Summary of Key Points from the Conference Call Industry Overview - **Industry**: Biopharma in North America - **Market Analysis**: The latest weekly Total Prescription (TRx) year-over-year (YoY) growth for the week ending December 19, 2025, was +1.1%, compared to +1.0% the previous week and +0.8% over the past 12 weeks [1][2] Prescription Trends - **Weekly TRx Change**: For the week ended December 19, the US total market weekly TRx YoY change was +1.1%, up from +0.9% a year ago. The rolling 4-week TRx YoY was +1.2%, and the rolling 12-week TRx YoY was +0.8% [2] - **Extended Unit (EUTRx) Growth**: EUTRx weekly YoY growth was +1.4%, which is above the TRx YoY growth [2] - **Sequential Growth**: Sequential weekly TRx growth was +2.3%, a significant increase compared to -1.4% the week before [2] Company-Specific Insights Bristol Myers Squibb (BMY) - **Cobenfy Launch**: Cobenfy was approved for schizophrenia on September 26, 2024. The number of prescriptions (scripts) for the week was approximately 2,800, up from 2,710 the previous week. To meet 2025 consensus expectations, Cobenfy TRx needs to track at approximately 2-3 times the volumes from recent schizophrenia launches [3] - **Sales Estimates**: The consensus estimate for Cobenfy has decreased from $196 million to $161 million, implying that around 104,000 TRx are required to meet these estimates [3] Vertex Pharmaceuticals (VRTX) - **Journavx Launch**: Journavx was approved for acute pain on January 30, 2025. The number of scripts for the week was approximately 13,060, up from 12,570 the previous week. Hospital scripts accounted for about 39% of total scripts in Q3 [4] - **Sales Projections**: To achieve 2025 sales of $68 million, approximately 303,000 total scripts are needed, assuming a net price of $225 per script [4] Gilead Sciences (GILD) - **Yeztugo Launch**: Yeztugo was approved on June 18, 2025. The latest week total TRx was approximately 780, down from 800 the previous week. The analysis suggests that achieving FY25 sales of $150 million requires incremental weekly script growth from current levels [5][9] - **Market Coverage**: Yeztugo has secured 75% commercial coverage, including major payers, and most do not require copays, indicating alignment with USPSTF guidelines [9] Additional Insights - **Market Focus**: Investors are increasingly focused on 2026, with strong PrEP market growth of +14% YoY and sustained Descovy share of over 45% [9] - **Pricing Analysis**: The pricing analysis for immunology drugs such as Stelara and Tremfya has been updated, showing how additional indications impact price per script [10] - **Biosimilar Adoption**: Comprehensive analysis of biosimilar adoption across various branded drugs has been included, indicating trends in market share and sales [12] Conclusion - The biopharma industry in North America is showing positive growth trends in total prescriptions, with specific companies like BMY, VRTX, and GILD launching new products and adjusting sales expectations. The focus on 2026 and the strong market coverage for new drugs indicate potential investment opportunities in this sector.

Core Insights - Hardman Johnston Global Advisors reported underperformance in its portfolio for Q3 2025, with a return of 5.02% net of fees, compared to 7.62% for the MSCI AC World Net Index [1] Company Performance - Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is highlighted as a key stock, with a one-month return of 8.76% and a 52-week gain of 15.91% [2] - As of December 26, 2025, Vertex's stock closed at $462.90 per share, with a market capitalization of $118.683 billion [2] Challenges and Opportunities - Vertex Pharmaceuticals faced challenges in Q3 2025, with underperformance attributed to macro uncertainties from a Section 232 tariff investigation into medical devices and setbacks in chronic pain treatment developments [3] - The company ended its pursuit of a broad chronic neuropathic pain label for Journavx, which limited its total addressable market (TAM) in chronic pain, despite the drug being approved for acute pain with positive initial indications [3] - Vertex's next-generation pain asset, VX-993, failed in phase II development, impacting stock performance [3] - Positive updates were noted in other areas, including progress in treatments for kidney disease, type 1 diabetes, and gene-editing therapy, indicating a strong pipeline [3] - The launch of Alyftrek, a next-generation cystic fibrosis treatment, is underway, with patients transitioning from Trikafta, which is expected to improve margins due to a lower royalty burden [3] - The long-term outlook for Vertex remains positive, supported by its high-margin cystic fibrosis franchise and a robust balance sheet [3]

