** Brokerage Citi expects dynamic drug launches and pipeline catalysts to sustain sector gains for U.S. biopharma in 2026

** Expects continued headlines on U.S.-based R&D investments and updates surrounding the impact from the 2026 IRA drugs

** Brokerage prefers Eli Lilly LLY.N, Vertex VRTX.O, and Gilead GILD.O among large-cap names for higher growth

** LLY's oral GLP-1 orforglipron, VRTX's pain drug Journavx and cystic fibrosis drug Alyftrek, and GILD’s HIV treatment Yeztugo seen as key launches

** SMid-cap picks include Apogee, Arcellx, and NewAmsterdam on major data and approvals

** Citi expects further upside as policy headwinds recede and innovation accelerates, with investors advised to watch for clinical and regulatory catalysts across obesity, neuro and cardio/metabolic spaces

** Expects sector to grow their sales by about 5% per year and their earnings by about 8% per year over the next three years, with large-cap biopharma positioned as a viable alternative to tech

(Reporting by Sahil Pandey and Siddhi Mahatole in Bengaluru)

((Sahil.Pandey@thomsonreuters.com))