Latest From Andy Smith
The sales performances of the GLP-1 agonists dominated the earnings of Novo Nordisk and Lilly, with both stocks hitting 52-week highs after their results. But one moved ahead of the other in an important strategic bottleneck.
Claiming quarterly wins by expressing sales at constant exchange rates or including one-off tax breaks does not endear companies to investors because they are unpredictable and not reproducible.
While attempting to move beyond post-pandemic unfavorable revenue comparisons, other unfavorable comparisons emerged at Pfizer.
When facing the loss of exclusivity of your biggest product, bold deployments of capital are required to maintain sales growth, not stock buy-backs.
To emerge from a wilderness period or biotech winter where generalist investors shun the sector, biotech’s good news needs to outweigh the bad and be attractively priced. We may not be there yet.
The biotech sector is so diverse that for every acquisition there will be at least one second-best. Even after years of independence following a drug approval, investors keep hoping that their pharmaceutical Prince Charming will arrive.