Amazon - Amazon has deployed over 1 million robots in its warehouses, projected to save up to $4 billion annually in fulfillment costs, with expectations of significantly lifting operating margins for the retail segment by 2030 [1] - The company is investing heavily in AI, with planned capital expenditures projected at $125 billion in 2025, focusing on custom silicon chips to enhance performance and reduce costs compared to competitors [2] - Amazon's advertising segment is the fastest-growing, with annualized revenue expected to exceed $60 billion in 2025, potentially approaching $100 billion annually in the coming years [3] - Amazon Web Services (AWS) remains the primary profit engine, accounting for approximately 30% of the global cloud infrastructure market [4] - In Q3 2025, Amazon reported revenue of $180.2 billion, a 13% year-over-year increase, with net income rising 38% to $21.2 billion [7] Vertex Pharmaceuticals - Vertex Pharmaceuticals has a trailing-10-year return of around 90%, driven by its cystic fibrosis drug franchise and expansion into the rare disease market [8] - The company is diversifying its portfolio with late-stage clinical programs targeting kidney disease, pain management, and type 1 diabetes, supported by a solid balance sheet and substantial free cash flow [9] - Vertex is launching Casgevy, a gene-editing therapy for sickle cell disease, and Journavx, a non-opioid medicine for pain management, with significant market interest and regulatory approvals [10][11] - The company reported revenue of over $3 billion in Q3 2025, an 11% increase from the previous year, and is positioned for significant growth through innovation and diversification [14] TJX Companies - TJX Companies has seen a nearly 150% increase in stock value over the last five years, attributed to its effective off-price retail model [15] - The company plans to expand its store footprint to 7,000 globally, enhancing its physical presence in existing and new markets [16] - TJX's business model encourages frequent shopper visits due to its ever-changing inventory and unique product offerings, appealing to cost-conscious consumers [17] - In Q3 2026, TJX reported earnings per share of $1.28 on $15.1 billion in revenue, reflecting year-over-year increases of 12% and 7% respectively [19]

Core Viewpoint - Moderna has transitioned from a clinical-stage biotech to a profitable commercial-stage company due to its coronavirus vaccine, but recent declines in vaccine sales and underperformance of its RSV vaccine raise concerns about its growth potential [1][2] Group 1: Moderna's Current Situation - Moderna's stock has seen a decline in vaccine sales, and its RSV vaccine has not met growth expectations [2] - Despite challenges, Moderna has made progress in cost-cutting and is focusing on promising programs, leading to a stock increase of over 30% in the past month [2] - The company aims for cash breakeven by 2028 and the launch of new products, which may not appeal to cautious investors [5] Group 2: Vertex Pharmaceuticals Overview - Vertex Pharmaceuticals is highlighted as a better investment option for both cautious and aggressive investors due to its strong earnings growth in cystic fibrosis treatment [6] - Vertex's CFTR modulators, Trikafta and Alyftrek, treat nearly 95% of cystic fibrosis patients, with ongoing development for remaining patients [7] - Vertex's revenue increased by 11% to over $3 billion in the latest quarter, driven by its CF products [8] Group 3: New Product Approvals and Pipeline - Vertex has expanded its product line with approvals for Casgevy and Journavx, which could significantly boost revenue in the coming years [9] - Journavx addresses a critical need for effective non-opioid pain management, with over 300,000 prescriptions filled since its launch [9] Group 4: Financial Performance and Valuation - Vertex's stock has increased nearly 100% over the past five years and about 15% this year, indicating strong long-term and short-term performance [11] - The current valuation of Vertex is 25 times forward earnings estimates, a reasonable price given its market leadership and expanding product portfolio [11] - Vertex's financial strength and diverse product offerings position it well for future growth, making it a more attractive investment compared to Moderna [12]

