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We've had Eyes On the Healthcare 3Q24 Results. We've highlighted a few firms today: Lilly, AbbVie, Pfizer, Novo Nordisk, BMS, Roche, Novartis, Merck, AstraZeneca, GSK, Viatris, Teva, and Amgen. PharmaTell covers over 2,000 publicly traded companies, and you can search for the latest news on quarterly results using "3Q24 Results" or "3Q24 Earnings".
Eli Lilly
Eli Lilly missed sales targets for its well-known weight-loss pharmaceutical Zepbound and its diabetic medication Mounjaro in its most recent quarterly report, which was made public on Wednesday, 30th October 2024. The company’s capacity to satisfy Wall Street’s demands was hampered by supply chain management problems, even though the US market for these goods was expanding.
Eli Lilly’s stock fell 8%, lowering its market value by around $70 billion, according to Reuters. CEO David Ricks stated that distributors were dealing with storage and budgetary limitations that impacted order quantities and that stock management problems with wholesalers were a significant contributor to the deficit.
According to Eli Lilly’s Q3 report, Zepbound and Mounjaro together brought in $4.37 billion, which was less than the $4.89 billion analysts had predicted. The business has updated its profit projection for 2024.
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AbbVie
Increased operating expenses were the leading cause of AbbVie’s reported year-over-year decline in net income. While net revenues increased to $14.46 billion, a 3.8 percent increase from the previous year, the company’s net income for the third quarter fell by 12 percent to $1.56 billion. Robert Michael, the CEO of AbbVie, emphasized that the business has increased its guidance for the rest of the year due to robust pipeline growth and commercial performance. He also affirmed a quarterly dividend increase.
Operating expenses for the corporation increased by 9% from the previous year to $10.63 billion in Q3. Strategic acquisitions and research and development expenses were blamed for the rise. Additionally, AbbVie’s pre-tax income increased by 5% year over year to $2.08 billion for the quarter, which was reflected in its earnings. Despite some difficulties with running expenditures, the company's overall revenues for the first nine months of 2024 increased to $41.23 billion, a 3% rise from the year before.
On 28th October 2024, AbbVie revealed intentions to pay an estimated $1.4 billion to purchase privately held Aliada Therapeutics, a biotech business that specializes in treating neurological illnesses. AbbVie’s dedication to growing its research and treatment capabilities in neurological and other specialty areas will be supported by the acquisition.
For more details, please see the links below:
Pfizer
Strong sales of Pfizer’s COVID-19 treatments Comirnaty and Paxlovid helped the company record increased revenues. The company's third-quarter earnings of $17.7 billion represented a 31% increase over the previous year. Pfizer's updated outlook for the year, which now projects revenues of $61 billion to $64 billion, was influenced by this rise. CEO Albert Bourla credited the company's success to cost-cutting efforts throughout the quarter and the consistent demand for Covid-19 drugs. Demand for Paxlovid increased due to an increase in COVID-19 cases, and Pfizer's purchase of Seagen increased earnings by boosting sales of cancer therapies.
Pfizer’s 2024 adjusted financial forecast projects sales of up to $64 billion, with Comirnaty and Paxlovid expected to contribute $5 billion and $5.5 billion, respectively, to the total. Although some drugs, such Xeljanz and Ibrance, witnessed reductions due to price pressure and regulatory changes, the business also reported growth across several important product lines, including Eliquis and Xtandi.
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Novo Nordisk
Novo Nordisk released third-quarter earnings that were largely in line with forecasts. The company’s net profit for the quarter was 27.3 billion Danish kroner, slightly higher than the LSEG aggregate estimate of 26.95 billion Danish kroner. In addition, the company reduced its forecast for sales growth for the entire year 2024 from 22% to 28% at constant exchange rates to 23% to 27%. According to the company, Wegovy sales increased 79% in the third quarter of 2024 over the same period the previous year.
