Key Takeaways Pfizer's oncology revenues grew 9% in H125 and now comprise more than 25% of total company sales.Q3 results hinge on Xtandi, Lorbrena and Braftovi-Mektovi offsetting Ibrance's weaker performance.Oncology biosimilars and Seagen's ADCs, including Padcev, remain pivotal growth drivers for Pfizer.Pfizer (PFE) is one of the largest and most successful drugmakers in oncology. It boasts a strong portfolio of approved cancer medicines as well as a robust pipeline of cancer candidates with a focus on m ...

Key Takeaways AstraZeneca shares have gained 15% in 2025, outpacing its industryBlockbuster drugs and new launches like Truqap and Datroway are driving AZN's top-line growth.Medicare Part D redesign, generic erosion and pricing pressures weigh on 2025 sales.AstraZeneca (AZN) stock has risen 15% so far this year compared with an increase of 0.2% for the industry. The stock has also outperformed the sector and the S&P 500 index, as seen in the chart below.AZN Stock Outperforms Industry, Sector & S&P 500Image ...

Core Insights - AstraZeneca's Koselugo has received a positive recommendation from the CHMP for expanded use in treating symptomatic, inoperable plexiform neurofibromas in adult patients with neurofibromatosis type 1 in the EU [1][6] - The recommendation is supported by data from the phase III KOMET study, which showed a significant objective response rate of 20% for Koselugo compared to 5% for placebo [2][6] - AstraZeneca's Tezspire has also been recommended for the treatment of adult patients with chronic rhinosinusitis with nasal polyps in the EU, based on the phase III WAYPOINT study [7][8] AstraZeneca's Product Approvals - Koselugo is already approved for certain pediatric patients with NF1 in multiple countries, including the US, EU, Japan, and China, and has recently gained approval for adult patients in Japan [3] - Tezspire is currently approved for severe asthma in various regions and is under review for treating chronic rhinosinusitis with nasal polyps in the US, with a decision expected on October 19, 2025 [9] Financial Performance - Year-to-date, AstraZeneca's shares have increased by 18.2%, outperforming the industry average rise of 3.5% [4]

Core Insights - Pfizer (PFE) and AstraZeneca (AZN) are leading players in the oncology sector, with significant revenue contributions from this area [1][2] - Pfizer's oncology sales account for over 25% of total revenues, growing by 9% in H1 2025, while AstraZeneca's oncology sales represent around 43% of total revenues, increasing by 16% in the same period [1][2][11] - Both companies have robust R&D pipelines that are expected to drive future growth [3] Pfizer Overview - Pfizer's acquisition of Seagen in 2023 has bolstered its oncology position [4] - Non-COVID operational revenues are improving, with key products generating $4.7 billion in H1 2025, a 15% operational increase year-over-year [5] - Pfizer anticipates $7.7 billion in cost savings by the end of 2027 and projects a revenue CAGR of approximately 6% from 2025 to 2030 [6] - Challenges include potential declines in COVID-related sales and significant patent expirations expected between 2026 and 2030, impacting key products [7][8] AstraZeneca Overview - AstraZeneca's portfolio includes several blockbuster drugs, with sales exceeding $1 billion, contributing to strong revenue growth [9] - The company plans to launch 20 new medicines by 2030, targeting $80 billion in total revenues [12] - AstraZeneca's newer drugs are contributing positively to top-line growth in 2025 [10] - Challenges include the impact of Medicare Part D redesign on key drug sales and competition from generics and biosimilars [13][14] Financial Estimates and Performance - Pfizer's 2025 sales and EPS estimates indicate modest growth of 0.3% and 1.0%, respectively, with EPS estimates rising from $3.05 to $3.14 [15] - AstraZeneca's 2025 sales and EPS estimates suggest stronger growth of 8.4% and 11.4%, with EPS estimates increasing from $4.50 to $4.58 [16] - Year-to-date stock performance shows Pfizer declining by 9.0%, while AstraZeneca has increased by 17.6% [18] Valuation and Dividend Yield - AstraZeneca's shares trade at a forward P/E ratio of 15.44, while Pfizer's are at 7.79, indicating a more attractive valuation for Pfizer [19] - Pfizer offers a higher dividend yield of 7.1% compared to AstraZeneca's 2.4% [22] - AstraZeneca has a higher return on equity at 32.8% versus Pfizer's 21.4% [22] Investment Outlook - Both companies are rated with a Zacks Rank 3 (Hold), making it challenging to determine a clear investment preference [23] - AstraZeneca is viewed as a safer investment due to its efficient profitability and clearer growth targets, despite Pfizer's attractive valuation and dividend yield [25]

