Latest news with #ChrisSchott
CNBC
4 days ago
- Business
- CNBC
JPMorgan's top biotech and pharma picks for the second half
Biopharmaceutical stocks' underperformance versus the broader market for a third-straight year is an opportunity for investors, according to JPMorgan. Analyst Chris Schott said in the firm's June outlook for biopharma that the sector's poor performance can be traced back to concerns over President Donald Trump's tariffs and his " most favored nation " executive order. The SPDR S & P Biotech ETF (XBI) has pulled back about 7% so far in 2025, while the S & P 500 has notched a nearly 2% gain. The stock action is overdone, according to Schott, as he expects any impact from this policy will be "manageable." Valuations are historically depressed, Schott said, which means the sector has already priced in the the worst possible outcome. "The sector [should be] able to largely mitigate the impact of tariffs in the mid/long term through manufacturing repatriation and 2) [there's] no clear path for MFN ["most favored nation"] to move forward without Congressional approval (outside of IRA price negotiations)," Schott said. Fundamentals for biopharma stocks have improved in recent years, which should support "a more manageable sales/EPS erosion outlook for most names," he added. Here's a look at some of JPMorgan's favorite biotech and pharma stocks heading into the second half of the year. All stocks on the list are rated overweight by the firm. Eli Lilly stock is among JPMorgan's top picks among the group. Shares are about flat in 2025, and have slipped roughly 8% over the past 12 months. The company agreed to purchase SiteOne Therapeutics in a roughly $1 billion deal last week , which could allow Lilly to develop non-opioid treatments for chronic pain conditions. LLY YTD mountain Eli Lilly stock in 2025. Developing non-opioid pain drugs is a key focus for the industry, with Vertex Pharmaceuticals recently approving its Journavx Nav1.8 inhibitor. About 84% of analysts polled by FactSet maintain a buy rating on Eli Lilly stock, with their consensus price target equating to nearly 29% upside. Gilead Sciences is also one of JPMorgan's top picks. Shares have soared more than 20% so far in 2025. GILD YTD mountain Gilead Sciences stock in 2025. Analysts surveyed by FactSet think the stock has more room to run after a strong first half of the year. Alongside a consensus buy rating, the average analyst price target calls for more than 5% upside. The company recently announced key phase three trial data tied to its Trodelvy cancer treatment that showed the drug lowered the risk of a severe form of breast cancer when used in combination with Merck 's Keytruda immunotherapy treatment. Other names on the list include Regeneron Pharmaceuticals and Bristol Myers Squibb .
Yahoo
30-05-2025
- Business
- Yahoo
Regeneron shares slide on mixed trial data for smoker's lung drug
By Sriparna Roy (Reuters) -Regeneron shares fell nearly 18% on Friday after its experimental drug for patients with a type of lung condition commonly called "smoker's lung" failed a late-stage trial, although it succeeded in another. Regeneron and partner Sanofi were studying the drug, which some analysts expect could bring in peak sales of as much as $5 billion, for treating chronic obstructive pulmonary disease (COPD). Investors had pinned their hopes on the drug, itepekimab, which targets a broader population, to potentially drive growth beyond Regeneron and Sanofi's blockbuster Dupixent, which is also approved for the condition, as its patent expiry looms. "Today's update likely represents a 2-3 year delay to market," said J.P. Morgan analyst Chris Schott for Regeneron's itepekimab. The drug showed a significant reduction in exacerbations or flare-ups in the condition by 27% compared to placebo at 52 weeks in a 1,127-patient study. But the second study - which had enrolled fewer former smokers compared to the first - did not meet its goal, although a benefit was seen earlier in the trial. "Given the mixed results, the regulatory path is murky," said HSBC analyst Rajesh Kumar. At least four analysts said the companies may need to conduct additional studies for a potential approval for the drug. Shares of Regeneron, which have already fallen 15% this year, were down at $497.01, while U.S.-listed shares of French drugmaker Sanofi fell more than 7% to $48.65 in morning trading. Regeneron's price-to-earnings ratio, a common benchmark for valuing stocks, was 16.15, compared with 13.62 for Gilead and 7.29 for Bristol Myers Squibb. Itepekimab binds to and inhibits interleukin-33, a type of protein that causes inflammation in COPD. The common lung disease causes restricted airflow and breathing problems. It typically affects smokers, but can also be caused by pollutants. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Why Teva Pharmaceuticals Stock Blasted 6% Higher Today
A recommendation upgrade from a veteran investment bank put some real zip in the shares. The analyst behind the change is now bullish on Teva's future. 