Key Takeaways Pfizer's COVID sales fell sharply, while non-COVID revenues rose 6% operationally in 2025.PFE's new and acquired drugs generated $10.2B in 2025, up about 14% year over year.Pfizer faces a 2026-2030 LOE cliff as Eliquis and other key drugs near patent expiry.Sales of Pfizer’s (PFE) COVID products, Comirnaty and Paxlovid, declined from their peak with the end of the pandemic. Their sales came down to around $11 billion in 2024 and $6.7 billion in 2025 from $56.7 billion in 2022. In addition to l ...

Key Takeaways J&J's Innovative Medicine sales rose 4.1% organically to $60.4B in 2025 despite Stelara's LOE.JNJ saw growth led by Darzalex, Tremfya and Erleada, with new drugs contributing.J&J Stelara's LOE cut segment growth by 1,110 bps, with biosimilars launching in 2025.Johnson & Johnson (JNJ) has one of the most diverse revenue streams in the industry within its pharmaceuticals division, called Innovative Medicine. The company has several multi-million-dollar drugs covering a broad range of areas such ...

Core Insights - Johnson & Johnson (JNJ) reported better-than-expected fourth-quarter 2025 results, continuing its streak of earnings beats and surpassing sales estimates [1][12] Financial Performance - JNJ's fourth-quarter earnings per share (EPS) reached $2.46, exceeding the Zacks Consensus Estimate by 1.2% and improving 20.6% year-over-year [5] - Sales grew 9.1% year-over-year to $24.56 billion, also surpassing the Zacks Consensus Estimate by 1.8% [5] - Sales from Innovative Medicines increased by 10% year-over-year, while MedTech sales rose by 7.1% [5] Segment Highlights - Sales of Darzalex, a multiple myeloma medicine, surged 26.6% year-over-year to $3.90 billion [6] - Other oncology drugs, Erleada, Carvykti, and Talvey, saw significant sales growth of 22.4%, 65.8%, and 75.8% respectively [6] - In MedTech, single-digit growth in electrophysiology products and double-digit growth in Cardiovascular businesses contributed to overall performance [7] Future Outlook - JNJ's management anticipates solid sales growth in 2026 driven by investments in R&D and M&A, including new drug launches and state-of-the-art manufacturing facilities [8][9] - The company expects free cash flow generation to increase to approximately $21 billion in 2026 from $19.7 billion in the previous year [10] Market Reaction - Following the Q4 earnings report, JNJ's stock experienced a brief dip of 3% in pre-market trading but recovered to gain 0.2% the following day [2] - Morgan Stanley raised its price target for JNJ to $200, citing potential drug launches and late-stage data releases as key performance drivers [13] Investment Opportunities - Healthcare exchange-traded funds (ETFs) provide a lower-risk entry point for investors looking to gain exposure to JNJ [3] - Notable ETFs include: - iShares U.S. Pharmaceuticals ETF (IHE) with a 22.56% share of JNJ, which has rallied 32.2% over the past year [14] - State Street Health Care Select Sector SPDR ETF (XLV) with a 9.16% share of JNJ, which has risen 11.8% over the past year [15][16] - Vanguard Health Care ETF (VHT) with a 4.49% share of JNJ, which has increased by 12.8% over the past year [17][18]

