Core Insights - AbbVie has a strong immunology franchise with blockbuster drugs and has also developed a substantial oncology franchise with key products like Imbruvica and Venclexta [1] Oncology Franchise Development - AbbVie and Genmab's Epkinly was approved for relapsed or refractory diffuse large B-cell lymphoma and follicular lymphoma, while Emrelis was approved for non-squamous non-small cell lung cancer [2] - The acquisition of Immunogen added Elahere to AbbVie's oncology portfolio, contributing to double-digit revenue growth for Elahere and Epkinly in the first half of 2025 [2] - AbbVie's oncology segment generated $3.3 billion in revenue in the first half of 2025, a 4.2% increase year over year, driven by Venclexta and new drugs [3] Innovation in Oncology - AbbVie is enhancing its oncology portfolio with antibody-drug conjugates (ADCs), which are seen as a disruptive innovation in cancer treatment [4] - The company has two ADCs in its commercial portfolio and two additional next-generation ADCs in late-stage development, along with others in early-stage development [4] Pipeline and Growth Potential - A key candidate in AbbVie's oncology pipeline is etentamig/ABBV-383, targeting relapsed/refractory multiple myeloma [5] - Despite competitive pressure on Imbruvica, AbbVie's oncology business is well-positioned for growth in the coming years [5] Competitive Landscape - Major competitors in the oncology space include AstraZeneca, Merck, Bristol-Myers, and Pfizer, with AstraZeneca's oncology sales comprising around 43% of total revenues and growing 16% in the first half of 2025 [6] - Merck's Keytruda accounts for about 50% of its pharmaceutical sales, with a 6.6% sales increase to $15.1 billion in the first half of 2025 [7] - Pfizer's oncology revenues grew 9% in the first half of 2025, driven by various drugs, while AbbVie's oncology revenues rose 4.2% to $3.3 billion [8] Financial Performance and Valuation - AbbVie's stock has increased by 21.2% this year, outperforming the industry [10] - The company's shares trade at a price/earnings ratio of 15.54, higher than the industry average of 14.64 [13] - The Zacks Consensus Estimate for 2025 earnings has slightly decreased to $12.02 per share, while the estimate for 2026 has increased to $14.31 per share [16]

Core Insights - Johnson & Johnson (JNJ) is facing significant challenges including patent expirations, legal issues related to talc products, and macroeconomic uncertainties impacting its sales and profits [1][11]. Patent Expiration and Sales Impact - JNJ lost U.S. patent exclusivity for its multibillion-dollar product Stelara in 2025, leading to the launch of several biosimilars by companies like Amgen and Teva [2][3]. - Stelara sales declined by 42.7% in Q2 2025, negatively impacting the Innovative Medicine segment's growth by 1170 basis points [3][11]. - Sales projections indicate a drop in Stelara revenue from nearly $11 billion in 2023 to approximately $2.7 billion by 2027 [4]. Medicare Part D Redesign - The redesign of Medicare Part D under the Inflation Reduction Act is expected to reduce JNJ's sales by about $2 billion in 2025, particularly affecting drugs like Stelara and Tremfya [5][6][11]. Legal Challenges - JNJ is currently facing over 62,000 lawsuits related to its talc-based products, with a bankruptcy plan to settle these lawsuits being rejected [7]. - The company will revert to the traditional tort system to address these lawsuits individually [7]. Economic and Trade Pressures - Uncertainty surrounding tariffs on pharmaceutical imports, with potential tariffs as high as 250%, poses additional challenges for JNJ [8]. - In the MedTech segment, sales in China are being negatively impacted by the volume-based procurement (VBP) program [9]. Operational Performance and Future Outlook - Despite the challenges, JNJ recorded strong operational performance in the first half of 2025, with expectations of higher sales growth in both the Innovative Medicine and MedTech segments in the second half of the year [12][13]. - The company has reduced its potential tariff impact estimate from $400 million to $200 million and plans to invest $55 billion over the next four years to enhance domestic manufacturing [14]. Stock Performance and Valuation - JNJ's shares have outperformed the industry, rising 25.7% year-to-date compared to a 0.3% decline in the industry [15]. - The company's shares are currently trading at a price/earnings ratio of 16.0, higher than the industry average of 14.56 [16]. Earnings Estimates - The Zacks Consensus Estimate for JNJ's 2025 earnings has increased slightly from $10.83 to $10.86 per share over the past 30 days [20].

