Pharmaceuticals

Pfizer’s heft smacks Moderna’s one-hit wonder

3 Nov 2022

Moderna warned of manufacturing woes this year and a move to a more cut-throat commercial market. Its production of the Covid vaccine is increasingly competing against Pfizer’s strengths. Regaining its gloss means success in developing new vaccines.

J&J’s heart deal pumps up post-breakup prospects

1 Nov 2022

The healthcare firm will get a measly return in the near term from paying $16.6 bln for heart-pump maker Abiomed. But J&J is buying growth: Abiomed’s 20% revenue growth can probably continue for several years. That provides ballast as J&J prepares to spin off its consumer arm.

Capital Calls: Anti-woke ETF’s progressive cause

11 Oct 2022

Concise views on global finance: The God Bless America fund seeks to be an antidote to BlackRock and other big asset managers that focus on environmental, social and governance principles. Yet one investing principle aligns with more enlightened values.

Biogen’s $11 bln Alzheimer’s gain has cushion

28 Sep 2022

The U.S. biotech firm has developed a drug that may slow dementia, sending Biogen shares surging 40%. The assumptions it takes to validate the gain don’t seem crazy. Decades of failure to find a cure explain why investors are gun-shy. That may mean opportunity for the bold.

Capital Calls: Novartis

22 Sep 2022

Concise views on global finance: The Swiss drugmaker hopes to fix its growth problem by listing its generic drug business and focusing on the U.S. market.

U.S. drug price cap hurts Big Pharma twice over

15 Sep 2022

President Biden’s plan to curb medicine bills could cost drugmakers like Pfizer or GSK $29 bln a year in lost sales. To cope, companies may focus on blockbuster therapies, and shun niche treatments. More competition in hot areas like cancer may mean lower prices and poor returns.

Little pharma gets big boost from drug regulators

8 Sep 2022

A drug that treats a fast-killing neurological disease received a green light from an FDA panel instead of waiting for further trial results. That lifted shares of the maker, Amylyx, 60%. The unusual decision can be justified in this case. But such fast-tracking should be rare.

AstraZeneca’s Soriot on cures for pharma ills

30 Aug 2022

The $208 bln drugmaker’s CEO is celebrating 10 years at the helm. In this edition of the Exchange podcast, he explains why after quadrupling the company’s share price, there is more to do. He also delves into Chinese competition and the consequences of caps on U.S. drug prices.

Moderna patent fight about feathers, not goose

29 Aug 2022

The $53 bln biotech firm says Pfizer’s Covid-19 vaccine uses its intellectual property. The drug may bring in $30 bln this year, so it’s potentially a giant suit. Moderna’s direct claim is probably tiny. But mRNA technology is its lifeblood and worth fighting to protect.

Big Pharma should brace for worst cancer outcome

18 Aug 2022

Investors have wiped $36 bln off Sanofi, GSK and its consumer spinoff on fears heartburn remedies cause cancer. The science implies an overreaction. But the scope for U.S. juries to see the saga as akin to Bayer’s Roundup weedkiller debacle could actually make the hit bigger.

Pfizer and Moderna react well to cash boosters

12 Aug 2022

The Covid-19 vaccine makers combined may generate an extra $110 bln through 2024. With its bounty, younger Moderna would be wise to double down on R&D. Mature Pfizer is better off pursuing acquisitions like Global Blood Therapeutics. The trick for both will be to stay focused.

Cancer scare leaves GSK castoff adrift

11 Aug 2022

Shares in Haleon have fallen by nearly a fifth on fears of litigation linked to a heartburn drug. It’s another worry for the $28 bln business which GSK spun off after loading it up with debt, amid recession fears. The uncertainty means investors can’t even hope for a takeover.

Drug law aims small dart at wrong part of monster

8 Aug 2022

America spends about twice as much on pharmaceuticals as peer nations. Government drug price negotiations might save $100 billion. A real headshot would be targeting hospital spending, which is about twice as big as drugs and faster growing.

Belgian biotech is pricey cure for Big Pharma ills

28 Jul 2022

Rare-disease specialist Argenx reported surging sales of its main treatment. That increases its allure to drugmakers like Pfizer, whose revenue is threatened by expiring patents. But the $21 bln firm’s soaring shares since a recent U.S. drug approval make it anything but cheap.

GSK spinoff boost may be as good as it gets

18 Jul 2022

The drugmaker’s Haleon consumer unit started trading at 40 bln pounds including debt – below the 50 bln pound offer it rejected from Unilever. The Sensodyne maker has hefty borrowings and two big investors eager to sell. But its valuation mostly prices in a healthier future.

GSK split gives CEO fresh M&A test

15 Jul 2022

Emma Walmsley is hiving off the $102 bln drugmaker’s consumer unit. What’s left is currently valued at a discount to pharma peers, despite fast-growing vaccines sales, due to loss of exclusivity on key drugs. Walmsley needs to show she can buy businesses as well as break them up.

GSK’s bid to dominate longer-life HIV drugs

5 Jul 2022

Deborah Waterhouse and Dr Kimberly Smith have spent decades battling the deadly virus. In this edition of The Exchange podcast, the leaders of the British drug giant discuss breakthroughs in the $26 bln market and how Gilead is also making a play for the growing sector.

CEO’s exit puts $30 bln cancer specialist in play

21 Jun 2022

Founder Clay Siegall quit U.S. oncology biotech Seagen after a domestic-abuse charge. Merck has already spied an opening into a hot area of cancer treatment. Rivals Roche, Pfizer and Novartis may also want to get involved. But Seagen’s size will create regulatory problems.

Next pandemic is a financial numbers game

10 Jun 2022

Outbreaks are hard to predict – look at the spread of Monkeypox – but they can be prepared for. The $88 bln the White House wants to spend on pandemic readiness is a pittance next to the cost of being blindsided. Even for budget hawks, the case for spending more is powerful.

GSK castoff starts life with target on its back

9 Jun 2022

GlaxoSmithKline is floating its personal health unit, worth perhaps $53 bln. After listing, it will have two large shareholders keen to sell and lots of debt, while facing a tough consumer backdrop. A suitor would be harder to fend off than the recent botched bid by Unilever.