Stock Watch: Why Investors Reacted Differently To Roche And J&J Q4 Updates

Similar Sales Growth, Different Narrative For 2025

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.

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

There was no headline fanfare when Johnson & Johnson (J&J) reported its fourth-quarter 2024 results. While the announcement included the phrase “transformative year,” the separation of its consumer division made that statement factual and did not prevent a plummeting stock price. By contrast, when Roche reported its fourth-quarter and full-year 2024 results, the headline professed its “strong 2024 results.” Investors were suitably impressed: Roche’s stock rose over the day to close up by almost 2% in Zurich and by about 3% in New York, while the NYSE Arca Pharmaceutical Index rose by just under 2%. With Roche’s fourth-quarter group sales growth being marginally ahead of J&J’s on the fourth quarter of 2023, and the same on the third quarter of 2024, I initially struggled to understand the contrasting investor reactions.

Roche’s fourth-quarter group sales grew by almost 6% on the corresponding quarter of 2023 and by...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on Scrip for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Stock Watch

Stock Watch: On Q1 Vaccine Sales And Measles Outbreaks

 
• By 

A recent study suggested that measles could become endemic in the US due to low vaccination rates. However, first-quarter vaccine sales offered a more nuanced picture.

Stock Watch: How GSK’s Nucala Info Drip Helped Share Price

 
• By 

The information flow in the months before the approval of GSK’s Nucala in COPD provides an interesting case study, and brings to mind the cautionary tale of Alnylam’s Onpattro.

Stock Watch: Q1 Sales Trends And Forex Muddle Pharma Outlook

 
• By 

Pharma firms tended to downplay first-quarter trends in full-year guidance. However, raised guidance seems fragile amid ongoing foreign exchange effects and Medicare Part D redesign pressures.

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

 
• By 

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.

More from Strategy

Spain’s SpliceBio Secures Sanofi and Roche Support In $135m Financing

 
• By 

Series B cash will be used to advance its Stargardt disease gene therapy.

Insmed’s PAH Data Indicate Potential To Surpass Established Therapies

 
• By 

Insmed’s inhaled treprostinil exceeded goals for reducing pulmonary vascular resistance and improving six-minute walk test distance in Phase IIb data.

Merck & Co.’s RSV Antibody Approved In US In Time To Compete With Blockbuster Beyfortus

 
• By 

The US FDA approved Merck’s Enflonsia (clesrovimab) to prevent RSV in newborns and infants on the same day Sanofi assured that it would ship Beyfortus in time for the 2025-2026 RSV season.