Latest news with #Imbruvica
Yahoo
4 days ago
- Business
- Yahoo
JNJ Begins Drug Sector Q2 Earnings With a Beat & Guidance Raise
Johnson & Johnson's JNJ second-quarter 2025 earnings came in at $2.77 per share, which beat the Zacks Consensus Estimate of $2.66. Earnings, however, declined 1.8% from the year-ago period. Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were $2.29 per share, up 18.7% year over year. Sales of this drug and medical devices giant came in at $23.74 billion, which also beat the Zacks Consensus Estimate of $22.80 billion. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Sales rose 5.8% from the year-ago quarter, reflecting an operational increase of 4.6% and a positive currency impact of 1.2%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 3.0% on an operational basis. Second-quarter sales in the domestic market rose 7.8% to $13.54 billion. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, domestic sales rose 5.0% in the quarter. International sales rose 3.2% on a reported basis to $10.2 billion, reflecting an operational increase of 0.6% and a positive currency impact of 2.6%. Excluding the impact of all acquisitions and divestitures on an adjusted operational basis, international sales rose 0.4% in the quarter. J&J's Innovative Medicines Unit Outperforms, MedTech Misses With the complete separation of the Consumer Health segment into a newly listed company called Kenvue KVUE in 2023, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields. KVUE will report its second-quarter results in early August. J&J's Innovative Medicines segment sales rose 4.9% year over year to $15.2 billion, reflecting a 3.8% operational increase and a positive currency impact of 1.1%. Excluding the impact of all acquisitions and divestitures and currency on an adjusted operational basis, worldwide sales rose 2.4%. Innovative Medicines sales beat the Zacks Consensus Estimate of $14.55 billion as well as our model estimate of $14.50 billion. Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment's growth. Xarelto and Simponi/Simponi Aria sales also rose in the quarter. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth. The sales growth was partially dampened by lower sales of Imbruvica and generic/biosimilar competition to drugs like Stelara and Zytiga. JNJ's Oncology Drugs' Performance Sales of blockbuster multiple myeloma medicine Darzalex rose 23.0% year over year to $3.54 billion in the quarter. Sales beat the Zacks Consensus Estimate of $3.45 billion and our model estimate of $3.44 billion. Imbruvica sales declined 4.5% to $735.0 million. Rising competitive pressure in the United States due to new oral competition has been hurting Imbruvica's sales for the past few quarters. Imbruvica sales were, however, better than the Zacks Consensus Estimate of $697.0 million and our estimate of $694.8 million. Erleada generated sales of $908.0 million in the quarter, up 23.4% year over year. Erleada sales beat the Zacks Consensus Estimate of $853.0 million as well as our model estimate of $903.9 million. New drug Carvykti recorded sales of $439.0 million compared with $369 million in the previous new drug, Tecvayli, recorded sales of $166.0 million in the quarter, up 23.1% year over year, Sales of Talvey were $106 million, up 55.0% year over year. Rybrevant/Lazcluze sales were $179 million compared with $69 million in the year-ago quarter. Zytiga sales declined 11.6% to $145.0 million in the quarter due to generic competition. JNJ's Immunology Drugs' Performance Sales of the blockbuster psoriasis drug, Stelara, declined 42.7% to $1.65 billion in the quarterdue to the impact of biosimilar competition and Part D redesign. While U.S. sales of Stelara declined 41.9%, international sales declined 44.2% in the quarter. Stelara sales missed the Zacks Consensus Estimate as well as our model estimates of $1.88 billion. Several biosimilar versions of J&J's multi-billion-dollar immunology drug, Stelara, have been launched in the United States in 2025. According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies have already launched Stelara biosimilars this year. Tremfya recorded sales of $1.19 billion in the quarter, up 31.0% year over year. Tremfya sales beat the Zacks Consensus Estimate of $1.08 billion as well as our model estimate of $1.09 billion. Simponi/Simponi Aria sales rose 28.6% to $690.0 million. Sales of Remicade rose 15.9% in the quarter to $455.0 million. JNJ's Neuroscience, PAH and Other Drugs' Performance In neuroscience, Spravato recorded sales of $414.0 million, up 53.3% year over year. Caplyta, added from the Apil acquisition of Intra-Cellular Therapies, recorded sales of $211 million in the quarter. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales declined 5.9% to $992.0 million in the quarter. Pulmonary arterial hypertension (PAH) drug Uptravi recorded sales of $476.0 million, up 11.7% year over year. Another PAH drug, Opsumit, recorded sales of $582.0 million, up 6.4% year over year. Xarelto sales rose 5.6% in the quarter to $621.0 million. Prezista sales declined 9.4% to $396.0 million. How Did JNJ's MedTech Segment Perform in Q2? MedTech segment sales came in at $8.54 billion, up 7.3% from the year-ago period, including an operational increase of 6.1% and a positive currency impact of 1.2%. MedTech segment sales beat the Zacks Consensus Estimate of $8.25 billion as well as our model estimate of $8.31 billion. Excluding the impact of all acquisitions and divestitures, and currency, on an adjusted operational basis, worldwide sales rose 4.1%. In the MedTech segment, over the past couple of quarters, gains from recent acquisitions of Shockwave and Abiomed, as well as continued uptake of new products, have been offset by continued headwinds in Asia Pacific, specifically in China and increased competitive pressure in U.S. electrophysiology for PFA ablation catheter. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China. JNJ Ups 2025 Sales and EPS Guidance Range The company raised its sales expectations for 2025 by around $2.0 billion to reflect a strong operational performance coupled with currency tailwinds. The sales guidance was raised from a range of $91.0 billion-$91.8 billion to $93.2 billion-$93.4 billion. The sales range indicates growth in the range of 5.1%-5.6% versus the prior expectation of 2.6%-3.6%. Operational sales growth is expected in the range of 4.5%-5.0% (previously 3.3%-4.3%). Adjusted operational sales (excluding currency impact, acquisitions/divestitures) growth is expected in the range of 3.2%-3.7% (previously 2.0%-3.0%). The revenue figures exclude revenues from COVID-19 vaccine sales. The adjusted earnings per share guidance was raised from a range of $10.50-$10.70 to $10.80-$10.90. On an operational, constant-currency basis, adjusted earnings per share are expected to increase in the range of 8.2%-9.2% (previously 5.2% to 7.2%). Our Take on JNJ's Q2 Results J&J kicked off the earnings season for the drug and biotech sector with earnings and sales beats. Despite the loss of exclusivity ('LOE') of Stelara, its Innovative Medicines unit once again outperformed expectations, with sales of all key drugs Darzalex, Erleada and Tremfya beating estimates. The new drugs also contributed significantly to sales. Stelara LOE hurt revenue growth by 1170 basis points in the second quarter. MedTech unit's sales also beat estimates. J&J raised its sales and EPS guidance for the year. J&J's shares rose more than 2% in pre-market trading on Wednesday in response to the earnings beat and guidance raise. So far this year, J&J's stock has risen 9.1% compared with an increase of 1.9% for the industry. Image Source: Zacks Investment Research J&J's Innovative Medicine unit is showing a growth trend. In 2025, J&J expects growth in the Innovative Medicine segment in the face of Stelara biosimilar entrants to be driven by its key products such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and new indications for Tremfya and Rybrevant. J&J considers 2025 to be a 'catalyst year,' positioning the company for growth in the second half of the decade. J&J expects operational sales growth in both the Innovative Medicine and MedTech segments to be higher in the second half of the year than in the first. While newly launched products should drive growth in the Innovative Medicines segment in the second half, the MedTech segment may benefit from new products and easier comps. J&J is also making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened its pipeline. However, the softness in the MedTech unit, the Stelara patent cliff and the potential impact of Part D redesign will be significant headwinds in 2025. It remains to be seen how the company navigates them. The legal battle surrounding its talc lawsuits is a persistent headwind. J&J's Zacks Rank J&J currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Johnson & Johnson Price, Consensus and EPS Surprise Johnson & Johnson price-consensus-eps-surprise-chart | Johnson & Johnson Quote 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 Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report Kenvue Inc. (KVUE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-07-2025
- Business
- Yahoo
ABBV or BMY: Which Biopharma Giant Has Better Prospects for Now?
