Latest news with #Eliquis
Yahoo
4 days ago
- Business
- Yahoo
Better High-Yield Dividend Stock to Buy Now: Pfizer vs. Prologis
Super-high-yield stocks often deliver heaps of passive income early on, but they aren't famous for rapid payout raises. Pfizer offers a sky-high yield, but its payout has been rising slowly. Prologis offers a decent yield, and it's been raising its payout at an exciting pace. 10 stocks we like better than Prologis › Investors looking for sources of passive income to fuel their retirement dreams face a dilemma. Should you chase high yields from slow-growing businesses or invest in lower-yield providers with more predictable cash flows? Lately, Pfizer (NYSE: PFE) and Prologis (NYSE: PLD) have been perfect examples of the trade-off between attractive yields and dividend growth. Pfizer offers a sky-high yield that's climbing slowly. Prologis offers a much lower yield, but it's been raising its payout at a remarkable pace. Here's a closer look at both to help you decide which one fits your goals. Shares of Pfizer have fallen about 62% from their COVID-19 pandemic highs. The stock is way down, but the company has raised its payout every year since 2009. At its beaten-down price, this stock offers an eye-popping 7.3% dividend yield. Pfizer's COVID-19 vaccine, Comirnaty, and antiviral treatment, Paxlovid, drove adjusted earnings up to $6.58 per share in 2022. Sinking demand for COVID-19 vaccines and treatments reduced adjusted earnings to just $3.11 per share last year. In 2025, Pfizer expects a significant earnings contraction. At the midpoint of the guided range management provided this April, adjusted earnings are expected to fall by 6.8% this year. The $2.80 per share management expects at the low end of the guided range is more than enough to support a dividend payout currently set at an annualized $1.72 annually, but there could be further contractions ahead. Eliquis is a next-generation blood thinner that Pfizer markets in collaboration with Bristol Myers Squibb. It's currently responsible for 14% of Pfizer's total revenue and is likely to lose ground to generic competition in the lucrative U.S. market in 2028. Long before Eliquis loses ground to generic competition, the company's lead growth driver, Vyndaquel, could stumble. BridgeBio launched a competing treatment called Attruby in late 2024, and it's been exceeding expectations. Pfizer's facing patent cliffs, but it also has one of the most productive development pipelines in the industry. Last year alone, the Food and Drug Administration issued more than a dozen approvals to new Pfizer treatments and several that are already on the market. With plenty of new products to market, the drugmaker has a good chance to continue its payout-raising streak in the decade ahead. As more folks do their shopping online, demand for warehouses that can support e-commerce has soared. By anticipating the demand, Prologis has become the world's largest real estate investment trust (REIT) that everyday investors can buy shares of. Fear and uncertainty regarding the taxes businesses need to pay when importing goods to the U.S. have pressured the stock. It's down about 12% from a peak it set in March. At its beaten-down price, it offers a 3.7% yield. Prologis has been able to raise its dividend by 11.7% annually over the past five years. At this pace, investors who buy at recent prices could begin receiving a double-digit yield on cost in less than a decade. Amazon, Home Depot, and FedEx are Prologis' largest customers. These three tenants are responsible for only 8.2% of the rent payments Proligis receives every month. This high level of diversification is a big reason it can boast industry-leading credit ratings. With an A2 rating from Moody's and an A rating from S&P Global, the weighted average interest rate on Prologis' outstanding debts was just 3.1% at the end of March. Acquiring and developing properties is an important part of this REIT's business, but it also acts as a lender. With an enviable credit rating, it can produce a strong profit while offering rates that its smaller competitors can't match. For companies that own their warehouses, selling them to Prologis and leasing them back is often their lowest-cost source of capital. With the vast majority of the world's logistics real estate still owned by the companies that use it, Prologis could continue growing at a rapid pace for decades to come. Pfizer offers a yield that's almost twice as high as Prologis's, but the pharmaceutical giant has been raising its payout at less than half the pace of the logistics REIT. Pfizer might be a good option for folks near retirement age. For income-seeking investors, though, Prologis seems like the better dividend stock to buy now. Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Prologis 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 $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% 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 June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Cory Renauer has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Bristol Myers Squibb, FedEx, Home Depot, Moody's, Pfizer, Prologis, and S&P Global. The Motley Fool recommends BridgeBio Pharma and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy. Better High-Yield Dividend Stock to Buy Now: Pfizer vs. Prologis was originally published by The Motley Fool 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
29-05-2025
- Business
- Yahoo
Bristol Myers Loses 20.7% in 3 Months: Buy, Sell or Hold the Stock?
