Stock Watch: J&J Q4 Reaction Indicates Pharma Is Falling Out Of Favor

Pharma Needs More Than Modest Sales Growth To Retain Investors

28 Jan 2025

• By Andy Smith

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.

Stock Watch Image, Andy Smith — ANDY SMITH OFFERS A LIFE SCIENCE INVESTOR'S PERSPECTIVE ON BIOPHARMA BUSINESS

As the first healthcare company to report fourth-quarter and full-year 2024 financial results, Johnson & Johnson (J&J) had the opportunity to set the tempo for earnings season. With its stock price opening sharply down by about 4%, pharma’s mood music is sounding lugubrious.

J&J reported fourth-quarter 2024 sales that grew by over 5% on the same quarter of 2023 and were virtually flat on the third quarter of 2024. The negative stock price reaction initially seemed harsh and although J&J’s stock staged a partial recovery over the trading day to finish down by about 2%, it underperformed – but influenced – the NYSE Arca Pharmaceutical Index (DRG), which closed the same day only slightly into negative territory

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Stock Watch: Bayer, Bavarian Nordic Bring European Cheer To Pharma

20 May 2025

• By Andy Smith

Investors welcomed Bavarian Nordic’s and Bayer’s earnings announcements. However, both stock prices declined over the day of their reports as the impact of recent pressures weighed.

Stock Watch: Stock Watch: Lilly And Novo Duke Out Q1

13 May 2025

• By Andy Smith

Novo Nordisk enjoyed a surprise GLP-1 agonist contracting win in the first quarter of 2025. This provided a welcome boost to its stock after it had spent the previous quarter on the back foot against rival Lilly.

Stock Watch: Market Optimism Outshines Q1 Currency And Tariff Woes

07 May 2025

• By Andy Smith

The weak US dollar helped some companies reporting first-quarter results and hindered others reporting in stronger currencies. But even the impacts of currencies and Medicare modernization on first-quarter revenues were overlooked when an end to the trade wars seemed possible.

Stock Watch: Sanofi, Merck Open Windows Into Geopolitical Risks

29 Apr 2025

• By Andy Smith

First-quarter results season featured tariff talk but without any full-year quantitation. As tariffs and foreign exchange movements bump up against capped drug prices, profitability could suffer.

Eisai Forecasts 73% Leqembi Sales Rise In FY25 As Demand Expands

16 May 2025

• By Mandy Jackson

Eisai spent most of its FY24 earnings call discussing plans for growing sales of Biogen-partnered Alzheimer’s drug Leqembi from JPY44.3bn ($304.1m) to JPY76.5bn ($525.1m) in FY25.