Swiss pharmaceutical Novartis AG (NYSE:NVS) reported fourth-quarter 2025 results on Wednesday.The company's net sales rose 1% year over year to $13.34 billion, missing Wall Street's consensus estimate of $13.78 billion. On a constant-currency (cc) basis, sales were down 1%.Generic competition had a negative impact of 15 percentage points, including a negative impact of 3 percentage points from revenue deduction adjustments in the U.S., mainly related to Entresto and Promacta.Pricing had a negative impact of ...

Core Insights - Novartis AG reported fourth-quarter core earnings per share of $2.03, exceeding the Zacks Consensus Estimate of $1.99 and up from $1.98 a year ago [1][7] - Core net income decreased by 1% to $3.9 billion, while revenues of $13.3 billion fell short of the Zacks Consensus Estimate of $13.7 billion, despite a 1% year-over-year increase [2][7] - The company faced revenue pressure from generic competition for key drugs Entresto and Promacta, leading to a 1% decline in sales on a constant currency basis [2][26] Financial Performance - Core operating income improved by 1% to $4.9 billion, supported by higher government grant income and lower SG&A expenses, although offset by increased R&D expenses [19] - For 2025, Novartis reported sales growth of 8% to $54.53 billion, surpassing the Zacks Consensus Estimate, with core EPS increasing by 17% to $8.98 [20] - Guidance for 2026 indicates low single-digit growth in net sales on a constant currency basis, with core operating income expected to decline in low single digits [21] Drug Performance - Cosentyx sales rose 11% to $1.8 billion, driven by strong demand across all regions [5] - Kisqali sales surged 44% to $1.32 billion, although it missed estimates, with underlying global growth at 54% [6][8] - Entresto sales plummeted 45% to $1.2 billion due to generic competition, while Promacta sales fell 63% to $226 million [8][13] - Pluvicto sales increased by 70% to $605 million, driven by strong demand following recent approvals [11] - Kesimpta sales grew 27% to $1.2 billion, while Jakavi sales increased by 8% to $555 million [10][12] Strategic Updates - Novartis announced plans to acquire Avidity Biosciences for $12 billion to enhance its late-stage neuroscience pipeline [22][23] - The acquisition aims to strengthen the company's position in addressing genetic neuromuscular diseases [28] - A collaboration agreement with the U.S. government was established to reduce drug prices while supporting ongoing investments in manufacturing and R&D [25] Market Position - Novartis shares have gained 42.1% over the past year, outperforming the industry growth of 19% [2] - The company is navigating significant patent expirations, with a focus on key growth drivers such as Kisqali, Kesimpta, Pluvicto, and Scemblix [26][27]

Novo Nordisk (NVO) shares crashed on Tuesday after the Danish drugmaker issued a sobering outlook for 2026 that caught Wall Street flat-footed. According to the pharma giant, its top- and bottom-line growth will decelerate this year as its “Most Favored Nations” agreement with the U.S. lowers weight-loss drug prices in its largest market. More News from Barchart At the time of writing, Novo Nordisk stock is trading some 20% below its year-to-date high. www.barchart.com What This 2026 Outlook Really M ...

Key Takeaways BMY's growth portfolio, led by Reblozyl, is expected to support top-line growth in upcoming quarterly results.Reblozyl sales hit $1.66B in the first nine months of 2025, rising 35% year over year on strong demand.BMY faces revenue pressure as generic competition continues to erode sales of legacy brands.Bristol Myers’ (BMY) is banking on its growth portfolio, which comprises Opdivo, Orencia, Yervoy, Reblozyl, Opdualag, Abecma, Zeposia, Breyanzi, Camzyos, Sotyku, Krazati and others, to drive to ...

Core Viewpoint - Merck reported strong fourth-quarter earnings driven by demand for its cancer immunotherapy Keytruda, but provided a modest 2026 outlook that fell short of Wall Street expectations due to upcoming patent expirations and generic competition [1][2]. Financial Performance - For the fourth quarter, Merck posted net income of $2.96 billion, or $1.19 per share, compared to $3.74 billion, or $1.48 per share, in the same period last year [4]. - Adjusted earnings for the fourth quarter were $2.04 per share, slightly above the expected $2.01 per share [6]. - Revenue for the quarter was $16.4 billion, a 5% increase from the previous year, and exceeded expectations of $16.19 billion [5][6]. 2026 Outlook - Merck anticipates 2026 revenue between $65.5 billion and $67 billion, lower than analysts' expectations of $67.6 billion [2]. - The company expects adjusted earnings per share to be between $5 and $5.15, compared to the analyst estimate of $5.36 [2]. Acquisition and Charges - The 2026 guidance includes a one-time charge of approximately $9 billion, or around $3.65 per share, related to the acquisition of Cidara, which is developing a flu prevention drug [3]. Cost Management - Merck is implementing a cost-cutting plan aimed at reducing expenses by $3 billion by the end of 2027 to offset revenue losses from the upcoming patent expiration of Keytruda in 2028 [5]. Drug Pricing Deal - Under a "most favored nation" deal, Merck will sell existing treatments to Medicaid patients at the lowest price offered in other developed nations and will receive a three-year reprieve from tariffs [4].