Core Insights - Royalty Pharma reported a revenue of $727 million for the quarter ended June 2025, reflecting a year-over-year increase of 19.6% and surpassing the Zacks Consensus Estimate of $686.22 million by 5.94% [1] - The company's EPS for the quarter was $1.14, compared to $0.96 in the same quarter last year, resulting in an EPS surprise of 3.64% against the consensus estimate of $1.10 [1] Financial Performance Metrics - The total portfolio receipts from royalty products amounted to $672 million, slightly below the average estimate of $680.22 million [4] - Key product performances included: - Cystic fibrosis franchise: $194 million, -0.4% year-over-year, below the estimate of $206.12 million [4] - Tysabri: $56 million, -12.3% year-over-year, above the estimate of $53.9 million [4] - Imbruvica: $44 million, -10.4% year-over-year, above the estimate of $39.81 million [4] - Xtandi: $42 million, +8.8% year-over-year, below the estimate of $42.75 million [4] - Promacta: $33 million, +8.2% year-over-year, below the estimate of $39.51 million [4] - Evrysdi: $33 million, +32.4% year-over-year, above the estimate of $31.21 million [4] - Trelegy: $57 million, +17.6% year-over-year, slightly below the estimate of $57.04 million [4] - Tremfya: $37 million, +23.7% year-over-year, below the estimate of $38.47 million [4] Stock Performance - Over the past month, Royalty Pharma's shares have returned +6.8%, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Can the stock still deliver the same kinds of returns it has over the past few decades?Johnson & Johnson (JNJ 1.53%) is one of the world's largest healthcare companies by market capitalization. The drugmaker has diversified operations, generating consistent revenue and profits.However, Johnson & Johnson has lagged the market in recent years due to a combination of factors, leading some investors to question whether it's still a solid long-term pick. Looking at some critical company-specific developments may ...

Financial Performance - AbbVie Inc. reported second-quarter 2025 adjusted EPS of $2.97, exceeding the Zacks Consensus Estimate of $2.89 and the company's guidance of $2.84-$2.88, with earnings rising 12.1% year over year [1] - Revenues for the quarter reached $15.42 billion, surpassing the Zacks Consensus Estimate of $15.07 billion, with a year-over-year increase of 6.6% on a reported basis and 6.5% on an operational basis [2] Key Drug Performance - Sales of Rinvoq totaled $2.03 billion, up 41.2%, driven by market share gains and recent label expansion [4] - Skyrizi generated $4.42 billion in sales, reflecting a 61.8% increase, attributed to strong volume growth and market share gains [5] - Humira experienced a significant sales decline of 58.2% to $1.18 billion, with U.S. sales down 66% to $802 million due to loss of exclusivity [6][7] - Neuroscience portfolio sales increased 24% to $2.68 billion, driven by higher sales of Botox Therapeutic, Vraylar, Ubrelvy, and Qulipta [8] Oncology and Other Drug Sales - Oncology franchise sales rose 2.4% to $1.68 billion, supported by newer drugs like Epkinly and Elahere, despite a decline in Imbruvica sales [10][11] - Venclexta generated revenues of $691 million, reflecting 8.3% growth, while Elahere sales rose 23.7% to $159 million, although it missed expectations [13] Cost and Guidance - Adjusted SG&A expenses decreased 2.3% year over year to $3.24 billion, while adjusted R&D expenses increased 10.3% to $2.12 billion [16] - AbbVie raised its full-year 2025 EPS guidance to a range of $11.88-$12.08, up from the previous range of $11.67-$11.87 [17] Market Reaction and Strategic Moves - AbbVie shares rose over 5% in pre-market trading following the upward revision in guidance, with a year-to-date stock gain of about 7% compared to the industry's 4% decline [20] - The company continues to invest in its future pipeline through strategic collaborations, including a licensing deal for an investigational trispecific antibody and interest in acquiring Gilgamesh Pharmaceuticals [22]

