1 hr. ago
Pfizer (NYSE: PFE) is offering a dividend yield of roughly 6% today. That is well above the roughly 1% yield on offer from the S&P 500 index (SNPINDEX: ^GSPC) and the 1.4% average yield of pharmaceutical stocks. There are good reasons for the negative view of Pfizer, but investors may be ignoring the company's over 100-year history of success. Here's why you may want to consider buying this out-of-favor dividend stock while others are fearful.
Pfizer's stock rocketed higher during the coronavirus pandemic, as investors myopically focused on the company's COVID vaccine. When COVID turned out to be a less serious long-term threat than originally believed, Wall Street dumped Pfizer. At this point, the stock is down more than 50% from its 2021 high. That is a big part of the story behind the high yield.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, there's another piece that is more fundamental to the pharmaceutical industry. Like all drug makers, Pfizer's drugs receive time-limited patent protections. When patents expire, generic versions of the medications can be produced. That generally leads to a dramatic decline in revenue from Pfizer's drugs. Right now, Pfizer is facing down some notable patent expirations. This is a completely normal dynamic in the pharmaceutical sector.
Patent expirations are why drug companies are always on the lookout for new drugs. The problem is that patent expirations follow a set schedule, but drug development does not. Pfizer's drug pipeline isn't producing major new drugs right now, and it looks like it may have to work through a period in which new drugs won't fully offset revenue lost to patent expirations. This isn't uncommon, either, but investors are likely focusing on the short term rather than the long term when it comes to Pfizer.
#patent #yield #drug #expirations
Pfizer's stock rocketed higher during the coronavirus pandemic, as investors myopically focused on the company's COVID vaccine. When COVID turned out to be a less serious long-term threat than originally believed, Wall Street dumped Pfizer. At this point, the stock is down more than 50% from its 2021 high. That is a big part of the story behind the high yield.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, there's another piece that is more fundamental to the pharmaceutical industry. Like all drug makers, Pfizer's drugs receive time-limited patent protections. When patents expire, generic versions of the medications can be produced. That generally leads to a dramatic decline in revenue from Pfizer's drugs. Right now, Pfizer is facing down some notable patent expirations. This is a completely normal dynamic in the pharmaceutical sector.
Patent expirations are why drug companies are always on the lookout for new drugs. The problem is that patent expirations follow a set schedule, but drug development does not. Pfizer's drug pipeline isn't producing major new drugs right now, and it looks like it may have to work through a period in which new drugs won't fully offset revenue lost to patent expirations. This isn't uncommon, either, but investors are likely focusing on the short term rather than the long term when it comes to Pfizer.
#patent #yield #drug #expirations
18 days ago
Morgan Stanley has cut Novo Nordisk A/S (NYSE:NVO) to Underweight on September 11, 2026. Semaglutide, the underlying molecule for Wegovy and Ozempic, generates roughly 75% of 2026 revenue. Morgan Stanley models that it will still represent 59% of total sales when its patent protection expires in 2031. And according to the firm, the valuation does not price in the impact it has on Novo's terminal value. The stock, currently trading at 10.6x earnings and down 33% from its 52-week high, slipped another 2% following the call. At this point, the question isn't about whether the patent cliff is real or not, but whether the 10x multiple reflects an actual bargain.
Semaglutide loses exclusivity in Europe in 2031 and the US in 2032. And Morgan Stanley believes Novo's oral-obesity business, projected to reach $10 billion by 2031, could not offset the pricing collapse after the arrival of generics. Growth decelerates to a 4% compound rate between 2027 and 2030. If the deceleration continues, it will justify 10x earnings as a fair price instead of a cheap one.
The 10.6x multiple already prices aggressive pessimism into a market leader of one of the fastest-growing drug classes in history. Morgan Stanley fueled the pessimism by discounting a 2031 cliff five years earlier. However, pharmaceutical patent expirations frequently face extensions and prove difficult to time. Second, the ***** umption that oral obesity treatments cannot offset patent losses relies on oral semaglutide being the bridge. But Novo's next-generation portfolio, including CagriSema and amycretin, offers a significant defense against the patent cliff. This remains unproven, however, specifically after CagriSema's earlier weight-loss data failed to impress, yet Morgan Stanley's terminal-value model discounts this pipeline almost entirely. The company is also expanding its franchise. On September 7, the STEP Young trial hit its endpoint in children aged six to twelve, strengthening the base its successors inherit.
The smart money is leaning in. As per the Insider Monkey database, 59 hedge funds held NVO in the second quarter of 2026, up from 55 in the first, indicating a slight increase in the modest institutional interest in the stock. Short interest on the ADR is negligible at about 0.7%. The positioning reflects a beaten-down value stock quietly seeing institutional accumulation while Wall Street turns increasingly bearish.
#semaglutide #oral
Semaglutide loses exclusivity in Europe in 2031 and the US in 2032. And Morgan Stanley believes Novo's oral-obesity business, projected to reach $10 billion by 2031, could not offset the pricing collapse after the arrival of generics. Growth decelerates to a 4% compound rate between 2027 and 2030. If the deceleration continues, it will justify 10x earnings as a fair price instead of a cheap one.
