near 85%. That still leaves some flexibility to support the dividend, even as pressures build.
The company is dealing with a patent cliff. That risk is well known, and the management has responded with a series of acquisitions aimed at strengthening the pipeline and spreading exposure across more target markets. It is not a perfect fix, but it adds depth at a critical time.
Bristol-Myers Squibb Company (NYSE:BMY) develops and sells medicines across cardiovascular disease, immune disorders, and oncology. Its commercial portfolio is split into two groups. “Growth” drugs have several years of patent protection remaining, while “legacy” products are nearing the patent cliff or have already lost exclusivity.
There are major products in both buckets. The growth portfolio is led by the cancer treatment Opdivo. In the legacy group, Eliquis remains the top seller for now, even as competition edges closer. Lately, growth drugs have been doing the heavy lifting. In the third quarter, sales in this category rose 18% year over year to $6.9 billion. That strength helped offset a 12% decline in legacy revenue and pushed total revenue up 3% to $12.2 billion.
Bristol-Myers Squibb Company (NYSE:BMY) continues to position itself as a global biopharmaceutical company focused on discovering, developing, and delivering innovative medicines for patients with serious illnesses.
7. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 78
Dividend Yield as of December 29: 3.32%
CVS Health Corporation (NYSE:CVS) is one of the best dividend stocks in the pharma sector.
On December 12, Bernstein raised the firm’s price target on CVS Health Corporation (NYSE:CVS) to $87 from $86 and kept a Market Perform rating after what it described as a very positive Investor Day. The firm pointed to stronger confidence in the quality and depth of the management team, along with renewed conviction in the company’s market leadership.
A few days earlier, on December 9, CVS raised its 2025 profit forecast, signaling steady progress in its turnaround plan. Management said the company has delivered on its commitments this year and is now shifting attention toward improving consumer experiences across the business. Chief Executive David Joyner shared that message during the investor day.
The company also introduced a new consumer app designed to better connect and integrate its services. The aim is to deepen engagement and create new revenue opportunities for partners across the platform. That outlook follows a year of major changes. Joyner pushed through broad cost-cutting efforts, exited weaker markets, and strengthened leadership teams to rebuild investor confidence. The stock has reflected that shift, rising more than 80% over the year.
Looking ahead, CVS forecasts total 2026 revenue of at least $400 billion. That figure came in below the $419.26 billion expected by analysts. Growth is expected to come from a return to target margins at the Aetna insurance business and continued improvement at the CVS Caremark pharmacy benefit management unit.
CVS Health Corporation (NYSE:CVS) operates as a diversified healthcare company, with businesses spanning pharmacy services, retail health, and long-term care.
6. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Dividend Yield as of December 29: 6.88%
Pfizer Inc. (NYSE:PFE) is among the best dividend stocks to invest in.
On December 16, Pfizer Inc. (NYSE:PFE) said the next few years are expected to be bumpy, starting in 2026. The company pointed to lower sales of its COVID vaccine and treatment, price cuts promised to the US government, and patent expirations on several key drugs.
Management does not expect revenue to return to growth until 2029. In the meantime, the focus is on developing new blockbuster medicines, including obesity treatments added through recent deals. The pipeline has not delivered a true breakthrough since Pfizer Inc. (NYSE:PFE) helped develop the COVID vaccine Comirnaty and launched the treatment Paxlovid earlier in the decade.
Cost control is also front and center. The company aims to save more than $7 billion a year through 2027 as part of a broader efficiency push. At the same time, leadership has been rebuilding the pipeline both internally and through acquisitions. One recent purchase was Metsera, which is working on obesity treatments. If those drugs receive regulatory approval, Pfizer would gain a foothold in a fast-growing and lucrative market. The potential appeal is clear, with oral medications instead of injections and monthly dosing rather than frequent shots.
Revenue growth may stay muted for a while, but shareholders are still being compensated as the stock offers a dividend yield of about 6.9%. That level can raise questions about sustainability, yet management continues to stand behind the payout. Earnings coverage provides added support.
Pfizer Inc. (NYSE:PFE) remains a large, research-driven biopharmaceutical company that discovers, develops, manufactures, and sells medicines and vaccines across a broad range of health conditions.
5. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Dividend Yield as of December 29: 3.19%
Merck & Co., Inc. (NYSE:MRK) is one of the best dividend stocks to invest in.
On December 17, the US Food and Drug Administration moved to fast-track reviews of two experimental Merck & Co., Inc. (NYSE:MRK) drugs with multibillion-dollar potential, according to internal documents seen by Reuters.
Merck’s cholesterol pill enlicitide decanoate and its cancer therapy sacituzumab tirumotecan, also known as sac-TMT, were selected for the Commissioner’s National Priority Voucher program. If approved, they would become the 17th and 18th medicines included in the new initiative, the documents show.
The FDA expects Merck & Co., Inc. (NYSE:MRK) to submit its application for enlicitide in April, followed by sac-TMT in October or November next year. Launched in June, the voucher program is designed to accelerate FDA decisions for drugs with major public health or national security importance. Reviews under the program can take one to two months, compared with the usual 10 to 12 months.
Merck shared positive data on enlicitide in September. In a late-stage, 24-week trial, the drug significantly reduced LDL cholesterol levels versus a placebo in patients with hypercholesterolemia. These patients, marked by severely elevated LDL levels, face a higher risk of heart attack and stroke. The push comes as Merck works to strengthen its pipeline and bring new therapies to market. That effort has taken on more urgency as its blockbuster cancer drug Keytruda, the world’s top-selling medicine with nearly $30 billion in annual sales, is expected to face competition from lower-cost biosimilars later this decade.
4. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 93
Dividend Yield as of December 29: 3.00%
AbbVie Inc. (NYSE:ABBV) is one of the best dividend stocks in the pharma sector.
On December 15, BofA lowered the firm’s price target on AbbVie Inc. (NYSE:ABBV) to $233 from $248 and kept a Neutral rating. The firm said it sees “a relatively clean setup” for growth near the top end of the peer group, though that is offset by a premium valuation and limited late-stage pipeline catalysts. As part of the update, BofA shifted its valuation framework to fiscal 2027 estimates.
The stock has climbed more than 28% since the start of 2025. That move has been backed by solid financial performance. Over the first nine months of the year, revenue rose 8% from a year earlier to $44.5 billion. Adjusted earnings per share came in at $7.29, down from $7.96, largely due to acquisition-related charges. That decline is tied to timing and accounting, not to operating weakness.
Momentum should carry into 2026 and likely beyond. Early in 2024, AbbVie Inc. (NYSE:ABBV) laid out long-term guidance calling for high single-digit revenue growth through 2029. Since then, the outlook has improved in a few key areas. The biggest change has come from immunology. AbbVie originally forecast combined 2027 sales of more than $27 billion for Skyrizi and Rinvoq. That estimate has since been lifted by $4 billion. Strong demand for these two drugs remains a central driver of the company’s growth outlook through the end of the decade.
Oncology is also expected to regain traction. Management now sees revenue in that segment starting to move higher again next year, adding another layer of support to the broader growth story.
AbbVie Inc. (NYSE:ABBV) operates as a global biopharmaceutical company focused on discovering, developing, manufacturing, and selling innovative medicines for serious health conditions.
3. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 103
Dividend Yield as of December 29: 2.51%
Johnson & Johnson (NYSE:JNJ) is among the best dividend stocks to invest in.
On December 26, Johnson & Johnson (NYSE:JNJ) said it ended a mid-stage study of an experimental drug for patients with moderate to severe atopic dermatitis. The decision followed an interim analysis showing the treatment did not meet its efficacy targets.
The drug, JNJ-5939, was tested in patients with atopic dermatitis, or eczema. The condition causes inflammation, redness, and intense itching. The company said the drug was well-tolerated, but it failed to meet the “high-bar” efficacy required to continue development. That result, while disappointing, is not uncommon in mid-stage trials.
Johnson & Johnson (NYSE:JNJ) said it remains committed to developing new treatments for atopic dermatitis, a chronic condition that affects more than 100 million people worldwide. The pipeline is still moving. The company is advancing other experimental therapies, including bispecific antibodies NM26, PX128, and PX130, as well as an oral STAT6 inhibitor, KP-723.
