Consumer health company Kenvue said on Wednesday it had appointed three new directors to its board as part of an agreement with activist investor Starboard Value.
The appointments settle over four months of back and forth with the hedge fund since it built a stake in the Band-Aid maker in October, sparking criticism over the lackluster performance in the skin health and beauty segment, which houses brands such as Neutrogena and Aveeno.
Kenvue said Starboard CEO Jeffrey Smith has joined the board along with two independent directors - Sarah Hofstetter, president of e-commerce company Profitero, and Erica Mann, former head of Bayer's consumer health unit.
Kenvue's shares fell nearly 2% to $23 in late-morning trade.
Starboard had nominated CEO Smith and three candidates to Kenvue's board last month.
Hofstetter and Mann were not part of Starboard's slate of nominees, which it will withdraw as part of the settlement, Kenvue said on Wednesday.
"We invested in Kenvue because of the tremendous potential we see in the company's portfolio of iconic brands and market-leading positions in large and growing markets," Smith said in a statement.
Starboard, along with its affiliates, owns about 22 million shares, roughly a 1.1% stake, in Kenvue.
Kenvue, spun off from Johnson & Johnson, lost about 13% of its value since its debut in 2023, giving it a market value of $44.76 billion.
The generic pharmaceutical industry operates on a volume-driven, low-cost business model, producing bioequivalent versions of branded drugs once their patents expire. These companies benefit from consistent demand for affordable medications, as they are critical to reducing healthcare costs. Generics typically face lower R&D expenses and shorter regulatory approval timelines compared to branded drug makers, enabling cost efficiencies. However, the industry is highly competitive, with intense pricing pressures, thin margins, and frequent legal challenges from branded pharmaceutical companies over patent disputes. Looking ahead, the industry is supported by tailwinds such as the role of AI in streamlining drug development (reverse engineering complex formulations) and manufacturing efficiency (optimize processes and remove inefficiencies). Governments and insurers' focus on reducing drug costs can also boost generics' adoption. However, headwinds include escalating pricing pressure from large buyers like pharmacy chains and healthcare distributors as well as evolving regulatory hurdles.
The 4 generic pharmaceuticals stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 2.2%.
While some generic pharmaceuticals stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.1% since the latest earnings results.
Amneal (NASDAQ:AMRX)
Founded in 2002, Amneal Pharmaceuticals (NASDAQ:AMRX) develops, manufactures, and distributes a diverse portfolio of pharmaceuticals.
Amneal reported revenues of $730.5 million, up 18.4% year on year. This print exceeded analysts’ expectations by 3.4%. Despite the top-line beat, it was still a mixed quarter for the company with full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ full-year EPS guidance estimates.
Amneal Total Revenue
The stock is up 5.1% since reporting and currently trades at $8.80.
Best Q4: ANI Pharmaceuticals (NASDAQ:ANIP)
Founded in 2001, ANI Pharmaceuticals (NASDAQ:ANIP) develops, manufactures, and markets branded and generic pharmaceutical products, with a focus on complex formulations and niche markets.
ANI Pharmaceuticals reported revenues of $190.6 million, up 44.8% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ full-year EPS guidance estimates.
ANI Pharmaceuticals Total Revenue
ANI Pharmaceuticals achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 10.7% since reporting. It currently trades at $60.44.
Weakest Q4: Viatris (NASDAQ:VTRS)
Formed in 2020 through the merger of Mylan and Upjohn, Viatris (NASDAQ:VTRS) provides a portfolio of branded, generic, and over-the-counter medications as well as biosimilars aimed at addressing a wide range of therapeutic areas.
Viatris reported revenues of $3.53 billion, down 8.1% year on year, falling short of analysts’ expectations by 1.8%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Viatris delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 15% since the results and currently trades at $9.55.
Amphastar Pharmaceuticals (NASDAQ:AMPH)
Founded in 1996, Amphastar Pharmaceuticals (NASDAQ:AMPH) develops, manufactures, and markets injectable and inhalation products, focusing on critical care, emergency, and chronic conditions.
Amphastar Pharmaceuticals reported revenues of $186.5 million, up 2.9% year on year. This result missed analysts’ expectations by 1.4%. Overall, it was a softer quarter as it also produced a miss of analysts’ EPS estimates.
The stock is down 13.4% since reporting and currently trades at $27.25.
Amazon.com (NASDAQ:AMZN)’s Prime Video will begin offering AI-aided dubbing in English and Spanish on licensed movies and series starting Wednesday, the company said, in a bid to boost viewership and bring its content to more customers worldwide.