The 10.6x multiple already prices aggressive pessimism into a market leader of one of the fastest-growing drug classes in history. Morgan Stanley fueled the pessimism by discounting a 2031 cliff five years earlier. However, pharmaceutical patent expirations frequently face extensions and prove difficult to time. Second, the ***** umption that oral obesity treatments cannot offset patent losses relies on oral semaglutide being the bridge. But Novo's next-generation portfolio, including CagriSema and amycretin, offers a significant defense against the patent cliff. This remains unproven, however, specifically after CagriSema's earlier weight-loss data failed to impress, yet Morgan Stanley's terminal-value model discounts this pipeline almost entirely. The company is also expanding its franchise. On September 7, the STEP Young trial hit its endpoint in children aged six to twelve, strengthening the base its successors inherit.
The smart money is leaning in. As per the Insider Monkey database, 59 hedge funds held NVO in the second quarter of 2026, up from 55 in the first, indicating a slight increase in the modest institutional interest in the stock. Short interest on the ADR is negligible at about 0.7%. The positioning reflects a beaten-down value stock quietly seeing institutional accumulation while Wall Street turns increasingly bearish.
#semaglutide #oral
19 days ago
Amgen (AMGN) yields 2.6% with a $10.08 annualized payout, topping Merck (MRK) at 2.29%, and has raised its dividend 6% annually versus Merck's smaller step-ups.
Amgen's 17 billion-dollar products and $3.5B quarterly free cash flow dwarf Merck's reliance on a single Keytruda franchise facing peak penetration.
Merck absorbed a $5.7B acquisition charge that pushed Q2 earnings to a loss, while Amgen raised 2026 EPS guidance to as high as $23.50.
Just released. Our ***** ysts combed the entire stock market and named the ten best stocks to buy right now, and Merck didn't make the cut. Enter your email to see the names that beat MRK. The report is free. Enter your email and see if any of your stocks made the cut.
For a retirement portfolio that leans on pharma dividends, the choice between Amgen (NASDAQ:AMGN) and Merck (NYSE:MRK) comes down to one question: which check is more likely to keep getting bigger through the next wave of patent expirations? Both companies deliver quarterly income today. Only one has the coverage, the growth cadence, and the portfolio breadth to keep raising through the cliff.
#merck #amgen
Amgen's 17 billion-dollar products and $3.5B quarterly free cash flow dwarf Merck's reliance on a single Keytruda franchise facing peak penetration.
Merck absorbed a $5.7B acquisition charge that pushed Q2 earnings to a loss, while Amgen raised 2026 EPS guidance to as high as $23.50.
Just released. Our ***** ysts combed the entire stock market and named the ten best stocks to buy right now, and Merck didn't make the cut. Enter your email to see the names that beat MRK. The report is free. Enter your email and see if any of your stocks made the cut.
For a retirement portfolio that leans on pharma dividends, the choice between Amgen (NASDAQ:AMGN) and Merck (NYSE:MRK) comes down to one question: which check is more likely to keep getting bigger through the next wave of patent expirations? Both companies deliver quarterly income today. Only one has the coverage, the growth cadence, and the portfolio breadth to keep raising through the cliff.
#merck #amgen
1 month ago
On August 3, Alexandria Real Estate Equities (NYSE:ARE) reported a Q2 2026 net loss of $0.43 per diluted share, narrower than the $0.64 loss posted a year earlier, while first-half net income swung to $1.68 per share from a loss of $0.71 in H1 2025. Funds from operations, the metric real estate investors watch most closely, moved the other way. Second-quarter FFO per share, as adjusted, fell to $1.73 from $2.33, and first-half FFO per share dropped to $3.46 from $4.63.
Leasing activity picked up meaningfully in the second quarter. Alexandria signed 1,038,917 rentable square feet of leases in Q2 2026, a 60% jump from the first quarter and roughly 87,000 square feet above its trailing quarterly average. Three-quarters of that leasing activity over the trailing twelve months came from existing tenants, and once executed leases with future occupancy are counted, total occupancy climbs to 90.9% from the reported 86.9%. Tenant quality remains a selling point too: 80% of annual rental revenue comes from the company's Megacampus platform, and 57% comes from investment-grade or publicly traded large-cap tenants, with 99.9% of second-quarter rents and receivables collected as of August 3.
The balance sheet backs that stability up. Alexandria holds $3.60 billion in liquidity and just extended its $5.0 billion unsecured line of credit to 2032 at a lower borrowing rate of SOFR plus 0.725%, down from SOFR plus 0.835%. Only 6% of total debt matures through 2028, and the company's 9.7-year weighted-average remaining debt term is the longest among S&P 500 REITs. General and administrative expenses fell 17.4% from Q2 2024, even after a year-over-year uptick, and the company maintained its $0.72 per share quarterly dividend, a 5.4% yield as of June 30.
The numbers behind the improved per-share figures are less reassuring on closer look. Same-property net operating income fell 10.6% in the second quarter and 11.5% for the first half, driven largely by occupancy declines tied to lease expirations. Operating occupancy slipped from 87.7% at the end of March to 86.9% at the end of June, and the current-period average occupancy of 87.1% compares with 92.6% a year earlier. Lease renewals aren't helping much either: rental rate changes on renewed and re-leased ******* e fell 0.7% in the second quarter and 15.0% in the first quarter, with cash-basis declines of 4.3% and 15.8%, respectively.
