With the end of the pandemic, sales of Pfizer’s (PFE) COVID products, Comirnaty and Paxlovid, declined from their peak. However, Pfizer’s non-COVID operational revenues are improving, driven by its key in-line products like Vyndaqel, Padcev and Eliquis, recent launches and newly acquired products like Nurtec and those from Seagen (December 2023).The year 2023 was a record year for Pfizer in terms of new drug approvals. It received nine new medicine/vaccine approvals in 2023 that have begun to contribute to ...

Core Insights - Johnson & Johnson (JNJ) is expected to report its third-quarter results on October 14, with a focus on the performance of its Innovative Medicine segment, which includes several blockbuster drugs across various therapeutic areas [1] Sales Performance - J&J anticipates operational sales growth in its Innovative Medicine segment to be stronger in the second half of the year compared to the first half, despite the loss of exclusivity for its product Stelara and the negative impact from the Part D redesign [2] - The segment's sales increased by 2.4% on an organic basis in the first half of 2025, with expectations for continued growth driven by key products like Darzalex, Tremfya, and Erleada, alongside contributions from new drugs such as Carvykti, Tecvayli, Talvey, Rybrevant, Lazcluze, and Spravato [3][4] Competitive Landscape - The launch of several biosimilar versions of Stelara in the U.S. in 2025 has negatively impacted the Innovative Medicines segment's growth by 1170 basis points, with expectations for a steeper decline in the third quarter due to increased biosimilar entrants [5] - Rising competition from new oral drugs is likely to have affected sales of Imbruvica, while the Medicare Part D redesign under the Inflation Reduction Act has particularly hurt sales of drugs like Stelara, Imbruvica, Tremfya, and Erleada [6] Future Projections - Estimates for the Innovative Medicines unit suggest a compound annual growth rate (CAGR) of around 5% over the next three years [7] Competitive Positioning - J&J's key areas of focus are immunology and oncology, with significant competition from other large drugmakers such as Novartis, AstraZeneca, AbbVie, Amgen, Merck, Bristol-Myers, Roche, and Pfizer [8] Stock Performance and Valuation - J&J's shares have outperformed the industry year-to-date, rising by 30.5% compared to an 8.6% increase in the industry [9] - The company's shares are currently trading at a price/earnings ratio of 16.77, which is higher than the industry average of 15.96 and above its five-year mean of 15.64 [11] Earnings Estimates - The Zacks Consensus Estimate for J&J's 2025 earnings remains unchanged at $10.86 per share, while the estimate for 2026 has slightly increased from $11.36 to $11.37 per share over the past 60 days [12]

Core Insights - Pfizer has entered a significant agreement with the Trump administration to reduce drug prices and enhance U.S. innovation and manufacturing [1][10] - The deal includes price reductions for certain drugs to match costs in comparable developed countries and substantial discounts through a new purchasing platform [2][4] - Pfizer will invest an additional $70 billion in U.S. manufacturing in exchange for a three-year exemption from tariffs on pharmaceutical imports [3][10] Drug Pricing and Market Impact - Pfizer will implement price cuts of up to 85%, averaging 50%, on key treatments [2] - The stock price of Pfizer increased nearly 14% following the announcement, alleviating major concerns in the pharmaceutical industry regarding tariffs and pricing proposals [4][10] - Other major drugmakers also saw stock gains, indicating potential for similar agreements in the industry [4] Oncology and Product Pipeline - Pfizer is a leading player in oncology, with revenues from oncology drugs growing 9% in the first half of 2025 [6] - The acquisition of Seagen has strengthened Pfizer's oncology portfolio, with expectations of eight or more blockbuster oncology medicines by 2030 [7][10] - New and acquired products contributed $4.7 billion in revenues in the first half of 2025, reflecting a 15% operational increase year-over-year [9][10] Financial Performance and Projections - Pfizer anticipates a revenue compound annual growth rate (CAGR) of approximately 6% from 2025 to 2030, with the Seagen acquisition expected to add over $10 billion in risk-adjusted revenues by 2030 [11][10] - The company expects to face challenges from declining COVID product sales, with revenues dropping from $56.7 billion in 2022 to around $11 billion in 2024 [12] - Pfizer is preparing for a significant impact from loss of exclusivity (LOE) on key products between 2026 and 2030 [13] Cost Management and Future Outlook - Pfizer aims to achieve savings of $7.7 billion by the end of 2027 through cost cuts and restructuring [22] - Despite anticipated revenue challenges, Pfizer expects earnings per share (EPS) growth and maintains a dividend yield of around 7% [22][24] - The company has announced plans to acquire Metsera, re-entering the obesity drug market after previously halting development on another weight-loss drug [23][24] Valuation and Investment Considerations - Pfizer's stock is trading at a price/earnings ratio of 8.70, significantly lower than the industry average of 15.93, indicating attractive valuation [18] - The Zacks Consensus Estimate for earnings has increased for 2025 and 2026, reflecting positive sentiment [20] - Investors are encouraged to consider Pfizer for long-term investment due to its cheap valuation, high dividend yield, and growth prospects [24]

Core Insights - AbbVie has effectively managed the loss of exclusivity for Humira by launching two new immunology drugs, Skyrizi and Rinvoq, with significant sales expected in the upcoming quarterly report [1][3][8] Group 1: Drug Performance and Sales Expectations - Skyrizi and Rinvoq have been launched across major indications previously covered by Humira, including a new indication for atopic dermatitis, showing strong performance particularly in inflammatory bowel disease (IBD) [2] - AbbVie anticipates combined sales of $6 billion for Skyrizi and Rinvoq in the second quarter, with individual estimates of $4 billion for Skyrizi and $2 billion for Rinvoq [3][8] Group 2: Expansion in Other Therapeutic Areas - AbbVie is also expanding its oncology and neuroscience portfolios, adding new therapies such as Epkinly, Elahere, and Emrelis, bringing its total oncology therapies to five [4] - The neuroscience segment has seen growth driven by increased uptake of migraine treatments, Ubrelvy and Qulipta [4] Group 3: Competitive Landscape - The immunology market is highly competitive, with key players like Johnson & Johnson and Eli Lilly also expanding their portfolios. Johnson & Johnson is focusing on Tremfya after Stelara lost patent exclusivity [5] - Eli Lilly has recently received FDA approval for Omvoh, marking its entry into the IBD market, which enhances its immunology offerings [6] Group 4: Valuation and Market Performance - AbbVie shares have outperformed the industry year to date, trading at a price/earnings (P/E) ratio of 14.21, slightly below the industry average of 15.01 [7][10] - The bottom-line estimate for AbbVie in 2025 remains at $12.28, with a slight increase in the 2026 estimate from $14.05 to $14.06 [11]