Shares of Bristol Myers BMY have lost 20.7% in the past three months compared with the industry's decline of 9.6%. The stock has also underperformed the sector and the S&P 500 during this period. While the year started on a positive note and BMY was faring well (outperforming the market), the stock has been on the downslide for the past couple of months. Image Source: Zacks Investment Research Even though the first-quarter performance was better-than-expected and BMY raised its annual revenue guidance, the stock declined thereafter, probably reflecting broader market concerns and investors' skepticism on BMY's growth prospects. Let us analyze Bristol Myers' fundamentals in such a scenario to help you deal with the stock going forward: Legacy Portfolio is being adversely impacted due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect. Among these, blood thinner medicine Eliquis, for which BMY has a worldwide co-development and co-commercialization agreement with pharma giant Pfizer PFE, is the biggest contributor to the top line. Eliquis sales were down 4% in the first quarter due to the impact of Medicare Part D redesign in the United States. The company expects sales to steadily increase in the second half of 2025 due to the elimination of the coverage gap. BMY is depending on newer drugs like Opdualag, Reblozyl and Breyanzi to stabilize its revenue base as its legacy drugs face generic competition. Thalassemia drug Reblozyl, for which BMY has a collaboration agreement with Merck MRK, has put up a stellar performance since its approval, driven by strong growth in the first and second-line treatment of myelodysplastic syndromes (MDS)- associated anemia. The drug should contribute significantly in the coming decade. Revenue growth has been solid for the leading immuno-oncology drug Opdivo, driven primarily by volume growth. The FDA had earlier granted approval to Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use. The European Commission (EC) recently approved the perioperative regimen of neoadjuvant Opdivo and chemotherapy followed by surgery and adjuvant Opdivo for the treatment of resectable non-small cell lung cancer at high risk of recurrence in adult patients whose tumors have PD-L1 expression ≥1%. The company recently received EC approval for the subcutaneous formulation of Opdivo across multiple solid tumor indications. Sales of CAR T cell therapy, Breyanzi, also continue to gain traction from the approval of new indications and expanded manufacturing capacity. Camzyos has also witnessed strong global uptake in obstructive HCM. BMY earlier won FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia, in adults, under the brand name Cobenfy. The approval broadens BMY's portfolio. Cobenfy represents the first new pharmacological approach to treating schizophrenia in decades. This drug is expected to contribute meaningfully to BMY's top line in the coming years. BMY has experienced a few pipeline setbacks in recent months, which negatively impacted its share price. The late-stage ODYSSEY-HCM study evaluating cardiovascular drug Camzyos for the treatment of adult patients with symptomatic New York Heart Association ('NYHA') class II-III non-obstructive hypertrophic cardiomyopathy did not meet its dual primary endpoints. The top-line results from the phase III ARISE study on schizophrenia drug Cobenfy were also disappointing. The study is evaluating the efficacy and safety of the drug as an adjunctive treatment to atypical antipsychotics in adults with inadequately controlled symptoms of schizophrenia. Treatment with Cobenfy as an adjunctive demonstrated a 2.0-point reduction in the Positive and Negative Syndrome Scale total score compared to placebo with an atypical antipsychotic at week six. However, this data did not reach the threshold for statistical significance for the primary endpoint. While BMY's strategy of acquiring companies with promising drugs/candidates is encouraging, it has resulted in colossal debt to finance these acquisitions. As of March 31, 2025, the company had cash and equivalents of $12.1 billion and a long-term debt of $46.1 billion. Going by the price/earnings ratio, BMY's shares currently trade at 7.16x forward earnings, lower than its mean of 8.56x and the large-cap pharma industry's Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 EPS has moved up to $6.89 from $6.75 in the 60 days, while that for 2026 has remained unchanged at $6.08. Image Source: Zacks Investment Research Large biotech companies are generally considered safe havens for investors interested in this sector. Drugs like Reblozyl, Breyanzi, Camzyos and Opdualag have enabled BMY to stabilize its revenue base amid generic competition for its legacy drugs. Approval of additional new drugs and label expansion of top drugs should further diversify its pipeline. However, generic competition is a major headwind for the company and the new drugs will take some time to offset this steep decline. The recent pipeline setbacks weigh on the stock. We recommend prospective investors to wait and watch for the time being. For investors already owning the stock, staying invested would be a prudent move. The company's attractive dividend yield (5.29%) is a strong reason for existing investors to stay invested. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
15-05-2025
- Business
- Yahoo