The projection also highlights the expectation of ongoing periodic supply constraints and related drug shortage notifications across a number of products and geographies, following higher-than-expected volume growth in recent years, including GLP-1-based products like Ozempic and Wegovy, along with the expectation of continued volume growth and capacity limitations at some manufacturing sites. Novo Nordisk also stated that it was making internal and external capacity investments to improve supply now and in the future.
In the third quarter of 2024, Novo Nordisk’s sales in North America climbed 22% over the same period the previous year. GLP-1 volume growth in the region increased by 15% throughout the period, while sales to the major U.S. market increased by 21%. With 50.0% of new-to-brand prescriptions and 53.9% of total monthly prescriptions, Novo Nordisk leads the market.
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Bristol Myers Squibb
Due to successful sales of its blood thinner Eliquis and a portfolio of medications it anticipates will generate long-term growth, BMS posted third-quarter earnings and revenue that exceeded forecasts. The company has also increased its forecast of adjusted earnings and full-year revenue. The results coincide with Bristol Myers Squibb’s efforts to cut $1.5 billion in expenses by the end of 2025 and direct the funds into important pharmaceutical brands and R&D initiatives.
Bristol Myers Squibb increased its 2024 adjusted earnings expectation from 60 to 90 cents per share to 75 to 95 cents per share. For the third quarter, they reported a net income of $1.21 billion, or 60 cents per share. In comparison, the net income for the previous year was $1.93 billion, or 93 cents per share. Adjusted earnings per share of $1.80 for the quarter, excluding some adjustments, were reported. Revenue for the pharmaceutical behemoth increased by 8% to $11.89 billion over the same period last year. Eliquis and the company’s so-called Growth Portfolio of medications, which includes the cancer medication Opdivo, were the sources of the growth. However, Sprycel, a leukemia therapy now facing generic competition due to its loss of exclusivity, partially offset income.
Bristol Myers Squibb is getting ready to make up for the revenue loss from popular medications that will no longer be available exclusively on the market, such as Eliquis, Opdivo, and Revlimid, a therapy for blood cancer. New pricing for Eliquis for some Medicare patients in 2026, a result of agreements with the federal government, may also reduce sales revenues for the medication. Eliquis’ quarterly sales of $3 billion represented an 11% increase over the same period last year. That was more than the $2.84 billion experts had projected, based on StreetAccount's forecasts.
By 2028, the blood thinner Revlimid, which Bristol Myers and Pfizer share, is anticipated to lose its market exclusivity. Sales for Revlimid came to $1.41 billion, a 1% decrease from the same time last year.
For the third quarter, the company’s Growth Portfolio generated $5.8 billion in revenue, an 18% increase over the same period last year. Higher demand for the anemia medication Reblozyl, which generated $447 million in the third quarter, up 80% from the same time last year, was one factor contributing to that. Opdivo’s third-quarter revenue of $2.36 billion represented a 4% increase over the same period last year. That was less than the $2.41 billion analysts had predicted for the quarter. The advanced melanoma treatment Opdualag, lymphoma treatment Breyanzi and Camzyos, a drug for particular cardiac disorders, also contributed to the Growth Portfolio's third-quarter revenue.
During the last quarter, Bristol Myers Squibb’s eagerly awaited schizophrenia medication Cobenfy received approval from the Food and Drug Administration. It is the first new kind of treatment for the crippling, long-term mental illness in over 70 years.
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Roche
Due to increased prescriptions for the once-monthly hemophilia therapy Hemlibra and the recently introduced eye medication Vabysmo, Roche’s new tab had a currency-adjusted 9% increase in third-quarter sales, above market forecasts. Based on LSEG data, group sales of 15.14 billion Swiss francs ($17.46 billion) exceeded a consensus expectation of 14.9 billion francs by analysts. The Swiss pharmaceutical company reiterated its expectation that adjusted earnings per share will expand in the “high single-digit range” in 2024, excluding the impact of currency fluctuations and the settlement of tax issues in 2023.