Core Insights - Bristol Myers Squibb Company (BMY) has shown strong performance recently, with shares increasing by 13.1% over the past three months, although this is slightly below the industry's growth of 15.2% [1][4] - The company has outperformed the sector and the S&P 500 during the same period [1][3] Financial Performance - BMY reported better-than-expected Q3 results on October 30, driven by increased demand for key drugs such as Opdivo, Breyanzi, Reblozyl, and Camzyos [4][8] - The company raised its revenue guidance, reflecting strong performance and giving investors renewed confidence [4][8] Growth Portfolio - BMY's Growth Portfolio includes drugs like Opdivo, Reblozyl, and Breyanzi, which have maintained strong top-line growth [5][9] - Opdivo sales in the U.S. are bolstered by its launch in MSI-high colorectal cancer and growth in non-small cell lung cancer, with international sales benefiting from label expansions [6][7] - Reblozyl is annualizing over $2 billion in sales, while Breyanzi is also performing well with annualized sales exceeding $1 billion [9][10] New Drug Approvals and Collaborations - The approval of Opdivo Qvantig for subcutaneous use has enhanced BMY's immuno-oncology portfolio, with expectations for global sales to increase in the high single-digit to low double-digit range by 2025 [7] - BMY's acquisition of Orbital Therapeutics for $1.5 billion will add OTX-201, a promising RNA immunotherapy candidate, to its pipeline [14][15] - Collaborations with BioNTech for bispecific antibodies targeting PD-1 and VEGF are also in progress, indicating a focus on innovative cancer treatments [16] Legacy Portfolio Challenges - BMY's legacy portfolio is facing challenges due to generic competition, with expected declines of 15-17% in sales for legacy drugs by 2025 [12][8] - The legacy portfolio includes Eliquis, which is a significant contributor to revenue but is also under pressure from generics [13] Valuation and Estimates - BMY's shares are currently trading at a price/earnings ratio of 8.78x forward earnings, which is lower than the large-cap pharma industry's average of 16.99x [17] - The Zacks Consensus Estimate for 2025 EPS has increased to $6.51 from $6.43 over the past 60 days, indicating positive sentiment [19] Investment Outlook - BMY is considered a safe haven for investors in the biotech sector, with strong performance from its growth drugs stabilizing revenue amid generic competition [21] - The company offers an attractive dividend yield of 4.73%, making it a compelling option for existing investors [22]

Core Insights - Bristol Myers Squibb (BMY) has seen a 7.2% increase in stock price over the past month, outperforming the industry growth of 3.8% and the S&P 500 Index [1][2][8] - The company's strong performance is attributed to better-than-expected Q3 results driven by increased demand for key drugs such as Opdivo, Breyanzi, Reblozyl, and Camzyos, leading to an upward revision in revenue guidance [3][8] - Despite recent gains, BMY's year-to-date stock performance has been disappointing, with a decline from a 52-week high of $63.33 in March to a low of $42.52 in late October [4] Financial Performance - BMY's Growth Portfolio, which includes drugs like Opdivo and Reblozyl, reported an 18% year-over-year sales increase, totaling $6.9 billion [5] - Opdivo sales in the U.S. are driven by strong launches in specific cancer indications, while global sales are expected to grow in the high single-digit to low double-digit range [6][8] - The thalassemia drug Reblozyl has annualized sales exceeding $2 billion, and Breyanzi's sales are also strong, exceeding $1 billion annually [9][10] Drug Approvals and Pipeline - BMY's recent approval of Opdivo Qvantig for subcutaneous use has enhanced its immuno-oncology portfolio, with strong initial uptake [6] - The company has also launched Cobenfy, a new treatment for schizophrenia, which has generated $105 million in sales year-to-date and is expected to contribute significantly to revenue in the future [10][11] Legacy Portfolio and Challenges - The Legacy Portfolio continues to decline, with a 12% decrease in sales to $5.4 billion, primarily due to generic competition affecting drugs like Revlimid and Pomalyst [12] - BMY anticipates a further decline of approximately 15% to 17% in the Legacy Portfolio by 2025 [13] Strategic Collaborations and Acquisitions - BMY announced the acquisition of Orbital Therapeutics for $1.5 billion, which will add a promising RNA immunotherapy candidate to its pipeline [14][15] - The company has also partnered with BioNTech for the co-development of a bispecific antibody targeting cancer, indicating a focus on innovative treatment approaches [16][17] Valuation and Estimates - BMY's current price/earnings ratio stands at 7.67x, below its historical mean and the large-cap pharma industry's average of 15.57x, suggesting it may be undervalued [18] - The Zacks Consensus Estimate for 2025 EPS has slightly decreased to $6.48 from $6.51 over the past month [20] Investment Outlook - BMY's strong performance in the first nine months of 2025, driven by key drugs, positions it as a relatively safe investment in the biotech sector [22] - The company offers an attractive dividend yield of 5.31%, which may appeal to existing investors [22]

