Pfizer Inc

The Trump administration is expected to announce a new agreement on drug prices with mid-sized biopharmaceutical companies on the 31st. Bloomberg reported on the 26th, citing sources. According to the report, the companies have agreed to lower prices for outpatient prescription drugs under Medicaid, the public health insurance program for low-income individuals, with the aim of bringing the prices paid by states in line with those charged overseas. It is not clear which pharmaceutical companies will be part of the agreement. Reuters has not yet confirmed the report. President Trump has previously sent letters to the CEOs of 17 major pharmaceutical companies, including Pfizer, Eli Lilly, and Amgen, urging them to reduce U.S. prescription drug prices to levels comparable to those overseas.

BridgeBio Pharma reported second-quarter revenues of $243.7 million, up 120% year over year and above the Zacks Consensus Estimate of $222.6 million, driven by Attruby U.S. product sales of $222.4 million, more than triple the $71.5 million from a year earlier. The company posted a net loss of 78 cents per share, wider than the expected 64-cent loss but improved from a 95-cent loss a year ago, as research and development expenses rose 34% to $149.4 million and selling, general and administrative expenses climbed 44% to $186.3 million. Management said Attruby's first-line share in ATTR-CM rose two to three percentage points in the quarter, while the pool of patients switching from Pfizer's Vyndaqel/Vyndamax has begun to normalize. BridgeBio ended June with $720.2 million in cash, cash equivalents and marketable securities, down from $940.2 million at the end of the prior quarter, but a $1 billion preferred equity financing that closed July 1 lifted the cash balance to about $1.7 billion. The company is preparing for three potential U.S. product launches over the next 12 months, including BBP-418 with an FDA decision date of November 27, 2026, encaleret under review for a May 8, 2027 decision, and infigratinib targeted for a potential early- to mid-2027 launch if approved.

Johnson & Johnson appears better prepared for its patent cliff than Pfizer, based on their latest results. J&J's Innovative Medicine sales rose 7.8% to $16.38 billion despite a 55% decline in Stelara revenue, helped by Tremfya sales jumping 72.5% to about $2 billion. The company raised its 2026 reported-sales guidance to a midpoint of $101.1 billion and increased adjusted EPS guidance by $0.13 to $11.68. Pfizer's revenue excluding Comirnaty and Paxlovid grew 5% operationally in fiscal Q2 2026, but total operational growth was only 1%, and the company recorded a GAAP net loss of $248 million. Pfizer expects about $9.7 billion in total net savings through 2029 from cost-realignment and manufacturing-optimization programs.

Nearly nine in ten EU4+UK hematologists now require longer-term efficacy data before referring patients with hemophilia A for gene therapy, according to new research from Spherix Global Insights. The 2026 Market Dynamix study of 160 hematologists across France, Germany, Italy, Spain, and the United Kingdom found that 89% of physicians need longer-term efficacy data, up 23 percentage points from 66% in 2025. Patient research shows 37% of 169 US patients with hemophilia A or B were considered good candidates for gene therapy but were not currently pursuing it, while 36% of hemophilia A patients and 24% of hemophilia B patients expressed strong interest. The findings come amid commercial setbacks including the discontinuation of BEQVEZ by Pfizer, withdrawal of ROCTAVIAN by BioMarin, and supply challenges for HEMGENIX by CSL Behring.

Arbutus Biopharma reported second quarter 2026 financial results and announced it received a first payment of approximately $178 million in July from its $950 million settlement with Moderna, and expects to return up to approximately $230 million to shareholders through share repurchases starting in the third quarter. The company also filed three international patent infringement lawsuits against Pfizer and BioNTech related to its lipid nanoparticle technology, and achieved alignment with the FDA on a Phase 2b clinical trial design for its chronic hepatitis B drug candidate imdusiran. As of June 30, 2026, Arbutus held cash, cash equivalents and marketable securities of $92.6 million, and reported a net loss of $5.1 million for the quarter.

Bristol Myers Squibb may not be as cheap as its valuation metrics suggest because of looming patent expirations on key drugs. The company's price-to-earnings ratio of 17.5 times is well below the pharmaceutical industry average of 25 times, and its dividend yield of 4% far exceeds the S&P 500's 1% and the sector's roughly 1.5%. However, Revlimid and Pomalyst lose patent protection in 2026, and Eliquis, co-marketed with Pfizer, follows in 2028, which will likely cause material revenue declines. The stock's low multiples could simply reflect Wall Street pricing in that patent cliff, and a turnaround hinges on whether Bristol Myers Squibb can win approvals for new blockbuster drugs from its pipeline in rare diseases, immunology, and cancer.