AbbVie, Inc. ABBV and Bristol Myers Squibb BMY are leading drugmakers with broad and diverse portfolios and a global footprint. AbbVie is a global, diversified biopharmaceutical company with a dominant position across key therapeutic areas, including immunology, neuroscience, oncology, aesthetics and eye care. On the other hand, Bristol Myers is focused on discovering, developing and delivering transformational drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other diseases. Both of these biopharma/biotech giants have strong footholds in their targeted businesses, delivering consistent returns to shareholders. In such a scenario, choosing one stock over the other can be tricky. Let us delve into their fundamentals, potential growth prospects, challenges and valuation levels to make a prudent choice. AbbVie's flagship drug Humira has lost patent protection both in the United States and Europe. Biosimilar competition significantly eroded the drug's sales in 2024, and the decline is expected to be sharper in 2025. Nonetheless, the acquisition of Botox maker Allergan for $63 billion in May 2020 has bolstered the product portfolio and lowered its dependence on Humira. ABBV's immunology drugs Skyrizi and Rinvoq have put up a stellar performance and positioned it well for long-term growth. These drugs are witnessing strong uptake across their approved indications, especially in the popular inflammatory bowel disease space, which includes two conditions, ulcerative colitis and Crohn's disease. Strong sales of these drugs have enabled AbbVie to offset the decline in sales of the blockbuster drug Humira. AbbVie has also built a strong oncology franchise with drugs like Imbruvica and Venclexta. Label expansion over the past couple of years have significantly expanded the eligible patient population for Venclexta. This, in turn, is boosting sales of the drug. In October 2024, AbbVie gained approval for Vyalev, a transformative therapy for treating advanced Parkinson's disease. Approval of new drugs further expands ABBV's portfolio. AbbVie has several promising R&D programs with the potential to drive long-term growth. This includes next-generation approaches in immunology, a focus on bispecifics, ADCs, as well as innovative therapies for neuropsychiatric and neurodegenerative disorders. The company has also been active on the M&A front. It acquired ImmunoGen, which added antibody-drug conjugate, Elahere and neuroscience drugmaker Cerevel Therapeutics in 2024. As of March 31, 2025, AbbVie had $64.5 billion in long-term debt and $5.4 billion in short-term debt/obligations on its balance sheet. Cash and cash equivalents totaled approximately $5.2 billion. However, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise are major headwinds, along with declining Humira sales. BMY's Growth Portfolio, comprising drugs like Reblozyl, Breyanzi, Camzyos and Opdualag, has stabilized its revenue base amid generic competition for its legacy drugs. Thalassemia drug Reblozyl has put up a stellar performance since its approval, posting strong growth in the United States and international markets. The drug is expected to contribute significantly in the coming decade. Sales of its oncology drug, Opdualag, have also been robust, fueling the top line. Strong growth in the U.S. market and encouraging uptake in newly launched markets have boosted sales. Strong momentum in Camzyos should further drive growth. Opdivo continues to maintain momentum on consistent label expansions. The FDA approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use should help extend the impact of its immuno-oncology franchise to patients into the next decade. Other drugs like Zeposia and Krazati should also contribute to top-line growth. The company has made strategic acquisitions to broaden its portfolio and drive top-line growth. The recent FDA approval for xanomeline and trospium chloride (formerly KarXT), an oral medication for the treatment of schizophrenia in adults, was approved under the brand name Cobenfy. The approval of Cobenfy for schizophrenia broadens BMY's portfolio and validates the acquisition of Karuna Therapeutics. While the newer drugs boost sales, generic competition for legacy drugs, which account for the majority of total revenues, is a significant headwind and will affect top-line growth in the near term. Legacy Portfolio revenues declined 20% in the first quarter due to continued generic impact on Revlimid, Pomalyst, Sprycel and Abraxane, as well as the U.S. Medicare Part D redesign effect. Nonetheless, BMY is looking to boost its bottom line through cost-cutting initiatives. While BMY's strategy of acquiring companies with promising drugs and candidates is encouraging, this has resulted in substantial debt