Leverage remains elevated in the near term. Net debt and preferred stock to Adjusted EBITDA stood at 7.0x on a Q2 2026 annualized basis, well above the company's 5.6x to 6.2x target for the fourth quarter, which depends on completing $2.9 billion in planned dispositions and other capital sources. General and administrative expenses rose 26.5% from Q2 2025 to $36.9 million. The company also recorded $222.5 million of real estate impairment charges in the quarter and continues to evaluate the business and financial strategy for five development and redevelopment projects totaling 1.4 m
Leasing activity picked up meaningfully in the second quarter. Alexandria signed 1,038,917 rentable square feet of leases in Q2 2026, a 60% jump from the first quarter and roughly 87,000 square feet above its trailing quarterly average. Three-quarters of that leasing activity over the trailing twelve months came from existing tenants, and once executed leases with future occupancy are counted, total occupancy climbs to 90.9% from the reported 86.9%. Tenant quality remains a selling point too: 80% of annual rental revenue comes from the company's Megacampus platform, and 57% comes from investment-grade or publicly traded large-cap tenants, with 99.9% of second-quarter rents and receivables collected as of August 3.
The balance sheet backs that stability up. Alexandria holds $3.60 billion in liquidity and just extended its $5.0 billion unsecured line of credit to 2032 at a lower borrowing rate of SOFR plus 0.725%, down from SOFR plus 0.835%. Only 6% of total debt matures through 2028, and the company's 9.7-year weighted-average remaining debt term is the longest among S&P 500 REITs. General and administrative expenses fell 17.4% from Q2 2024, even after a year-over-year uptick, and the company maintained its $0.72 per share quarterly dividend, a 5.4% yield as of June 30.
The numbers behind the improved per-share figures are less reassuring on closer look. Same-property net operating income fell 10.6% in the second quarter and 11.5% for the first half, driven largely by occupancy declines tied to lease expirations. Operating occupancy slipped from 87.7% at the end of March to 86.9% at the end of June, and the current-period average occupancy of 87.1% compares with 92.6% a year earlier. Lease renewals aren't helping much either: rental rate changes on renewed and re-leased ******* e fell 0.7% in the second quarter and 15.0% in the first quarter, with cash-basis declines of 4.3% and 15.8%, respectively.
Leverage remains elevated in the near term. Net debt and preferred stock to Adjusted EBITDA stood at 7.0x on a Q2 2026 annualized basis, well above the company's 5.6x to 6.2x target for the fourth quarter, which depends on completing $2.9 billion in planned dispositions and other capital sources. General and administrative expenses rose 26.5% from Q2 2025 to $36.9 million. The company also recorded $222.5 million of real estate impairment charges in the quarter and continues to evaluate the business and financial strategy for five development and redevelopment projects totaling 1.4 m
1 month ago
On August 3, Alexandria Real Estate Equities (NYSE:ARE) reported a Q2 2026 net loss of $0.43 per diluted share, narrower than the $0.64 loss posted a year earlier, while first-half net income swung to $1.68 per share from a loss of $0.71 in H1 2025. Funds from operations, the metric real estate investors watch most closely, moved the other way. Second-quarter FFO per share, as adjusted, fell to $1.73 from $2.33, and first-half FFO per share dropped to $3.46 from $4.63.
Leasing activity picked up meaningfully in the second quarter. Alexandria signed 1,038,917 rentable square feet of leases in Q2 2026, a 60% jump from the first quarter and roughly 87,000 square feet above its trailing quarterly average. Three-quarters of that leasing activity over the trailing twelve months came from existing tenants, and once executed leases with future occupancy are counted, total occupancy climbs to 90.9% from the reported 86.9%. Tenant quality remains a selling point too: 80% of annual rental revenue comes from the company's Megacampus platform, and 57% comes from investment-grade or publicly traded large-cap tenants, with 99.9% of second-quarter rents and receivables collected as of August 3.
The balance sheet backs that stability up. Alexandria holds $3.60 billion in liquidity and just extended its $5.0 billion unsecured line of credit to 2032 at a lower borrowing rate of SOFR plus 0.725%, down from SOFR plus 0.835%. Only 6% of total debt matures through 2028, and the company's 9.7-year weighted-average remaining debt term is the longest among S&P 500 REITs. General and administrative expenses fell 17.4% from Q2 2024, even after a year-over-year uptick, and the company maintained its $0.72 per share quarterly dividend, a 5.4% yield as of June 30.
The numbers behind the improved per-share figures are less reassuring on closer look. Same-property net operating income fell 10.6% in the second quarter and 11.5% for the first half, driven largely by occupancy declines tied to lease expirations. Operating occupancy slipped from 87.7% at the end of March to 86.9% at the end of June, and the current-period average occupancy of 87.1% compares with 92.6% a year earlier. Lease renewals aren't helping much either: rental rate changes on renewed and re-leased **** e fell 0.7% in the second quarter and 15.0% in the first quarter, with cash-basis declines of 4.3% and 15.8%, respectively.
