Stock Watch
Two pharmaceutical companies reporting bumper sales in the hot areas of diabetes and obesity may have helped a thaw in sector sentiment.
Taking a broad view of big pharma share price movements as the sector reported 2024 financials, company-specific issues were complicated by geopolitical factors including Donald Trump’s tariff announcements.
What a company says – and does not say – about its outlook can sway sentiment. Meanwhile, the snapshot of a big pharma’s quarterly results offers an insight to the circle of a portfolio’s life, with new products ascending to blockbuster status as previous blockbusters disappear.
When a sector re-rates and goes out of favor against the backdrop of wider headwinds, even sales growth may not distract investors from greener grass in other sectors.
After a less auspicious prelude and a positive start to the biggest healthcare conference of the year, the news flow and investors’ support for biotech initially improved.
Big pharma is under pressure to find the next big thing, and new launches bring high hopes. But focusing on the number of new drugs approved each year may mislead on the sector’s success if profitability and significant sales elude a majority.
From gene therapies to small molecule drugs, investors seemed to have eschewed the risks of biotech company investment propositions in 2024 but last year’s disappointments provided good lessons going forward.
While Pfizer’s analysts’ meeting cheered its investors with clear guidance, Novo Nordisk presented disappointing obesity data. The true value of CagriSema cannot be estimated without more information, however.
Cyclacel’s long demise as a therapeutic oncology biotech company followed a parade of red flags over nearly 25 years. Only one should have been needed to dissuade investors.
The US election result brought stock market volatility especially to pharma and biotech companies but the poster children for approved GLP-1 agonists and vaccines were initially the hardest hit.
Presenting data or announcing a licensing transaction at an appropriately themed conference would normally be expected to be viewed favorably by investors. This is not always the case, however.
The end of third-quarter earnings season for big pharma brought a muted investor response to AstraZeneca’s results, but a Bayer’s announcement served as a reminder that there is always someone worse off.
Novo Nordisk learned from missing analysts’ estimates after its second-quarter report but Eli Lilly was caught this time round. Meanwhile, a falling tide grounded all ships after the US election.
Pfizer’s and Moderna’s quarterly pandemic-related product sales could not mask other weaknesses while GSK’s quarter was marred by unimpressive non-pandemic vaccines sales.
Investors’ different responses to third-quarter sales growth at Sanofi and Novartis left future seasonal sales trends and past business development activity under scrutiny.
Pharmaceutical company managers may view biosimilar erosion of their products’ sales in the same rose-tinted light cast by Humira’s delayed biosimilars in the US. Payers, however, may be more clear sighted.
Investors responded positively to the first third-quarter life sciences earnings report of the season although Stelara’s loss of exclusivity clouded the pitch.
New product launches come with great expectations, which are sometimes unrealistic. This can lead to disappointment. Lately, market access restrictions are exacerbating sales challenges.
As broad stock markets finished the third quarter of 2024 on a high, two large biotech companies battled on more than one front. Despite both announcing positive news in the last week of the quarter, neither seemed to be a clear winner over that period.
R&D managers can sometimes drive a drug’s development despite evidence of its unviability. This has recently resulted in a scramble to adjust in-progress trial protocol and post-approval cost-effectiveness concerns.