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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."
Yahoo
29-04-2025
- Business
- Yahoo
Novartis Beats on Q1 Earnings and Sales, Raises Guidance, Stock Up
Swiss pharma giant Novartis AG NVS reported better-than-expected results for the first quarter of 2025 and upped its annual guidance. Core earnings (excluding one-time charges) of $2.28 per share easily beat the Zacks Consensus Estimate of $2.12 and were up from $1.80 reported a year ago. The year-over-year improvement was driven by strong growth in sales. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Revenues of $13.23 billion climbed 12% from the year-ago reported figure. On a constant currency basis, sales increased 15%, driven by the momentum in Entresto, Kesimpta, Kisqali, Cosentyx, Leqvio and Scemblix. The top line comfortably beat the Zacks Consensus Estimate of $12.9 billion. Shares are up in pre-market trading in response to the strong quarterly results and increased guidance. Shares of Novartis have gained 18.4% year to date compared with the industry's growth of 1.6%. Image Source: Zacks Investment Research All growth rates mentioned below are on a year-over-year basis and at constant exchange rates. With the successful spin-off of the Sandoz business in 2023, Novartis now concentrates on four core therapeutic areas — cardiovascular-renal-metabolic, immunology, neuroscience and oncology. Cardiovascular drug Entresto's sales rose 22% from the year-ago level to $2.26 billion. The increase was driven by robust, demand-led growth globally, including China and Japan, with increased penetration in hypertension. Entresto's sales comfortably beat the Zacks Consensus Estimate of $2.25 billion and our model estimate of $2.2 billion. Cosentyx's sales (psoriasis, spondylitis and arthritis) increased 18% to $1.53 billion, which missed the Zacks Consensus Estimate of $1.57 billion and our model estimate of $1.6 billion. The year-over-year improvement was driven by recent launches, including the hidradenitis suppurativa indication (HS) and the intravenous formulation (IV) in the United States, and volume growth in core indications. Kisqali (breast cancer) maintained its stellar performance, with sales surging 56% to $956 million. Sales grew strongly across all regions, driven by exemplary growth in the United States with strong momentum from the recently launched early breast cancer (eBC) indication as well as continued share gains in the metastatic breast cancer indication. Kisqali sales beat both the Zacks Consensus Estimate and our model estimate of $936 million. Kesimpta (multiple sclerosis) sales totaled $899 million, which rose 43% on increased demand. The figure beat the Zacks Consensus Estimate of $872 million and our model estimate of $875 million. Strong performances by Tafinlar + Mekinist (up 19% to $552 million) and Jakavi (up 7% to $492 million) also boosted the top line. Promacta sales totaled $546 million, up 8%. Xolair (asthma and allergies) sales grew 19% year over year to $456 million, driven by the chronic spontaneous urticaria indication, with a strong contribution from emerging growth markets. Novartis has a collaboration agreement with Roche RHHBY for Xolair. Novartis and Roche co-promote Xolair in the United States. Ilaris sales amounted to $419 million, which increased 20% year over year, driven by growth in all regions led by the United States and Europe. Tasigna sales declined 2% to $377 million due to lower demand and increasing competition. Pluvicto (prostate cancer) raked in sales of $371 million, up 21% on solid growth in the United States and Europe in the metastatic castration-resistant prostate cancer (mCRPC) post-taxane setting. The FDA's approval for earlier use of the drug before chemotherapy will approximately triple the eligible patient population. Sales missed the Zacks Consensus Estimate of $381 million and our estimate of $385.7 million. Gene-therapy Zolgensma (spinal muscular atrophy) sales of $327 million were up 13%. Cholesterol drug Leqvio sales soared 72% to $257 million on steady growth in demand. The figure beat the Zacks Consensus Estimate of $243 million and our estimate of $244 million. Scemblix sales surged 76% to $238 million, driven by continued growth in chronic myeloid leukemia indication and strong momentum from the recently launched early-line indication in the United States. Luthathera (cancer) sales totaled $193 million, up 15%. Sales grew mainly in the United States, Europe and Japan due to increased demand and earlier line adoption, particularly in the United States and Japan. Sales of Lucentis plunged 38% to $189 million due to generic competition. Fabhalta generated sales of $81 million, driven by continued launch execution across all markets in PNH and the recent launch in IgAN in the United States. Net sales are now expected to grow in high single digits (previous guidance: mid to high single digits). Core operating income is now expected to grow in low double-digits (previous guidance: high single to low double digits). The FDA expanded Pluvicto's label to include patients with PSMA-positive mCRPC who have been treated with an androgen receptor pathway inhibitor and are considered appropriate to delay chemotherapy, approximately tripling the eligible patient population. The regulatory body also granted accelerated approval for Vanrafia (atrasentan) to reduce proteinuria in adults with primary immunoglobulin A nephropathy (IgAN) at risk of rapid disease progression. Fabhalta was approved by the FDA, European Commission and China's regulatory body for adult patients with C3 glomerulopathy (C3G), making it the first and only treatment approved for this condition in all three markets. Novartis' performance in the first quarter was impressive, with both earnings and sales beating estimates. Consequently, management raised its guidance for 2025, driven by strong growth of priority drugs, such as Leqvio, Kisqali and Kesimpta, during the first quarter. Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote Novartis' performance has been pretty good in the past few quarters, buoyed by the solid performance of its priority brands. An increase in guidance implies that this momentum will be sustained in the upcoming quarters. The pipeline progress is also encouraging. The label expansion of Pluvicto and Fabhalta should further fuel sales of these drugs. Approval of new drugs and label expansion of existing drugs should enable the company to offset the adverse impacts from expected generic competition for Tasigna, Promacta and Entresto (mid-2025). While organic growth continues to drive business, NVS is focused on strategic bolt-in acquisitions to strengthen its pipeline. The company acquired Anthos Therapeutics, a clinical-stage biopharmaceutical company, to broaden its cardiovascular portfolio. The acquisition added abelacimab, a potential first-in-class monoclonal antibody targeting the FXI inhibition pathway in development for the prevention of stroke and systemic embolism in patients with atrial fibrillation. Earlier, Novartis entered into a global license and collaboration agreement with PTC Therapeutics for the latter's Huntington's disease candidate to strengthen NVS' neuroscience pipeline. Meanwhile, NVS recently announced a planned $23 billion investment over five years in U.S.-based infrastructure as it intends to manufacture all key drugs in the country. NVS' decision to expand its current manufacturing, research and technology presence across the country follows President Trump's announcement of tariffs on pharmaceutical imports. Novartis currently carries a Zacks Rank #3 (Hold). A couple of better-ranked large-cap pharmaceutical stocks are Bayer BAYRY and Pfizer PFE, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. In the past 60 days, estimates for Bayer's 2025 earnings per share (EPS) have increased to $1.19 from $1.14. During the same time, EPS estimate for 2026 has increased to $1.28 from $1.123. Year to date, shares of Bayer have surged 34.6%. Estimates for Pfizer's 2025 EPS have risen from $2.96 to $2.99 over the past 60 days. Estimates for 2026 EPS have risen from $2.99 to $3.02 over the same timeframe. Pfizer beat on earnings in each of the trailing four quarters, delivering an average surprise of 4.16%. 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 Novartis AG (NVS) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
29-04-2025
- Business
- Yahoo
Novartis posts better-than-expected sales driven by medicine demand
Swiss drug firm Novartis reported on Tuesday that it had generated a better-than-expected profit in the first three months of the year. Net sales were up 15% on a constant currency basis to $13.2 billion, compared to the $13.12bn estimated by analysts. Core operating income came to $5.6bn, up 23% in the last quarter, while core net income increased 22% to $4.5bn. Related European markets rise as Trump prepares tariff reduction on auto parts On the strong results, the firm increased its outlook for the year, predicting that sales will rise by high-single digits and core operating income will grow by low double-digits. In January, the firm gave a wider range. Sales in the last quarter were driven by medicines related to conditions including arthritis, breast cancer, multiple sclerosis, and heart-failure. Related HSBC plans multibillion share buyback as profits slump in first quarter Over the quarter, the company's breast cancer drug Kisqali saw revenues rise by 56% to $956 million. Heart-failure drug Entresto saw a 22% jump to around $2.3bn, while arthritis medicine Cosentyx saw revenues rise 18% to around $1.5bn. Vas Narasimhan, CEO of Novartis, also highlighted new approvals in the earnings report. "We also achieved significant innovation milestones in the quarter, with new approvals for Pluvicto in the pre-taxane setting, Vanrafia for IgA nephropathy, and Fabhalta for C3G," Narasimhan said. He added: "We remain focused on advancing our leading pipeline and confident in achieving our growth outlook.' Novartis is closely watching decisions from the White House to determine how pharmaceutical products coming into the US will be taxed. The Trump administration opened a 21-day national security probe into the industry earlier this month. Pharmaceuticals are currently exempt from a so-called "reciprocal" tariff rate, although Trump has suggested imposing a 25% levy on medicines. Novartis announced a few weeks ago that it would invest $23bn in the US over the next five years to build and expand 10 facilities. The firm aims to domestically produce all medicines for US patients.
Yahoo
29-04-2025
- Business
- Yahoo
Novartis to Report Q1 Earnings: Will Key Drugs Maintain Momentum?