10 stocks we like better than Teva Pharmaceutical Industries › A positive change in recommendation from a well-known bank was the fuel propelling Teva Pharmaceutical Industries's (NYSE: TEVA) well higher on Monday. The company, known for being a top producer of generic drugs, saw its share price swell almost 6% as a result. That was good enough to beat even the very frothy S&P 500's (SNPINDEX: ^GSPC) 3.3% gain that trading session. The person behind the modification was JPMorgan Chase analyst Chris Schott, who pushed up his Teva stock recommendation one notch from neutral to overweight (read: buy). He also bumped his price target higher, from $21 per share to $23. The new level anticipates upside of 28% on the most recent closing stock price. According to reports, much of Schott's new analysis of Teva centers on the cost-cutting measures the company announced recently. In his opinion, the $700 million initiative makes management's goal of reaching a 30% operating margin by 2027 achievable. At the same time, it should also provide sufficient room for the company to keep its pipeline programs funded. Past that year, the prognosticator is bullish on Teva's branded products. In his estimation, drugs like Austedo, Olanzapine, and Duvakitug could drive the company's growth well higher. For the most part, the clutch of analysts tracking Teva are also expecting improvement in key fundamentals. Collectively, they feel full-year 2025 revenue will tick up by almost 3% this year over 2024 to $17 billion, with per-share net income improving at just under 2%. And although 2026 revenue is forecast to creep less than 1% higher year over year, that per-share net income figure should rise by a robust 9%. To me, Teva has quite a strong position as a crucial manufacturer of generic drugs. Yet it certainly isn't neglecting the branded side of its business, which is showing promise these days. I also like how management has assertively cleaned the balance sheet. Therefore, I don't blame Schott for being more bullish on Teva's future. Before you buy stock in Teva Pharmaceutical Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Teva Pharmaceutical Industries wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy. Why Teva Pharmaceuticals Stock Blasted 6% Higher Today was originally published by The Motley Fool
CNBC
12-05-2025
- Business
- CNBC
JPMorgan says buy this pharmaceutical stock following cost-reduction announcement
JPMorgan moved off the sidelines on Teva Pharmaceuticals , citing its cost-cutting efforts. Analyst Chris Schott upgraded U.S.-listed shares of the Israeli pharmaceutical company to overweight from neutral. Schott hiked his price target by $2 to $23, which suggests 35.9% upside from last week's closing level. Schott's call comes after the company last week announced a plan for around $700 million in net savings. With that, the company should be able to see an operating margin of 30% in 2027. "Teva's margin trajectory in 2026/27 had been our primary concern on the story," Schott wrote to clients in a Monday note. "However, TEVA's $700mm cost-cut program ... bridges much of the gap from current results to the company's 30% operating margin target by 2027. And looking beyond this cost program, we see TEVA growth improving significantly as we look out to 2027 and beyond." The announcement comes as Teva shifts to the "acceleration" portion of its "pivot to growth" strategy that was announced in 2023. On top of the efficiency work, Schott called the company's portfolio "well-positioned" to see growth over time. He specifically noted that the Austedo tablets have surpassed expectations, while olanzapine can become a $1 billion to $2 billion product following its launch slated for next year. With the upgrade, Schott joined the majority of Wall Street analysts who have buy-equivalent ratings, per LSEG. Yet shares tumbled around 5% in Monday's premarket trading after President Donald Trump announced an executive order that would slash drug costs. The stock has already dropped more than 23% in 2025, reversing course after soaring more than 110% in the prior year. TEVA 1Y mountain TEVA, 1-year
Yahoo
15-04-2025
- Business
- Yahoo
Pfizer discontinues GLP-1 pill trial, stock trades flat
Pfizer (PFE) announced early Monday that it is halting a late-stage trial of its GLP-1 pill candidate, danuglipron, dashing hopes of the company entering the obesity space in the near term. A trial participant in the phase III trial of its once-daily pill experienced "potential drug-induced liver injury" that disappeared after the participant stopped the pill, the company said in a statement. "While we are disappointed to discontinue the development of danuglipron, we remain committed to evaluating and advancing promising programs in an effort to bring innovative new medicines to patients," Pfizer chief scientific officer Chris Boshoff said. The company had hoped to compete in the obesity space and had been optimistic in recent public statements about the potential of danuglipron. This is the latest disappointment in what has been a bumpy ride in Pfizer's attempt to enter the hot obesity market and compete with market leaders Eli Lilly (LLY) and Novo Nordisk (NVO). It previously had a twice-daily pill that was also scrapped after similar liver concerns in 2023. The two obesity market leaders, with their blockbuster injectables, have left room for an oral, or pill, market to be a new meaningful target for newer players, according to investors. Lilly is the furthest ahead with its oral candidate, orforglipron, in phase 3 trial, which is expected to end this year. The news was a surprise to Wall Street but not enough to significantly impact the stock. Pfizer's stock traded mostly flat in early Monday. "From here, while we anticipate shares to be down modestly, we do not think the Street was assigning any meaningful value to the asset and see limited downside given the company's current valuation," JPMorgan analyst Chris Schott wrote in a note to clients Monday. Pfizer has been under pressure to find a new blockbuster in its pipeline to fill the expected revenue drop from some of its key drugs going off patent by the end of the decade. That includes its Prevnar 13 vaccine next year and cancer drug Ibrance in 2028. Both brought in a combined $10.8 billion in 2024, with the Prevnar vaccines contributing $6.4 billion. Mizuho healthcare sector expert Jared Holz explained: "Now without a GLP in its (near-term) pipeline, it is now feasible that PFE could look to bring in an asset (external business development) should it choose to stay in the weight-loss game to some extent." Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Click here for in-depth analysis of the latest health industry news and events impacting stock prices Sign in to access your portfolio
