Core Viewpoint - The U.S. large biopharmaceutical sector is currently facing significant challenges, leading to a notable underperformance compared to the S&P 500 index, with a gap of approximately 15 percentage points since a key tariff announcement on April 2, 2025 [1][15]. Group 1: Challenges Facing the Biopharmaceutical Sector - The sector is under pressure from multiple factors, including high tariff barriers, drug price negotiation pressures, and an impending patent cliff, creating a murky outlook for the industry [1][2]. - Morgan Stanley analysts categorize these challenges as "overhangs," which are structural issues that have been exacerbated by recent policy changes [2]. Group 2: Tariff and Supply Chain Challenges - Specific tariff policies have been a direct trigger for the recent downturn in the sector, creating significant uncertainty in the market [3]. - Morgan Stanley believes that the impact of tariffs is largely "manageable," with companies able to respond through inventory management and accelerated product shipments [3][5]. - The expected tax rate for companies heavily reliant on U.S. production may rise from approximately 16-17% to 19-20%, similar to Gilead Sciences [3]. Group 3: Drug Price Negotiation Pressures - Drug pricing remains a persistent concern, with the "Most Favored Nation" (MFN) pricing policy posing potential risks, although its widespread implementation faces significant hurdles [6][7]. - The Inflation Reduction Act (IRA) is expected to have an incremental rather than disruptive impact on market expectations regarding drug pricing [8]. - Setser's testimony highlights the disparity in profit reporting between U.S. and overseas operations, with U.S. companies reporting minimal profits domestically while generating substantial profits abroad [9][12]. Group 4: Patent Expiration and Valuation - The upcoming patent expirations for key drugs between 2028 and 2030 are anticipated to suppress sector valuations, but this is viewed as a manageable "profit reset" rather than a crisis [13][14]. - Historical data suggests that the average earnings per share (EPS) erosion following patent expirations is around 15%, with a subsequent rebound often occurring [14]. Group 5: Current Valuation and Market Sentiment - The biopharmaceutical sector's valuation has dropped to a historical low, with a relative discount of 45-50% compared to the S&P 500 index [15][18]. - The sector has seen an overall decline of about 8% since the tariff announcement, while the S&P 500 has increased by approximately 5% [18][20]. Group 6: Potential Catalysts for Recovery - Clarity in policy execution regarding tariffs, MFN, and IRA could alleviate investor concerns and potentially lead to a recovery in the sector [23]. - Setser's recommendations for tax reforms aimed at reducing profit and production outflows could fundamentally alter the industry's profit and production landscape [24]. - The removal of unfavorable terms in the IRA, such as the "pill penalty," could serve as a significant positive catalyst for the sector [23][25].

Group 1 - The U.S. pharmaceutical industry is experiencing significant turmoil, pushing the entire biopharmaceutical sector into a low valuation zone, with Goldman Sachs comparing the current state to "energy stocks at the peak of the ESG craze," suggesting it resembles a dying industry [1][3] - Recent events have increased volatility in the pharmaceutical sector, including Trump's pledge to significantly cut drug prices using the "most favored nation" rule, UnitedHealth Group's stock experiencing its worst weekly decline since 1998, and the CEO of Novo Nordisk announcing his resignation [1] - Goldman Sachs analysts noted that the relative P/E ratio of biopharmaceuticals compared to the S&P 500 briefly expanded to extreme levels seen during periods of high uncertainty, before slightly rebounding at the end of last week [1] Group 2 - Concerns are raised about the low valuations of large pharmaceutical stocks in both the U.S. and Europe, with Goldman Sachs' European pharmaceutical expert stating that the current trading conditions resemble those of energy stocks during the peak of the ESG era [3] - The valuation of the pharmaceutical sector has fallen below levels seen during the recovery from the global financial crisis and the peak of the COVID-19 liquidity bubble, reaching unprecedented lows [3] - European pharmaceutical stocks are also at historical low valuations, with a significant discount relative to the STOXX Europe 600 index [3] Group 3 - Key upcoming events that investors should closely monitor include the Goldman Sachs Healthcare Policy Day on May 20, the FDA Oncology Drug Advisory Committee meeting on May 20-21 discussing multiple cancer drug applications, and several significant events on May 22 [4][5] - On May 22, the FDA Vaccine Advisory Committee will discuss COVID-19 vaccine strains, and the deadline for the FDA's action on compounded semaglutide will be reached, which Novo Nordisk estimates affects about 1 million patients [5] - The ASCO (American Society of Clinical Oncology) will release most of its complete abstracts on May 22, which may impact U.S. pharmaceutical companies such as ABBV, BMY, JNJ, LLY, MRK, and PFE [5]