The artificial intelligence-based dubbing is set to be available on 12 licensed movies and series initially, Prime Video said. The feature will only be available on titles that do not already have dubbing support.
The move by Prime Video, which has more than 200 million customers worldwide, is the latest example of how media companies are integrating AI into their offerings to improve customer experience.
Walt Disney (NYSE:DIS)’s ESPN network last year said it was exploring the use of AI to help personalize its news and recap show "SportsCenter" to cater better to younger audiences.
A U.S. congressional committee on Wednesday urged Americans to remove Chinese-made wireless routers from their homes, including those made by TP-Link, calling them a security threat that opened the door for China to hack U.S. critical infrastructure.
The House of Representatives' select committee on China has pushed the Commerce Department to investigate China's TP-Link Technology Co, which according to research firm IDC, is the top seller of WiFi routers internationally by unit volume.
U.S. authorities are considering a ban on the U.S. sale of the company's routers, according to media reports.
Rob Joyce, former director of cybersecurity at the National Security Agency, told a committee hearing that TP-Link devices, exposed individuals to cyber intrusion through which hackers could gain leverage to attack critical infrastructure.
The company appeared to be dominating U.S. retail market share by selling devices at low prices to drive out competition, Joyce said.
"We need to all take action and replace those devices so they don't become the tools that are used in the attacks on the U.S.," Joyce said, adding that he understood the Commerce Department was considering a ban.
TP-Link did not respond immediately to a request for comment.
The committee's Democratic ranking member Raja Krishnamoorthi, holding up a consumer-grade TP-Link router, said: "Don't use this."
"I don't have one at home either. It's not a good idea," Krishnamoorthi said.
Joyce said Chinese government-linked hackers were "approaching a peer status" with U.S. cyber capabilities, and that he had grave concerns that the Trump administration's efforts to cut the federal workforce could undermine U.S. cyber defenses.
"Eliminating probationary employees will destroy a pipeline of top talent essential for hunting and eradicating PRC threats," Joyce said, referring to the People's Republic of China.
Democratic Representative Shontel Brown said the Trump administration had laid off more than 130 officials from the Cybersecurity and Infrastructure Security Agency (CISA).
In 2023, CISA said TP-Link routers had a vulnerability that could be exploited to execute remote code.
Krishnamoorthi said the U.S. must deter Chinese hackers by going on offense.
"I think that we should also consider potentially enlisting private sector actors to hack back at the hackers. I'm going to get in a lot of trouble for saying that, but I think you have to sometimes use fire against fire," Krishnamoorthi said.
The FDA has approved the first generic versions of Johnson & Johnson's big-selling anticoagulant Xarelto, which brought in nearly $2.4 billion in US sales last year.
The US regulator has cleared 2.5mg tablet formulations of rivaroxaban – the active ingredient in Xarelto – from Sun Pharma subsidiary Taro Pharmaceuticals and Lupin, according to the Orange Book, which lists FDA-approved generic and brand name drugs.
In a statement, the FDA said it had approved the generics to reduce the risk of major cardiovascular events in adult patients with coronary artery disease (CAD) and to reduce the risk of major thrombotic vascular events in adult patients with peripheral artery disease (PAD), including patients who have recently undergone a lower extremity revascularisation procedure due to symptomatic PAD.
J&J – which jointly developed Xarelto with Bayer – has US commercial rights to the drug and sells it as 2.5mg, as well as 10mg, 15mg, and 25mg tablets, along with a 1mg/ml oral suspension formulation.
The brand-name drug has been approved for a broader swathe of indications, including the treatment of non-valvular atrial fibrillation (AF) and recurrent blood clots and – according to Bayer – Xarelto 10mg, 15mg, and 20mg tablets are also protected in the US by a patent for once-daily dosing "beyond 2025."
The FDA said anticoagulants "are among the most commonly prescribed medications in the US, and Monday's approval of the first generics of rivaroxaban, 2.5mg, tablets will make a direct impact on American patients who rely on anticoagulant medications."
It's not clear exactly when the generics may become available, as the drug has some lingering protection with some sources estimating launch in May. Neither Taro nor Lupin have yet commented on their launch or pricing plans.
The lower dose of Xarelto is already facing competition in other markets, including Europe and Canada, with Bayer reporting today that ex-US sales fell 13% to €3.48 billion ($3.72 billion) last year. In Europe, the company expects to retain patent protection for the higher strengths of the drug until January 2026.
That patent has been subject to litigation and, while Bayer won the first round, the company acknowledges that it may have a fight on its hands defending the product, including efforts to circumvent it by using oral dosage forms other than tablets.