Leverage remains elevated in the near term. Net debt and preferred stock to Adjusted EBITDA stood at 7.0x on a Q2 2026 annualized basis, well above the company's 5.6x to 6.2x target for the fourth quarter, which depends on completing $2.9 billion in planned dispositions and other capital sources. General and administrative expenses rose 26.5% from Q2 2025 to $36.9 million. The company also recorded $222.5 million of real estate impairment charges in the quarter and continues to evaluate the business and financial strategy for five development and redevelopment projects totaling 1.4 mill
Leasing activity picked up meaningfully in the second quarter. Alexandria signed 1,038,917 rentable square feet of leases in Q2 2026, a 60% jump from the first quarter and roughly 87,000 square feet above its trailing quarterly average. Three-quarters of that leasing activity over the trailing twelve months came from existing tenants, and once executed leases with future occupancy are counted, total occupancy climbs to 90.9% from the reported 86.9%. Tenant quality remains a selling point too: 80% of annual rental revenue comes from the company's Megacampus platform, and 57% comes from investment-grade or publicly traded large-cap tenants, with 99.9% of second-quarter rents and receivables collected as of August 3.
The balance sheet backs that stability up. Alexandria holds $3.60 billion in liquidity and just extended its $5.0 billion unsecured line of credit to 2032 at a lower borrowing rate of SOFR plus 0.725%, down from SOFR plus 0.835%. Only 6% of total debt matures through 2028, and the company's 9.7-year weighted-average remaining debt term is the longest among S&P 500 REITs. General and administrative expenses fell 17.4% from Q2 2024, even after a year-over-year uptick, and the company maintained its $0.72 per share quarterly dividend, a 5.4% yield as of June 30.
The numbers behind the improved per-share figures are less reassuring on closer look. Same-property net operating income fell 10.6% in the second quarter and 11.5% for the first half, driven largely by occupancy declines tied to lease expirations. Operating occupancy slipped from 87.7% at the end of March to 86.9% at the end of June, and the current-period average occupancy of 87.1% compares with 92.6% a year earlier. Lease renewals aren't helping much either: rental rate changes on renewed and re-leased **** e fell 0.7% in the second quarter and 15.0% in the first quarter, with cash-basis declines of 4.3% and 15.8%, respectively.
Leverage remains elevated in the near term. Net debt and preferred stock to Adjusted EBITDA stood at 7.0x on a Q2 2026 annualized basis, well above the company's 5.6x to 6.2x target for the fourth quarter, which depends on completing $2.9 billion in planned dispositions and other capital sources. General and administrative expenses rose 26.5% from Q2 2025 to $36.9 million. The company also recorded $222.5 million of real estate impairment charges in the quarter and continues to evaluate the business and financial strategy for five development and redevelopment projects totaling 1.4 mill
1 month ago
Pfizer Inc. (NYSE:PFE) and Abbott Laboratories (NYSE:ABT) offer investors two very different dividend stories. Pfizer (NYSE:PFE) is working to rebuild growth before major patent expirations arrive, while Abbott (NYSE:ABT) is combining a long dividend-growth record with a more diversified healthcare portfolio. Pfizer (NYSE:PFE) may offer turnaround potential, but Abbott's (NYSE:ABT) latest results present the steadier investment case.
Pfizer's (NYSE:PFE) non-COVID portfolio is beginning to carry more of the business. Revenue excluding Comirnaty and Paxlovid grew 5% operationally in fiscal Q2 2026, while launched and acquired products generated $3.2 billion and increased 18% operationally. Padcev revenue rose 23% operationally to $667 million, supported by increased market share in first-line locally advanced or metastatic urothelial cancer and uptake in muscle-invasive bladder cancer. The Vyndaqel family generated $1.76 billion, up 8% operationally, while Lorbrena grew 37% operationally. This broader contribution is encouraging because Pfizer needs several products to offset declining COVID revenue and future patent losses.
Stronger non-COVID performance allowed Pfizer (NYSE:PFE) to raise the midpoint of its 2026 revenue guidance by $500 million, despite reducing its COVID-product forecast from approximately $5 billion to $4 billion. Its cost programs should provide further support, as management expects combined savings of approximately $9.7 billion through 2029 across its cost-realignment and manufacturing-optimization initiatives.
Abbott's (NYSE:ABT) advantage is the breadth of its growth. Second-quarter sales increased 13% on a reported basis and 4.8% on a comparable basis, while adjusted EPS rose 4% to $1.31. Medical Devices remained Abbott's (NYSE:ABT) largest segment and an important growth contributor, with sales rising 8.4% on a comparable basis. Growth was led by electrophysiology, rhythm management, heart failure, and diabetes care, with continuous-glucose-monitor sales increasing 9.5% comparably.
The Exact Sciences acquisition also expanded Abbott's (NYSE:ABT) diagnostics business. Diagnostics revenue reached $3.09 billion, rising 42.3% reported and 2.9% comparably. Within the segment, Cancer Diagnostics delivered 13.3% comparable growth as Cologuard benefited from increasing numbers of new and repeat users.
#Growth #billion #covid #revenue
Pfizer's (NYSE:PFE) non-COVID portfolio is beginning to carry more of the business. Revenue excluding Comirnaty and Paxlovid grew 5% operationally in fiscal Q2 2026, while launched and acquired products generated $3.2 billion and increased 18% operationally. Padcev revenue rose 23% operationally to $667 million, supported by increased market share in first-line locally advanced or metastatic urothelial cancer and uptake in muscle-invasive bladder cancer. The Vyndaqel family generated $1.76 billion, up 8% operationally, while Lorbrena grew 37% operationally. This broader contribution is encouraging because Pfizer needs several products to offset declining COVID revenue and future patent losses.
