Key Takeaways NVO leans on GLP-1 leadership, with Ozempic, Wegovy and Rybelsus driving growth but facing rising competition.AMGN benefits from diversification, with oncology, rare disease, biosimilars, and obesity studies underway.NVO shares fell sharply over six months, while AMGN stock gained as earnings estimates trended higher.Both Novo Nordisk (NVO) and Amgen (AMGN) are large-cap, innovation-driven healthcare leaders with global scale, strong balance sheets, and a track record of turning scientific bre ...

Industry Overview - The drug and biotech sector has shown recovery after a weak first half, with large drugmakers signing pricing agreements with the Trump administration [1] - Dealmaking activity surged in the second half, boosting investor confidence, with the Large Cap Pharmaceuticals industry outperforming the S&P 500 in the past three months [1][4] - Innovation is at its peak, particularly in areas like obesity, cell and gene therapy, and next-gen oncology treatments, attracting investor attention [2] - Despite headwinds such as pipeline setbacks and regulatory risks, the outlook for growth in 2026 remains favorable due to rapid innovation and increased use of AI in drug development [2] Eli Lilly - Eli Lilly has achieved significant success with its tirzepatide medicines, including diabetes drug Mounjaro and weight loss medicine Zepbound, which are key revenue drivers [6][7] - Strong sales growth in 2025 is attributed to international market launches and improved production, with continued demand expected in 2026 [7] - Lilly is investing in obesity treatments with new molecules in clinical development, including orforglipron and retatrutide, with regulatory applications filed for orforglipron [8][9] - Despite challenges like declining product prices and competition in the GLP-1 market, Lilly's stock has risen 39.3% year to date, with 2026 earnings estimates improving from $30.78 to $33.61 per share [10] Johnson & Johnson - J&J has shown strong operational performance in 2025, with double-digit revenue growth from key brands despite the loss of exclusivity for Stelara [11] - The Innovative Medicine segment is expected to accelerate growth in 2026, driven by key products and new launches [12] - J&J's MedTech business has improved, with growth driven by acquired cardiovascular businesses and new product launches expected to contribute to 2026 growth [13][14] - The company has advanced its pipeline significantly and is on an acquisition spree, with a Zacks Rank of 2 (Buy) and a stock rise of 43.3% year to date [17] AbbVie - AbbVie faces declining sales from Humira due to loss of exclusivity but has successfully launched new immunology medicines Skyrizi and Rinvoq, generating combined sales of $18.5 billion in the first nine months of 2025 [18][19] - Strong market growth and new indications for these drugs are expected to drive future growth, alongside contributions from newer drugs [20] - AbbVie anticipates a high single-digit CAGR through 2029, supported by robust performance from Skyrizi and Rinvoq, with a Zacks Rank of 3 and a stock rise of 28.2% year to date [21][22] Amgen - Amgen's revenue growth is driven by key medicines like Repatha and new biosimilars, compensating for declines from mature drugs [23][24] - The company is focusing on obesity treatments with its candidate MariTide, which differentiates itself with a convenient dosing method [24] - Amgen's stock has risen 27.3% year to date, with 2026 earnings estimates increasing from $21.43 to $21.62 per share [25] AstraZeneca - AstraZeneca has several blockbuster drugs exceeding $1 billion in sales, with newer products contributing to growth despite losses from mature brands [26][27] - The company expects to achieve industry-leading top-line growth through 2030, with plans to launch 20 new medicines and generate $80 billion in total revenues [28] - AstraZeneca faces challenges such as competition and regulatory impacts but maintains a stable earnings estimate of $5.15 per share for 2026, with a stock rise of 10.7% year to date [29][30]

Core Insights - The Trump administration has signed drug-pricing agreements with several large-cap drugmakers to lower drug prices in the U.S. [1] - The agreements require drugmakers to reduce prescription drug prices to match those in comparable developed countries, supporting the Most Favored Nation (MFN) pricing proposal [2] - Drugmakers will receive a three-year exemption from import tariffs on pharmaceutical ingredients in exchange for expanding domestic manufacturing operations [3] - Some companies will donate active pharmaceutical ingredients (APIs) to a government stockpile to ensure supply chain resilience during emergencies [4] - The Trump administration has now reached deals with 14 out of 17 targeted drug manufacturers, with three companies still in discussions [5] Industry Impact - The agreements address major concerns regarding drug pricing and tariffs, improving investor outlook for the pharmaceutical sector [6] - The deals are seen as a turning point that could alleviate regulatory and pricing pressures on the industry [7] - The latest agreements involve nine major drugmakers, joining others like Pfizer and AstraZeneca who signed similar deals earlier [8]

Ah, the markets. A bastion of rationality, predictability, and calm, right? Not when Donald J. Trump is in the driver’s seat, or even just tweeting from the back. The year 2025 has proven to be yet another masterclass in market volatility, where a single pronouncement can send trillions soaring or plummeting, often with the same dizzying speed as a Truth Social post going viral. Investors, bless their hearts, have spent the better part of the year clutching their pearls and portfolios, trying to decipher wh ...