Core Viewpoint - AbbVie is expected to report second-quarter 2025 earnings on July 31, with sales estimated at $15.07 billion and earnings per share (EPS) at $2.89, although earnings estimates have declined recently [1][4][5] Financial Performance - AbbVie has consistently exceeded earnings expectations in the past four quarters, with an average earnings surprise of 2.93% [2][3] - The company anticipates adjusted earnings between $2.84 and $2.88 per share for Q2 2025, with net revenues around $15.0 billion [5] Product Performance - Growth is expected to be driven by newer immunology drugs, Skyrizi and Rinvoq, with sales estimates of $4.12 billion and $1.98 billion respectively [6] - Humira, which lost patent protection in January 2023, is projected to generate $1.41 billion in sales, reflecting ongoing sales erosion [7] - Sales for Imbruvica are expected to decline due to competition, with estimates at $704 million [8] - Venclexta sales are likely to rise, estimated at $668 million, driven by strong demand [9] - Neuroscience product sales are projected at $2.47 billion, supported by strong growth in drugs like Botox and Vraylar [10][11] Market Position and Valuation - AbbVie shares have outperformed the industry this year, trading at a price/earnings ratio of 14.44, slightly below the industry average of 15.34 [13][16] - Despite challenges from Humira biosimilars, AbbVie expects robust revenue growth in 2025, with a projected high single-digit revenue CAGR through 2029 [18] Strategic Outlook - AbbVie is investing in its future pipeline through collaborations, including a recent licensing deal for an investigational antibody targeting oncology and autoimmune diseases [20] - The company’s diverse portfolio, including drugs like Venclexta, Vraylar, and others, is expected to offset losses from declining sales in certain areas [19]

Core Insights - Royalty Pharma plc has appointed Carole Ho and Elizabeth (Bess) Weatherman to its Board of Directors, enhancing its leadership team with expertise in biopharmaceuticals and finance [1][2][3] Group 1: Board Appointments - Carole Ho is the Chief Medical Officer and Head of Development at Denali Therapeutics, with 20 years of experience in biopharma, previously serving as Vice President of Clinical Development at Genentech [2][3] - Bess Weatherman has 35 years of experience as an investor in the healthcare industry and is currently a Special Limited Partner at Warburg Pincus, having joined the firm in 1988 [3] Group 2: Company Overview - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a key funder of innovation in the biopharmaceutical sector, collaborating with various innovators [4] - The company has a portfolio that includes royalties on over 35 commercial products and 16 development-stage product candidates, indicating a strong position in the market [4] Group 3: Corporate Governance - The appointment of the new board members increases independent representation on the board to over 90%, reflecting Royalty Pharma's commitment to enhanced corporate governance [5]

