Eli Lilly, Merck, Gilead, Bristol Myers Squibb and AbbVie, among other pharmaceutical companies, are slated to report third-quarter earnings this week.
Johnson & Johnson said its experimental psoriasis drug has shown superior skin clearance compared to Bristol Myers Squibb's Sotyktu in two head-to-head trials.
AbbVie, Bristol Myers Squibb and Eli Lilly appear "relatively well-positioned," while Novartis and Roche look more at risk, TD Cowen analyst Steve Scala said.
Cigna accused Bristol Myers Squibb of violating antitrust law by keeping generic versions of its blood cancer drug Pomalyst off the market to retain a monopoly.