to finance these acquisitions. As of March 31, 2025, the company had cash and equivalents of $12.1 billion and a long-term debt of $46.1 billion. The Zacks Consensus Estimate for ABBV's 2025 sales implies a year-over-year increase of 6.6%, and that for earnings per share (EPS) suggests an improvement of 20.65%. However, EPS estimates for 2025 have moved south in the past 60 days. Image Source: Zacks Investment Research The Zacks Consensus Estimate for BMY's 2025 sales implies a year-over-year decrease of 4.13%, while that for EPS suggests an increase of 487.83%. The extraordinary EPS growth rate is attributed to an extremely low EPS figure in 2024 due to acquisition expenses. EPS estimates for both 2025 and 2026 have moved south in the past 60 days. Image Source: Zacks Investment Research From a price-performance perspective, ABBV has fetched better returns than BMY so far this year. Shares of ABBV have gained 11.8%, while those of BMY have lost 11.2%. The large-cap pharma industry has gained 1.6% in the said period. Image Source: Zacks Investment Research From a valuation standpoint, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, ABBV is slightly more expensive than BMY. ABBV's shares currently trade at 14.76X forward earnings, higher than 7.60X for BMY. The large-cap pharma industry currently trades at 15.16X forward earnings. Image Source: Zacks Investment Research Both ABBV and BMY have an attractive dividend yield. This is a strong positive for investors. However, BMY's dividend yield of 5.20% is higher than ABBV's 3.4%. Large pharma/biotech companies are generally considered safe havens for investors interested in this sector. However, with both ABBV and BMY stocks currently carrying a Zacks Rank #3 (Hold), choosing one over the other is a complex task. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. ABBV has a strong and diverse portfolio. Immunology drugs Skyrizi and Rinvoq maintain momentum for the company. However, declining Humira sales, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise are major headwinds for the company. BMY's efforts to revive the top line in the face of generic challenges for key drugs are commendable. Approval of new drugs and label expansion of key drugs should generate incremental revenues for the company. However, we believe there is still time before the efforts reap a harvest for the company. The outlook for 2025 indicates challenges as of now. While both companies deal with patent cliffs, we believe ABBV is a better pick at present, primarily due to the diversity and strength of its portfolio. 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 Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report AbbVie Inc. (ABBV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
27-06-2025
- Business
- Globe and Mail
AbbVie Adds More Than $24B in 6 Months: How to Play ABBV Stock
AbbVie ABBV stock has risen 8.0% in six months, adding more than $24 billion to its market value. AbbVie has successfully navigated the loss of exclusivity ('LOE') of its blockbuster drug, Humira, by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications and are expected to support top-line growth in the next few years. AbbVie has several early/mid-stage candidates that have the potential to drive long-term growth. AbbVie, however, faces its share of headwinds, like Humira biosimilar erosion, increasing competitive pressure on Imbruvica and slowing sales of its aesthetics franchise. Let's understand the company's strengths and weaknesses to better analyze how to play ABBV stock amid the market value growth. ABBV's Successful New Drugs — Skyrizi and Rinvoq AbbVie lost patent protection for Humira in the United States in January 2023 and in the EU in 2018. Humira's sales are declining due to the LOE and biosimilar erosion. However, with approvals for many new indications, sales of Skyrizi and Rinvoq have successfully replaced Humira, which once generated more than 50% of its total revenues. Skyrizi and Rinvoq generated combined sales of $5.1 billion in the first quarter of 2025, reflecting growth of more than 65%. The drugs are seeing strong performance across all approved indications, especially in the popular inflammatory bowel disease (IBD) space, which includes two conditions — ulcerative colitis (UC) and Crohn's disease (CD). Importantly, Skyrizi and Rinvoq have demonstrated compelling head-to-head data against several novel therapies in clinical studies, which have given them a competitive advantage. AbbVie expects combined sales of Skyrizi and Rinvoq to be around $24.7 billion in 2025 and more than $31 billion by 2027. Strong immunology market growth, market share gains and momentum from new indications, such as the recent launch of Skyrizi in UC, as