Stronger non-COVID performance allowed Pfizer (NYSE:PFE) to raise the midpoint of its 2026 revenue guidance by $500 million, despite reducing its COVID-product forecast from approximately $5 billion to $4 billion. Its cost programs should provide further support, as management expects combined savings of approximately $9.7 billion through 2029 across its cost-realignment and manufacturing-optimization initiatives.
Abbott's (NYSE:ABT) advantage is the breadth of its growth. Second-quarter sales increased 13% on a reported basis and 4.8% on a comparable basis, while adjusted EPS rose 4% to $1.31. Medical Devices remained Abbott's (NYSE:ABT) largest segment and an important growth contributor, with sales rising 8.4% on a comparable basis. Growth was led by electrophysiology, rhythm management, heart failure, and diabetes care, with continuous-glucose-monitor sales increasing 9.5% comparably.
The Exact Sciences acquisition also expanded Abbott's (NYSE:ABT) diagnostics business. Diagnostics revenue reached $3.09 billion, rising 42.3% reported and 2.9% comparably. Within the segment, Cancer Diagnostics delivered 13.3% comparable growth as Cologuard benefited from increasing numbers of new and repeat users.
#Growth #billion #covid #revenue
2 months ago
Pfizer (NYSE: PFE) has an attractive 6.4% dividend yield. That compares to 1% for the S&P 500 index (SNPINDEX: ^GSPC) and 1.4% for the average pharmaceutical stock. Despite the outsize yield, the company is sticking by the dividend payment. That's great, but why is the yield so high? An examination of the business through 2030 will explain the problem.
From a big picture perspective, Pfizer sells pharmaceuticals. Only the drugs it sells don't appear out of thin air. It has to develop them or buy them before it can market them. That's an expensive, often time-consuming, and difficult process. This is why drug companies are afforded a limited, patent-protected window of exclusivity to sell their drugs. Drug companies like Pfizer can generate substantial revenue from patent-protected drugs.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
There's just one small problem: revenues tend to fall dramatically after a drug loses patent protections. Complicating this is that developing new drugs doesn't follow a set timeline, unlike patent expirations. So sometimes there's a mismatch that puts pressure on a company's top and bottom lines.
That's what Pfizer is dealing with right now. In 2027, oncology drugs Ibrance and Xtandi are set to lose patent protection. In 2028, the cardiovascular drug Eliquis will lose patent protection. Pfizer is working hard to find drugs to replace revenue lost from these patent expirations, but investors are clearly worried that it won't be able to. It doesn't help any that the company suffered a material black eye when it had to drop its internally developed GLP-1 weight-loss drug candidate in 2025.
#pfizer #drug #yield
From a big picture perspective, Pfizer sells pharmaceuticals. Only the drugs it sells don't appear out of thin air. It has to develop them or buy them before it can market them. That's an expensive, often time-consuming, and difficult process. This is why drug companies are afforded a limited, patent-protected window of exclusivity to sell their drugs. Drug companies like Pfizer can generate substantial revenue from patent-protected drugs.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
There's just one small problem: revenues tend to fall dramatically after a drug loses patent protections. Complicating this is that developing new drugs doesn't follow a set timeline, unlike patent expirations. So sometimes there's a mismatch that puts pressure on a company's top and bottom lines.
That's what Pfizer is dealing with right now. In 2027, oncology drugs Ibrance and Xtandi are set to lose patent protection. In 2028, the cardiovascular drug Eliquis will lose patent protection. Pfizer is working hard to find drugs to replace revenue lost from these patent expirations, but investors are clearly worried that it won't be able to. It doesn't help any that the company suffered a material black eye when it had to drop its internally developed GLP-1 weight-loss drug candidate in 2025.
#pfizer #drug #yield
2 months ago
Two biopharma giants, Merck & Co., Inc. (NYSE:MRK) and Gilead Sciences, Inc. (NASDAQ:GILD), are proving that in modern drug development, the biggest catalyst isn't always competing head-to-head; it is knowing when to join forces. While both companies reported their first-quarter 2026 earnings earlier this year, their recent double dose of clinical and regulatory breakthroughs across oncology and virology shows how strategic alliances can reshape two massive therapeutic markets at once.
Merck & Co., Inc. delivered $16.3 billion in total sales for the first quarter of 2026, up 5% year-over-year (3% excluding foreign exchange). Top-line growth continued to be anchored by its flagship oncology therapy, Keytruda, which, alongside its sub-formulations, brought in $8.0 billion in sales, representing an 8% ex-exchange increase. Pulmonary arterial hypertension treatment Winrevair also contributed strongly with $525 million in quarterly revenue, up 87% ex-exchange. GAAP and non-GAAP bottom-line metrics reflected net losses per share of $1.72 and $1.28, respectively, largely driven by upfront charges tied to the strategic acquisition of Cidara Therapeutics. Despite those acquisition-related charges, Merck narrowed and raised the midpoint of its full-year worldwide sales guidance to between $65.8 billion and $67.0 billion.
