Pharma Stock Roundup: NVO & JAZZ's Q1 Results, AZN's Pipeline Update

This week Novo Nordisk NVO and Jazz Pharmaceuticals JAZZ reported their first-quarter results. AstraZeneca’s AZN late-stage asthma study on inhaled triple-combination therapy, Breztri, met its key goals.

Here's a recap of the week’s most important stories.

NVO’s Mixed Q1 Results, Files for Oral GLP-1 Drug for Obesity

Novo Nordisk missed estimates for sales while earnings were in line. Revenues rose 18% at a constant exchange rate (CER), driven mainly by its GLP-1 products. Its GLP-1 sales increased 11% at CER. Total Diabetes care rose 8% and Obesity care sales increased 65% at CER. Sales of the diabetes drug Ozempic (semaglutide) rose 15%, while obesity injection Wegovy (semaglutide) rose 83% at CER. Rare disease segment sales rose 3%.

Novo Nordisk also lowered its sales and operating profit outlook for the year due to lower-than-expected growth of its GLP-1 products due to competition from compounded versions of Wegovy. In 2025, Novo Nordisk expects sales to rise 13-21% at CER versus the prior expectation of 16-24%. Operating profit growth is expected to increase in the range of 16-24% at CER versus the prior expectation of 19-27%.

Despite lower-than-expected first-quarter revenues and a guidance cut for 2025, NVO stock price rose post its earnings release.

This is because Novo Nordisk said on the first-quarter call that it expects sales of Wegovy to improve going forward. The FDA has removed NVO’s semaglutide medicines from its shortage list and has enforced those compounded versions be taken off the market by the end of the month. This should lead to a decline in compounded GLP-1 use, which can help Wegovy sales to rebound in the second half.

Moreover, the company is also working to improve access for Wegovy such as through its direct-to-patient program, NovoCare Pharmacy as well its CVS deal. CVS has selected Wegovy as its preferred weight loss drug for its Caremark customers, excluding rival Lilly’s obesity drug, Zepbound. 

Novo Nordisk also announced that it has filed regulatory applications seeking approval for the oral version of Wegovy (25mg) for the treatment of obesity. Novo Nordisk is the first company to seek approval for an oral GLP-1 drug for treating obesity.

JAZZ Misses Q1 Earnings & Sales Estimates, Cuts EPS Outlook

Jazz missed estimates for both earnings and sales. Total revenues of $897.8 million declined 0.5% year over year while earnings of $1.68 per share declined 36%. Sales of Jazz’s neuroscience products rose 4% to $605.2 million while oncology product sales declined 11% to $229.4 million.

In the neuroscience franchise, Xywav recorded sales of $344.8 million, up 9% year over year. Sales of Epidiolex/Epidyolex rose 10% to $217.7 million.

In the oncology franchise, Rylaze/Enrylaze posted sales of $94.2 million, which fell 8% year over year, while Zepzelca recorded sales worth $63 million, down 16%. Vyxeos generated sales of $29.5 million, down 8%.

While Jazz reiterated its total sales guidance, it cut its earnings outlook for 2025 to account for the acquisition of clinical-stage biotech, Chimerix, which closed last month. Total revenues are expected to be in the range of $4.15-$4.40 billion. Adjusted EPS guidance was lowered from a range of $22.50-$24.00 to $4.00-$5.60per share.

AZN’s Breztri Meets Goal in Phase III Asthma Studies

AstraZeneca’s two-phase III studies evaluating its inhaled triple-combination therapy, Breztri Aerosphere in patients with uncontrolled asthma met all primary endpoints. Breztri Aerosphere is a fixed dose combination of budesonide, glycopyrronium and formoterol fumarate. In the KALOS and LOGOS studies, Breztri led to a statistically significant and clinically meaningful improvement in lung function compared with dual-combination inhaled corticosteroid/long-acting beta2-agonist (ICS/LABA) medicines. Data from these phase III studies will be shared with regulatory authorities. Breztri is presently approved to treat chronic obstructive pulmonary disease (COPD) in several countries including the United States and EU.

The European Commission granted marketing authorization to AstraZeneca’s BTK inhibitor, Calquence, as a combination treatment, for first-line mantle cell lymphoma (MCL), a rare and typically aggressive form of non-Hodgkin lymphoma.  The approval was based on data from the ECHO phase III study. Calquence in combination with bendamustine and rituximab is already approved in the United States and several other countries for previously untreated MCL based on the ECHO data.

Novo Nordisk and AstraZeneca have a Zacks Rank #2 (Buy) each, while Jazz carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The NYSE ARCA Pharmaceutical Index has declined 3.2% in the past five trading sessions.

Large-Cap Pharmaceuticals Industry 5YR % Return

Large Cap Pharmaceuticals Industry 5YR % Return

Here’s how the eight major stocks performed in the previous five trading sessions.

In the last five trading sessions, J&J rose the most (1.6%) while Merck declined the most (10.8%).

In the past six months, AbbVie rose the most (8.4%) while Novo Nordisk declined the most (39.8%).

(See the last pharma stock roundup here: J&J’s Q1 Results, PFE’s Obesity Setback)

What's Next in the Pharma World?

Watch this space for regular pipeline and regulatory updates next week.

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This article originally published on Zacks Investment Research (zacks.com).

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