well as the potential for five new indications for Rinvoq over the next few years, are expected to drive these drugs' growth. ABBV Boasts an Attractive Pipeline AbbVie has several early/mid-stage pipeline candidates with blockbuster potential. The company expects several regulatory submissions, approvals and key data readouts in the next 12 months. ABBV has an exciting and diverse pipeline of promising new therapies in blood cancers and solid tumors, like ABBV-383, a BCMA CD3 bispecific (relapsed/refractory multiple myeloma) and Temab-A (metastatic colorectal cancer). Emrelis (previously Teliso-V), a promising antibody drug conjugate or ADC, was approved in the United States for previously treated non-squamous non-small cell lung cancer with high c-Met expression in May 2025. In other areas, some key pipeline drugs are lutikizumab for immunology indications and tavapadon for early Parkinson's disease. AbbVie expects to file a new drug application for tavapadon this year. AbbVie on an Acquisition Spree The company has been on an acquisition spree in the past couple of years, which is strengthening its pipeline. It has signed several M&A deals in the immunology space, its core area, while also inking some early-stage deals in oncology and neuroscience. It has signed more than 20 early-stage deals since the beginning of 2024, including promising technologies and innovative mechanisms that can elevate the standard of care in immunology, oncology and neuroscience. In early 2025, AbbVie bought rights to develop GUB014295 (ABBV-295), a long-acting amylin analog for the treatment of obesity, from Denmark's Gubra. The deal marked AbbVie's entry into the obesity space, dominated by Eli Lilly LLY and Novo Nordisk NVO. AbbVie plans to invest further in obesity. ABBV's Slowing Aesthetics Sales & Humira Erosion Sales of AbbVie's blockbuster drug Humira are declining due to biosimilar erosion. Humira volume is rapidly eroding compared to other novel mechanisms (including Skyrizi and Rinvoq). Humira sales declined by almost 50% in the first quarter of 2025, primarily due to faster erosion of its share as a result of biosimilar competition, as well as further molecule compression in the United States. AbbVie is witnessing declining sales of Juvederm fillers in the United States and China due to challenging market conditions. The slowing growth of the U.S. facial injectables market and persistent economic headwinds, which are affecting consumer spending in China, are hurting AbbVie's aesthetics portfolio sales, which declined 10.2% in the first quarter of 2025. ABBV Stock Price, Valuation and Estimate Revision AbbVie's stock has gained 7.1% so far this year against a decrease of 0.7% for the industry. The stock has also outperformed the industry and the S&P 500 index, as seen in the chart below. ABBV Stock Outperforms Industry, Sector & S&P 500 From a valuation standpoint, AbbVie is not very cheap. Going by the price/earnings ratio, the company's shares currently trade at 14.21 forward earnings, just slightly lower than 14.87 for the industry. The stock is cheaper than some other large drugmakers like Eli Lilly and Novo Nordisk, but is priced much higher than most other large drugmakers. The stock is also trading above its five-year mean of 12.44. ABBV Stock Valuation The Zacks Consensus Estimate for 2025 earnings has risen from $12.21 per share to $12.28, while that for 2026 has increased from $14.03 to $14.06 per share over the past 30 days. ABBV Estimate Movement Stay Invested in ABBV Stock Though AbbVie faces its share of near-term headwinds, the company has faced its biggest challenge — Humira's patent cliff — quite well and looks well-positioned for continued strong growth in the years ahead. AbbVie expects to return to robust revenue growth in 2025, which is just the second year following the U.S. Humira LOE, driven by its ex-Humira platform. AbbVie's ex-Humira drugs rose delivered robust sales growth of more than 21% (on a reported basis) in the first quarter of 2025. Boosted by its new product launches, AbbVie expects to return to robust mid-single-digit revenue growth in 2025 with a high single-digit CAGR through 2029, as it has no significant LOE event for the rest of this decade. A substantial portion of this growth is expected to be driven by the robust performance of Skyrizi and Rinvoq. Rising estimates for AbbVie, its solid pipeline and the prospect of growth in 2025 sales and profits are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> 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 Novo Nordisk A/S (NVO): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report
Globe and Mail
24-06-2025
- Business
- Globe and Mail
Will AbbVie's Growing Oncology Portfolio Aid Top-line Growth?