Core Insights - Novartis AG reported core earnings per share of $2.25 in Q3, missing the Zacks Consensus Estimate by a penny but up from $2.06 a year ago, driven by sales growth [1][7] - Revenues reached $13.9 billion, an 8% increase year-over-year, slightly beating the Zacks Consensus Estimate [1][2] Sales Performance - On a constant currency basis, sales increased by 7%, supported by strong performances from Kisqali, Kesimpta, Scemblix, and Pluvicto, which offset the negative impact of generic competition for Promacta, Tasigna, and Entresto [2][4] - Core operating income rose 7% to $5.5 billion [2] Key Drug Performance - Kisqali sales surged 68% to $1.33 billion, driven by growth in the United States [8] - Kesimpta sales increased 44% to $1.2 billion, exceeding estimates [9] - Pluvicto sales grew 45% to $564 million, benefiting from expanded indications [11] - Entresto sales decreased 1% to $1.9 billion due to generic competition, missing estimates [5][6] - Cosentyx sales were down 1% to $1.7 billion, impacted by a one-time revenue adjustment [6] Strategic Developments - Novartis announced the acquisition of Avidity Biosciences for $12 billion to enhance its neuroscience pipeline, focusing on genetic neuromuscular diseases [18][19] - The company expects net sales to grow in high single digits and core operating income to grow in the low teens by 2025 [17] Other Updates - Novartis received FDA approval for remibrutinib as a treatment for chronic spontaneous urticaria [21] - The company is advancing its pipeline with new drug approvals and collaborations, including a licensing agreement with Arrowhead Pharmaceuticals for a preclinical-stage therapy targeting Parkinson's disease [27]

Core Insights - Novartis AG reported better-than-expected Q2 2025 results, with core earnings of $2.42 per share, surpassing the Zacks Consensus Estimate of $2.38 and up from $1.97 a year ago, driven by strong sales growth [1][6] - Revenues reached $14.05 billion, a 12% increase from the previous year, exceeding the Zacks Consensus Estimate of $14.04 billion [1][6] Sales Performance - On a constant currency basis, sales increased by 11%, supported by strong performances from key drugs including Kisqali, Entresto, Kesimpta, Scemblix, Leqvio, and Pluvicto [2][6] - Entresto's sales rose 22% to $2.36 billion, driven by heart failure indications in the U.S. and Europe, and hypertension indications in China and Japan, beating estimates [5][6] - Kisqali's sales surged 64% to $1.2 billion, with strong growth in the U.S. due to recent launches [8] - Kesimpta sales totaled $1.1 billion, up 33%, driven by increased demand [9] - Cosentyx sales increased 6% to $1.6 billion but missed estimates, impacting investor sentiment [7][6] - Pluvicto sales reached $454 million, up 30%, following FDA approval for earlier use, significantly expanding the eligible patient population [12] - Leqvio sales soared 61% to $298 million, driven by steady demand growth [13] Financial Guidance and Strategic Moves - Novartis raised its 2025 core operating income growth outlook to low teens, reflecting strong product and pipeline performance [6][16] - The company initiated a $10 billion share buyback plan, expected to be completed by 2027 [17] - Novartis acquired Regulus Therapeutics Inc. for $0.8 billion, with potential additional payments based on regulatory milestones [21] Management Changes - CFO Harry Kirsch announced his retirement, with Mukul Mehta appointed as the new CFO, effective March 15, 2026 [18]

Core Insights - Bristol Myers (BMY) is focusing on newer drugs like Opdualag, Reblozyl, and Breyanzi to stabilize its revenue as legacy drugs face generic competition [1][9] - The performance of new drugs is crucial for BMY's growth, with Reblozyl showing strong growth in treating myelodysplastic syndromes-associated anemia [2] - BMY's shares have declined 15% year to date, underperforming the industry, which has seen a decline of 3.4% [8] Revenue and Drug Performance - Legacy drugs such as Revlimid, Pomalyst, Sprycel, and Abraxane are negatively impacted by generic competition and changes in U.S. Medicare Part D [1][9] - Sales of Eliquis, a blood thinner, decreased by 4% in the first quarter due to the Medicare Part D redesign [1] - Opdivo, a leading immuno-oncology drug, has experienced revenue growth primarily driven by volume [3] New Drug Approvals and Market Expansion - BMY has received FDA approval for xanomeline and trospium chloride (Cobenfy), a new treatment for schizophrenia, which is expected to contribute significantly to revenue [3][4] - Reblozyl is anticipated to have a substantial impact on BMY's revenue in the coming decade due to its strong performance [2] Competitive Landscape - The immuno-oncology market is competitive, with Merck's Keytruda dominating and accounting for around 50% of Merck's pharmaceutical sales [5] - Pfizer is also a significant player in oncology, with a diverse product portfolio and recent licensing agreements to enhance its offerings [6][7] Valuation and Earnings Estimates - BMY is trading at a forward earnings multiple of 7.34x, below its historical average of 8.54x and the large-cap pharma industry's average of 14.79x [9][10] - The Zacks Consensus Estimate for BMY's earnings per share has decreased over the past 60 days, indicating a downward trend in earnings expectations [11]