Core Insights - Johnson & Johnson reported a strong operational sales growth of 5.3% for full-year 2025, reaching $94.2 billion, with U.S. growth at 6.9% and international growth at 3.4% despite challenges from Stelara [1] - The company emphasized a strategic pivot towards higher-growth markets, including plans to separate its Orthopaedics business by mid-2027, and highlighted significant investments in R&D and M&A totaling over $32 billion in 2025 [4] - CEO Joaquin Duato described 2025 as a "catapult year" for accelerated growth, supported by a robust portfolio and pipeline, with expectations for continued growth and improving margins in 2026 [5] Financial Performance - For Q4 2025, net earnings were $5.1 billion, with diluted EPS of $2.10, up from $1.41 a year earlier; adjusted net earnings were $6.0 billion, with adjusted diluted EPS of $2.46, reflecting increases of 21.5% and 20.6% respectively compared to Q4 2024 [2] - Full-year net earnings reached $26.8 billion, with diluted EPS at $11.03, including a $7 billion talc reserve reversal; adjusted net earnings were $26.2 billion, with adjusted diluted EPS of $10.79, both up 8.1% from 2024 [6] Business Segments - In Innovative Medicine, Q4 worldwide sales were $15.8 billion, up 7.9% operationally, with both U.S. and international growth at 7.9%; acquisitions contributed 170 basis points, primarily from Intra-Cellular [7] - Oncology products showed strong performance, with Darzalex sales growing 24.1% in Q4 and over $14 billion in full-year sales; Carvykti generated $555 million in Q4 sales, up 63.2% [7] - MedTech sales in Q4 were $8.8 billion, up 5.8% operationally, driven by cardiovascular growth, including Abiomed and Shockwave [8] Margins and Guidance - Adjusted income before tax as a percentage of sales rose to 28.7% in Q4 from 24.1% a year earlier, with Innovative Medicine margin improving to 36.3% and MedTech margin to 17.4% [10] - For 2026, the company expects operational sales growth of 5.7% to 6.7%, with a midpoint of $100 billion; adjusted EPS guidance is set at $11.28 to $11.48, implying 5.5% growth at the midpoint [13][14] Pipeline and Future Outlook - Management highlighted anticipated regulatory events for 2026, including expected approvals for Icotide in psoriasis and Tecvayli in multiple myeloma [15] - The company is also focusing on its multiple myeloma portfolio, with positive early feedback on Inlexo for bladder cancer and plans for a permanent J-code [16]

Financial Data and Key Metrics Changes - In Q4 2025, worldwide sales reached $24.6 billion, a 7.1% increase despite a 650 basis point headwind from Stelara [17] - For the full year 2025, worldwide sales were $94.2 billion, reflecting a 5.3% increase, with U.S. growth at 6.9% and international growth at 3.4% [18] - Net earnings for Q4 were $5.1 billion, with diluted earnings per share at $2.10, compared to $1.41 a year ago [18] - Full year 2025 net earnings were $26.8 billion, with diluted earnings per share at $11.03, significantly up from $5.79 the previous year [19] Business Line Data and Key Metrics Changes - Innovative Medicine reported Q4 sales of $15.8 billion, a 7.9% increase, with notable growth in oncology and immunology [20] - In oncology, Darzalex grew 24.1%, while Carvykti achieved sales of $555 million with a growth of 63.2% [20] - Immunology saw Tremfya grow 65.4%, while Stelara declined 48.6% due to biosimilar competition [21] - MedTech sales for the year were $34 billion, with operational growth of 5.4%, driven by cardiovascular and surgical segments [13] Market Data and Key Metrics Changes - U.S. sales growth was 7.5% in Q4, while international sales grew by 6.6% [17] - The cardiovascular segment delivered 15% operational sales growth, with Abiomed and Shockwave showing strong performance [13] - Surgical vision grew 10.8%, driven by new product innovations and demand for premium intraocular lenses [24] Company Strategy and Development Direction - The company plans to separate its orthopedics business by mid-2027, focusing on high-growth areas [30] - Investments of over $32 billion in R&D and M&A were made in 2025, including acquisitions of Intra-Cellular Therapies and HALDA Therapeutics [6] - The company aims for double-digit growth by the end of the decade, supported by a strong portfolio and pipeline [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving faster growth in 2026 compared to 2025, with a line of sight to double-digit growth [6] - The company anticipates operational sales growth in 2026 to be between 5.7% and 6.7%, with a midpoint of $100 billion [31] - Management highlighted the strength of their portfolio and pipeline as key drivers for future growth [41] Other Important Information - The company ended 2025 with approximately $20 billion in cash and marketable securities, and $48 billion in debt [30] - A net interest expense of $300 million to $400 million is expected for 2026 [33] - The effective tax rate is projected to be between 17.5% and 18.5% for 2026 [34] Q&A Session Summary Question: Overview of growth prospects and key levers for double-digit growth - Management highlighted the strength of the portfolio and pipeline, focusing on oncology, immunology, and MedTech as key growth areas [40][41] Question: MedTech market dynamics and growth expectations - Management does not expect the loss of ACA subsidies to materially impact MedTech performance, with a focus on clinical capacity driving growth [48] Question: Margin progression and relationship to top-line growth - Management indicated that margin improvements will align with sales growth, with expectations for at least 50 basis points of improvement in 2026 [55] Question: Vision care market health and performance - Management noted strong underlying demand in the contact lens category, with robust growth driven by new product launches [58][59]