What Most-Favored-Nation Status Could Mean for Pharmaceutical Stocks
The Trump Administration recently signed an executive order that calls for most-favored-nation prices on brand-name drugs. Branded drug prices in the U.S. can be several times higher than prices negotiated abroad. This isn't the first time a Trump Administration attempted to implement a most-favored-nation drug pricing program. 10 stocks we like better than Bristol Myers Squibb › Recently, the Trump Administration signed an executive order to lower the prices Americans pay for prescription drugs. According to the administration, the U.S. funds roughly 75% of global pharmaceutical profits despite having less than 5% of the population. It's no secret that brand-name drugs in the U.S. are much more expensive than they are abroad. In the spirit of fairness, the new executive order directs the Secretary of Health and Human Services (HHS) to communicate price targets to drugmakers. If drugmakers don't accept new price targets, as expected, HHS is to propose rules that impose most-favored-nation pricing. Here's a look at how this could hammer profits for Eli Lilly, Pfizer, Bristol Myers Squibb (NYSE: BMY), and their peers. In 2013, Bristol Myers Squibb began selling an oral blood thinner called Eliquis in both the U.S. and Japan. It's been a huge success in both markets because previous blood-clot preventers generally required intravenous administration and constant observation by hospital staff. In Japan, Eliquis launched at an annual cost of around $1,000, or around one-third the cost in the U.S. market when it launched. Thanks to competing oral blood thinners that have since become available, the annual cost of Eliquis in 2024 declined to $900 annually in Japan. Last year, in the U.S. market, the same Eliquis tablets cost patients $7,100 annually. The price is much lower in Japan because its government is the only entity there to negotiate with. Unlike America's private insurers, government payers can't pass higher drug prices on to consumers by raising their monthly premiums. For these reasons, government payers insist on hard bargains that drugmakers must accept. In the U.S., Medicare and Medicaid have been prohibited from negotiating directly with drug manufacturers since the 1990s. The Inflation Reduction Act of 2022 required HHS to negotiate with drugmakers for certain drugs covered under Medicare Part D. This is the first time in decades that government payers in the U.S. have been able to negotiate drug prices. Eliquis is one of 10 Part D drugs that Medicare negotiated down, according to the terms of the Inflation Reduction Act. In 2026, its cost will drop to $2,772 annually. While this is a big step in the right direction, it's still more than triple what folks in Japan will pay. Rather than boost the U.S. government's ability to negotiate directly with drugmakers, the Trump Administration wants to impose most-favored-nation pricing, which essentially means that when foreign governments do a better job negotiating drug prices than, say, UnitedHealth Group, all the American insurance companies, Medicare, and Medicaid will get the same deal. If most-favored-nation pricing sounds familiar, it's because the first Trump Administration already tried it. It was immediately challenged in court, and injunctions prevented its implementation. Legal judgements blocked the most-favored-nation program because the government hadn't followed proper administrative procedures in its implementation. Unfortunately for cash-strapped patients, the new administration hasn't explained how its new attempt to impose most-favored-nation pricing is any different. Given the previous failure, investors can reasonably expect business as usual in America's lucrative pharmaceutical market. The latest drug-price reduction proposal from the White House isn't a reason to sell your pharma stocks. Sadly, now isn't a great time to start positions in any drugmaker, either. On April 1, HHS fired over 3,500 Food and Drug Administration (FDA) employees. Already, the agency has missed deadlines regarding several new drug applications. Drug patents are relatively short-lived, so big pharma companies must constantly launch new products to overcome inevitable losses to generic competition. If drugmakers find it extra challenging to push new treatments across the FDA's finish line, it could become impossible for Bristol Myers Squibb and its peers to continue growing. It's probably best to hold off on investing in this industry until investors are sure a smaller FDA can keep up. Before you buy stock in Bristol Myers Squibb, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bristol Myers Squibb 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 $613,951!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $796,353!* Now, it's worth noting Stock Advisor's total average return is 948% — a market-crushing outperformance compared to 170% 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 Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bristol Myers Squibb and Pfizer. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy. What Most-Favored-Nation Status Could Mean for Pharmaceutical Stocks was originally published by The Motley Fool 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
12-05-2025
- Health
- Yahoo
Explainer-What has Trump said about cutting drug prices?