Core Viewpoint - The technology sector, led by artificial intelligence (AI), is on track for a third consecutive year of over 20% gains, but signs of narrowing leadership and increased volatility are emerging, prompting a shift towards defensive stocks to balance risks in tech holdings [1]. Group 1: Defensive Sectors - Traditional defensive sectors such as blue-chip pharmaceuticals, regulated utilities, and essential consumer goods continue to play a significant role in investment strategies [3]. - Quantitative strategist Steven Cress has identified four high-quality defensive stocks that combine durable cash flows, essential services, and key growth metrics, suitable for investment if the tech sector cools down by 2026 [3]. Group 2: Brookfield Infrastructure (BIP.US) - Brookfield Infrastructure operates a global portfolio of high-quality infrastructure assets, generating predictable cash flows largely insulated from economic cycles, supported by long-term contracts linked to inflation [4]. - The company reported a funds from operations (FFO) of $654 million for Q3 2025, with a per unit FFO of $0.83, reflecting a 9% year-over-year growth [5]. - Brookfield aims to distribute 60-70% of its FFO as dividends, targeting a 5-9% annual dividend growth, making it a foundational holding for defensive allocations in 2026 [5][6]. Group 3: Iberdrola (IBDRY.US) - Iberdrola is one of the largest electric utility companies globally, with a strong focus on renewable energy and regulated pricing structures that provide profit visibility [7]. - The company reported a 16.6% year-over-year increase in net profit and a 4.4% growth in adjusted EBITDA for the first nine months of the year, supported by robust cash flow of $15 billion [7]. - Iberdrola offers a solid dividend yield of 3.40%, making it an attractive option for investors seeking stability and gradual growth [8]. Group 4: Vertex Pharmaceuticals (VRTX.US) - Vertex Pharmaceuticals is a biotechnology company known for its leadership in cystic fibrosis and sickle cell disease, providing strong recurring revenue and industry-leading profit growth [9]. - The company has a low price-to-earnings growth (PEG) ratio of 0.16, indicating an attractive valuation relative to its future earnings growth [9]. - Vertex is diversifying its pipeline beyond cystic fibrosis, which supports its strong forward growth indicators, including a projected EBITDA growth rate of nearly 12% [10]. Group 5: Incyte (INCY.US) - Incyte focuses on oncology and inflammatory diseases, with its flagship product Jakafi being a cornerstone of its revenue and cash flow [11]. - The company has a price-to-earnings ratio of 14.20, significantly lower than the industry median, and a PEG ratio of 0.07, indicating strong growth potential at an attractive valuation [11]. - Incyte's recent approval of a treatment option for certain adult follicular lymphomas further supports its growth outlook [11]. Summary - As the technology sector shows signs of fatigue, investors may find better risk-adjusted opportunities in defensive sectors with inherent growth drivers. Brookfield Infrastructure and Iberdrola provide classic, cash flow-driven utility defensive attributes, while Vertex Pharmaceuticals and Incyte enhance the resilience of the healthcare sector [12].

