We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
This week, J&J (JNJ - Free Report) began the third-quarter earnings season for the drug and biotech sector with an earnings and sales beat. Weak sales of COVID-related medicines and tests hurt Roche’s (RHHBY - Free Report) third-quarter sales. Eli Lilly (LLY - Free Report) and AbbVie (ABBV - Free Report) announced small acquisitions.
Recap of the Week’s Most Important Stories
J&J Begins Q3 Earnings Season: J&J reported better-than-expected third-quarter results as it beat estimates for both earnings and sales. Its Pharmaceuticals unit sales continued to do well. Sales also improved in the MedTech and Consumer segments. However, currency headwinds reduced its sales growth by 6% in the quarter amid a strengthening U.S. dollar. J&J slightly lowered its sales outlook for the year due to expected currency headwinds. It also tightened its adjusted earnings guidance range.
Roche’s Q3 Revenues Dip: Roche’s revenues in the third quarter declined 6% due to lower COVID-related sales in both the Pharmaceuticals and Diagnostics divisions as the effects of the pandemic declined in many countries. Roche said that the increase in COVID cases has not simultaneously boosted demand for tests and drugs. Sales in the Pharmaceuticals Division were down 6% in the third quarter, while the Diagnostics division sales declined 4%. Roche expects sales to remain stable or grow in the low-single digits (at constant exchange rates) in 2022. Core earnings per share are estimated to grow in the low- to mid-single-digit range.
Lilly to Buy Akouos for $610M: Lilly said that it is acquiring Boston-based Akouos for approximately $487 million plus a contingent value right for an aggregate amount up to approximately $610 million. Akouos is developing gene therapies for the treatment of inner ear conditions, including hearing loss. Akouos’ lead pipeline candidate is AK-OTOF, a gene therapy intended for the treatment of OTOF-mediated hearing loss, a form of sensorineural hearing loss caused by mutations in the OTOF gene. Last month, the FDA cleared an investigational new drug submission to begin clinical studies on AK-OTOF. Akouos plans to initiate a pediatric phase I/II study on AK-OTOF for OTOF-mediated hearing loss soon.
AbbVie’s New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. The acquisition will add the latter’s lead pipeline candidate, DJS-002, which is in pre-clinical studies for the treatment of idiopathic pulmonary fibrosis and other fibrotic diseases. The candidate is a potential first-in-class antibody directed to LPAR1 antagonist antibody. The deal will provide AbbVie access to DJS’ proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology.
The NYSE ARCA Pharmaceutical Index declined 1% in the last five trading sessions.
Image: Bigstock
Pharma Stock Roundup: JNJ Q3 Earnings Beat, RHHBY Sales Weak, LLY, ABBV Ink M&A Deals
This week, J&J (JNJ - Free Report) began the third-quarter earnings season for the drug and biotech sector with an earnings and sales beat. Weak sales of COVID-related medicines and tests hurt Roche’s (RHHBY - Free Report) third-quarter sales. Eli Lilly (LLY - Free Report) and AbbVie (ABBV - Free Report) announced small acquisitions.
Recap of the Week’s Most Important Stories
J&J Begins Q3 Earnings Season: J&J reported better-than-expected third-quarter results as it beat estimates for both earnings and sales. Its Pharmaceuticals unit sales continued to do well. Sales also improved in the MedTech and Consumer segments. However, currency headwinds reduced its sales growth by 6% in the quarter amid a strengthening U.S. dollar. J&J slightly lowered its sales outlook for the year due to expected currency headwinds. It also tightened its adjusted earnings guidance range.
Roche’s Q3 Revenues Dip: Roche’s revenues in the third quarter declined 6% due to lower COVID-related sales in both the Pharmaceuticals and Diagnostics divisions as the effects of the pandemic declined in many countries. Roche said that the increase in COVID cases has not simultaneously boosted demand for tests and drugs. Sales in the Pharmaceuticals Division were down 6% in the third quarter, while the Diagnostics division sales declined 4%. Roche expects sales to remain stable or grow in the low-single digits (at constant exchange rates) in 2022. Core earnings per share are estimated to grow in the low- to mid-single-digit range.
Lilly to Buy Akouos for $610M: Lilly said that it is acquiring Boston-based Akouos for approximately $487 million plus a contingent value right for an aggregate amount up to approximately $610 million. Akouos is developing gene therapies for the treatment of inner ear conditions, including hearing loss. Akouos’ lead pipeline candidate is AK-OTOF, a gene therapy intended for the treatment of OTOF-mediated hearing loss, a form of sensorineural hearing loss caused by mutations in the OTOF gene. Last month, the FDA cleared an investigational new drug submission to begin clinical studies on AK-OTOF. Akouos plans to initiate a pediatric phase I/II study on AK-OTOF for OTOF-mediated hearing loss soon.
AbbVie’s New Antibody Deal: AbbVie announced the acquisition of private biotech, DJS Antibodies that makes antibody medicines targeting difficult-to-drug protein targets. The acquisition will add the latter’s lead pipeline candidate, DJS-002, which is in pre-clinical studies for the treatment of idiopathic pulmonary fibrosis and other fibrotic diseases. The candidate is a potential first-in-class antibody directed to LPAR1 antagonist antibody. The deal will provide AbbVie access to DJS’ proprietary HEPTAD platform, which, coupled with its capabilities in biotherapeutics research, can be used to make antibody therapeutics against difficult-to-drug protein targets in immunology.
The NYSE ARCA Pharmaceutical Index declined 1% in the last five trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
Large Cap Pharmaceuticals Industry 5YR % Return
Here’s how the eight major stocks performed in the last five trading sessions.
Image Source: Zacks Investment Research
In the last five trading sessions, Merck rose the most (0.5%), while AstraZeneca declined the most (2.1%).
In the past six months, Lilly has gained the highest (18.1%), while AstraZeneca declined the most (17.5%).
(See the last pharma stock roundup here: FDA Nod to Omicron Jabs for Kids, MRK, MRNA Partner for Cancer Jab)
What's Next in the Pharma World?
Watch out for Merck, Sanofi and AbbVie’s Q3 earnings releases and regular pipeline and regulatory updates next week.