Core Insights - The upcoming deal between major pharmaceutical companies and the U.S. government aims to reduce prescription drug prices, raising questions about the potential impact on Big Pharma's profitability [1] - The current focus is on Medicaid pricing, which represents about 10% of total U.S. prescription drug spending and often features discounts exceeding 80% [2][3] Group 1: Market Reactions - Concerns regarding price compression and margins have led Pfizer to predict a challenging year, but analysts generally do not foresee significant issues for the broader pharmaceutical sector [3] - Market fluctuations initially driven by political concerns have eased, particularly following efforts to align U.S. drug prices with those in other developed countries [4] Group 2: ETF Performance - Diversified health care ETFs, such as the Health Care Select Sector SPDR Fund and the Vanguard Health Care ETF, have shown resilience, with both funds increasing by over 1% [5] - Managed care companies and health care technology firms, which are less affected by Medicaid pricing, provide a buffer against potential pressures on pharmaceutical stocks [6] Group 3: Specialized ETFs - More focused ETFs like the iShares U.S. Pharmaceuticals ETF and the SPDR S&P Pharmaceuticals ETF are directly impacted by pricing negotiations, but their diversified structures mitigate risks associated with individual companies [7][8] - Despite the challenges, these specialized ETFs have also seen positive performance, with increases of 1.3% and 2% respectively [8] Group 4: Investment Outlook - The pressure on drug pricing is viewed more as a volatility issue rather than a fundamental threat to the industry, with broad health care ETFs well-positioned to manage the situation [9] - Diversification remains a key strategy for investors to navigate potential market fluctuations related to drug pricing policies [9]

Company Overview - Terns Pharmaceuticals, Inc. (NASDAQ:TERN) specializes in developing small-molecule therapies for cancer and obesity, with key products including TERN-701 for chronic myeloid leukemia, TERN-501 for metabolic liver disease, and oral obesity treatments through TERN-601 and TERN-800 programs [2]. Recent Developments - On December 8, Terns Pharmaceuticals announced positive results for TERN-701, reporting a 64% major molecular response (MMR) rate in Phase 1 trials [2]. - The therapy achieved a 75% response rate at doses of 320 mg and above over a 24-week period, supporting these doses as the recommended Phase 2 doses [2]. - The Chief Medical Officer, Emil Kuriakose, highlighted a 36% durable molecular response (DMR) achievement rate by 24 weeks, indicating fast response kinetics and a favorable safety profile across all doses [2]. Market Performance - The stock of Terns Pharmaceuticals experienced significant volatility, rising from approximately $2 to around $48 before a slight pullback, indicating strong market interest and potential investor excitement [1].

Johnson & Johnson (NYSE:JNJ) is one of the stocks Jim Cramer talked about recently. Cramer mentioned the stock during the episode and said: “These groups were the salvation of this market when the year of magical investing ended, and the super speculative stocks started coming back to earth, they’re still doing it, followed by the data center plays. These were the groups that saved you. We don’t talk about this migration much, but all you need to know is just to look at the stocks of Merck and Johnson & J ...

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]

I'm thrilled to be joined by the leaders of nine of the world's largest pharmaceutical. Manufacturers, all very big names. Celebrities in their own right agreed to offer many of their flagship drugs, really all of their flagship drugs at heavily discounted most favored nations prices.In other words, whatever the drug sales were over the world, in the world, whatever the lowest number is, if it's Germany, if it's in the U.K., anywhere, we will match that price. ...

President Trump announced deals with nine pharmaceutical companies Friday, the latest in a series of pacts designed to lower drug prices for some Americans in exchange for a three-year reprieve from threatened tariffs on their products https://t.co/4S5bSvtndV https://t.co/tXyFywjR6A ...