By Maggie Fick (Reuters) -U.S. President Donald Trump signed a broad executive order on Monday directing drugmakers to lower the prices of their prescription drugs to align with what other countries pay. White House officials said the government will give drugmakers price targets in the next month, and will take further action within six months if the companies do not make "significant progress" toward the goal of lower prices. Here is what you need to know: WHAT IS TRUMP'S STANCE ON PRESCRIPTION DRUG PRICES? Trump has sharply criticised the pharmaceutical industry for years over the price of medicines in the United States. He has also chided other wealthy nations for "freeloading" on U.S. pharmaceutical innovation. During his first term, in 2017, he accused the industry of "getting away with murder" in the prices they charge the government for prescription drugs. Trump's proposed international reference pricing program was blocked by a court in 2020. During his 2024 presidential campaign, Trump said Americans were being overcharged for medicines compared to other nations and pledged to take action. On Monday, he said he wants to "equalize" prices with other countries by implementing tariffs. ARE U.S. DRUG PRICES MORE EXPENSIVE? Yes. The U.S. pays the most for prescription medicines in the world, often nearly three times that of other developed nations. Top-selling blood thinner Eliquis from Bristol Myers Squibb and Pfizer carries a U.S. list price of $606 for a month's supply. The previous administration of Democratic President Joe Biden negotiated that down to $295 for Medicare, which goes into effect in 2026, but the drug costs $114 in Sweden and just $20 in Japan. WHAT IS TRUMP GOING TO DO ABOUT IT? Since taking office in January, Trump has reiterated that he wants to end this inequity. On Sunday, he announced on Truth Social that he would sign an executive order to pursue "most favoured nation" pricing. Also known as international reference pricing, it seeks to narrow the gap between the U.S. and foreign drug prices. Reuters reported in April such a policy was under consideration. The executive order on Monday differed from what drugmakers had been expecting. Lobbyist sources had told Reuters ahead of the order's signing on Monday that they expected the "most favored nation" pricing to apply to drugs for Medicare patients. But the order appeared to apply to all medicines. Separately, Trump has also pushed for drugmakers to boost U.S. manufacturing. His administration is conducting an investigation into imports of pharmaceuticals in a bid to levy tariffs on grounds that reliance on foreign production of medicine threatens national security. HOW DOES THIS DIFFER FROM PREVIOUS PRICE REDUCTION EFFORTS? Biden's Inflation Reduction Act allows the government to negotiate the price of its most expensive drugs within Medicare. The prices for the first 10 prescription drugs it negotiated were still on average more than double, and in some cases five times, what drugmakers had agreed to in four other high-income countries, Reuters previously reported. WHAT IS THE PHARMA INDUSTRY'S RESPONSE? The industry is strongly opposed to the prospect of dramatically lower drug prices in the United States, the world's largest pharmaceuticals market. Two industry sources told Reuters last month that any such policy was more concerning to the industry than other potential government moves such as tariffs on imported medicines. The main U.S. lobby group for drugmakers, the Pharmaceutical Research and Manufacturers of America, known as PhRMA, said, "to lower costs for Americans, we need to address the real reasons U.S. prices are higher: foreign countries not paying their fair share and middlemen driving up prices for U.S. patients." "Most favored nation is a deeply flawed proposal that would devastate our nation's small- and mid-size biotech companies," said John Crowley, CEO of BIO, the main U.S. trade group for biotechnology companies, in a statement. WHAT ARE THE CHALLENGES IN CARRYING OUT THE ORDER? Experts warn that referencing prices from other countries is complex, as many drugs sold in the U.S. are not available abroad, and some nations do not publish what they pay for drugs or take years to negotiate prices. The U.S. does not buy drugs directly for a national health system, as countries such as England and Germany do, instead relying on the private sector to manage drug price negotiations for both government and private health plans. Analysts said implementing the broad order would be difficult. The executive order is also likely to face legal challenges, particularly for exceeding limits set by U.S. law, including on imports of drugs from abroad, legal experts said.
