Latest news with #pharmaceuticalindustry
Globe and Mail
21-07-2025
- Business
- Globe and Mail
A Once-in-a-Lifetime Opportunity: This Blue Chip Healthcare Stock Down 50% Could Double Your Money
Key Points Novo Nordisk's recent financial results and clinical progress haven't impressed Wall Street. However, the company can right the ship through innovation in its core specialty and elsewhere. The stock looks attractively valued at current levels and could beat the market over the next six years. 10 stocks we like better than Novo Nordisk › Investors looking to strike while the iron is hot can buy beaten-down stocks that appear to have excellent chances of bouncing back. And that describes shares of Novo Nordisk (NYSE: NVO) very well. The pharmaceutical leader is down by 52% over the trailing-12-month period as of July 17, but initiating a position now could double investors' money in six years or so. Here's why this stock is a screaming buy at its current levels. Novo Nordisk's recent challenges Novo Nordisk focuses on developing diabetes treatments, an area where it has been a leader for many decades. As of February, it held a 33.3% market share for diabetes drugs. This sort of long-term dominance doesn't happen by accident. The company has consistently attracted top talent in the pharmaceutical industry, which, combined with its extensive experience in diabetes, has enabled it to break new ground repeatedly. Why, then, have the company's shares dropped by 52% over the past year? Because Novo Nordisk failed to impress the market with its financial results and clinical progress. The developments that led to the drugmaker's share plunge would have been excellent for almost any other pharmaceutical company, but investors held it to a higher standard given its rich valuation metrics. For instance, the company reported phase 3 results for CagriSema, an investigational weight management medicine, that proved it's more effective than its famous semaglutide (Wegovy), reducing patients' weight by an average of 22.7% in 68 weeks. However, management was looking for a 25% figure in the study. Very few anti-obesity therapies in development have achieved results comparable to CagriSema, but that was not enough to please investors. The good news: Novo Nordisk's pipeline in diabetes and the fast-growing area of weight management remains robust. The company has several promising candidates in development, including Amycretin, for which it recently initiated late-stage studies. And management has significantly expanded its pipeline through acquisitions. Even with mounting competition, the company should continue to be one of the leaders in its core areas of focus. It's been developing medicines in other fields as well, including various rare diseases (such as the blood disorders beta thalassemia and sickle cell disease), neurological disorders (including Alzheimer's and Parkinson's), and others. Making progress in diabetes and obesity while diversifying its lineup should work wonders for Novo Nordisk down the line. The price is right Net sales in the first quarter grew by 19% year over year to 78.1 billion Danish krone ($12.1 billion). The company's net profit was up 14% year over year to $4.5 billion. These would be excellent results for most similarly sized drugmakers, yet Wall Street remains unimpressed. In my view, that has created a wonderful opportunity to buy shares on the dip. The company's forward price-to-earnings ratio (P/E) has declined significantly over the past year and now stands at 16.9, barely above the healthcare industry 's 16.2 and lower than the S&P 500 's 22.3. But given Novo Nordisk's still excellent position in its core markets of diabetes and obesity treatments -- the latter of which should grow rapidly in the coming years -- and the company's better-than-average revenue and earnings growth, its stock is arguably worth a steeper premium. In fact, the forward P/E is about as low as it has been in over two years. NVO PE Ratio (Forward) data by YCharts. At current levels, shares look like a steal. Here is how things could evolve for the company in the next six years. First, it could make significant clinical and regulatory progress and launch at least one -- if not several -- blockbuster weight loss or diabetes medications. Second, the company should continue recording strong results, with revenue and earnings moving in the right direction. Lastly, it looks likely to continue increasing its dividend, which it has done significantly over the past half-decade. The stock needs a compound annual growth rate of 12.2% to double in the next six years. Novo Nordisk can pull it off, especially for those who opt to reinvest the dividend. Should you invest $1,000 in Novo Nordisk right now? Before you buy stock in Novo Nordisk, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Telegraph
14-07-2025
- Business
- Telegraph
Forget Ozempic and Mounjaro, this firm is on the edge of a weight-loss breakthrough
