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AstraZeneca (AZN) and Bayer (BAYRY) announce Q3 results. Pfizer’s (PFE) COVID-19 pill reduces hospitalizations and deaths substantially.
This week, the last of the large drugmakers, AstraZeneca AZN and Bayer BAYRY announced their third-quarter results. Pfizer’s PFE oral antiviral candidate for COVID-19, Paxlovid, was found to reduce the risk of hospitalization or death by 89% compared to placebo in an interim analysis of a phase II/III study. Merck MRK got a new order for investigation COVID pill, molnupiravir from the U.S government while J&J JNJ got a favorable ruling from the Oklahoma State Supreme in an opioid litigation.
AstraZeneca & Bayer’s Q3 Results: AstraZeneca’s third-quarter results were mixed as it beat estimates for sales but missed the same for earnings. Product sales growth was driven by higher sales of new medicines across Oncology and CVRM units like Tagrisso and Farxiga, which offset the negative impact from slower sales growth in China.
AstraZeneca’s COVID-19 vaccine added $1.05 billion to revenues and one cent to earnings per share in the third quarter. It expects the vaccine to move to “modest profitability” on new orders received after it produced the vaccine at cost amid the pandemic. AstraZeneca maintained its previously issued financial guidance, which includes the impact of the Alexion acquisition.
Bayer beat estimates for third-quarter earnings. Total sales rose 14.3% after adjusting for currency and portfolio effects (Fx & portfolio adjusted). Agricultural business (Crop Science), sales rose 25.8% (Fx & portfolio adjusted) while prescription medicines (Pharmaceuticals) unit sales rose 7.1%. Sales of Bayer’s self-care products (Consumer Health) rose 10.9%. Bayer also raised its sales growth expectations to 7% on an Fx and portfolio adjusted basis, up from 6% previously.
Pfizer COVID Pill Cuts Hospitalization/Death Risk by 89%: Pfizer’s oral antiviral candidate for COVID-19, Paxlovid reduced hospitalizations and deaths substantially in an interim analysis of a phase II/III study. The data from the EPIC-HR study showed that Paxlovid reduced the risk of hospitalization or death by 89% in non-hospitalized adult patients with COVID-19 at high risk of progressing to severe illness within three days of symptom onset.
At the recommendation of an independent Data Monitoring Committee, Pfizer stopped the study early due to the high efficacy observed in the interim analysis. It plans to submit this data as part of a rolling submission to the FDA for seeking Emergency Use Authorization (EUA) for the oral antiviral drug.
U.S. to Buy More Courses of Merck’s COVID-19 Pill, If Approved: Merck along with partner Ridgeback Biotherapeutics announced that the U.S. government will exercise its option to purchase 1.4 million additional courses of oral antiviral medicine for COVID-19, molnupiravir for approximately $1 billion, if authorized by the FDA. Merck has already filed an application seeking EUA for molnupiravir for treating mild-to-moderate COVID-19 in at-risk adults. With the latest option exercise, the U.S. government committed to purchasing a total of approximately 3.1 million courses of molnupiravir, for approximately $2.2 billion from Merck. The government still has options remaining to purchase more than 2 million additional courses.
Japan’s government has also agreed to purchase approximately 1.6 million courses of molnupiravir, if authorized, from Merck for approximately $1.2 billion.Merck’s application seeking the authorized use of molnupiraviris being reviewed by Japan’s Pharmaceuticals and Medical Devices Agency.
Merck and Bayer announced the initiation of a phase III study, VICTOR, evaluating Verquvo (vericiguat) in patients with chronic heart failure and reduced ejection fraction who have not had a recent worsening heart failure event. Verquvo was approved in January 2021 to reduce the risk of cardiovascular death and heart failure hospitalization following hospitalization for heart failure or the need for outpatient intravenous diuretics in adults with symptomatic chronic heart failure and ejection fraction less than 45%. This approval was based on data from the VICTORIA study.
Oklahoma Supreme Court Overturns J&J’s Opioid Judgment: The Oklahoma State Supreme Court ruled in favor of J&J by overturning a district court’s ruling in an opioid litigation. In August 2019, J&J was ordered by a district court in Oklahoma to pay $572 million to the state of Oklahoma in connection with a lawsuit filed by the latter. The amount was later reduced to $465 in the final judgment.
The district court, back in 2019, had said that J&J created a public nuisance by marketing, selling, and distributing opioids and thus was liable for contributing to the state’s opioid-addiction crisis. The Supreme Court said that the district court wrongly interpreted the state’s public nuisance law
The NYSE ARCA Pharmaceutical Index declined 0.3% in the last five trading sessions.
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, Pfizer rose the most (14.6%) while Merck declined the most (7.2%)
In the past six months, Lilly recorded the maximum gain (34.7%) while Novartis declined the most (6.3%)
(See the last pharma stock roundup here: Big Pharma Q3 Results, FDA Panel’s Vote for PFE COVID Jab)
Watch out for the results of Pfizer and the regular pipeline and regulatory updates next week.
Tech IPOs With Massive Profit Potential
In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.
For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…
If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.
With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.
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
Johnson & Johnson (JNJ): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Merck & Co., Inc. (MRK): Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY): Free Stock Analysis Report
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