Newsweek
12-05-2025
- Health
- Newsweek
Bernie Sanders Issues Warning About Trump's Drug Pricing Executive Order
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Senator Bernie Sanders issued a warning about President Donald Trump's latest executive order aimed at lowering drug prices. Newsweek reached out to the White House for comment via email. Why It Matters Americans often pay more for prescription drugs than consumers in other countries, which has fueled calls for lawmakers to pass legislation that would allow for the federal government to negotiate lower prices. Trump and others have argued it's unfair that Americans would pay higher prices for the same drugs, but critics have argued this will stifle innovation at pharmaceutical companies. President Donald Trump speaks during a press conference in the Roosevelt Room of the White House on May 12, 2025, in Washington, D.C. President Donald Trump speaks during a press conference in the Roosevelt Room of the White House on May 12, 2025, in Washington, To Know Sanders, who has regularly pushed for Congress to take action on lower drug prices, reacted to the executive order in a statement released Monday. Sanders is a Vermont independent who caucuses with Democrats and is one of the most progressive senators. He warned he does not believe courts will allow the order to stand, encouraging Trump to instead support a bill that would lower drug prices for Americans. Several of Trump's executive orders have faced legal challenges over his authority since his return to office, holding up much of his agenda in the courts. He added that the issue isn't that drug prices are too low in Europe and Canada, but rather the "extraordinarily greedy pharmaceutical industry." "As Trump well knows, his executive order will be thrown out by the courts," he wrote. "If Trump is serious about making real change rather than just issuing a press release, he will support legislation I will soon be introducing to make sure we pay no more for prescription drugs than people in other major countries." Data from Peterson-Kaiser Family Foundation revealed the differing costs of five popular prescription drugs—Eliquis, Jardiance, Entresto, Januvia and Ozempic—between the U.S., U.K., Canada, France and Japan. The data shows U.S. costs being significantly higher than the other countries for the same drugs. In January, Trump signed a separate executive order rescinding a Biden-era policy aimed at lowering prescription drug prices. He also signed an order last month ordering the Department of Health and Human Services (HHS) to take new steps to lower drug costs through market forces. What People Are Saying DHS Secretary Robert F. Kennedy Jr. wrote to X: "Americans pay three times more for prescription drugs than patients in other wealthy countries. That ends now. Today, President Trump signed an Executive Order to demand Most-Favored-Nation pricing — no more gouging Americans to subsidize foreign governments." Justin Amash, a former member of Congress from Michigan who served as a Republican and Libertarian, wrote to X: "Tl;dr: Trump supports economically foolish price controls for prescription drugs and pharmaceuticals and will sign an executive order to sidestep Congress and the Veteran Democratic strategist David Axelrod wrote to X: "Trump exec orders can be as meaningful as a Trump University degree. But if he actually delivers on what Biden started and dramatically lowers U.S. Rx costs for consumers --without limiting access to lifesaving drugs--I will be the first to applaud." What Happens Next The executive order gives drug companies 30 days to lower prices. If companies do not comply, the order would allow the HHS secretary to propose a "rulemaking plan to impose most-favored-nation pricing."