Core Viewpoint - Amgen and Bristol Myers Squibb are leading biotechnology companies with diverse portfolios, making it challenging to choose between them based on their fundamentals, growth prospects, challenges, and valuations [1][2]. Amgen (AMGN) - Amgen has a vast global footprint and a diverse portfolio, with growth products like Prolia, Xgeva, Evenity, Vectibix, Nplate, Kyprolis, and Blincyto stabilizing revenue despite declining sales from legacy drugs [3][4]. - Increased pricing pressures and competition from biosimilars are expected to negatively impact sales of Prolia and Xgeva starting in 2025 [4]. - Key drug Repatha is driving growth, and the approval of Tezspire for severe asthma has strengthened Amgen's portfolio [4][5]. - Amgen has promising candidates in its pipeline, including a broad phase III program on MariTide targeting obesity and type-II diabetes, with data readouts expected in the second half of 2025 [5]. - The acquisition of Horizon Therapeutics has expanded Amgen's rare disease business significantly [6]. - The Zacks Consensus Estimate for Amgen's 2025 sales indicates a year-over-year increase of 5.31%, with EPS expected to improve by 4.79% [13]. - Amgen's shares have gained 6.2% this year, trading at 13X forward earnings, indicating a higher valuation compared to BMY [16][17]. Bristol Myers Squibb (BMY) - BMY's growth portfolio, including drugs like Reblozyl, Breyanzi, Camzyos, and Opdualag, has stabilized revenue amid generic competition for legacy drugs [7][8]. - Reblozyl has shown strong performance in the U.S. and international markets, expected to contribute significantly in the coming decade [7]. - Opdivo maintains momentum with consistent label expansions, and the recent FDA approval of Cobenfy for schizophrenia broadens BMY's portfolio [9][10]. - Despite newer drugs boosting sales, generic competition for legacy drugs has led to a 20% decline in legacy portfolio revenues in Q1 due to impacts from Revlimid and others [11]. - BMY's strategy of acquiring promising companies has resulted in substantial debt, with long-term debt at $46.1 billion as of March 31, 2025 [12]. - The Zacks Consensus Estimate for BMY's 2025 sales implies a year-over-year decrease of 4.10%, while EPS suggests a significant increase of 499.13% [14]. - BMY's shares have lost 15.5% this year, trading at a lower valuation of 7.10 for forward earnings [16][17]. Comparison and Conclusion - Both companies offer attractive dividend yields, with BMY at 5.30% and AMGN at 3.49% [20]. - AMGN is viewed as a better pick currently due to solid fundamentals and recent positive estimate revisions, despite its higher valuation [23].