Core Insights - Johnson & Johnson (JNJ) reported second-quarter 2025 earnings of $2.77 per share, exceeding the Zacks Consensus Estimate of $2.66, but reflecting a 1.8% decline year over year [1] - Total sales reached $23.74 billion, surpassing the Zacks Consensus Estimate of $22.80 billion, with a year-over-year increase of 5.8% [2] - The company raised its 2025 sales forecast to a range of $93.2 billion to $93.4 billion, indicating a growth of 5.1% to 5.6% compared to previous expectations [18][19] Financial Performance - Adjusted earnings, excluding intangible amortization and special items, were reported at $2.77 per share, while reported earnings, including these items, were $2.29 per share, up 18.7% year over year [1] - Domestic sales increased by 7.8% to $13.54 billion, while international sales rose by 3.2% to $10.2 billion [3] Segment Performance - The Innovative Medicines segment saw sales rise by 4.9% year over year to $15.2 billion, driven by strong performances from key products like Darzalex and Erleada [5][6] - The MedTech segment reported sales of $8.54 billion, up 7.3% from the previous year, benefiting from operational growth and currency impacts [16] Product Highlights - Darzalex sales increased by 23.0% to $3.54 billion, outperforming estimates [7] - Stelara sales declined by 42.7% to $1.65 billion due to biosimilar competition [11][12] - New drugs such as Carvykti and Tecvayli contributed significantly to sales growth, with Carvykti recording $439 million in sales [10] Future Outlook - JNJ anticipates operational sales growth in both the Innovative Medicine and MedTech segments to be higher in the second half of 2025 [25] - The company considers 2025 a "catalyst year" for growth, despite challenges such as the Stelara patent cliff and ongoing legal issues [26]

Core Insights - AbbVie has been expanding its oncology portfolio, now including five therapies for various cancers, contributing over 12% to its first-quarter revenues, which grew 6% year over year [1][2] AbbVie's Oncology Segment - The estimated sales for AbbVie's oncology segment in Q2 2025 are projected to be $1.6 billion, reflecting a 2% year-over-year decline, primarily due to the decline in Imbruvica sales amid rising competition [2][7] - Despite the decline, Venclexta, Epkinly, and Elahere are expected to contribute to growth, while modest revenues from Emrelis are anticipated following its approval in mid-May [2][7] Competitive Landscape - Major competitors in the oncology space include AstraZeneca, Merck, and Pfizer, with AstraZeneca's oncology sales accounting for nearly 41% of total revenues and growing 13% in Q1 2025 [4] - Merck's Keytruda accounted for over 46% of its total revenues in Q1 2025, while Pfizer's oncology revenues grew 7% on an operational basis, now accounting for over 27% of its total revenues [5] Valuation and 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 15.16 [6][8] - EPS estimates for 2025 have decreased from $12.28 to $12.08, while estimates for 2026 have increased from $14.05 to $14.06 over the past 30 days [10]

Core Viewpoint - Johnson & Johnson (JNJ) is set to report its second-quarter 2025 results on July 16, with sales and earnings estimates of $22.79 billion and $2.66 per share respectively. The earnings estimates for 2025 and 2026 have seen slight increases over the past month [1][2]. Group 1: Earnings Performance - JNJ has consistently exceeded earnings expectations in the last four quarters, with an average earnings surprise of 5.71%. The most recent quarter showed a surprise of 7.78% [3][4]. - The company has an Earnings ESP of +2.40% and a Zacks Rank 2 (Buy), indicating a strong likelihood of a positive earnings surprise [4]. Group 2: Sales Drivers and Challenges - Sales in JNJ's Innovative Medicines segment are expected to be driven by key products like Darzalex, Tremfya, and Erleada, with projected sales of $3.45 billion, $1.08 billion, and $903.9 million respectively [6][7]. - The sales of Stelara are anticipated to decline due to biosimilar competition, with estimates pegged at $1.88 billion [8][9]. - The MedTech segment faces challenges in China due to a volume-based procurement program, but growth is expected from newly acquired businesses like Abiomed and Shockwave [12][13]. Group 3: Strategic Developments - JNJ's acquisition of Intra-Cellular Therapies for approximately $14.6 billion enhances its presence in the neurological and psychiatric drug market [24]. - The company is navigating significant headwinds, including the impact of the Stelara patent cliff and ongoing legal battles related to talc lawsuits [25][24]. Group 4: Stock Performance and Valuation - JNJ's stock has risen 10.3% this year, outperforming the industry and the S&P 500, with a current price/earnings ratio of 14.42, slightly below the industry average [16][19]. - The company is viewed as reasonably valued, with expectations for operational sales growth to accelerate in the second half of 2025 and beyond [27][19].