AbbVie ABBV has built a substantial oncology franchise. Initially anchored by blood cancer drugs Imbruvica and Venclexta, the company has also been expanding its offerings into solid tumors. Its latest offerings now include Epkinly (for lymphoma), Elahere (for ovarian cancer), and most recently, Emrelis (for lung cancer), bringing the total to five oncology therapies. Sales of the oncology segment accounted for over 12% of AbbVie's total revenues in first-quarter 2025. ABBV has been pursuing both organic and inorganic strategies to drive this expansion. While Epkinly and Elahere were added to the portfolio through acquisitions or collaborations, Emrelis is the company's first internally developed solid tumor drug and also its first lung cancer therapy. Combined with steadily rising Venclexta sales, these newer additions have helped more than offset the fall in Imbruvica sales, which have been declining due to stiff competition from novel oral therapies. Approved last month, we expect Emrelis to start contributing to AbbVie's top line beginning third-quarter 2025. The company also has an exciting and diverse pipeline of promising new therapies in both blood cancers and solid tumors. Notably, etentamig (formerly ABBV-383), a BCMA x CD3 bispecific antibody, is currently being evaluated in a late-stage study for relapsed/refractory multiple myeloma. ABBV is also developing another c-Met targeting ADC called Temab-A (formerly ABBV-400). This drug, being evaluated in a late-stage study for metastatic colorectal cancer, is also in mid-stage development for gastroesophageal cancer. AbbVie is also conducting label expansion studies on its approved products to further strengthen its oncology footprint. Competition in the Oncology Space Other large players in the oncology space are AstraZeneca AZN, Merck MRK and Pfizer PFE. For AstraZeneca, oncology sales now account for nearly 41% of total revenues. Sales in its oncology segment rose 13% in the first quarter of 2025. AstraZeneca's strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo). Merck's key oncology medicines are PD-L1 inhibitor, Keytruda and PARP inhibitor, Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounted for more than 46% of Merck's total revenues in first-quarter 2025. Pfizer's first-quarter oncology revenues grew 7% on an operational basis, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. The segment now accounts for over 27% of Pfizer's total revenues. ABBV's Price Performance, Valuation and Estimates Shares of AbbVie have outperformed the industry year to date, as seen in the chart below. From a valuation standpoint, AbbVie is not very cheap. Based on the price/earnings (P/E) ratio, the company's shares currently trade at 13.99 times forward earnings, slightly lower than its industry's average of 14.81. The stock is cheaper than some other large drugmakers, such as Eli Lilly and Novo Nordisk, but is priced much higher than most other large drugmakers. The stock is also trading above its five-year mean of 12.43. The Zacks Consensus Estimate for 2025 earnings has risen from $12.21 per share to $12.28, while that for 2026 has increased from $13.99 to $14.06 over the past 60 days. AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> 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 Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
27-05-2025
- Business
- Yahoo
1 Top Dividend Stock to Buy for a Lifetime of Passive Income
Johnson & Johnson faces challenges including legal and regulatory troubles, and slow top-line growth. The healthcare leader has a solid and diversified business that can overcome these headwinds. J&J has increased its dividend for 62 consecutive years. 