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Pharma Stock Roundup: BAYRY's Q4 Results, ABBV's Obesity Deal & More

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This week, Bayer (BAYRY - Free Report) announced its fourth-quarter and full-year 2024 results. AbbVie (ABBV - Free Report) announced a licensing deal with Danish firm Gubra for an amylin-targeting obesity treatment, which marked the company’s entry into the obesity space. Novo Nordisk (NVO - Free Report) announced that it is cutting the price of its popular obesity injection, Wegovy, for the uninsured following a similar move by rival Eli Lilly. J&J (JNJ - Free Report) discontinued a phase III study on a candidate being evaluated as an adjunctive treatment for major depressive disorder (aMDD). The FDA accepted Roche’s (RHHBY - Free Report) application seeking expanded use of its lymphoma drug, Gazyva/Gazyvaro, for the treatment of lupus nephritis.

Here's a recap of the week’s most important stories.

NVO Cuts Wegovy’s Price Following Similar Move by LLY

Novo Nordisk is launching a new direct-to-patient online pharmacy called NovoCare, which will offer Wegovy at a discounted price of $499 per month, less than half of its listed price. This offer is for patients who do not have insurance coverage and pay by cash as well as those with insurance but have no coverage for obesity medicines. The website provides an option for these patients to have their injections delivered to their homes.

Novo Nordisk’s announcement follows a similar move by rival Eli Lilly. Last week, Lilly also announced that it is reducing the prices of its 7.5 mg and 10 mg single-dose vials of obesity treatment Zepbound to $499 per month for customers paying through a new self-pay program called LillyDirect Self-Pay Pharmacy Solutions.

BAYRY Reports Q4 Earnings Decline, Issues Guidance for 2025

Bayer’s fourth-quarter core earnings of €1.05 per share declined 43.2% year over year. Sales of €11.7 billion rose 0.1% on a currency and portfolio-adjusted basis. Sales in the Crop Science segment decreased 2.3%. Pharmaceuticals segment sales increased 2.4%, while Consumer Health sales declined 0.9% on a currency and portfolio-adjusted basis.

In the Pharmaceuticals segment, sales of new products, cancer drug Nubeqa and kidney drug, Kerendia, remained strong, offsetting the loss of exclusivity impact on sales of oral anticoagulant Xarelto. The pace of growth in the Consumer Health business has slowed down. The Crop Science business was adversely impacted by lower prices in the crop protection business due to competitive pricing pressure.

Bayer issued a financial guidance for 2025. The company expects 2025 to be a “pivotal year” and the most difficult in terms of financial performance. Sales are expected to be in the range of €45-€47 billion in 2025. Core EPS is projected to be in the band of €4.50-€5.00. Bayer expects its performance to improve from 2026.

AbbVie Buys Rights to Obesity Candidate

AbbVie in-licensed rights to develop a phase I candidate, GUB014295, a long-acting amylin analog for the treatment of obesity from Danish biotech, Gubra. AbbVie will lead the development of the candidate. For the deal, which marks AbbVie’s entry into the obesity space, it will make an upfront payment of $350 million to Gubra. It will also pay milestone payments of up to $1.875 billion to Gubra.

FDA Accepts Roche’s Gazyva sBLA for Lupus Nephritis

The FDA accepted a supplemental biologics license application (sBLA) seeking approval for Roche’s Gazyva/Gazyvaro for the treatment of lupus nephritis. The sBLA was based on based on data from the phase III REGENCY study. The FDA’s decision on the sBLA is expected by October 2024. A similar application is also under review in the EU. Gazyva/Gazyvaro is presently approved for treating various types of lymphoma.

J&J Ends Phase III Study on Depression Candidate

J&J announced the discontinuation of the phase III VENTURA program on pipeline candidate, aticaprant, for aMDD. The decision to end the program was based on the lack of sufficient efficacy observed in the target patient population. Data from the study showed that aticaprant was safe and well tolerated.

J&J, Novo Nordisk, Roche, AbbVie and Bayer carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The NYSE ARCA Pharmaceutical Index has risen 2% in the past five trading sessions.

Large Cap Pharmaceuticals Industry 5YR % Return

Large Cap Pharmaceuticals Industry 5YR % Return

 

Large Cap Pharmaceuticals Industry 5YR % Return

Here’s how the eight major stocks performed in the previous five trading sessions.

Zacks Investment Research
Image Source: Zacks Investment Research

In the last five trading sessions, Merck rose the most (3.8%), while Novo Nordisk declined the most (1.3%).

In the past six months, AbbVie rose the most (7.3%), while Novo Nordisk declined the most (33.3%).

(See the last pharma stock roundup here: LLY Ups U.S. Manufacturing Investments & More)

What's Next in the Pharma World?

Watch this space for regular pipeline and regulatory updates next week.

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