Merck's growth story remains heavily reliant on expanding Keytruda's reach into earlier-stage treatments and novel combination regimens. With key patent expirations approaching toward the end of the decade, management has aggressively pursued business development and combination therapies to diversify its revenue base and maintain its dominance in immuno-oncology.
Gilead Sciences, Inc. reported $7.0 billion in total revenue for the first quarter of 2026, posting 5% year-over-year product sales growth. Gilead's base business, excluding COVID-19 treatment Veklury, rose 8% year-over-year to $6.8 billion, powered by its market-leading HIV franchise, which generated $5.0 billion in sales (up 10% year-over-year). Biktarvy remained the primary growth driver, while newly launched therapies like Yeztugo (lenacapavir) for HIV pre-exposure prophylaxis provided fresh momentum. The corporation's adjusted diluted earnings per share reached $2.03.
Backed by strong demand across its core virology portfolio, Gilead Sciences, Inc. raised its full-year 2026 total product sales guidance range by $400 million, targeting $30.0 billion to $30.4 billion.
#billion #merck #sciences #oncology
Merck & Co., Inc. delivered $16.3 billion in total sales for the first quarter of 2026, up 5% year-over-year (3% excluding foreign exchange). Top-line growth continued to be anchored by its flagship oncology therapy, Keytruda, which, alongside its sub-formulations, brought in $8.0 billion in sales, representing an 8% ex-exchange increase. Pulmonary arterial hypertension treatment Winrevair also contributed strongly with $525 million in quarterly revenue, up 87% ex-exchange. GAAP and non-GAAP bottom-line metrics reflected net losses per share of $1.72 and $1.28, respectively, largely driven by upfront charges tied to the strategic acquisition of Cidara Therapeutics. Despite those acquisition-related charges, Merck narrowed and raised the midpoint of its full-year worldwide sales guidance to between $65.8 billion and $67.0 billion.
Merck's growth story remains heavily reliant on expanding Keytruda's reach into earlier-stage treatments and novel combination regimens. With key patent expirations approaching toward the end of the decade, management has aggressively pursued business development and combination therapies to diversify its revenue base and maintain its dominance in immuno-oncology.
Gilead Sciences, Inc. reported $7.0 billion in total revenue for the first quarter of 2026, posting 5% year-over-year product sales growth. Gilead's base business, excluding COVID-19 treatment Veklury, rose 8% year-over-year to $6.8 billion, powered by its market-leading HIV franchise, which generated $5.0 billion in sales (up 10% year-over-year). Biktarvy remained the primary growth driver, while newly launched therapies like Yeztugo (lenacapavir) for HIV pre-exposure prophylaxis provided fresh momentum. The corporation's adjusted diluted earnings per share reached $2.03.
Backed by strong demand across its core virology portfolio, Gilead Sciences, Inc. raised its full-year 2026 total product sales guidance range by $400 million, targeting $30.0 billion to $30.4 billion.
#billion #merck #sciences #oncology
2 months ago
SpaceX is slated to report quarterly results for the first time as a public company on Tuesday, with growth expected to be driven by surging AI revenue.
Experts say ****** eX's second-quarter results are likely to have less of an impact on the stock than executives' comments during a post-earnings call and post-IPO lockup expirations.
In less than two months as a publicly traded company, ****** eX has—fittingly, for a rocket company—both seen dizzying highs and fallen back to Earth.
What lies ahead? The company formally known as ****** e Exploration Technologies (SPCX) will on Tuesday evening offer up its first quarterly financial report since its IPO, submitting CEO Elon Musk to a test of Wall Street's conviction in his ability to deliver on his bold vision of orbital data centers, interplanetary commerce, and "extend[ing] the light of consciousness to the stars."
With the company valued at more than $1 trillion, there's a lot of money at stake. The stock charged out of the gate after staging the largest IPO in history, but it's mostly been downhill since: The shares closed Monday near $115, roughly half off their all-time high.
#company #tuesday
Experts say ****** eX's second-quarter results are likely to have less of an impact on the stock than executives' comments during a post-earnings call and post-IPO lockup expirations.
In less than two months as a publicly traded company, ****** eX has—fittingly, for a rocket company—both seen dizzying highs and fallen back to Earth.
What lies ahead? The company formally known as ****** e Exploration Technologies (SPCX) will on Tuesday evening offer up its first quarterly financial report since its IPO, submitting CEO Elon Musk to a test of Wall Street's conviction in his ability to deliver on his bold vision of orbital data centers, interplanetary commerce, and "extend[ing] the light of consciousness to the stars."
With the company valued at more than $1 trillion, there's a lot of money at stake. The stock charged out of the gate after staging the largest IPO in history, but it's mostly been downhill since: The shares closed Monday near $115, roughly half off their all-time high.
#company #tuesday
2 months ago
Bristol Myers Squibb (NYSE: BMY) looks attractive from a value perspective. For example, its dividend yield is a lofty 4% compared to the S&P 500 index's (SNPINDEX: ^GSPC) 1% and the pharmaceutical sector's average of around 1.5%. From a more traditional perspective, Bristol Myers Squibb's 17.5x price-to-earnings ratio is well below the industry average of 25x. Here's why it may not be as cheap as it looks and what needs to happen to change that.