Novartis AG NVS, a Swiss pharma giant, is scheduled to report first-quarter 2025 results on April 29, 2025. The Zacks Consensus Estimate for revenues is pegged at $12.86 billion, while the same for earnings is pinned at $2.12 per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Novartis has an excellent track record. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.25%. In the previously reported quarter, the company's earnings beat estimates by 9.39%. Our proven model predicts an earnings beat for Novartis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you will see below. Earnings ESP: Earnings ESP for NVS is +1.26% as the Zacks Consensus Estimate is pegged at $2.12 per share, while the Most Accurate Estimate is pinned at $2.15. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #3. Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote Novartis operates as a single global operating segment after the successful spin-off of the Sandoz business in October 2023. NVS now concentrates on four core therapeutic areas — cardiovascular, renal-metabolic, immunology, neuroscience and oncology. NVS' first-quarter sales are likely to have been boosted by strong growth in Kisqali, Kesimpta, Pluvicto, Leqvio, Scemblix and Fabhalta sales. Cardiovascular drug Entresto sales witnessed a solid year-over-year surge in the fourth quarter of 2024, driven by robust demand-led growth, with increased penetration in the United States and Europe following guideline-directed medical therapy in heart failure, as well as in China with increased penetration in hypertension. The momentum is likely to have continued in the first quarter. The Zacks Consensus Estimate and our model estimate for Entresto's first-quarter sales are pegged at $2.24 billion and $2.2 billion, respectively. Cosentyx's sales have also likely surged, driven by recent launches, including the hidradenitis suppurativa indication (HS) and the intravenous formulation (IV) in the United States, and volume growth in core indications in other geographies. The Zacks Consensus Estimate and our model estimate for Cosentyx's first-quarter sales are pegged at $1.57 billion and $1.62 billion, respectively. Increased demand has likely fueled multiple sclerosis drug Kesimpta's sales in the to-be-reported quarter. The Zacks Consensus Estimate and our model estimate for Kesimpta's first-quarter sales are pegged at $872 million and $874.6 million, respectively. The stellar performance of the breast cancer drug Kisqali has likely fueled the top line in the first quarter as well. Strong momentum from the recently launched early breast cancer (eBC) indication in the United States has likely propelled sales further. Overall demand for the drug is being driven by increasing recognition of its overall survival benefit in HR+/HER2- metastatic breast cancer (mBC) as well as Category 1 NCCN Guidelines recommendation in both mBC and eBC. Both the Zacks Consensus Estimate and our model estimate for Kisqali's first-quarter sales are pegged at $936 million. Robust sales growth, driven by strong demand in the United States and Europe, has likely fueled Pluvicto's sales in the first quarter. Novartis had earlier received approval for Pluvicto's expanded manufacturing capacity at Millburn, NJ. With an unconstrained supply of Pluvicto at present, the company is now focused on initiating new patients. The Zacks Consensus Estimate and our model estimate for Pluvicto's first-quarter sales are pegged at $381 million and $385.7 million, respectively. Strong growth in cholesterol-lowering drug Leqvio, too, has likely fueled sales in the first quarter. The Zacks Consensus Estimate and our model estimate for Leqvio's first-quarter sales are pegged at $243 million and $244 million, respectively. Other growth drivers, such as Jakavi and Tafinlar + Mekinist, have likely witnessed an increase in demand. Demand for Scemblix for the indication of chronic myeloid leukemia, with continued momentum in the third-line setting and early progress in the frontline setting, boosted sales of the drug in the previous quarter, and the trend must have continued in the first quarter as well. However, generic competition for Tasigna has likely affected sales, as in the previous quarters. In February 2025, Novartis entered into an agreement to acquire Boston-based, privately held, clinical-stage biopharmaceutical company Anthos Therapeutics, Inc., for an upfront payment of $925 million. The acquisition will add late-stage pipeline candidate, abelacimab, to NVS' pipeline. The candidate is in development for the prevention of stroke and systemic embolism in patients with atrial fibrillation. Shares of Novartis have gained 16.6% year to date against the industry's 2.4% decline. Image Source: Zacks Investment Research Here are some other biotech stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this reporting cycle. Vertex Pharmaceuticals VRTX has an Earnings ESP of +1.49% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here. VRTX beat on earnings in two of the trailing four quarters and missed in the remaining two, the average surprise being 2.58%. The company will report first-quarter results on May 5, 2025. Gilead Sciences, Inc. GILD has an Earnings ESP of +3.07% and a Zacks Rank of 3 at present. GILD beat on earnings in each of the trailing four quarters, delivering an average surprise of 19.47%. The company is scheduled to report first-quarter results on April 24, 2025. AstraZeneca AZN has an Earnings ESP of +2.73% and a Zacks Rank #3 at present. AZN is scheduled to release first-quarter results on April 29, 2025. AstraZeneca beat on earnings in three of the trailing four quarters and missed in the remaining one, the average surprise being 3.16%. 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 AstraZeneca PLC (AZN) : Free Stock Analysis Report Novartis AG (NVS) : Free Stock Analysis Report Gilead Sciences, Inc. (GILD) : Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
