Headlines Boost Pharma Stocks. Charts of Pfizer, Johnson & Johnson, Jazz Pharmaceuticals Speak to Rally Into Year End

A Pfizer logo at the company’s offices in Madrid. (Emilio Parra Doiztua/Bloomberg)

Healthcare stocks have found a second wind, with momentum building across biotech and pharmaceuticals.

The SPDR S&P Biotech ETF cleared the very round $100 level for the first time in 10 months yesterday. The more pharma-specific VanEck Pharmaceutical ETF surged 3.5% on news of President Donald Trump’s drug pricing plan. That was its largest single-day gain of 2025, as the ETF reclaimed both its 50- and 200-day moving averages in the process. The $90 level, which has acted as a ceiling since the early April “Liberation Day” lows, is once again being tested—June’s brief foray being the only prior exception. As shown in the chart below, pharma has outperformed the Health Care Select Sector SPDR ETF since mid-April and is now up 5% year to date, well ahead of the broader group’s 1% gain. With this relative strength gaining traction, let’s take a closer look at three compelling pharma plays heading into the fourth quarter.

The VanEck Pharmaceutical ETF traded at $93.02 Wednesday.

The VanEck Pharmaceutical ETF has outperformed a broader healthcare ETF this year.

Pfizer, long seen as “dead money,”, may finally be waking up. Tuesday’s news on drug pricing reform could serve as a potential catalyst. The stock is down 4% in 2025, but that decline has pushed its dividend yield to an appealing 6.8%. It now trades 16% below its 52-week high and is approaching a key technical level around $26—an area with significant price memory. This zone acted as a multi-month consolidation base between November and April, and more recently served as resistance in July and August. A decisive breakout above $26 would jump through a bullish ascending triangle pattern, possibly setting the stage for a move toward $31 in early 2026. Maintain a constructive view as long as the stock holds above $23.

Pfizer traded at $26.60 Wednesday.

Pfizer approached a key technical level in recent trading.

Johnson & Johnson is having a strong 2025, up 28% with a nearly 3% dividend yield. The stock has gained 20% over the last three months, showing notable resilience in the face of headlines linking its Kenvue spinoff to concerns around Tylenol and autism. It posted gains in eight of nine weeks through Sept. 26, with all nine weeks closing in the upper half of its weekly range, a sign of strong institutional demand. That run culminated in a tight bull flag formation, which resolved to the upside when the stock broke above the $178 pivot on Sept. 26. With momentum gaining strength, a move toward $208 by the first quarter looks increasingly likely. Stay constructive on the name as long as it holds above $175.

Johnson & Johnson traded at $185.22 Wednesday.

Johnson & Johnson has had a strong year.

Jazz Pharmaceuticals, a global player in neuroscience and oncology, is up 7% year to date, but has climbed 21% over the last three months. The stock remains 10% off its 52-week highs, but has put several sharp first-half drawdowns in the rearview mirror, including a 30% slide over a three-week stretch from late March to mid-April, and a 19% drop in the week ending May 9. Notably, round number support near $100 has proved durable, with key rebounds off that level in April and May. More recently, Jazz broke out above a cup-with-handle formation, clearing the $133.10 pivot, and now looks poised for a move toward $175 in early 2026. Stay bullish above $125.

Jazz Pharmaceuticals traded at $135.10 Wednesday.

Jazz Pharmaceuticals has broken out of a cup-with-handle formation.

Write to Doug Busch at douglas.busch@barrons.com