Summary of Legend Biotech Conference Call Company Overview - **Company**: Legend Biotech - **Industry**: Biotechnology, specifically focused on cell therapy - **Key Product**: Carvykti, a CAR-T therapy for multiple myeloma - **Market Position**: World's largest standalone cell therapy company, leading in CAR-T therapy for multiple myeloma [2][3] Core Points and Arguments Financial Performance - Carvykti generated approximately **$1.7 billion** in net trade sales over the last 12 months [3] - The company has a cash position of nearly **$1 billion** and has achieved positive operating profit for Carvykti in Q3 [4] - Legend anticipates achieving company-wide profitability in 2026, with Carvykti expected to generate over **$5 billion** in annual peak sales [5][8] Product Efficacy and Market Penetration - Carvykti has treated over **10,000 patients**, demonstrating a **97% manufacturing success rate** [6][8] - The therapy has shown a **median progression-free survival (PFS)** of nearly **35 months** in heavily pretreated patients [10] - In the CARTITUDE-4 trial, the median PFS has not yet been reached after nearly three years of follow-up [10][44] - Carvykti is the only CAR-T therapy to achieve a **five-year remission survival** in one-third of patients after a single infusion [9] Market Expansion and Strategy - The company is expanding its global presence, with **279 treatment sites** in **14 countries** [6] - A partnership with Johnson & Johnson (J&J) is aimed at maximizing Carvykti's potential, with a **50/50 cost-sharing and profit split** in the U.S. [8] - The company is focusing on community settings, where **70%** of relapsed and refractory multiple myeloma patients are treated [15] Clinical Trials and Future Directions - Ongoing trials (CARTITUDE-5 and CARTITUDE-6) are evaluating Carvykti in newly diagnosed patients, with the goal of addressing an additional **50,000 patients** annually [14] - The company is also exploring allogeneic therapies and in vivo CAR-T programs, with a focus on capital efficiency and rapid clinical proof of concept [21][23] Competitive Landscape - Despite competition in the multiple myeloma market, Legend emphasizes Carvykti's superior survival outcomes and unique one-time treatment benefits [30][37] - The current market penetration for BCMA-targeted therapies is low, with less than **10%** in fifth-line treatments and less than **5%** in second to fourth-line treatments, indicating significant growth potential [13][35] Additional Important Insights - The National Comprehensive Cancer Network (NCCN) has updated guidelines recommending Talvey as a bridging therapy to BCMA CAR-T therapy, which is expected to be adopted quickly [19] - The company has improved its manufacturing turnaround time to below **30 days**, supporting increased supply capacity [31] - The collaboration with J&J includes a **30/70** cost-sharing arrangement for the China market, where Legend leads [32] Conclusion Legend Biotech is positioned as a leader in the CAR-T therapy market for multiple myeloma, with strong financial performance, promising clinical outcomes, and a strategic focus on expanding its market presence and pipeline development. The company aims to leverage its successful R&D model to explore new therapeutic areas while maintaining profitability and enhancing patient outcomes.