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. This year, drug companies have been living under a cloud of uncertainty created by the Trump administration. Threats of tough action on drug pricing and tariffs have fuelled nervousness, while recently agreed cuts to Medicaid in the 'big beautiful bill' are also causing concern. But medicine will always be a priority for the sick, and innovations from the pharmaceutical industry are vital for creating healthier societies as populations age. Biotech giant Amgen looks particularly well placed to weather current uncertainties and prosper from the long-term prospects of its industry. A first-class dividend record, which includes increased payouts in each of the last 13 years, is testament to the resilience of the business. Key to this is that unlike many rivals, no one product dominates Amgen's $33.4bn (£24.7bn) of sales. In fact, the company boasts 14 blockbuster drugs with over $1bn sales each. This product diversity means that while its biggest selling treatment – an osteoporosis drug called Prolia that generated $4.4bn revenues last year – is expected to see rapid declines following its loss of patent protection in February, the company's top line is forecast to grow. The drugs Amgen sells cover a number of different areas, including cancer, cardiovascular disease, osteoporosis and rare diseases. Recent trading has been strong, too, with 21 drugs reporting record sales last year and 14 reporting double-digit growth. Amgen is experiencing particularly strong growth from cholesterol drug Repatha, which is forecast to net $2.8bn this year, and osteoporosis treatment Evenity, both of which target underserved patient groups. Sales are also soaring for cancer drug Blincyto. In terms of the problems posed by Trump, Amgen looks well placed. Tariffs should not be a major issue given it mostly manufactures in the US, where it is currently increasing capacity. Having just opened a new facility in Ohio, it plans to plough another $900m into growth in the state and a further $1bn is being spent building in North Carolina. Much of this spending is aimed at increasing production of biosimilars, which are lower cost versions of existing drugs that have lost patent protection. This focus should help position the group to deal with the US government's drug-pricing agenda because biosimilars help lower healthcare costs. Amgen has said Medicaid cuts could have a material adverse impact on some drug sales, however, the cuts passed in the big beautiful bill last week were scaled back in order to get it approved. Reassurance about prospects can also be taken from the number of top fund managers backing the stock – all among the best-performing 3pc globally according to financial publisher Citywire. A total of 14 of these individuals back the shares. The level of smart-money backing has won Amgen a place in Citywire's Global Elite Companies index, which is home to the 76 very best ideas from among the c.6,000 stocks held across the portfolios of the top managers Citywire tracks. For these backers, the potential of Amgen's drug development is a key part of its attraction. Investors have been particularly excited about a long-lasting obesity drug Amgen has begun late-stage phase III trials for, called MariTide. It produces similar levels of weight-loss as Wegovy and Zepbound, which are multibillion-dollar treatments made by Novo Nordisk and Eli Lilly respectively, but MariTide only needs to be injected once a month or less, compared with weekly for the existing drugs. While the potential is exciting, the market reacted negatively to recent news of high levels of nausea during early use. Amgen reckons it can address this by starting patients on lower doses. Better trial news has recently come from cancer treatments, specifically a stomach cancer drug called Bemarituzumab. Amgen is also looking to extend the uses of some of its existing blockbuster medicines. The company put a record $6bn into research and development last year pursuing new opportunities, which represented more than 18pc of sales and a 25pc increase on 2023. While Amgen's margins have nudged down over recent years, it is nevertheless highly profitable. It reported 46.9pc underlying operating margins last year. Meanwhile, solid earnings per share growth is predicted over the next two years of just over 4pc on an annualised basis. That looks an attractive package with the shares priced at 14 times forecast earnings and yielding 3.4pc, especially once the potential for positive surprises from the busy development pipeline is factored in. British buyers of the shares need to fill out the correct paperwork to minimise withholding taxes and check for any extra dealing costs with brokers. Questor says: buy Ticker: NYSE:AMGN
The Guardian
09-07-2025
- Business
- The Guardian
Concerns over Trump pharma threat; RecipeTin Eats cook speaks after mushroom trial; and a tiny four-legged hero
