Latest From Andy Smith
Biotech has always been a volatile sector, and it is important for investors to recognize the phases its stocks go through. In particular, the journey through the post-bubble wilderness can be a protracted affair.
Medicare price renegotiation and the FTC’s scrutiny of biopharma acquisitions have suppressed sector stock prices. But the sector may not be the actual target.
GLP-1 agonists are creating a stir in obesity management and could possibly prevent non-alcoholic fatty liver disease, with implications for developers of NAFLD treatments. Similarly, another preventative intervention might succeed the treatments for Alzheimer’s disease.
CSL’s evolution from plasma fractioneer to biotech has reached the extent of an approved gene therapy just as gene therapy commercialization faces challenges. Meanwhile, in the post-pandemic inflationary environment, CSL’s margins in its biggest blood products division are impacted by increased donor fees and higher labor costs.
The commercial and clinical successes of Lilly and Novo's respective GLP-1 receptor agonists provided an explosive finale to the second-quarter earnings season but also raised questions on reimbursement.
While not direct competitors in all therapeutic areas, Pfizer’s and Merck’s sales offered some stark contrasts in the second quarter.