Amneal Pharmaceuticals Inc (AMRX) delivered impressive third-quarter results, exceeding both earnings and revenue estimates. The company’s strong performance was driven by robust growth in its generic, specialty, and AvKARE segments. Amneal also announced strategic initiatives to solidify its long-term growth, including new product launches and collaborations. This positive news led to a surge in AMRX stock during pre-market trading.
Johnson & Johnson (JNJ) exceeded analysts’ expectations for both earnings and revenue in the third quarter of 2024, driven by strong performance in its pharmaceutical segment. However, the company faces challenges in its med tech business due to market pressures and anticipates a decline in Stelara sales with the entry of biosimilars. Despite these headwinds, analysts remain cautiously optimistic about Johnson & Johnson’s long-term prospects.
UnitedHealth Group has announced it will remove AbbVie’s blockbuster drug Humira from its preferred reimbursement lists starting in 2025, opting for lower-cost biosimilars instead. This move follows similar decisions by Cigna and CVS Health, marking a significant shift in the U.S. pharmaceutical market as health plans prioritize cost-cutting measures.
Sandoz AG and Amgen Inc have reached an agreement to resolve all patent litigation related to Sandoz’s U.S. denosumab biosimilars, Jubbonti and Wyost. The agreement clears the way for the launch of these biosimilars on May 31, 2025, or earlier under certain circumstances.
Sandoz received FDA approval for Jubbonti and Wyost, the first and only denosumab biosimilars, in March 2024. These biosimilars are interchangeable with and approved for all indications of the reference medicines, Prolia and Xgeva. Patent infringement proceedings were initially filed by Amgen in May 2023, alleging that Sandoz infringed on up to 21 patents protecting Prolia and Xgeva. The litigation has now been resolved.
AbbVie is set to release its first-quarter earnings results on Friday, April 26th, before the market opens. Analysts anticipate a profit of $2.26 per share, an 8.1% decrease year-over-year, on revenue of $11.94 billion, a 2.4% decline from the same period last year. Investors will be particularly interested in the company’s comments regarding its strategy for addressing Humira’s biosimilar challenges and its post-Humira growth prospects, as well as any updates on pricing trends for the upcoming quarters.
A study has found that two years after biosimilars became available in the U.S., a higher proportion of patients using brand-name biologics were paying out-of-pocket costs, which were also, on average, 12% higher than before. In addition, patients who used biosimilars often did not pay lower out-of-pocket costs than those who were given brand-name biologic medicines. The findings suggest that the arrival of biosimilars has failed to fully deliver on their promise of lower costs for patients.