我国肥厚型心肌病的患病率约为十万分之八十。专家表示，该疾病虽然并不常见，但危害不容小觑，且严重影响患者的生活质量。 目前在肥厚型心肌病治疗领域，百时美施贵宝（BMS）的创新药玛伐凯泰（商品名：迈凡妥）已经在全球获批进入商业化。这种全球首创的心肌肌球蛋白 抑制剂能通过减少过多肌球蛋白和肌动蛋白横桥的形成，减轻心肌的过度收缩，从而改善舒张功能。 去年上半年，玛伐凯泰在中国获批，用于治疗梗阻性肥厚型心肌病，并于去年10月正式启动商业化。第一财经记者从相关医院了解到，小剂量玛伐凯泰一个 月的治疗费用约7000元。 自今年1月1日起，新版国家医保药品目录正式落地执行，心肌肌球蛋白抑制剂也已被纳入医保，报销后月治疗费用降至约2000元。 据券商韦德布什估计，到2026年，玛伐凯泰每年至少能产生26亿美元收入。而根据加拿大皇家银行资本分析师的预估，到2034年，aficamten作为一线治疗药 物的峰值销售额将达到9亿美元，该药物的总收入有望达到39亿美元。 美国当地时间5月13日，生物医药公司Cytokinetics表示，该公司研发的一款治疗梗阻性肥厚型心肌病（oHCM）的药物在一项后期研究中显著提高了患者的 运动能力， ...

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting personal research before making investment decisions [2]

Financial Data and Key Metrics Changes - Total revenue increased by 35% year over year to $265 million, with royalty revenue rising by 39% to $168 million, primarily driven by three blockbusters [12][34] - Adjusted EBITDA increased to $162 million, and non-GAAP EPS rose to $1.11, both representing approximately 40% year over year growth [12][35] - Net income grew by 54% in the quarter to $118 million [12] Business Line Data and Key Metrics Changes - The three key revenue drivers are DARZALEX subcutaneous, FESGO, and VYVGART HETULO, which are projected to continue growing for years [11][13] - Royalty revenue from DARZALEX subcutaneous increased by 22% year over year, with sales reaching $3.2 billion [13] - FESGO sales increased by 52% to approximately $675 million, becoming the number one growth driver in Roche's pharmaceutical portfolio [14] Market Data and Key Metrics Changes - The European approval of a DARZALEX-based quadruplet regimen is expected to support near-term growth, with analyst estimates projecting DARZALEX sales to reach $17 billion by 2028 [14] - FESGO's conversion from Perjeta reached 47% in the 58 launch countries, with expectations to exceed 50% globally in 2025 [15] - VYVGART HETULO's sales reached $2.2 billion in 2024, with continued strong growth anticipated in 2025 [18] Company Strategy and Development Direction - The company aims to grow organically and through serial acquisitions, focusing on licensing disruptive drug delivery platform technologies [8][10] - Plans to repurchase $250 million in shares in 2025, reflecting a commitment to returning value to shareholders [10] - The strategy includes identifying new drug delivery platforms that result in long-lasting revenue streams through royalties [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance of DARZALEX subcutaneous, FESGO, and VYVGART HETULO, which are expected to drive growth [39] - The company is optimistic about its robust pipeline and ability to defend intellectual property, which strengthens confidence in sustainable growth [39] - Management noted that the first quarter performance exceeded expectations, leading to an increase in full-year guidance [36] Other Important Information - The company has signed its first development agreement for a high-volume auto injector, indicating progress in its product development pipeline [30] - The company maintains a strong balance sheet with cash and marketable securities of $747.9 million as of March 31, 2025 [36] Q&A Session Summary Question: Can you comment on the expected timelines for the PGR decisions and what action could be taken if the PGR goes in Merck's favor? - The first decision by the patent office on institution will be in early June, and if there is institution, the case will be reviewed about twelve months from then [43] Question: Is there a possibility that the PGR case and your patent infringement lawsuit could be tied together? - The PGR is considered a sideshow, and the company feels confident in prevailing in those PGRs, which will not impact the infringement case [44][45] Question: What area of strength surprised you during the quarter driving the upgrade? - The three blockbuster products, DARZALEX subcutaneous, FESGO, and VYVGART HETULO, have been performing excellently and are expected to continue [48] Question: When might you be in a position to tell us who the partner is for the small volume auto injector? - The timing will depend on the partner, but it is expected that when it enters clinical studies, it might become public [50] Question: Do you see AstraZeneca's Altigen deal as evidence that large pharma companies are willing to accept patent litigation risk? - The company does not expect any partners to pause new target add-ons or renegotiations while watching the litigation play out [56][57] Question: How are you thinking about the implications of the Enhertu frontline breast cancer data for FESGO sales and royalties? - The company is confident that FESGO will continue to demonstrate strong market adoption and uptake due to its convenient administration and patient satisfaction [62] Question: Can you confirm that the outcome of your litigation against Merck will have no impact on your core ENHANZE business? - The company confirmed that the litigation will have no impact on the ENHANZE business, which is seen as a potential upside opportunity [76]