Core Insights - The article highlights the emerging potential of Vertex's stem cell therapy Zimislecel for treating Type 1 Diabetes (T1D), which could revolutionize the treatment landscape by enabling patients to achieve insulin independence [1][5][7] - The current treatment options for T1D, primarily insulin therapy, have significant limitations, leading to severe complications and a pressing need for innovative solutions [2][3] Group 1: Patient Challenges and Market Overview - Approximately 9.15 million people globally suffer from T1D, with nearly 20% being under 20 years old, and the treatment landscape remains largely focused on Type 2 Diabetes [2][3] - T1D patients rely on external insulin from diagnosis, facing risks of severe hypoglycemia and long-term complications such as retinopathy and kidney failure [2][3] - The annual treatment cost for T1D is around $40,000, with the U.S. market alone exceeding $8 billion, indicating a substantial market opportunity despite the niche perception of T1D [3] Group 2: Zimislecel's Mechanism and Clinical Data - Zimislecel utilizes induced pluripotent stem cells (iPSCs) to create functional pancreatic beta cells, addressing the donor shortage issue inherent in traditional therapies [5][6] - In Phase 1/2 clinical trials, 83% of patients (10 out of 12) achieved insulin independence after one year, with a 92% reduction in daily insulin dosage and no severe hypoglycemic events reported post-treatment [5][6] Group 3: Safety and Future Prospects - The most common serious adverse event associated with Zimislecel is neutropenia, with two reported deaths, although Vertex claims these were not drug-related [6][7] - Vertex aims to submit for global approval in 2026, with an estimated 60,000 severe T1D patients in the U.S. and Europe potentially eligible for treatment [6][7] - The therapy's reliance on long-term immunosuppression poses significant safety concerns, which Vertex is actively working to address through various strategies [7][8] Group 4: Competitive Landscape and Innovations - Other companies are also exploring innovative treatments for T1D, such as CRISPR Therapeutics and Otsuka, which are developing gene-edited and xenotransplantation approaches, respectively [8][9] - Domestic efforts in China are advancing, with clinical trials for alternative therapies underway, indicating a growing interest in addressing T1D through diverse methodologies [9]

Core Viewpoint - The article presents a list of 12 stocks that are recommended for investment during the countdown to the new year, highlighting their long-term growth potential and current market conditions. Group 1: Recommended Stocks - **Apple**: Expected to achieve an 11% gain for the year, with a strong brand and growing AI integration across products, which may drive future revenue growth [5][6]. - **Costco**: Trading at 43x forward earnings estimates, down from over 58x, with a strong business model and high membership renewal rates above 90% in the U.S. and Canada [7][9]. - **Carnival**: The world's largest cruise operator has returned to profitability and is paying down debt, trading at only 11x forward earnings estimates [11][12]. - **Intuitive Surgical**: A leader in robotic surgery with a strong moat due to high costs of its systems and recurrent revenue from instruments and accessories [13][15]. - **Vertex Pharmaceuticals**: Leading in cystic fibrosis treatment with strong revenue and growth potential in new treatment areas [16][18]. - **Coca-Cola**: Strong brand and distribution network with a history of dividend increases for over 50 consecutive years, making it a solid choice for passive income [19][20]. - **Pool Corp.**: The largest supplier of pool equipment, trading at 22x forward earnings estimates, with consistent demand for maintenance services [21][22]. - **Amazon**: A leader in e-commerce and cloud computing, benefiting from AI growth, with AWS reporting a $132 billion annual revenue run rate [24][25]. - **Target**: Facing challenges but may recover in 2026, trading at 13x forward earnings estimates, presenting a potential buying opportunity [27][28]. - **CRISPR Therapeutics**: Recently approved a blood disorder treatment, with expected significant growth in the coming year [29][30]. - **Broadcom**: A networking giant emerging as a potential AI chip winner, with high demand for custom chips [31][32]. - **Taiwan Semiconductor Manufacturing**: A key player in chip production for AI, benefiting from multiple clients and significant investments in U.S. manufacturing [33][34].

Core Viewpoint - Healthcare stocks have underperformed compared to broader equities this year, but there are still attractive investment opportunities in the sector for long-term investors [1] Group 1: CRISPR Therapeutics - CRISPR Therapeutics is a gene-editing company with potential catalysts for stock price growth, particularly with its therapy Casgevy for sickle cell disease and beta-thalassemia [4] - The company has been enhancing third-party coverage and establishing treatment centers for Casgevy, which is expected to see significant growth next year [5] - CRISPR is also developing SRSD107, a potential anticoagulant with promising phase 1 results, and CTX112, which targets various cancers and autoimmune disorders, both of which could contribute to stock price increases [6][8] Group 2: Vertex Pharmaceuticals - Vertex Pharmaceuticals has faced challenges this year, primarily due to its reliance on its cystic fibrosis (CF) treatments, but these continue to generate steady revenue [10] - In Q3, Vertex reported an 11% year-over-year revenue increase to $3.08 billion and a 4.7% increase in net earnings per share to $4.20, indicating strong performance in its core area [11] - The company is advancing new therapies, including zimislecel for Type 1 diabetes and candidates targeting kidney diseases, with regulatory submissions planned for next year [13][14]