Core Points - Bristol Myers Squibb has announced an agreement with the U.S. government aimed at improving the affordability and access to critical medicines for Americans [1] Company Summary - The agreement signifies a commitment from Bristol Myers Squibb to enhance the accessibility of its medications, which is expected to benefit a larger segment of the American population [1] - This initiative aligns with broader industry trends focusing on healthcare affordability and patient access to essential treatments [1]

Core Points - US President Donald Trump announced agreements with nine major pharmaceutical companies to reduce drug prices for Medicaid and cash-paying consumers, aiming to align US drug costs with those in other wealthy nations [1][4] - Trump emphasized that the US was previously subsidizing global drug costs and will no longer do so [2] Group 1: Drugmakers Involved - Participating companies include Bristol Myers Squibb, Gilead Sciences, Novartis, Amgen, Boehringer Ingelheim, Sanofi, GSK, Merck, and Roche's US unit Genentech [3] - Additional companies like Regeneron, Johnson & Johnson, and AbbVie are expected to join after the holidays [3] Group 2: Price Reductions and Commitments - Drugmakers will reduce prices on most medicines sold to Medicaid, promising "massive savings" on widely used drugs, although specific figures were not disclosed [4] - The agreements also include commitments to cut cash prices for select medicines and to launch new drugs in the US at prices equal to those in other wealthy countries [5] Group 3: Specific Drug Pricing - Merck plans to sell diabetes drugs Januvia, Janumet, and Janumet XR at discounts of about 70% off list prices [7] - Amgen will price its migraine drug Aimovig and arthritis treatment Amjevita at $299 per month, which is nearly 60% and 80% below current US list prices, respectively [7] Group 4: Investment and Revenue Sharing - Companies pledged to invest over $150 billion in US research, development, and manufacturing, with Merck alone committing $70 billion [8] - A portion of each company's overseas revenue will be remitted to the US to help offset domestic drug costs, and several companies agreed to donate drug ingredients to the US strategic reserve [9] Group 5: Industry Reaction - Five drugmakers, including Pfizer and Eli Lilly, had already struck similar deals with the administration, and AbbVie is expected to announce its agreement soon [10]

Core Viewpoint - The pharmaceutical giants Pfizer and Merck have underperformed in 2023, facing financial challenges and upcoming patent cliffs, leading to uncertainty in their medium-term outlooks. The article compares both companies to determine which presents a better investment opportunity heading into the new year. Pfizer - Pfizer's Eliquis, a leading blood thinner, is approaching patent expiration, which could exacerbate its already slow revenue and earnings growth [3] - The company has expanded its pipeline through internal efforts, acquisitions, and licensing deals, launching new products that are expected to impact financial results positively in the future [4] - Notable pipeline candidates include MET-097i, a promising weight loss drug with fewer side effects and a long-acting dosing schedule, and PF-4404, a cancer therapy that could become a standard treatment for certain cancers [5][7] - Pfizer is also implementing cost-cutting measures and has secured a deal with the White House to be exempt from tariffs for three years, which may help improve its margins and bottom line [8] Merck - Merck's sales from its HPV vaccines, Gardasil and Gardasil 9, have declined due to lower sales in China, and its best-selling cancer drug Keytruda faces a patent cliff by 2028 [9] - The company has introduced a new subcutaneous version of Keytruda, which offers a more convenient administration method and is expected to mitigate sales losses from biosimilars [10] - Merck's pipeline includes successful products like Winrevair for pulmonary arterial hypertension and Capvaxive, a pneumonia vaccine, both of which are expected to generate significant revenue [12][13] - An acquisition that adds CD388 to its pipeline could potentially transform the influenza vaccine market, indicating strong future prospects for Merck [13] Investment Comparison - Both Pfizer and Merck are considered viable long-term investment options, but Merck is viewed as the stronger choice due to better financial results and a more developed plan to address challenges [14][16] - Merck's higher profit margins and faster dividend growth over the past decade make it more attractive for dividend-seeking investors, despite Pfizer's higher forward dividend yield [17]

​Novo Nordisk A/S (NYSE:NVO) is one of the Best Non-US Stocks to Buy According to Hedge Funds. On December 12, Novo Nordisk A/S (NYSE:NVO) announced receiving a positive opinion by the European Medicines Agency’s Committee for Medicinal Products for Human Use for a higher dosage of Wegovy. ​The positive opinion is based on improved weight loss results of around 20.7% at 72 weeks in people without diabetes. Management noted that the STEP UP and STEP UP T2D clinical trial program showed that one in three ob ...