Core Insights - Johnson & Johnson (JNJ) received FDA approval for TAR-200, a treatment for high-risk non-muscle invasive bladder cancer, to be marketed as Inlexzoh, which allows for extended local delivery of medication into the bladder [1][2] - The approval is based on data from the phase IIb SunRISe-1 study and targets patients with Bacillus Calmette-Guérin (BCG)-unresponsive NMIBC [1] - J&J's pipeline includes several promising candidates and recently approved drugs, positioning the company for growth through the latter half of the decade [3][8] Product Pipeline and Approvals - Nipocalimab, approved as Imaavy, is being evaluated for various immune-mediated conditions and is considered to have pipeline-in-a-product potential [4] - A new drug application for icotrokinra, targeting moderate-to-severe plaque psoriasis, was filed in July, with potential to set a new standard of care [5] - J&J's new cancer drugs, including Carvykti, Tecvayli, and Talvey, generated $1.3 billion in sales in the first half of 2025 [6] Market Position and Competition - J&J's oncology sales account for approximately 40% of its pharmaceutical revenues, reflecting a 21.1% increase in the first half of 2025 [9][10] - Competitors in the oncology space include AstraZeneca, Merck, Pfizer, and Bristol-Myers, with AstraZeneca's oncology sales comprising around 43% of total revenues [9][10][12] Financial Performance - J&J's shares have outperformed the industry, rising 25.3% year-to-date compared to a 1.1% increase for the industry [13] - The company's price/earnings ratio stands at 15.79, higher than the industry average of 14.71, indicating a relatively expensive valuation [14] - The Zacks Consensus Estimate for 2025 earnings has increased from $10.64 to $10.86 per share over the past 60 days [18]

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 - AstraZeneca (AZN) is a leading player in the oncology sector, with oncology sales accounting for approximately 43% of its total revenues, which increased by 18% in Q2 2025, reaching $6.3 billion [1][9] - The oncology segment generated nearly $12 billion in the first half of 2025, reflecting a year-over-year growth of 16% [1] - Key drivers of this growth include drugs such as Tagrisso, Lynparza, Imfinzi, Calquence, and Enhertu, along with the newly launched Truqap [1][3] Oncology Product Portfolio - AstraZeneca is enhancing its oncology product portfolio through label expansions and advancing pipeline candidates [2] - Truqap, a new drug for HR-positive, HER2-negative breast cancer, achieved sales of $302 million in the first half of 2025, with expectations for further growth [3] - Datroway, another drug developed in partnership with Daiichi, received FDA approval for HR+ HER2- breast cancer and EGFR-mutated non-small cell lung cancer, generating early sales of $14 million [3][4] Pipeline and Future Growth - Important late-stage oncology candidates in AstraZeneca's pipeline include camizestrant, volrustomig, sonesitatug vedotin, and surovatamig, with regulatory applications for Imfinzi under review [4] - The company anticipates continued growth in its oncology medicines in the second half of the year, particularly for Tagrisso, Enhertu, Lynparza, and Imfinzi, projecting a compound annual growth rate (CAGR) of approximately 11.1% over the next three years [5] Competitive Landscape - Major competitors in the oncology space include Pfizer, Merck, and Bristol-Myers [6] - Pfizer's oncology revenues grew by 9% in the first half of 2025, bolstered by its acquisition of Seagen and a strong pipeline [7] - Merck's Keytruda, which accounts for about 50% of its pharmaceutical sales, saw a 6.6% increase in sales to $15.1 billion in the first half of 2025 [8]

Core Insights - Merck (MRK) reported Q2 2025 adjusted EPS of $2.13, exceeding estimates, but a 7% decline year-over-year on a reported basis due to a $200 million upfront payment for a license agreement with Hengrui Pharma [2][9][17] - Revenues decreased 2% year-over-year to $15.81 billion, aligning with consensus estimates [3][9] Sales Performance of Oncology Drugs - Keytruda sales reached $7.96 billion, a 9% increase, driven by strong uptake in various cancer indications, surpassing estimates [4][9] - Alliance revenues from Lynparza and Lenvima contributed positively, with Lynparza sales up 15% to $370 million and Lenvima revenues totaling $265 million, up 5% [5] Sales Performance of Other Key Products - HPV vaccine sales (Gardasil and Gardasil 9) fell 55% to $1.13 billion due to reduced demand in China, missing estimates [7] - Sales of other vaccines showed mixed results, with Vaxneuvance increasing 20% to $229 million, while Rotateq and Pneumovax 23 saw significant declines [8][10] Animal Health Segment - The Animal Health segment generated $1.65 billion in revenues, an 11% increase year-over-year, driven by higher demand and the inclusion of Elanco aqua business sales [12] Cost and Margin Discussion - Adjusted gross margin improved to 82.2%, up 130 basis points year-over-year, attributed to a favorable product mix [13] - Adjusted R&D spending rose 15% to $3.99 billion, influenced by the upfront payment to Hengrui Pharma and increased compensation costs [14] 2025 Guidance - Merck narrowed its 2025 revenue guidance to $64.3-$65.3 billion, reflecting a less negative currency impact [15] - Adjusted EPS guidance is now between $8.87 and $8.97, accounting for a revised negative impact from foreign exchange [16] Acquisition Plans - Merck announced plans to acquire Verona Pharma for approximately $10 billion, expected to close in Q4 2025, which will enhance its portfolio in chronic obstructive pulmonary disease [19]