Core Insights - Amgen has acquired Dark Blue Therapeutics for approximately $840 million, enhancing its oncology pipeline [1][8] - The acquisition adds a preclinical small-molecule degrader targeting MLLT1/3 proteins associated with specific types of acute myeloid leukemia (AML) [2][8] - Amgen currently does not market any therapies for AML but has Blincyto approved for acute lymphoblastic leukemia (ALL) and is developing bispecific T-cell engagers for AML [3][8] Amgen's Oncology Pipeline - Amgen has a diverse oncology portfolio, including drugs like Blincyto, Imdelltra, Lumakras, Vectibix, Kyprolis, Nplate, and Xgeva [6] - Key candidates in its late-stage oncology pipeline include bemarituzumab for gastric cancer and xaluritamig for metastatic castrate-resistant prostate cancer [6] - Ongoing phase III studies are evaluating Imdelltra in small cell lung cancer and biosimilars for Opdivo, Keytruda, and Ocrevus [6] Competitive Landscape - Major competitors in the oncology space include Pfizer, AstraZeneca, Merck, Johnson & Johnson, and Bristol-Myers [9] - Pfizer's oncology sales account for about 28% of total revenues, with a 7% increase in the first nine months of 2025 [10] - AstraZeneca's oncology segment comprises around 43% of total revenues, with a 16% increase in sales during the same period [11] - Merck's Keytruda, a key oncology drug, generated $23.3 billion in sales in the first nine months of 2025, up 8% year over year [12] - Bristol-Myers' Opdivo accounts for approximately 20% of its total revenues, with sales rising 8% to $7.54 billion [13] - Johnson & Johnson's oncology sales represent around 27% of total revenues, with a 20.6% operational increase in the first nine months of 2025 [14]

Core Insights - Johnson & Johnson (JNJ) and AstraZeneca (AZN) are among the largest pharmaceutical companies globally, with diverse healthcare portfolios and strong oncology segments [1][2] - JNJ's diversified business model includes pharmaceuticals and medical devices, while AZN focuses heavily on oncology sales, which account for approximately 43% of its total revenues [2][12] - Both companies face challenges such as patent expirations and the redesign of Medicare Part D, impacting their growth prospects [2][10] Johnson & Johnson (JNJ) - JNJ's strength lies in its diversified business model, operating through over 275 subsidiaries, which reduces reliance on any single drug [3] - The Innovative Medicine unit reported a 3.4% organic sales growth in the first nine months of 2025, driven by key drugs like Darzalex and new launches [4] - JNJ's MedTech business has shown improvement, particularly from acquired cardiovascular businesses and advancements in electrophysiology [5] - The potential separation of its Orthopaedics franchise into a standalone company, DePuy Synthes, is expected to enhance growth and margins in the MedTech unit [6] - JNJ anticipates accelerated growth in both Innovative Medicine and MedTech segments in 2026 [8] - The company has made significant advancements in its pipeline, gaining approvals for new products that could drive future growth [9] - JNJ's diversified model supports steady growth, with 2025 gains attributed to Innovative Medicine and improving MedTech performance [10] - JNJ estimates that 10 new products could achieve peak sales of $5 billion, despite facing challenges like the Stelara patent cliff and ongoing talc lawsuits [11] AstraZeneca (AZN) - AZN has several blockbuster drugs exceeding $1 billion in sales, contributing to its revenue growth, with new products offsetting losses from mature brands [12][13] - The company aims for industry-leading top-line growth, projecting total revenues of $80 billion by 2030, with plans to launch 20 new medicines [14] - AZN faces challenges from the redesign of Medicare Part D affecting U.S. oncology sales and competition from generics and biosimilars [15] - The company expects fourth-quarter revenues to be impacted by VBP-related costs and budget constraints in China [16] Financial Estimates and Performance - The Zacks Consensus Estimate for JNJ's 2026 sales and EPS indicates year-over-year increases of 4.97% and 5.74%, respectively [17] - In contrast, AZN's 2026 sales and EPS estimates imply increases of 6.02% and 12.23% [19] - JNJ's stock has risen 39.8% over the past year, while AZN's stock has increased by 36.9%, outperforming the industry average of 18.8% [21] - JNJ's current price/earnings ratio is 17.76, slightly higher than AZN's 17.65, with both companies trading above industry averages [23] - JNJ offers a dividend yield of 2.6%, compared to AZN's 1.1% [25] Investment Considerations - Both JNJ and AZN have shown strong performance in 2025 and are optimistic about growth in 2026, with both stocks rated as Zacks Rank 3 (Hold) [26] - JNJ's consistent revenue and EPS growth, along with strong cash flows and a history of dividend increases, positions it favorably despite facing headwinds [27][28]