There are broader pressures in the background. Drug price negotiations in the US remain a major challenge, and several of the company’s medicines have already been selected for pricing reviews. Over time, that is expected to weigh on revenue from those products.
Even so, Johnson & Johnson (NYSE:JNJ) continues to stand out for income-focused investors. The company has increased its dividend for 63 consecutive years. That kind of consistency is rare and places it among the most reliable dividend programs in the market. For investors who value stability, those payouts still matter.
Johnson & Johnson (NYSE:JNJ) and its subsidiaries operate across the healthcare sector, spanning research and development, manufacturing, and the sale of a broad range of medical products.
2. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 114
Dividend Yield as of December 29: 0.64%
Eli Lilly and Company (NYSE:LLY) is among the best dividend stocks.
Eli Lilly and Company (NYSE:LLY) is moving quickly to lock in its position in India’s fast-growing obesity drug market. Cheaper generic versions are expected to arrive as early as March next year, and the window to build brand loyalty is narrowing. In a notable push, the company has even partnered with well-known Bollywood actors in a social media campaign focused on obesity awareness.
India is becoming a critical battleground. By 2050, the country is projected to have the world’s second-largest overweight or obese population in absolute terms. Analysts estimate the global obesity drug market could reach $150B a year by the end of the decade. For drugmakers, the stakes are high.
Eli Lilly and Company (NYSE:LLY)’s Mounjaro, approved in India for both diabetes and weight loss, has gained traction quickly. By October, it had become the top-selling therapy by value. Sales doubled within months of its March launch, putting it ahead of Novo’s Wegovy, which entered the Indian market in June. That kind of momentum matters when competition is close behind.
Price moves in other markets tell a similar story. On December 17, Canada’s Globe and Mail reported that Eli Lilly and Company (NYSE:LLY) was cutting prices of its diabetes and weight-loss drugs Mounjaro and Zepbound by 20% or more in Canada, citing a note sent to pharmacies. Under the change, the list price for a four-week supply of either drug would drop to 300 Canadian dollars ($217) for the 2.5 mg and 5 mg doses. Earlier in December, the company also reduced prices on single-dose vials of its obesity drug Zepbound in the US, a step aimed at making the treatment more accessible for patients paying out of pocket.
Eli Lilly and Company (NYSE:LLY)operates as a global pharmaceutical firm focused on discovering, developing, manufacturing, and marketing medicines for major health challenges. Its core areas include diabetes, oncology, immunology, and neuroscience, with weight-loss and metabolic treatments now taking a more prominent role in its growth strategy.
1. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 121
Dividend Yield as of December 29: 0.29%
Thermo Fisher Scientific Inc. (NYSE:TMO) is among the best dividend stocks in the pharma sector.
On December 15, Bank of America raised its price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $700 from $650 and kept a Buy rating on the shares. The firm said it was updating price targets across its Life Sciences & Diagnostic Tools coverage. According to the analyst, current headwinds are expected to ease, with markets likely to return to more normal conditions in 2026. BofA sees the biggest opportunity coming from a recovery in biopharma spending. That outlook leads the firm to favor companies with heavier exposure to research and development, where demand tends to rebound first when budgets loosen.
Earlier in October, Thermo Fisher Scientific Inc. (NYSE:TMO) said it would acquire privately held data management company Clario for up to $9.4 billion. The move strengthens Thermo Fisher’s clinical trial research business at a time when demand in the US is picking up again. The deal includes an upfront payment of about $8.88 billion, plus $125 million due in January 2027 and up to $400 million in earn-out payments tied to Clario’s performance in 2026 and 2027. It marks Thermo Fisher’s third major acquisition this year, reflecting its push to benefit from pharmaceutical companies’ expanding drug development and manufacturing activity in the US.
The acquisition also shifts the company deeper into clinical development. That area is seen as a “more steadily growing and attractive area” than early-stage research and drug discovery, according to Puneet Souda of Leerink Partners.
Thermo Fisher Scientific Inc. (NYSE:TMO) operates as a global supplier of analytical instruments, clinical development solutions, specialty diagnostics, and laboratory, pharmaceutical, and biotechnology services.
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