European Pharmaceutical Sector Faces Challenges Ahead: Deutsche Bank

European pharmaceuticals face a tougher test in the next earnings season, with UK stocks under scrutiny. Deutsche Bank expects mid-single digit sales growth and faster earnings growth, driven by cost control and product mix. The sector no longer looks cheap, but 2026 is rich in catalysts, including pipeline updates and trial data. AstraZeneca and GSK are rated "sell" and "hold" respectively, while Novartis and Novo Nordisk are preferred large-cap ideas, and Genmab and UCB top the mid-cap list.