There is nothing particularly unusual happening with Bristol Myers Squibb's business. That is important to highlight because the pharmaceutical industry is highly competitive, research-driven, and has a unique patent situation that materially complicates things even for the largest drug makers. The issue is that the patent protections for new drugs are time-limited, but research and development outcomes are unpredictable.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That's the crux of the problem with Bristol Myers Squibb right now. Material patent expirations are occurring, including Revlimid and Pomalyst in 2026. And that will be followed by Eliquis, which is marketed with Pfizer (NYSE: PFE) in 2028. While patent expirations are common, the outcome is usually a material drop in revenue from the affected drugs. So Bristol Myers Squibb's top and bottom lines are going to be under pressure for a bit. If that's the case, the low P/E and high yield relative to the broader sector could simply be Wall Street pricing in the patent expirations.
Management isn't sitting around with its head in the sand. The company is actively looking for new drug candidates. And it actually has some attractive pipeline options in rare diseases, immunology, and cancer. If the company gets a couple of new blockbuster drugs approved, it could easily offset the hit from drugs that are losing patent protection. If that comes to pass, today's relatively low price will turn out to be a bargain.
#signal
There is nothing particularly unusual happening with Bristol Myers Squibb's business. That is important to highlight because the pharmaceutical industry is highly competitive, research-driven, and has a unique patent situation that materially complicates things even for the largest drug makers. The issue is that the patent protections for new drugs are time-limited, but research and development outcomes are unpredictable.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That's the crux of the problem with Bristol Myers Squibb right now. Material patent expirations are occurring, including Revlimid and Pomalyst in 2026. And that will be followed by Eliquis, which is marketed with Pfizer (NYSE: PFE) in 2028. While patent expirations are common, the outcome is usually a material drop in revenue from the affected drugs. So Bristol Myers Squibb's top and bottom lines are going to be under pressure for a bit. If that's the case, the low P/E and high yield relative to the broader sector could simply be Wall Street pricing in the patent expirations.
Management isn't sitting around with its head in the sand. The company is actively looking for new drug candidates. And it actually has some attractive pipeline options in rare diseases, immunology, and cancer. If the company gets a couple of new blockbuster drugs approved, it could easily offset the hit from drugs that are losing patent protection. If that comes to pass, today's relatively low price will turn out to be a bargain.
#signal
3 months ago
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter.
Novartis said second-quarter sales inched upward, beating **** yst expectations for a decline as demand for newer products helped offset generic competition for its former top-selling heart medication Entresto.
At constant exchange rates, net sales increased 1% to $14.4 billion, Novartis said Tuesday. That beat the consensus estimate of about $13.7 billion, Jefferies **** yst Michael Leuchten wrote in a note to clients. Core operating income reached $5.94 billion, topping the consensus estimate of $5.31 billion. Leuchten had expected core operating income of $5.16 billion on sales of $13.8 billion.
The Swiss drugmaker highlighted increases of more than 30% for "priority brands" including Kisqali, Kesimpta, Scemblix, Pluvicto and Leqvio. Revenue from Entresto plunged by half to $1.18 billion in the period, moving the drug down to fourth place on the list of Novartis' most lucrative products.
Already buffeted by Entresto losses in the U.S., Novartis is looking ahead to one of the most daunting patent cliffs in the pharmaceutical industry over the next five years, affecting all four of its top-selling medicines in the second quarter. Entresto is set to lose exclusivity in Europe in 2028. After that, U.S. patent expirations follow for its biggest moneymaker, Cosentyx, in 2029 and both Kesimpta and Kisqali in 2031.
#billion #biopharma #dive
Novartis said second-quarter sales inched upward, beating **** yst expectations for a decline as demand for newer products helped offset generic competition for its former top-selling heart medication Entresto.
At constant exchange rates, net sales increased 1% to $14.4 billion, Novartis said Tuesday. That beat the consensus estimate of about $13.7 billion, Jefferies **** yst Michael Leuchten wrote in a note to clients. Core operating income reached $5.94 billion, topping the consensus estimate of $5.31 billion. Leuchten had expected core operating income of $5.16 billion on sales of $13.8 billion.
The Swiss drugmaker highlighted increases of more than 30% for "priority brands" including Kisqali, Kesimpta, Scemblix, Pluvicto and Leqvio. Revenue from Entresto plunged by half to $1.18 billion in the period, moving the drug down to fourth place on the list of Novartis' most lucrative products.
Already buffeted by Entresto losses in the U.S., Novartis is looking ahead to one of the most daunting patent cliffs in the pharmaceutical industry over the next five years, affecting all four of its top-selling medicines in the second quarter. Entresto is set to lose exclusivity in Europe in 2028. After that, U.S. patent expirations follow for its biggest moneymaker, Cosentyx, in 2029 and both Kesimpta and Kisqali in 2031.
#billion #biopharma #dive
3 months ago
Although first-quarter revenue fell 1% year over year to $13.1 billion, or 5% at constant currencies, the results largely matched management's expectations as several blockbuster medicines lost patent protection in the United States.
Chief Executive Vas Narasimhan described the period as "the biggest loss of exclusivity in Novartis' history, emphasizing that the weakness reflected temporary patent expirations rather than deteriorating demand across the company's portfolio.
