Core Viewpoint - President Trump's trade policies, particularly aggressive tariffs on imports, are impacting Wall Street and could increase costs for companies, affecting their margins and stock performance. However, certain healthcare companies like Eli Lilly and Novartis present investment opportunities despite these challenges [1][2]. Eli Lilly - Eli Lilly has committed to investing $50 billion in U.S.-based manufacturing since 2020, with half of this announced in the first quarter [4]. - The company aims to manufacture 100% of medicines for U.S. patients domestically, which will help mitigate the impact of tariffs [5]. - Eli Lilly has shown significant innovation in diabetes and obesity treatments, with new products like Mounjaro and Zepbound generating billions in revenue [5]. - In Q1, Eli Lilly's revenue rose 45% year over year to $12.7 billion, and net income increased by 23% to $2.8 billion [6]. - The company has a strong pipeline, including a promising oral GLP-1 candidate, orforglipron, which could attract patients seeking convenience [7]. - Eli Lilly has increased its dividend payout by 102.7% over the past five years, making it a solid choice for growth and income investors [8]. Novartis - Novartis plans to invest $23 billion over the next five years to enhance its U.S. manufacturing capabilities [9]. - Despite potential short-term impacts from tariffs, Novartis is expected to manage these challenges effectively [10]. - In Q1, Novartis reported a 12% increase in net sales to $13.2 billion and a 22% rise in net income to $4.5 billion [10]. - The company is facing a loss of U.S. patent exclusivity for its heart failure drug Entresto, which generated $2.3 billion in sales in Q1, a 20% increase year over year [11]. - Novartis has prepared for this loss with new medicines like Fabhalta and cancer drugs Scemblix and Pluvicto, which have shown promising sales [11][12]. - The company has increased its dividend for 28 consecutive years, currently offering a forward yield of 3.3%, which is significantly higher than the S&P 500 average [13].

Core Insights - Novartis will present data from 60 abstracts at the 2025 ASCO Annual Meeting and EHA 2025 Congress, showcasing advancements in oncology and hematology [1][2] - The company emphasizes its leadership in oncology with key products such as Kisqali, Pluvicto, Scemblix, and Fabhalta, and aims to improve patient outcomes through partnerships and innovative therapies [2][3] ASCO Highlights - Key abstracts include: - Kisqali's efficacy and safety in various settings, including a real-world analysis in Black patients with early breast cancer [4][5] - Pluvicto's clinical outcomes in metastatic castration-resistant prostate cancer [6] - Scemblix's results in chronic myeloid leukemia, demonstrating its efficacy compared to other treatments [6] EHA Highlights - Key abstracts include: - Fabhalta's efficacy in patients with paroxysmal nocturnal hemoglobinuria [7] - Scemblix's superior tolerability compared to nilotinib in chronic myeloid leukemia [8] - Pelabresib's long-term efficacy in myelofibrosis patients [8] Company Strategy - Novartis focuses on improving the lives of cancer patients through innovative medicines and partnerships with advocacy groups, emphasizing early detection and patient-centered care [9][10]

Group 1: Johnson & Johnson - Johnson & Johnson plans to increase its U.S. manufacturing investments to over $55 billion over the next four years, which is 25% more than the previous four years [2] - The company is facing challenges such as thousands of talc-related lawsuits and potential revenue loss due to the Inflation Reduction Act, which allows Medicare to negotiate drug prices [3] - Despite these challenges, Johnson & Johnson has a strong business model, significant adaptability, and has generated consistent revenue, making it a reliable investment option [4][5] - The company has maintained a AAA credit rating from Standard & Poor's and has increased its dividends for 63 consecutive years, establishing itself as a Dividend King [5][6] Group 2: Novartis - Novartis is investing $23 billion over five years to enhance its U.S. manufacturing capabilities, aiming to locally produce 100% of the medicines sold in the U.S. [7] - The company anticipates a compound annual growth rate (CAGR) of 5% in revenue through 2029, despite losing U.S. patent exclusivity for its heart failure medicine Entresto, which generated $7.8 billion in sales last year [8] - New products, such as Fabhalta, are expected to help fill the revenue gap from off-patent drugs, supporting Novartis's growth trajectory [9] - Novartis has increased its dividends for 28 consecutive years, making it appealing to income-focused investors [10]