The drug and biotech sector has bounced back over the last few months after a weak start to the year. Pricing agreements and a surge in M&A activity have improved investor confidence. The industry is currently outperforming the S&P 500, driven by interest in obesity drugs, AI in development, and gene therapy. Here is a summary of five major companies discussed: **Eli Lilly (LLY)** Sales are strong for Mounjaro and Zepbound as supply improves. They are advancing an oral weight loss pill, orforglipron, which could launch next year. The stock is up about 39% year to date. **Johnson & Johnson (JNJ)** New drug launches are driving growth even with the loss of exclusivity for Stelara. The MedTech division is improving, and they plan to separate the slower-growth orthopaedics business. Stock is up 43% this year. **AbbVie (ABBV)** They are navigating the decline of Humira effectively with newer drugs like Skyrizi and Rinvoq. The aesthetics unit is struggling a bit due to lower consumer sentiment. Stock is up 28%. **Amgen (AMGN)** Revenue is being supported by biosimilars and drugs like Repatha. The main focus is on their obesity candidate, MariTide, which might offer monthly dosing. They face some patent cliffs on older drugs. Stock is up 27%. **AstraZeneca (AZN)** The company is targeting $80 billion in revenue by 2030 with a heavy slate of new medicines. They are facing some headwinds from investigations in China and generic competition in the US/Europe. Stock is up 10%.