Large Drugmakers vs the S&P 500

## What this measures

The large U.S.-listed drugmakers index (equities.pharma.index) divided by the S&P 500 (the SPY fund's price), rebased so January 4, 2021 = 100.

## Why it matters

Whether investors are paying up for drug companies compared with the market as a whole: a read on defensive positioning, drug-pricing risk and the obesity-drug trade.

## How to read it

Above 100: drug stocks have beaten the S&P 500 since January 2021. A rising line means they are gaining on the market; a falling line means they are lagging.

## What it does not say

Price only on both sides; dividends are not counted, and drugmakers pay more of them than the average S&P 500 company. It inherits the basket's limits (no foreign drugmakers, fixed membership).

## Source

Daily closes through a licensed market data provider; share counts from SEC filings. Calculated by Palanor.