Group sales growth was up 6%, with base business up 8%. The key growth drivers included Itovebi (US approval in 1L PIK3CA-mut HR+ BC, Tecentriq Hybreza (US approval for SC), Ocrevus Zunovo (US approval for SC) and Elevidys (CHF > 100 m in ex-US early launch countries).
There has also been positive phase III data for Gazyva/Gazyvaro (lupus nephritis, a kidney disease), Tecentriq (lung cancer) and Xofluza (influenza), as well as new positive phase II data for fenebrutinib (multiple sclerosis). AntlerA Therapeutics was acquired, allowing for a new target in ophthalmology. An agreement was also signed for the acquisition of two CDK inhibitor drugs from Regor Pharmaceuticals for breast cancer.
For more details, please see the links below:
Novartis
For Novartis AG, at USD 12.8 billion (up 9%, up 10% cc), net sales accounted for 12 percentage points to growth. Pricing was flat and generic competition had a 2 percentage points negative impact. Predominantly because of increased net sales and decreased impairments, with higher R&D expenditures serving as a partial offset, operating income was $3.6 billion (+106%, +123% cc). Higher operating income influenced the result of a net income of $3.2 billion (+111%, +121% cc). EPS came to $1.58 (+116%, +127% cc), helped by a lower weighted average amount of outstanding shares.
Higher net sales were the primary driver of core operating income, which was $5.1 billion (+17%, +20% cc). Higher R&D expenditures partially offset this. The core operating income margin increased by 2.7 percentage points (+3.4 percentage points cc) to 40.1% of net sales. Higher core operating income was the primary driver of core net income, which came to $4.1 billion (+15%, +17% cc). Because fewer shares were outstanding, the core EPS was $2.06 (+18%, +20% cc). Due to more significant net cash flows from operating activities from continuing operations, free cash flow from continuing operations increased to USD 6.0 billion (+18% USD) from USD 5.0 billion in the previous year’s quarter.
The most significant growth drivers for this year’s third quarter were Entresto, Cosentyx, Kisqali, Kesimpta and Pluvicto. Entresto ($1865 million, +26% cc) saw sustained, strong growth led by demand, with more penetration in Europe and the US, after guideline-directed medical therapy in cardiac failure, in addition to increased penetration in hypertension in China. Sales of Cosentyx predominantly grew in Europe, the US and emerging growth markets, encouraged by launches such as HS indication and the IV formulation in the US.
By including patients without nodal involvement, the FDA-approved Kisqali's broad indication for HR+/HER2-stage II and III early breast cancer (eBC) at high risk of recurrence nearly doubles the number of patients eligible for adjuvant therapy with CDK4/6 inhibitors. Furthermore, in October, Kisqali received a good evaluation from the CHMP. Indicated for the purpose of reducing proteinuria in patients with primary immunoglobulin A nephropathy (IgAN) who are at risk of rapid disease progression, the FDA gave Fabhalta accelerated approval.
Net debt climbed to $16.3 billion as of 30th September 2024, from $10.2 billion as of 31st December 2023. The yearly dividend payment of $7.6 billion, the net cash outflow for M&A and intangible asset transactions of $5.5 billion, and the cash outflow for treasury share transactions of $5.5 billion more than offset the free cash flow of $12.6 billion, which was the primary cause of the rise. The company’s long-term credit grade as of Q3 2024 is AA- with S&P Global Ratings and Aa3 with Moody’s Ratings.
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Merck
Merck exceeded expectations with its third-quarter revenue and adjusted earnings. Keytruda, the company's best-selling cancer medication, newly introduced medicines, and its animal health division also saw strong sales. However, sales of Merck’s vaccine, which guards against cancer caused by HPV, the most prevalent STD in the US, were lower than anticipated during the second quarter.