Core operating income declined 14% on a constant-currency basis, while core EPS fell 15% to $1.99. The decline reflected lower sales as well as continued investment in research and development. Despite this pressure, Novartis maintained healthy profitability with a 37.3% core operating margin, while free cash flow remained broadly stable at $3.3 billion. That suggests the company continues to generate substantial cash even during a challenging earnings period.
The brighter picture came from Novartis' growth portfolio, where nearly every strategic medicine continued to post double-digit expansion.
Kisqali remained the standout performer, with sales jumping 55% as adoption broadened in breast cancer. Pluvicto climbed 70%, reflecting growing demand for radioligand therapies, while Kesimpta increased 26% as multiple sclerosis patients continued switching to newer treatments.
#continued #fell #period #reflected
Chief Executive Vas Narasimhan described the period as "the biggest loss of exclusivity in Novartis' history, emphasizing that the weakness reflected temporary patent expirations rather than deteriorating demand across the company's portfolio.
Core operating income declined 14% on a constant-currency basis, while core EPS fell 15% to $1.99. The decline reflected lower sales as well as continued investment in research and development. Despite this pressure, Novartis maintained healthy profitability with a 37.3% core operating margin, while free cash flow remained broadly stable at $3.3 billion. That suggests the company continues to generate substantial cash even during a challenging earnings period.
The brighter picture came from Novartis' growth portfolio, where nearly every strategic medicine continued to post double-digit expansion.
Kisqali remained the standout performer, with sales jumping 55% as adoption broadened in breast cancer. Pluvicto climbed 70%, reflecting growing demand for radioligand therapies, while Kesimpta increased 26% as multiple sclerosis patients continued switching to newer treatments.
#continued #fell #period #reflected
3 months ago
SPCX has retreated to $153 from its $225 post-IPO peak, trading near its $135 IPO price with ******* yst consensus pointing to $188.
Nasdaq-100 inclusion would force index-tracking funds to buy shares on a defined rebalancing schedule, creating mechanical demand regardless of valuation.
SpaceX burned capital despite $4.7 billion in Q1 revenue, pays no dividend, and faces lock-up expirations that could deliver real supply shocks.
Act now: the ******* yst who called NVIDIA in 2010 just named his top 10 AI stocks — and ******* eX didn't make the cut. Grab the names FREE today.
SpaceX (NASDAQ:SPCX) went public on Nasdaq on June 12, 2026 in a roughly $75 billion offering, ran to a peak of $225.64 on June 16, then gave back about 18% on the week to land near $147 to $148 by June 23 to 26. As of this morning ******* eX is trading at $155.
Nasdaq-100 inclusion would force index-tracking funds to buy shares on a defined rebalancing schedule, creating mechanical demand regardless of valuation.
SpaceX burned capital despite $4.7 billion in Q1 revenue, pays no dividend, and faces lock-up expirations that could deliver real supply shocks.
Act now: the ******* yst who called NVIDIA in 2010 just named his top 10 AI stocks — and ******* eX didn't make the cut. Grab the names FREE today.
SpaceX (NASDAQ:SPCX) went public on Nasdaq on June 12, 2026 in a roughly $75 billion offering, ran to a peak of $225.64 on June 16, then gave back about 18% on the week to land near $147 to $148 by June 23 to 26. As of this morning ******* eX is trading at $155.
4 months ago
Lockup Expirations Hurt Speculative Stocks More
The irony: the date is printed in the prospectus months ahead, yet retail investors get blindsided every time.
When a high-momentum stock hits its lockup expiration, two things collide: a surge in available supply and a pool of early holders sitting on large unrealized gains. The result is rarely orderly.
Palantir is the cleanest example. Retail enthusiasm drove the stock from $10 to levels near $40 between its September 2020 listing and February 2021. When the lockup expired, insiders, including Peter Thiel, sold tens of millions of shares into that premium. The stock fell 13% in a single session and spent months recovering. Rivian (RIVN) dropped about 20% in one day after Ford (F) disclosed it would sell its stake at the 180-day mark. Uber (UBER) hit an all-time low on its expiration date, down 40% from its IPO price. Even Snowflake, which used a staggered schedule, still dropped roughly 11% over its final expiration week. The pattern holds across cases: the higher the speculative premium at IPO, the more painful the expiration tends to be.
What ****** eX Is Doing Differently
The irony: the date is printed in the prospectus months ahead, yet retail investors get blindsided every time.
When a high-momentum stock hits its lockup expiration, two things collide: a surge in available supply and a pool of early holders sitting on large unrealized gains. The result is rarely orderly.
Palantir is the cleanest example. Retail enthusiasm drove the stock from $10 to levels near $40 between its September 2020 listing and February 2021. When the lockup expired, insiders, including Peter Thiel, sold tens of millions of shares into that premium. The stock fell 13% in a single session and spent months recovering. Rivian (RIVN) dropped about 20% in one day after Ford (F) disclosed it would sell its stake at the 180-day mark. Uber (UBER) hit an all-time low on its expiration date, down 40% from its IPO price. Even Snowflake, which used a staggered schedule, still dropped roughly 11% over its final expiration week. The pattern holds across cases: the higher the speculative premium at IPO, the more painful the expiration tends to be.
What ****** eX Is Doing Differently