Financial Data and Key Metrics Changes - Total revenues for 2024 were $48.3 billion, representing a 7% increase from the prior year [13] - The growth portfolio generated revenues of $22.6 billion, a 17% year-over-year increase, accounting for nearly half of total revenues [13][14] - The company returned $4.9 billion to shareholders through dividends, marking the 92nd consecutive year of dividend payments [21] Business Line Data and Key Metrics Changes - Significant advancements in the pipeline included 23 regulatory approvals and indication expansions in the U.S. and other markets [15] - The company enhanced its leadership position in hematology, oncology, and cardiovascular disease, while expanding its immuno-oncology portfolio [16] Market Data and Key Metrics Changes - The company is focusing on high unmet needs and areas where it has a competitive advantage, particularly in R&D productivity [17][19] - The company expects to deliver 10 or more new molecular entities and over 30 line extensions in the next five years [17] Company Strategy and Development Direction - The company is committed to delivering transformational medicines, driving operational excellence, and strategically allocating capital [12] - A focus on becoming a leaner, more focused organization by removing costs and management layers to concentrate on high-value opportunities [20] - The company is leveraging technology and AI to optimize clinical trials and accelerate scientific innovation [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to transform its business and deliver long-term growth potential [23] - The company is navigating opportunities and challenges while maintaining financial discipline [20] Other Important Information - A leadership transition occurred with the retirement of Sandy Leung as General Counsel, succeeded by Carrie Gallman [4][5] - The company made significant progress in integrating acquisitions, including Karuna Therapeutics, Reyes Bio, and Mirati Therapeutics [22] Q&A Session All Questions and Answers Question: Why does the ballot not have an option to vote for all preferences with one check mark? - The company believes voting on individual items aligns with their majority vote standard for director elections and allows shareholders to evaluate each agenda item [54] Question: What is the board's plan for profits downstream of AI? - The company is utilizing AI to enhance R&D, supply chain efficiency, and operational efficiencies, with plans to shorten clinical trial timelines by almost three years [55][56] Question: How can the CEO's pay increase be justified when stock price is flat? - The compensation committee ensures that executive compensation is tied to performance metrics, including financial and operational goals [57][58] Question: How much stock do director candidates have in their portfolios? - Information on common stock ownership by directors can be found on page 113 of the latest proxy statement [60] Question: How has the new administration with its tariffs affected BMY? - The company is evaluating potential impacts of tariffs and has a broad manufacturing network that is not overly reliant on any single country [62]