Novartis (NVS) Unleashes $23BN Strategic Investment Masterstroke
European drugmaker Novartis (NVS), best known for blockbuster drugs like Entresto, Cosentyx, and Kesimpta, just announced a major U.S. investment. The $200 billion pharma company intends to invest $23 billion in U.S.-based manufacturing to conduct research and development and produce all its major drugs stateside. Judging by Novartis' stock performance in the days following the news, the market signaled its approval. Donald Trump is likely to be delighted, too. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. Novartis' latest move is a reactive and proactive response to an evolving supply chain that increasingly favors manufacturing in host countries. Novartis' recent financial performance, which allows such investments, and its prescient adaptations make me bullish on its stock. Novartis' strategic shift comes amid President Donald Trump's threats to add tariffs to pharmaceutical imports. A significant portion of Novartis' revenues are generated in the U.S., so this should offset many costs if tariffs are long-lasting. This is part of a more significant trend in the industry. Other large pharma companies, like Eli Lilly (LLY) and Johnson & Johnson (JNJ), also plan to increase U.S. investments over the next few years. Novartis' investments are particularly noteworthy because the company is not based in the U.S. but has some presence. Moreover, its intention to 'produce 100% of its key medicines end-to-end in the U.S.' is a major supply chain strategy shift with more significant implications for European pharmaceutical manufacturing. Could others follow suit? In an interview with Reuters, Novartis' CEO, Vas Narasimhan, stated that although tariffs were a factor in this decision, they weren't a 'driving factor.' Instead, it makes sense for Novartis to invest more within the confines of its largest market. Novartis' financial performance is characterized by impressive revenue growth and robust cash generation. In 2024, net sales were up 11% year-over-year. Free cash flow was $16.253 billion, representing the cash Novartis has generated after subtracting the cash flows used to maintain operations and capital assets. So, for each $1 Novartis earns, over $0.30 of that goes straight to the bottom line. Novartis' cash generation also allows for generous dividends. Its most recent dividend yield was 3.05%, which is almost twice the sector average. As has been the case for the last few quarters, Novartis' revenue growth was driven by strong performances from blockbuster drugs like Entresto ($7.9 billion in 2024), Cosentyx ($6.1 billion), and Kesimpta ($3.2 billion). Among the group, Kesimpta saw the most growth, with revenues growing nearly 50% year-over-year. Due to its convenient administration, Kesimpta is growing in popularity in the large multiple sclerosis treatment market. Unfortunately for Novartis, Entresto will lose U.S. market exclusivity in mid-2025. That means generics will flood the market, leaving Novartis little market share and pricing power. This will be a major loss. However, Novartis has had years to plan. In addition to spending billions each year in support of its internal R&D pipeline, Novartis has been an active acquirer. It has been particularly active in the radiopharmacy space after acquiring Endocyte for $2.1 billion in 2018. This particular deal featured Pluvicto, a radioligand therapy for prostate cancer that was later approved in 2022. Pluvicto generated $351 million in Q4 alone. Notably, a key part of Novartis' U.S. expansion plans includes two new radioligand therapy manufacturing plants. Looking ahead, Novartis projects a 5% compound annual growth rate until 2029 and believes its core margin will exceed 40% by 2027. On Wall Street, NVS stock has a Hold consensus rating based on zero Buy, three Hold, and zero Sell ratings in the past three months. NVS's average price target of $111 implies ~3% upside potential over the next twelve months. In February, J.P. Morgan analyst Richard Vosser maintained a Hold rating on NVS after acquiring Anthos Therapeutics. The analyst was a bit cautious about the market opportunity for abelacimab, a monoclonal antibody designed to prevent blood clots, given its limited target population and future competition. Vosser pointed out the inherent risks of acquiring clinical-stage biotechs: drugs don't always succeed, and the loss of investment can be total. Novartis' move to boost its presence in the U.S. is a sound business decision, especially in light of tariff fears. The company is setting the tone for European pharma companies operating in the U.S. market. By manufacturing products in the U.S., its supply chain is becoming more resilient against future global disruptions. The timing of the move could also be a political masterstroke, playing into the America First protectionist bandwagon led by Donald Trump. However, this massive capital expenditure will occur during Entresto's loss of exclusivity. Although this could contribute to some earnings difficulties in the short term, successful execution could create a new foundation for growth in the long term. Moreover, Novartis appears to have the growth drivers in place, like Kesimpta, to soften Entresto's impending decline. Altogether, Novartis is doing what is necessary to maintain a leadership position in biopharma, and this merits cautious optimism until proven otherwise. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