From an initial prediction of $63.4 billion to $64.4 billion, the pharmaceutical company reduced its full-year sales estimate to a range of $63.6 billion to $64.1 billion. In addition, Merck reduced its adjusted profit expectation from $7.94 to $8.04 per share to a range of $7.72 to $7.77 per share. A one-time fee of 24 cents per share for business development agreements with Curon Biopharmaceutical and Daiichi Sankyo is reflected in that revised expectation.
For the third quarter, Merck reported $1.57 (adjusted) earnings per share and $16.66 billion in revenue. Wall Street expected earnings per share of $1.50 and a revenue of $16.46 billion. Merck also reported a net income of $3.16 billion, or $1.24 per share. In contrast, net income for the previous year was $4.75 billion, or $1.86 per share.
Merck made $1.57 per share during the third quarter, excluding acquisition and restructuring expenses. Compared to the same period last year, the company’s third-quarter revenue of $16.66 billion represented a 4% increase. The results are released as Merck is making significant progress in getting ready for the 2028 patent expiration of Keytruda. Sales of the medication will probably decline as a result of the loss of exclusive rights, causing the business to find other sources of income.
Merck will be able to make up for those losses with a few new agreements and important drug launches. Among these is Winrevair, a drug that was authorized in the United States in March 2024 to treat a lung disease that is progressive and potentially fatal. Additionally, in June, the United States authorized Capvaxive, a vaccine intended to protect people against the pneumococcus bacteria, which can cause lung infections and other serious disorders. Over the last three years or so, the company’s pipeline of late-stage pharmaceuticals has almost tripled, reaching over 20 distinct products.
Keytruda, the company's immunotherapy medication, brought in $7.43 billion in revenue during the quarter, a 17% increase over the same period last year. Keytruda sales had been predicted by analysts to reach $7.33 billion.
Sales of Gardasil totalled $2.31 billion. According to Merck, China’s decreased demand as compared to the same period last year was the main cause of the fall. Increased sales in the United States largely compensated it.
Sales of the company's Type 2 diabetes medication, Januvia, totalled $482 million, a 42% decrease from the same time last year. Merck stated that generic competition in a number of nations and decreased drug pricing in the United States were the main causes for this decline.
For more details, please see the links below:
AstraZeneca
AstraZeneca, third-quarter increases in total revenue and core earnings per share (EPS) of 21% and 27%, respectively, supported an improvement to our full-year 2024 outlook and demonstrated the growing demand for medications across oncology, biopharmaceuticals, and rare diseases. Total revenue was up 19% to $39,182 million, driven by sustained growth in Alliance Revenue from partnered medicines and a 19% increase in Product Sales.
After third-quarter earnings above expectations, AstraZeneca opened a new tab and lifted its annual sales and profit prediction for the second time this year, aided by high demand for its rare disease and cancer medications. The London-listed business announced $2 billion in additional investments in research and development as well as in facilities that produce cell treatments and biologics medications, further solidifying its intentions for U.S. expansion.
There were positive read-outs for Tagrisso with Orpathys in EGFRm NSCLC with high levels of MET overexpression and/or amplification (SAVANNAH), Calquence in combination with venetoclax (with or without obinutuzumab) in CLL (AMPLIFY) not treated prior, and the next generation propellant for Breztri, Tezspire for severe chronic rhinosinusitis with nasal polyps (WAYPOINT), and Koselugo for adult patients with NF1-PN (KOMET).
The third quarter also included US approvals for FluMist for self-administration, Imfinzi plus chemotherapy in resectable early-stage NSCLC (AEGEAN), and Tagrisso in unresectable, Stage III EGFRm NSCLC (LAURA). In addition, EU approvals for Imfinzi plus chemotherapy followed by Imfinzi alone in mismatch repair deficient endometrial cancer (DUO-E), Imfinzi plus chemotherapy followed by Lynparza and Imfinzi in mismatch repair proficient endometrial cancer (DUO-E), and Fasenra for EGPA (MANDARA). China has approved Enhertu in locally advanced or metastatic HER2-positive gastric or gastroesophageal junction adenocarcinoma (DESTINY-Gastric06), Fasenra for severe eosinophilic asthma (MIRACLE) and Enhertu in unresectable, locally advanced or metastatic HER2-mutated NSCLC (DESTINY-Lung02, DESTINYLung05).