The vaccine space has been battered by strong headwinds in recent weeks, including high-level disruptions to FDA and CDC advisory committee meetings.
A Phase I/IIa trial of BioNTech’s investigational RNA vaccine for malaria has been put on hold by the FDA, the biotech announced in an SEC filing on Monday.
Details were sparse in the company’s regulatory document, revealing only that BioNTech has complied with the clinical hold and is “taking actions to address the FDA’s requests,” though it did not specify what these requests were, nor did the biotech say why the hold was imposed in the first place. BioNTech and the FDA are working to determine next steps for the vaccine trial, according to the filing.
BioNTech’s investigational malaria shot, dubbed BNT165e, is an mRNA-based vaccine designed to prevent blood-stage infection and induce long-term immunity. BNT165e is also proposed to lower disease, infection-related deaths and secondary transmissions of malaria.
The Phase I/IIa study is testing BNT165e in nearly 180 healthy and malaria-naïve adults and will primarily assess the safety and tolerability of the experimental shot, while also looking for signs of efficacy and immunogenicity. According to a federal clinical trials database, the study is set to be completed in early 2026.
The clinical hold on BioNTech’s shot comes as the broader vaccine space is battered by strong macro headwinds.
Last month, the first meeting of the year of the Centers for Disease Control and Prevention’s vaccine advisory board was postponed. The Advisory Committee on Immunization Practices is composed of public health and vaccines experts and was supposed to convene on Feb. 27 to update immunization recommendations for 10 infectious diseases.
The panelists were also scheduled to discuss newly approved and up-and-coming vaccines—including an mRNA vaccine for COVID-19.
Days later, a meeting of the FDA’s vaccines advisory panel was canceled. The regulator’s Vaccine and Related Biological Products Advisory Committee was initially scheduled to convene March 13 to finalize strains to be included in vaccines for the upcoming flu season.
These high-level disruptions follow the controversial confirmation of Robert F. Kennedy Jr. as Secretary of Health and Human Services— despite Kennedy saying during Senate hearings that he believes that “vaccines have a critical role in healthcare.”
In a note to investors on Friday, analysts at Truist Securities acknowledged that the news surrounding vaccines “have been negative” and said this could be “a signal that RFK Jr & affiliates are exerting anti-vax pressure in their new seats.”
Still, the analysts tried to allay investors’ concerns. “While a natural reaction may be deep concern, we view these developments as part political grandstanding, and part a shoot-first-ask-later approach that appears consistent with the administration’s modus operandi,” they wrote.
In a 5-4 vote, The US Supreme Court refused to bolster President Donald Trump’s foreign-aid freeze,reinstating a lower court order that requires the quick disbursement of as much as $2 billion owed to contractors for already completed work.
Over four dissents, the justices rejected Trump’s request to toss out the trial court order, which affects money owed by the US Agency for International Development and State Department.
The dissent by Justices Alito, Thomas, Gorsuch, and Kavanaugh was extremely strongly worded:
Does a single district-court judge who likely lacks jurisdiction have the unchecked power to compel the Government of the United States to pay out (and probably lose forever) 2 billion taxpayer dollars?
The answer to that question should be an emphatic “No,” but a majority of this Court apparently thinks otherwise.
I am stunned.
...
Today, the Court makes a most unfortunate misstep that rewards an act of judicial hubris and imposes a $2 billion penalty on American taxpayers.
The District Court has made plain its frustration with the Government, and respondents raise serious concerns about nonpayment for completed work. But the relief ordered is, quite simply, too extreme a response.
A federal court has many tools to address a party’s supposed nonfeasance.
Self-aggrandizement of its jurisdiction is not one of them.
I would chart a different path than the Court does today, so I must respectfully dissent.
Chief Justice John Roberts and Justice Barrett sided with the liberal members of the court.
The majority told the trial judge to reset the deadlines for paying the money since his original deadline has now passed.
This decision only affects completed work, not future freezes.
The ruling compels the Government to release funds for work that had already been completed before February 13, 2025. However, it does not block the administration from continuing to pause or cut future foreign assistance. Trump’s broader agenda of cutting USAID funding may continue for projects that were not yet underway.
Key Takeaways
The ruling forces immediate payment of $2 billion for completed work but does not prevent broader USAID cuts.
Future freezes and funding pauses are still possible but may face legal challenges under the APA.
The ruling does not permanently restore funding, but it creates a legal pathway for future lawsuits if the Government halts disbursements unlawfully.
Trump’s broader foreign aid policy remains largely intact, though judicial pushback may limit some of its implementation.
We cannot wait to see how Musk and Trump respond to this fucking farcical outcome...