Good afternoon. Labor is making urgent representations to the White House about Donald Trump's threat to impose 200% tariffs on drug imports to the US, an announcement Jim Chalmers says is 'very concerning' for the Australian economy. The US president said on Wednesday that the punishing new border levies would come with a transition period of about a year, after sustained pressure from the US pharmaceutical industry over price controls on common drugs in countries like Australia. Australia exports about $2.5bn in pharmaceuticals (mainly vaccines and blood products) as well as healthcare products to the US each year – a share of about 40% of medicines exports across the globe annually. 'Our pharmaceuticals industry is much more exposed to the US market, and that's why we're seeking, urgently seeking, some more detail on what's been announced,' Chalmers told ABC radio. 'But I want to make it really clear once again, as we have on a number of occasions before, our Pharmaceutical Benefits Scheme is not something that [we are] willing to trade away.' Musk's AI firm forced to delete posts praising Hitler from Grok chatbot US supreme court clears way for Trump officials to resume mass government firings Gaza aid workers overwhelmed by 'mass casualty incidents' at food distribution sites MethaneSat down: how New Zealand space ambitions fell off the radar What Australia must do to overturn objections for WA rock art to attain UN heritage status 'Punishing workers for getting old': how South Korea's wage system impoverishes the elderly A small pet dog is being hailed as a 'four-legged hero' for helping to save his owner's life after he fell down an eight-metre-deep crevasse on the Fee glacier in the Swiss Alps in Friday. The man was able to radio for help, but rescuers had trouble finding his exact location – until they spotted the shivering dog barking next to the hole its owner had fallen through. Both the hiker and dog were flown to a local hospital. 'It is of course upsetting to learn that one of my recipes – possibly the one I've spent more hours perfecting than any other – something I created to bring joy and happiness, is entangled in a tragic situation.' – Nagi Maehashi The cook behind RecipeTin Eats requested that media 'please stop calling and emailing and texting and DM'ing me about the Erin Patterson case' after the jury in the triple murder trial was told Patterson had used Maehashi's beef wellington recipe – albeit with multiple changes – for the fateful lunch. Planet-heating pollution tripled the death toll in Europe's June heatwave, scientists say, attributing 1,500 of the 2,300 heat-related deaths across 12 major European cities to climate breakdown. Milan was the hardest-hit city in absolute terms, with 317 out of 499 heat deaths attributed to climate breakdown, followed by Paris and Barcelona. London had 273 heat deaths, 171 of which the researchers attributed to human influence on the climate. Sign up to Afternoon Update Our Australian afternoon update breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion 'Friendships of over six years were broken overnight,' Rosa says of the sudden, dramatic dissolution of her book club some months ago. What started as a chance to share notes on the finer points of dramatic literature had become a real-life drama. So why do some book clubs go wrong – and what can be done to prevent it? Today's starter word is: ETA. You have five goes to get the longest word including the starter word. Play Wordiply. Enjoying the Afternoon Update? Then you'll love our Morning Mail newsletter. Sign up here to start the day with a curated breakdown of the key stories you need to know, and complete your daily news roundup. And follow the latest in US politics by signing up for This Week in Trumpland. If you have a story tip or technical issue viewing this newsletter, please reply to this email. If you are a Guardian supporter and need assistance with regards to contributions and/or digital subscriptions, please email
The Guardian
09-07-2025
- Business
- The Guardian
Australian government ‘urgently seeking more detail' after Trump flags 200% tariffs on foreign pharmaceuticals
Labor is making urgent representations to the White House about Donald Trump's threat to impose 200% tariffs on drug imports to the US, an announcement Jim Chalmers says is very concerning for the Australian economy. The US president said on Wednesday that the punishing new border levies would come with a transition period that could last more at least a year, after sustained pressure from the US pharmaceutical industry over price controls on common drugs in countries like Australia. 'We'll be announcing something very soon on pharmaceuticals,' Trump said. 'We're going to give people about a year, year and a half to come in, and after that they're gonna be tariffed if they have to bring the pharmaceuticals into the country at a very high rate, like 200%.' Sign up for Guardian Australia's breaking news email Trump, who this week delayed the lifting of a pause on his so-called 'retaliatory tariffs' against more than 100 countries until 1 August, also announced a plan to hit copper imports into the US with a 50% tariff. Australia's copper exports to the US are worth about $50m annually and make up less than 1% of total sales of the metal. But Australia exports about $2.5bn in pharmaceutical (mainly vaccines and blood products) as well as healthcare products to the US each year – a share of about 40% of medicines exports across the globe annually. This week Guardian Australia reported some of the most influential lobby groups in Washington were pushing the US to retaliate against Australia's treatment of US exporters under the $18bn pharmaceutical benefits scheme, pointing to drug approvals and domestic manufacturing incentives as proof of unfair 'freeloading'. The PBS keeps prices for nearly 1,000 commonly used medicines capped, with supply deals negotiated with drug companies to ensure access to life-saving drugs. The treasurer said the plan to impose tariffs on foreign pharmaceuticals and copper were 'very concerning developments'. 