For more details, please see the links below:
GSK
GSK’s third-quarter revenue came to £8.01 billion (1.7% decrease from third quarter, 2023) with a net loss of £58.0 million (104% decrease from £1.46 billion profit in third quarter, 2023) and a £0.014 loss per share (lowered from £0.36 profit in third quarter, 2023).
Revenue matched expert projections. Analyst projections for earnings per share (EPS) were not met. As the UK pharmaceutical industry overall is expected to grow by 6.0% over the next three years, GSK revenue is only expected to grow by an average of 4.1% annually.
The EU has approved Arexvy in adults aged 50-59 at increased risk, and there has been a US FDA file acceptance for gepotidacin in uncomplicated UTI, as well as bepirovirsen being granted SENKU designation for chronic hepatitis B in Japan. Regarding HIV, real-world studies show 99% effectiveness for the only approved long-acting drug for HIV PrEP, Apretude. There was also an announcement of positive results for ultra long-acting biologic depemokimab for the phase 3 ANCHOR trial (CRSwNP).
The third quarter additionally saw expanded US FDA approval for Jemperli in endometrial cancer, as well as a US FDA Breakthrough Therapy Designation for GSK5764227 (B7-H3-targeted antibody-drug conjugate) in small-cell lung cancer and Blenrep being filed in US, EU and Japan, and receiving Breakthrough Therapy Designation in China.
GSK has produced another quarter of growth in revenue and core operating profit, along with more positive R&D advancements. In addition to reflecting excellent new product launches in oncology and HIV, as well as the resilience now ingrained in the company’s portfolio and performance, strong growth in speciality medicines helped to offset reduced vaccine sales. With 11 successful phase 3 trials announced in 2024 so far, their pipeline is still becoming stronger. GSK is currently preparing to launch five significant new product approval possibilities for 2025: Blenrep, Depemokimab, Nucala for COPD, Gepotidacin, and our novel meningitis vaccine (MenABCWY).
For more details, please see the links below:
Viatris
Positive momentum against all three of its strategic pillars propelled Viatris Inc.'s (Nasdaq: VTRS) third-quarter 2024 financial results. With $3.8 billion in total revenues, including $133 million from new products, the company continued to show that it could grow its base business.
In the quarter that ended on September 30th 2024, total revenues declined ~(5)% on a U.S. GAAP basis, while in the same period U.S. GAAP net earnings decreased from $332 million to $95 million, or ~(71)%. U.S. GAAP diluted EPS decreased from $0.27 per share to $0.08 per share, or ~(70)%.
The impact of the make-whole call of €292M (~$325M) of remaining 2025 Euro Senior Notes on 16th October, 2024, is included in the debt repayment of approximately $1.9 billion. The company has said that it aims to manage notional gross debt and adjusted EBITDA over time in order to generally maintain or reach the long-term gross leverage target, but it has not quantified future amounts to establish this target, which does not reflect corporate guidance.
As of 7th November, 2024, U.S. GAAP total revenues are projected to be between $14.60 and $15.10 billion, with a midpoint of $14.85 billion, representing a ~(4)% reduction for the entire year.
Brands net sales show the company’s substantial growth in Europe and Greater China and the diversification of its portfolio in Emerging Markets and JANZ. The impact of government pricing controls in Japan and Australia, as well as unfavorable channel dynamics in North America, somewhat countered this.
BreynaTM, lisdexamfetamine, and other new products were the company's main drivers of new product revenues worldwide, which came to about $133 million during the third quarter. In 2024, the company anticipates generating between $500 million and $600 million in new product revenues.
The company’s financial strength is demonstrated by the results of this quarter, which showed $827 million in U.S. GAAP net cash supplied by operating activities and $866 million in free cash flow (excluding the impact of transaction costs principally linked to the divestitures).