Core Points - President Trump and nine major pharmaceutical companies have reached agreements to reduce medication costs for cash payers and the Medicaid program, aligning U.S. prices with those of other wealthy nations [1][2] - Drugmakers will implement most-favored-nation pricing for Medicaid drugs, ensuring prices match the lowest available globally [2][4] - A new government website, TrumpRx.gov, will facilitate the purchase of discounted prescription drugs directly from manufacturers [3] Agreement Details - Companies involved include Bristol Myers Squibb, Gilead Sciences, Merck, Genentech, Novartis, Amgen, Boehringer Ingelheim, Sanofi, and GSK [2] - Drugmakers will list their products on TrumpRx.gov, which offers significant discounts for cash payers and mandates that new drugs be priced no higher than in other wealthy countries [3] - In exchange for these commitments, companies will receive three-year tariff exemptions previously imposed on foreign-made drugs [4] Specific Drug Pricing - Merck will sell its diabetes drugs, Januvia and Janumet, at a 70% discount to consumers, while Bristol Myers Squibb will provide its blood thinner, Eliquis, free to Medicaid starting January 1, 2026, and offer selected medicines at approximately 80% off list prices for cash-paying patients [5] Investment Commitments - The pharmaceutical companies have pledged over $150 billion in U.S. research and development and manufacturing investments, with Merck committing more than $70 billion to enhance domestic production and innovation [6] - Five companies have already established agreements with the administration, with three more expected to announce deals soon [6] Program Evaluation - Mark Cuban, a billionaire entrepreneur, rated TrumpRx.gov with a "B" grade, indicating potential but suggesting it needs to compel pharmacy benefit managers to alter their practices for a higher rating [7]

Core Insights - President Trump announced a set of drug-pricing agreements with nine major pharmaceutical companies, aiming to align U.S. medicine costs with those in Europe [1][2] - The initiative includes a new direct-to-consumer portal, TrumpRx.gov, allowing patients to purchase certain medicines directly from manufacturers [2][4] Group 1: Agreements and Participants - The agreements involve 14 out of 17 drugmakers that Trump previously urged to lower prices, including Amgen, GSK, and Merck [2][3] - Drug companies are motivated to negotiate to avoid potential regulatory measures that could impact their profits [3] Group 2: TrumpRx.gov Functionality - TrumpRx.gov will serve as a central directory for patients to access selected medicines directly from manufacturers' websites [4] - The portal is expected to be fully operational by January, following a promotional launch [4] Group 3: Pricing Details - Highlighted medicines include Amgen's Repatha at $239/month, GSK's Advair Diskus at $89/month, and Merck's Januvia at $100/month [6] - Gilead's Epclusa will be priced at $2,492/month, despite lower costs for insured patients [6] Group 4: Impact on Medicaid and Medicare - Companies committed to launching new medicines in the U.S. at prices comparable to those in other wealthy countries [8] - Medicaid programs are legally entitled to the lowest drug prices, with Bristol Myers Squibb offering Eliquis free to Medicaid [9] Group 5: Industry Response and Future Outlook - Health policy experts express skepticism about the agreements' impact on overall drug prices for most Americans [10] - The agreements do not impose mandatory price controls and leave many brand-name drug costs unchanged [15] - Ongoing discussions with additional manufacturers like AbbVie and Johnson & Johnson may lead to further agreements [14]

Core Insights - Donald Trump and nine major pharmaceutical companies have reached agreements to significantly reduce drug prices for the Medicaid program and cash payers, aiming to align US costs with those in other wealthy nations [1][2] Group 1: Price Reductions and Agreements - Drugmakers will cut prices on most drugs sold to Medicaid, promising "massive savings" on commonly used medicines, although specific figures were not disclosed [2] - The deals include agreements to lower cash-pay prices for select drugs, launch drugs in the US at prices equal to those in other wealthy nations, and increase manufacturing [3] - Merck plans to sell its diabetes drugs at approximately 70% off list prices directly to US consumers, with potential for its experimental cholesterol drug to be offered through direct channels [4] Group 2: Previous and Current Deals - Five companies had previously made agreements with the administration to control prices, while three companies have yet to announce deals [6] - Drugmakers committed to "most-favored-nation" pricing for all new US drug launches across various markets, including Medicare [7] Group 3: Financial Commitments and Investments - Companies pledged to invest over $150 billion in US research and development and manufacturing, with Merck contributing $70 billion of that total [8] - A portion of revenues from foreign sales will be remitted to the US to help offset costs [8] Group 4: Medicaid and Market Impact - Medicaid, which represents about 10% of US drug spending, already benefits from significant price discounts, sometimes exceeding 80% [9] - Pfizer indicated that Medicaid discounts would lead to price and margin compression in the upcoming year [9]

US President Donald Trump on Friday (December 19) announced agreements with nine major pharmaceutical companies to sharply cut the prices of medicines sold through the government’s Medicaid program and to cash-paying consumers, marking his latest push to bring US drug costs in line with those in other wealthy nations.The deals were unveiled at a White House press conference, where Trump appeared alongside senior executives from the participating drugmakers.“We were subsidizing the entire world. We’re not do ...

President Donald Trump signs an executive order aimed at reducing the cost of prescription drugs and pharmaceuticals by 30% to 80% during an event in the Roosevelt Room of the White House on May 12, 2025, in Washington, DC.Several of the largest U.S. and European-based drugmakers inked deals with President Donald Trump on Friday to voluntarily sell their medications for less, as his administration pushes to link the nation's drug prices to cheaper ones abroad.That includes Merck, Bristol Myers Squibb, Amgen ...

Underscores Long-Standing Commitment to Investing in Innovation and U.S. Manufacturing ®®® THOUSAND OAKS, Calif., Dec. 19, 2025 /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced it is taking action again with the U.S. government to lower medicine costs for American patients, while reinforcing Amgen's long-standing commitment to innovation. The action satisfies the components outlined in President Trump's July 31 letter, including the Administration's Most Favored Nation pricing requests. Additional detail ...