10 stocks we like better than Johnson & Johnson › There are hundreds of dividend stocks on the market, but they don't all offer the same level of security. Some haven't increased their payouts in years. Others may provide irregular dividend hikes, which will likely stop if the economy tanks or company-specific issues hit. Still others have cut their payouts in recent years. These aren't the kind of stocks income seekers are looking for. Instead, dividend investors want corporations that consistently raise their payouts, preferably every year, and are unlikely to stop even when they face headwinds. One company that has what it takes to do that is Johnson & Johnson (NYSE: JNJ). Here's why this longtime dividend payer is worth holding on to for good. Let's start with the bear case for Johnson & Johnson. Over the past few years, it has dealt with several issues. We'll consider three. First, it is still facing a litany of lawsuits related to talc-based products that allegedly gave consumers cancer. The company recently failed to put a lid on most of these lawsuits when a judge stopped its attempt to settle with most plaintiffs. So it looks like this headwind will continue. Second, recent regulatory changes in the U.S. could eventually hurt its revenue. The U.S. Centers for Medicare and Medicaid Services (CMS) now has the authority to negotiate the prices of some of the drugs Medicare spends the most on. The first round of negotiations features three of J&J's medicines: Blood thinner Xarelto, immunosuppressant Stelara, and blood-cancer medicine Imbruvica. All will see significant price cuts for Medicare patients. Third, the company has dealt with relatively slow revenue growth. However, despite all that, Johnson & Johnson looks like an attractive long-term option for dividend-seekers. J&J didn't get to be one of the largest healthcare companies in the world by accident. The company has constantly developed newer and better products in its pharmaceutical and medical-technology businesses. It boasts a deep lineup of medicines across several therapeutic areas, including immunology, oncology, infectious diseases, and neuroscience. It has more than 10 drugs that each generate more than $1 billion in annual sales. Its med-tech unit is also diversified across several areas. Its pipeline features several dozen programs. And the drugmaker constantly earns brand-new approvals or label expansions. In other words, it has an incredibly robust underlying business that's well equipped to handle the challenges it faces. The price cuts for Xarelto, Stelara, and Imbruvica will only take effect next year. And even then, they will have a minimal impact on the company's results because none of these drugs feature in its long-term growth plans. Sales of Stelara and Imbruvica are already declining due to competitive pressure (from generics or otherwise). And while Xarelto's revenue moved in the right direction in the first quarter, the U.S. Food and Drug Administration recently approved the first generic of this medicine. There will be more Medicare price negotiations, and nobody knows yet which drugs they will target. But in the long run, Johnson & Johnson should be able to handle this problem. It can avoid price negotiations by decreasing its exposure to therapies for which Medicare -- a program for the elderly -- spends the most. And that's just one possibility, which the company's deep pipeline and ability to generate consistent cash flow should allow it to do. J&J has been around for more than 100 years; it's had to deal with changes in regulatory regimes before. Although the company's revenue growth has been slow, its recent decision to spin off its consumer health unit to focus on its biopharma and med-tech segments was partly to address that problem. Expect stronger revenue growth as it focuses more on higher-growth opportunities within its two remaining units. Lastly, Johnson & Johnson has a higher credit rating than the U.S. government. Even the barrage of lawsuits has not changed that, which is strong evidence that it has the financial capabilities to handle these challenges. A previous judge shot down J&J's attempt to settle these lawsuits via a bankruptcy maneuver for one of its subsidiaries, partly because the company's robust financial position does not put it at risk of insolvency despite the lawsuits it faces. What about the dividend? Johnson & Johnson is a Dividend King with 62 years of consecutive payout increases under its belt. The healthcare leader should continue hiking its dividend, which now yields a market-beating 3.4% yield, for a long time. Before you buy stock in Johnson & Johnson, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Johnson & Johnson 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy. 1 Top Dividend Stock to Buy for a Lifetime of Passive Income was originally published by The Motley Fool Sign in to access your portfolio