For more details, please see the links below:
Teva
Revenues for Teva Pharmaceutical Industries Ltd.’s 2024 third quarter increased by 15% to $4.3 billion. With respective growth rates of 28%, 21%, and a successful launch, the company's cutting-edge products, AUSTEDO, AJOVY, and UZEDY, demonstrated impressive performance.
All regions contributed significantly to Teva's 17% worldwide generics business growth, with the US seeing a 30% increase. The business has made strides in its biosimilar portfolio, with 17 biosimilars aiming for a brand value of about $60 billion. Strong performance and higher projections for important medicines like UZEDY and COPAXONE have led to an increase in Teva's financial outlook for the entire year.
However, in this quarter, Teva reported a GAAP operating loss of $51 million, mostly as a result of increased lawsuit settlements and goodwill impairment charges. The company's financial results were impacted by a $600 million goodwill impairment charge associated with its API reporting unit. With a $250 million impact on revenue so far this year, fluctuations in the foreign exchange rate had a detrimental effect on both profitability and revenues.
Among the legal issues Teva is facing is a $350 million clause pertaining to a European Commission antitrust investigation. Generic drug pricing additionally continues to present challenges, despite impressive performance.
For more details, please see the links below:
Takeda
With growth driven by its Growth & Launch Products, Takeda today reported profit results for the first half of fiscal year 2024 (six months ended 30th September, 2024). In order to reflect better-than-expected first-half performance (including less-than-expected generic erosion of VYVANSE® in the U.S.) and updated foreign exchange assumptions, the firm has increased its full-year estimates and Management Guidance.
The company’s confidence in resuming sustainable revenue and profit growth is strengthened by the impressive success of Takeda's Growth and Launch Product portfolio, which grew 18.7% at CER and accounted for 47% of total sales. Takeda’s ability to move forward with its strong late-stage pipeline of life-changing products for patients is demonstrated by the August start of TAK-861's Phase 3 trial for narcolepsy type 1. Takeda's R&D Day, 12th December (EST) / 13th (JST), 2024, will provide more information on the company’s R&D strategy and pipeline updates, including commercial possibilities.
For more details, please see the links below:
Amgen
In this year’s third quarter, Amgen Inc. had a revenue of $8.5 billion (up 23% year-over-year), with product sales growth of 24% year-over-year and an operating margin of 49.6% as a percentage of products sales. The company’s non-GAAP R&D spending came to $1.4 billion (up 35% year-over-year) and non-GAAP SG&A expenses increased 21% year-over-year.
Sales of the company’s cutting-edge oncology portfolio increased by 17%, with BLINCYTO and IMDELLTRA among its top-performing drugs. MariTide, a medication for obesity and type 2 diabetes, is one of the possibly first-in-class or best-in-class medications that Amgen Inc. is developing. Thanks to products like TEPEZZA and UPLIZNA, the rare illness portfolio generated $1.2 billion in sales, a 21% increase from the previous year. With a 67% increase in sales year over year, TEZSPIRE demonstrated robust market acceptance and the possibility of future growth into COPD.
Nonetheless, despite volume growth, a 7% drop in net selling price caused a 1% year-over-year decline in Otezla sales. Lower net selling prices and unfavorable changes in projected sales deductions were the main causes of the 20% year-over-year decline in Enbrel sales. Despite maintaining category leadership, Amgen Inc. is up against more competition in the Repatha market outside of the United States. Future revenue will be impacted by the company’s expectation that Enbrel’s net selling prices will continue to decline. The inclusion of Horizon was a major factor in the 27% increase in non-GAAP operating expenses year-over-year, which affected total profitability.
For more details, please see the links below:
For 3Q24 summaries covering multiple companies, see below:
LargeCap BioTech PharmaTell Studio
Healthcare Services PharmaTell Studio
MedTech PharmaTell Studio
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