Core Insights - Johnson & Johnson remains the top revenue-generating pharmaceutical company with projected 2024 revenue of $88.8 billion, a 4% year-over-year increase [1][3] - The CEO compensation landscape has shifted, with Eli Lilly's CEO David Ricks now the highest-paid in the industry, earning $29.2 million in 2024, a 10% increase from 2023 [4][6] - The pharmaceutical industry is facing challenges from biosimilars, particularly affecting sales of established drugs like Humira and Stelara [2][1] Revenue Rankings - Johnson & Johnson leads with $88.8 billion in revenue, followed by AbbVie at $65.3 billion and Merck at $64.2 billion [3] - Other notable companies include Pfizer with $63.6 billion, and AstraZeneca with $54.1 billion, showing varying growth rates [3] CEO Compensation - Eli Lilly's David Ricks has surpassed Johnson & Johnson's Joaquin Duato, whose compensation decreased by approximately 14% to $24.6 million in 2024 [4][6] - Pfizer's CEO Albert Bourla earned $24.6 million, reflecting a 14% increase, while Merck's Robert Davis earned $23.2 million, also up by 14% [5][6] - Notably, Bristol Myers Squibb's CEO saw the highest percentage increase in compensation, rising by 122% [4][6] Market Dynamics - AbbVie's Humira faced a 37.6% decline in sales to $8.9 billion due to biosimilar competition, but its successors Skyrizi and Rinvoq are projected to generate over $17 billion in 2024 [2] - Merck's Keytruda and Gardasil are expected to account for approximately 59% of the company's total sales in 2024, highlighting the importance of these products [2]

Core Viewpoint - Bristol Myers Squibb (BMY) presents a compelling investment opportunity despite its 23% decline in 2025, driven by market turbulence, offering deep value and substantial income potential [2][4]. Group 1: Valuation Metrics - Bristol Myers Squibb trades at 7.2 times forward earnings, significantly lower than the S&P 500's 18 times, indicating a nearly 60% discount [5]. - The company offers a 5.12% dividend yield, nearly four times the S&P 500's yield of 1.35%, making it the second highest among major drug manufacturers [6]. Group 2: Market Challenges - Analysts predict a nearly 7% decline in Bristol Myers Squibb's 2026 revenue due to pricing pressures, geopolitical issues, and slowing growth in key franchises [7]. - Significant patent expirations for key drugs like Eliquis and Opdivo starting in 2028 could further impact revenue [8]. - Recent clinical trial failures in key pipeline assets have contributed to investor skepticism [9]. Group 3: Growth Potential - The company's acquisition strategy has diversified its pipeline, with recent acquisitions in oncology and neurology enhancing growth prospects [11]. - Bristol Myers Squibb is actively reducing debt, improving financial flexibility for future acquisitions [12]. - Promising pipeline candidates in cardiology and hematology may mitigate expected revenue declines from patent expirations [13]. Group 4: Investment Opportunity - The stock's current valuation and dividend yield present a contrarian investment opportunity, despite the company's challenges [14]. - For investors willing to accept short-term uncertainty, the current entry point offers a favorable risk-reward proposition [15].

Market Overview - The stock market experienced significant volatility due to President Trump's latest tariff announcements, with investors awaiting potential agreements between the U.S. and trade partners [1] - Major indices rebounded after an initial decline, with the S&P 500 rising over 4%, the Nasdaq Composite increasing nearly 7%, and the Dow Jones Industrial Average gaining over 2% [1] Company Performance - VeriSign's stock rose 8% on Friday, reaching a new intraday high, following a strong first-quarter revenue report and the announcement of a cash dividend of $0.77 per share [4] - Netflix's stock also reached a new intraday high, increasing over 13% for the week, driven by a 13% growth in first-quarter revenue attributed to strong subscription and advertising income [5] Stock Analysis - VeriSign is identified as one of the overbought stocks with an RSI of 70.45, indicating potential short-term pullback risks despite a target price suggesting over 7% downside [2] - Netflix's average target price is approximately $1,116, indicating only about 1% upside potential from the recent closing price [6] - Bristol-Myers Squibb and UnitedHealth Group are noted as oversold stocks, with RSIs of 24.41 and 28.87 respectively, and both companies have underperformed the market [7] - Bristol-Myers Squibb's stock has dropped over 21.5% in April, while UnitedHealth's has decreased by 20.1% year-to-date [10] Future Outlook - Bristol-Myers Squibb has raised its full-year revenue and earnings guidance, while UnitedHealth has lowered its full-year performance outlook due to rising medical costs [9] - Market consensus target prices suggest over 17% upside potential for Bristol-Myers Squibb and over 36% for UnitedHealth [10]