'Our pharmaceuticals industry is much more exposed to the US market, and that's why we're seeking, urgently seeking, some more detail on what's been announced,' Chalmers told ABC radio. 'But I want to make it really clear once again, as we have on a number of occasions before, our pharmaceutical benefits scheme is not something that [we are] willing to trade away.' Lobby groups including the US Chamber of Commerce and the Pharmaceutical Research and Manufacturers of America have told the US trade representative, Jamieson Greer, that the system is discriminatory and 'socialised medicine'. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion Chalmers said growing global trade tensions linked to Trump's unpredictable and expanding tariff regime were a 'substantial concern' to Australia. 'It does pose a risk to the progress that the world has been making in our economies after Covid,' he said. 'We've made it really clear on a number of occasions, these tariffs are bad for Australia. They're bad for the US. They're bad for the global economy. 'These developments, they are sometimes unpredictable. There's been an element of volatility and uncertainty injected into the global economy.' Trump this week sent letters of demand to 14 US trading partners, including Japan and South Korea, warning them of the 1 August deadline. Australia had not received a letter as of Wednesday, though Trump flagged then that additional letters would be sent in the next 'short period of time'. 'As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025,' he said. 'There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 - No extensions will be granted. Thank you for your attention to this matter!' The US commerce secretary, Howard Lutnick, told CNBC he expected the copper tariffs to be put into place as soon as the end of July or sometime in early August.
Telegraph
27-06-2025
- Business
- Telegraph
NHS drug charges row hits deadlock
Ministers have failed to agree a crucial deal on NHS drug charges that was meant to be at the centre of a plan to boost growth. Talks on Friday between the Government and pharmaceutical industry bosses ended without an agreement on how much the NHS is able to claw back in rebates on drugs. Ministers had been hoping to be able to address industry complaints of unfairness prior to the publication a strategy for the sector, expected next week. One senior pharmaceutical executive said: 'If a [NHS clawback] deal is not secured, it's a missed opportunity for the life sciences sector plan and one which blocks the UK's ambition to be a life sciences superpower.' Another said that the UK needed to show it wanted to make the scheme competitive again, adding: 'Without that, all the high statements of ambition or new strategies in the world are not going to make the UK a leading life sciences centre.' The Department of Health launched a review of NHS rebates earlier this year under pressure from Donald Trump and the pharmaceutical industry. Ministers said they would take into account the 'concerns of the US president' that countries are unfairly keeping prices low relative to the high drug costs in the American health system. Under the trade agreement signed between the two nations earlier this year, the Government agreed to 'endeavour to improve the overall environment for pharmaceutical companies operating in the UK'. The failure to secure a deal ahead of the publication of the sector strategy follows months of wrangling. Under the current rebate scheme, known as VPAG, pharmaceutical companies have to hand at least 23pc of their revenue from sales of branded medicines back to the NHS. The scheme cut the drug bill by £3bn last year. However, pharmaceutical bosses have warned the scheme is preventing the launch of cutting-edge medicines in the UK. They have pressed for the UK to cut the rate of rebates into single digits, a level seen elsewhere in Europe. The life sciences strategy is one of several sector plans announced as part of Labour's industrial strategy. Others were published this week. A spokesman for the Government said: 'Economic growth is our number one priority and we're taking decisive action to unlock innovation and drive investment in the UK's world-class pharmaceutical sector. As part of this, we continue to work closely with industry on a rapid review of our voluntary scheme for medicines pricing. 'With our work and investment, we will make sure the next game changers in medicine are developed here in Britain, for the benefit of our health at home and abroad.'
