Key Moments
- UBS highlights Genmab, UCB, and Zealand Pharma as Buy-rated European stocks with major 2026 catalysts.
- Several Phase 3 trial results are due in 2026 and could sharply impact valuations.
- However, UBS warns that these high-impact events may also drive increased share price volatility.
UBS Strategy Focuses on 2026 Trial and Product Milestones
UBS has identified three European pharma and biotech stocks it rates as Buy. The bank sees strong upside potential as key clinical and product milestones approach in 2026.
According to UBS, several companies are nearing Phase 3 trial readouts. These results could materially change investment cases and valuations.
At the same time, UBS cautions that clinical uncertainty remains high. As a result, investors should expect elevated volatility around data releases.
Overview of UBS’s Top Picks
| Company | Segment Focus | Key 2026 Catalysts |
|---|---|---|
| Genmab | Biotechnology | Three Phase 3 readouts aimed at offsetting the 2029 Darzalex royalty expiry |
| UCB | Specialty pharma | Bimzelx growth and a Phase 3 psoriatic arthritis trial versus Skyrizi in H2 2026 |
| Zealand Pharma | Biotech / obesity | Phase 3 survodutide obesity data and Phase 2b ZUPREME-1 trial for petrelintide |
Genmab: Late-Stage Pipeline Targets Post-Darzalex Risk
UBS names Genmab as its preferred European biotech exposure. It views 2026 as a key turning point for the company.
Three Phase 3 programs are scheduled to report data next year. These readouts could help offset the expected loss of Darzalex royalties in 2029.
Importantly, UBS believes that success in two of the three late-stage assets could generate operating profit similar to Darzalex. Therefore, upcoming data are central to the investment case.
UBS is particularly confident in rina-S for ovarian cancer. In addition, it remains positive on the Phase 3 trial of Epkinly in first-line DLBCL.
Meanwhile, Genmab has already reported positive Phase 3 results for epcoritamab. The study showed improved progression-free survival in relapsed or refractory DLBCL patients.
UCB: Specialty Pharma With Lower Binary Risk
In European specialty pharma, UBS selects UCB as its top pick. The bank highlights its lower binary risk compared with pure-play biotech peers.
UBS expects Bimzelx sales momentum to continue into 2026. It also sees strong potential in the ongoing Phase 3 head-to-head trial versus Skyrizi in psoriatic arthritis.
Results from this study are expected in the second half of 2026. If positive, they could accelerate uptake and lift peak sales forecasts.
In addition, UCB recently reported encouraging Phase 3 data for fenfluramine. The drug showed positive results in CDKL5 deficiency disorder.
Zealand Pharma: Obesity Pipeline Drives Upside Case
UBS also favors Zealand Pharma, largely due to its obesity-focused pipeline. The bank points to the Phase 3 survodutide trial as a key catalyst.
UBS expects survodutide to deliver weight loss of 15% to 20%. It also anticipates tolerability similar to existing obesity treatments.
Meanwhile, UBS forecasts that petrelintide will deliver weight loss at the lower end of that range in the ZUPREME-1 Phase 2b study.
However, the bank notes that investor interest in obesity stocks has cooled recently. As a result, Zealand Pharma may be underappreciated ahead of key data.
Volatility Risk Around High-Impact Readouts
Across all three names, UBS sees meaningful upside tied to late-stage trials and product growth. However, it also stresses the risk of sharp price swings.
Therefore, investors should prepare for volatility as Phase 3 results are released. These readouts could prove decisive for long-term valuations.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