Pfizer and Eli Lilly present sharply different investment cases in the pharmaceutical industry, with Pfizer acting as a value and income play and Eli Lilly standing out as a solid growth investment. Pfizer trades at about 8.7 times trailing adjusted earnings and a sales multiple of 2.2 times, while offering a dividend yield of around 7 percent, supported by a quarterly payout of $0.43 per share. Eli Lilly has delivered rapid revenue growth, with first-quarter revenues jumping 56 percent, driven by its diabetes and weight-loss drugs, though it trades at roughly 40.7 times trailing earnings and 14.3 times sales. Pfizer faces headwinds from an expected $1.5 billion decline in COVID-19 product revenue in 2026 and another $1.5 billion negative revenue impact from products losing exclusivity, while Eli Lilly's risks include high valuation and heavy reliance on blockbusters like Mounjaro and Zepbound. Hedge fund holdings show 132 funds held Eli Lilly in the first quarter, down from 137, and 83 funds held Pfizer, up from 81, with short interest at 1.09 percent of float for Eli Lilly and 2.89 percent for Pfizer.

Moderna is set to report second-quarter 2026 earnings on July 31 before the opening bell, with the Zacks Consensus Estimate pegging sales at $126.7 million and a loss of $1.97 per share. The revenue figure suggests a decline from the year-ago levels, but the bottom line is expected to improve. Over the past 30 days, the Zacks Consensus Estimate for 2026 loss per share has widened from $8.26 to $8.64, while the 2027 loss estimate has risen from $4.29 to $4.33. The biotech has beaten earnings estimates in each of the trailing four quarters, delivering an average surprise of 46.21%, including a 60.93% beat in the last reported quarter. However, the Zacks model does not predict a beat this time, as Moderna has an Earnings ESP of -2.41% and a Zacks Rank of 3. Key factors shaping the upcoming results include product sales from two COVID-19 vaccines, Spikevax and mNexspike, and the RSV vaccine mResvia, with the majority of sales expected from COVID-19 vaccines and minimal sales from mResvia due to stiff competition from GSK's Arexvy and Pfizer's Abrysvo. Investors will also seek updates on the commercialization plans for mCombriax, the first combination vaccine against COVID-19 and influenza, which secured EU approval in April, as well as the timeline for FDA resubmission after the initial filing was voluntarily withdrawn last year. Additionally, the FDA decision on Moderna's standalone flu shot, mRNA-1010, is expected by next week, with optimism building after an FDA advisory committee unanimously backed approval. Another key pipeline candidate is intismeran autogene, a personalized cancer therapy developed in collaboration with Merck, which is being evaluated in three pivotal phase III studies in melanoma and non-small cell lung cancer, along with mid-stage studies for other cancer indications. Year to date, Moderna's shares have surged 89%, significantly outperforming the industry's 2% growth, the sector, and the S&P 500, though the stock trades at a premium valuation of 9.91 times trailing 12-month sales compared to the industry's 2.35. Moderna held approximately $8.1 billion in cash and cash equivalents as of March 31, 2026, which, combined with cost-efficiency initiatives, should support its research, development, and commercialization efforts. While the premium valuation and downward estimate revisions warrant caution, existing investors are advised to maintain their positions given the approaching FDA decision on mRNA-1010, the recent EU approval of mCombriax, and a deep pipeline spanning oncology and other therapeutic areas.

Pfizer is facing expanded patent litigation from Arbutus Biopharma and Genevant Sciences over mRNA lipid nanoparticle technology, with new international cases adding legal and operational questions for its COVID-19 vaccine business. The most followed valuation narrative pegs Pfizer's fair value at about $29.19 per share versus a recent close of $24.94, suggesting the stock is materially discounted once future cash flows are adjusted using a 7.11% discount rate. This narrative assumes robust expansion of Pfizer's late-stage pipeline, especially in oncology and rare diseases, will drive sustained long-term revenue and earnings growth. However, the outlook depends on Pfizer offsetting revenue headwinds and patent expiries, and on regulators not imposing tighter pricing rules that squeeze long-term margins. The stock showed a 1-day return of 0.77% and a 7-day return of 2.85%, but a 90-day decline of 6.94%, while the 1-year total shareholder return stands at 6.14%.