Core Insights - AstraZeneca reported revenue of $14.46 billion for the quarter ended June 2025, reflecting an 11.7% increase year-over-year and a surprise of +3.04% over the Zacks Consensus Estimate of $14.03 billion [1] - The company's EPS for the quarter was $1.09, unchanged from the consensus estimate, compared to $0.99 in the same quarter last year [1] Financial Performance Metrics - AstraZeneca's stock has returned +2.8% over the past month, while the Zacks S&P 500 composite increased by +3.6% [3] - The company holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3] Segment Performance - BioPharmaceuticals - CVRM - Farxiga: $106 million, +2.9% year-over-year, slightly below the average estimate of $106.86 million [4] - BioPharmaceuticals - V&I - Europe: $24 million, +242.9% year-over-year, significantly above the average estimate of $15.81 million [4] - BioPharmaceuticals - CVRM - Lokelma: $37 million, +32.1% year-over-year, above the average estimate of $34.81 million [4] - BioPharmaceuticals - CVRM - Crestor: $32 million, -11.1% year-over-year, below the average estimate of $35.95 million [4] - Oncology - Tagrisso: $209 million, +9.4% year-over-year, slightly below the average estimate of $215.72 million [4] - Oncology - Imfinzi: $174 million, -4.9% year-over-year, below the average estimate of $191.28 million [4] - Oncology - Lynparza: $69 million, +4.6% year-over-year, below the average estimate of $74.14 million [4] - Oncology - Calquence: $42 million, +27.3% year-over-year, above the average estimate of $36.78 million [4] - Overall Oncology: $591 million, +5.4% year-over-year, below the average estimate of $607.27 million [4] - BioPharmaceuticals - R&I - Symbicort: $91 million, +9.6% year-over-year, above the average estimate of $86.31 million [4] - BioPharmaceuticals - R&I - Fasenra: $44 million, +18.9% year-over-year, above the average estimate of $42.25 million [4] - BioPharmaceuticals - R&I - Breztri: $25 million, +31.6% year-over-year, slightly above the average estimate of $24.8 million [4]

Core Insights - Merck reported $15.81 billion in revenue for Q2 2025, reflecting a year-over-year decline of 1.9% and an EPS of $2.13, down from $2.28 a year ago, with a slight revenue surprise of -0.02% against estimates [1] - The consensus EPS estimate was $2.01, resulting in an EPS surprise of +5.97% [1] Financial Performance Metrics - Merck's stock has returned +6.2% over the past month, outperforming the Zacks S&P 500 composite's +3.6% [3] - The company holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Sales Performance by Product - Keytruda (Oncology) U.S. sales reached $4.75 billion, exceeding the average estimate of $4.67 billion, with a year-over-year increase of +7.6% [4] - Keytruda (Oncology) International sales were $3.21 billion, surpassing the $3.16 billion estimate, marking a +12.2% year-over-year change [4] - Janumet (Diabetes) U.S. sales were $68 million, significantly above the $45.63 million estimate, reflecting a +300% year-over-year increase [4] - Lynparza (Oncology) U.S. alliance revenue was $174 million, exceeding the $140.82 million estimate, with a +13.7% year-over-year change [4] - Lynparza (Oncology) international alliance revenue reached $370 million, surpassing the $321.44 million estimate, representing a +16.7% year-over-year increase [4] - Winrevair (Cardiovascular) sales were $336 million, slightly below the $343.79 million estimate [4] - Lenvima (Oncology) alliance revenue was $265 million, exceeding the $244.01 million estimate, with a +6.4% year-over-year change [4] - Keytruda (Oncology) total sales were $7.96 billion, slightly above the $7.9 billion estimate, reflecting a +9.4% year-over-year change [4] - Animal health sales reached $1.65 billion, exceeding the $1.55 billion estimate, with an +11.1% year-over-year increase [4] - Gardasil (Vaccines) sales were $1.13 billion, below the $1.3 billion estimate, showing a -54.6% year-over-year decline [4] - Welireg (Oncology) sales were $162 million, exceeding the $154.16 million estimate [4] - Lagevrio (Virology) sales were $83 million, surpassing the $55.63 million estimate, but reflecting a -24.6% year-over-year decline [4]