Core Insights - Johnson & Johnson (J&J) has a strong R&D pipeline focused on immunology, oncology, and neuroscience, with significant advancements in 2025 [1][2][8] Pipeline and Product Approvals - J&J has achieved major clinical and regulatory milestones, including approvals for Inlexzoh/TAR-200 for high-risk non-muscle invasive bladder cancer and Imaavy (nipocalimab) for generalized myasthenia gravis [2][11] - Nipocalimab is being evaluated for various immune-mediated conditions and is considered to have pipeline-in-a-product potential [3] - Regulatory applications for icotrokinra, an oral treatment for moderate-to-severe plaque psoriasis, have been filed in the US and EU [4] - J&J's new cancer drugs, including Carvykti, Tecvayli, and Talvey, generated $2.14 billion in sales in the first nine months of 2025 [5][11] Strategic Acquisitions and Expansions - The acquisition of Intra-Cellular Therapies added Caplyta, an antidepressant, to J&J's neuroscience portfolio [6] - J&J aims to expand the indications of currently marketed products, with recent approvals for Tremfya, Rybrevant, and Caplyta [7] Long-term Growth Potential - J&J's pipeline execution and recent product approvals position the company for sustained growth beyond short-term pressures, with multiple late-stage assets and significant sales potential across its Innovative Medicine portfolio [8] Competitive Landscape - J&J faces competition in the oncology space from major players like Pfizer, AstraZeneca, Merck, and Bristol-Myers, each with strong oncology portfolios and growth in sales [9][10][12][13][14] Financial Performance and Valuation - J&J's shares have outperformed the industry, rising 42.8% over the past year compared to a 17.5% increase for the industry [15] - The company's shares trade at a price/earnings ratio of 18.09, slightly above the industry average of 17.59 and its five-year mean of 15.65 [18] - The Zacks Consensus Estimate for 2025 earnings has increased from $10.86 to $10.87 per share, indicating positive earnings revisions [20]

Core Insights - Pfizer anticipates a significant revenue decline due to the loss of exclusivity for key products between 2026 and 2030, including Eliquis, Vyndaqel, Ibrance, Xeljanz, and Xtandi, all facing patent expirations [1][9] - The company has bolstered its R&D pipeline through mergers and acquisitions, successful data readouts, and pivotal program initiations, positioning itself for sustainable growth post-LOE [1][7] Oncology Pipeline - Pfizer has advanced its oncology pipeline with several candidates in late-stage development, including vepdegestrant for ER+/HER2- metastatic breast cancer, atirmociclib for HR+/HER2- metastatic breast cancer, and sigvotatug vedotin for metastatic non-small cell lung cancer [2] - By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio [4] Non-Oncology Developments - In non-oncology areas, Pfizer is developing an mRNA flu/COVID combination vaccine and osivelotor for sickle cell disease, both in late-stage development [4] - The company is also expanding the labels of approved products like Padcev, which was recently approved by the FDA in combination with Merck's Keytruda for specific bladder cancer patients [5] Obesity Market Expansion - Pfizer is strengthening its presence in the obesity market, currently dominated by Eli Lilly and Novo Nordisk, through the $10 billion acquisition of Metsera and the in-licensing of YP05002, an oral GLP-1 receptor agonist [6] - The Metsera acquisition added four novel clinical-stage programs for obesity, expected to generate billions in peak sales [6] Competitive Landscape - Pfizer faces revenue headwinds from patent expirations but is positioned for long-term growth through its expanding late-stage pipeline in oncology and investments in obesity, vaccines, and rare diseases [7] - The oncology market is competitive, with major players like AstraZeneca, Merck, Johnson & Johnson, and Bristol-Myers also focusing on oncology sales [10][11][12][13] Financial Performance - Pfizer's stock has declined 7% over the past year, while the industry has seen a 16% increase [14] - The company's shares are trading at a forward price/earnings ratio of 8.18, below the industry average of 17.40 and its own 5-year mean of 10.39, indicating attractive valuation [16] - The Zacks Consensus Estimate for 2025 earnings has increased slightly to $3.10 per share, while the estimate for 2026 has decreased to $3.04 per share [18]