分组1 - Colette Kress, CFO of Nvidia, indicated that geopolitical issues and competition in China are impacting the company's data center revenue outlook, with no revenue from China assumed in Q4 [1][6] - Nvidia's inventory increased by 32% and supply commitments rose by 63% sequentially, positioning for demand outside of China [1] - The U.S. government will receive a 25% revenue cut from Nvidia's H200 AI chip sales to approved customers in China, as announced by President Trump [5] 分组2 - Michelle Chang of Zoom emphasized a shift towards an AI-first strategy, focusing on enhancing workplace collaboration and developing new AI products [2] - Zoom's free cash flow margin reached 50%, aided by one-time improvements, but sustained progress is uncertain [3] - Enterprise net dollar expansion remains at 98%, with a goal to exceed 100% in the future [3] 分组3 - Virgin Galactic reported only $400,000 in revenue but is transitioning to a scalable operating model, with operating expenses down to $67 million [7][8] - The company aims for approximately $450 million in annual revenue and $100 million in adjusted EBITDA from two ships flying 125 missions a year [8] - Engineering milestones, such as a new oxidizer tank, are expected to enhance operational efficiency and reduce downtime [8] 分组4 - Bark's CFO highlighted a shift towards higher-value customers and improved retention, with marketing costs decreasing due to lower acquisition costs [9][10] - The company plans to increase margins through sourcing changes and a price increase in 2026 [10] 分组5 - Warner Bros. Discovery's CFO noted a strategic shift away from costly NBA rights to a standalone sports streaming app, expecting significant financial benefits [11][12] - HBO Max is projected to generate over $1.3 billion in EBITDA this year, with a target of 150 million streaming subscribers by 2026 [12] 分组6 - Texas Roadhouse is preparing for approximately 7% commodity inflation in 2026, with labor inflation expected to be around 3% to 4% [13][14] - The company plans to invest approximately $400 million in capital expenditures in 2026, focusing on new units and franchise acquisitions [14][15] 分组7 - DoorDash's CFO indicated that 2026 will be a year of heavy reinvestment while still achieving modest margin expansion [16][17] - The acquisition of Deliveroo is performing well, contributing approximately $200 million to EBITDA, with growth exceeding expectations [18] 分组8 - Vertex Pharmaceuticals is prioritizing capital investment in innovation and expansion, particularly in its kidney portfolio [19][20] - The company is focused on building a durable pain franchise while managing operating expenses and external uncertainties [20]

Core Viewpoint - The Zacks Style Scores provide a comprehensive framework for investors to evaluate stocks based on value, growth, and momentum, enhancing the effectiveness of the Zacks Rank in identifying high-potential investment opportunities [2][7]. Summary by Category Zacks Style Scores Overview - The Zacks Style Scores rate stocks using an alphabetic system from A to F, where A indicates the highest potential for outperforming the market [3]. - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6]. Value Score - The Value Score targets investors seeking undervalued stocks, utilizing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to identify attractive investment opportunities [3]. Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4]. Momentum Score - The Momentum Score assists investors in capitalizing on price trends, using metrics like one-week price changes and monthly earnings estimate changes to identify favorable buying opportunities [5]. VGM Score - The VGM Score combines all three Style Scores, providing a holistic view of a stock's value, growth potential, and momentum, making it a robust indicator alongside the Zacks Rank [6]. Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7]. - There are over 800 stocks rated 1 or 2, and the Style Scores help investors narrow down their choices [8]. Stock Example: Vertex Pharmaceuticals - Vertex Pharmaceuticals, focused on developing drugs for serious diseases like cystic fibrosis, holds a 3 (Hold) rating with a VGM Score of B and a Momentum Style Score of B, having seen an 11.2% increase in share price over the past four weeks [11]. - The company's earnings estimate for fiscal 2025 has been revised upwards by nine analysts, increasing the Zacks Consensus Estimate by $0.44 to $18.30 per share, with an average earnings surprise of +2% [12].