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Thursday, May 1, 2025

US is planning $500m project on 'universal vaccines;' WSJ

 The US federal government intends to spend $500 million on a project to develop universal vaccines that can protect against multiple virus variants at the same time.

That's the conclusion of an article in the Wall Street Journal, citing emails it had accessed, which suggests the move marks a shift away from next-generation COVID-19 vaccines like Novavax's next-generation shot – reportedly turned down by the FDA with a request for a new clinical trial.

That has raised concerns that annual updates to seasonal vaccines for respiratory diseases might all require new trials, which would be unworkable in practice and likely unviable commercially.

According to the WSJ, the universal vaccine project is being pioneered by two recently appointed senior scientists in the NIH, Drs Matthew Memoli and Jeffery Taubenberger, and will focus on an older technology based on inactivated whole viruses to develop broadly protective jabs against both coronaviruses and influenza viruses.

If confirmed, the sizeable project comes against a backdrop of massive cuts to the Department of Health and Human Services (HHS) budget – reported by some to be in the region of $40 billion – and the loss of around 20,000 jobs across the agencies it oversees, including the NIH.

It's worth noting that many of the senior figures in the HHS and its agencies – including HHS Secretary Robert F Kennedy Jr, FDA Commissioner Martin Makary, and NIH Director Jay Bhattacharya – are recognised as holding views contrary to prevailing scientific wisdom on COVID-19 immunisation programmes.

The Guardian newspaper reported this week that a spokesperson for the HHS said that "The COVID-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a non-existent pandemic that Americans moved on from years ago."

Along with the delay to the Novavax vaccine review, funding has also been dropped for local vaccination programmes, emerging and infectious disease surveillance capacity has been reduced, and programmes to address COVID-19 disparities in underserved communities have been axed.

Meanwhile, a well-known vaccine sceptic has been appointed to probe the well-debunked link between vaccines and autism, and Peter Marks, formerly head of the FDA's Centre for Biologics Evaluation and Research (CBER), resigned with a warning about efforts to undermine US immunisation programmes under Kennedy.

The new project ties in with comments made by Kennedy in an interview with CBS News last month in which he said that " for respiratory illnesses, the single antigen vaccines have never worked [and HHS] is actually shifting our priorities to multiple antigen vaccines."

Placebo testing requirement

Also this week, it has been reported by the Washington Post that Kennedy intends to require all new vaccines to undergo placebo-controlled trials – even for well-studied diseases like measles and polio – in what it calls "a radical departure from past practices." Questions have already been voiced about the ethics of exposing patients to a placebo for diseases with potentially serious or life-threatening complications.

For now, it's not clear what form the new policy would take, or the vaccines that would be in scope, although HHS said the flu vaccine would not be included and the aim is to increase "transparency."

"Except for the COVID vaccine, none of the vaccines on the CDC's childhood recommended schedule was tested against an inert placebo, meaning we know very little about the actual risk profiles of these products," the Department told the Post.

https://pharmaphorum.com/news/us-planning-500m-project-universal-vaccines-wsj

FDA to tighten vaccine approval requirements: reports

The U.S. FDA is planning to require all new vaccines to undergo placebo-controlled trials before approval.

https://seekingalpha.com/news/4438775-fda-to-tighten-vaccine-approval-requirements-reports

Becton Dickinson (BDX) Reports Mixed Q2 Results and Updates 2025 Guidance

 Becton, Dickinson (BDX) recently reported a strong Q2 performance, with non-GAAP earnings per share reaching $3.35, which surpassed market expectations by $0.07. Despite this earnings success, the company's revenue stood at $5.3 billion, marking a 6% year-over-year increase but missing projections by $50 million. The company has subsequently revised its fiscal 2025 guidance, adjusting both its revenue and earnings forecasts.

https://www.gurufocus.com/news/2819283/becton-dickinson-bdx-reports-mixed-q2-results-and-updates-2025-guidance

Moderna to deepen cost cuts amid declining Covid vaccine demand

 Moderna (NASDAQ:MRNA) was in focus Thursday morning after the vaccine maker announced plans to expand its cost efficiency and prioritization programs amid declining sales of its Covid shots.

The company is expanding its cost efficiency efforts, slashing its estimated GAAP operating costs for 2026 to between $5.4B and $5.7B, down from a previous estimate of $5.9B.

Looking ahead, Moderna now projects 2027 operating costs between $4.7B and $5B, resulting in a reduction of $1.4B to $1.7 in estimated operating costs by 2027, compared to its 2025 estimate.

The company's total operating expenses were nearly $1.16B in Q1, down from $1.43B in the prior year quarter.

The announcement was made in conjunction with the company’s first-quarter financial release, which showed continued losses amid declining sales. GAAP loss per share was -$2.52 that managed to top Street estimates. Sales, however, fell short of analysts projections.

The Cambridge, Massachusetts-based biotech reported a net loss of $1B in Q1, an improvement from the $1.2B loss in the same quarter last year, on revenue of $108M that fell 35.3% Y/Y primarily due to lower net product sales of $86M.

The decline in product sales reflects reduced vaccination rates and the ongoing normalization of COVID into a seasonal commercial market, with demand expected to be concentrated in the second half of the year, the company said.

Sales from Spikevax reached $84M in Q1, while mRESVIA, the company's vaccine for respiratory syncytial virus (RSV) added $2M to the topline.

“Moderna’s Q1 earnings reflect the ongoing decline in demand for its COVID-19 vaccine and the seasonality of its respiratory products. The company’s efforts to improve costs are being realized, but cash burn remains high amidst little to no revenues. Moving ahead, the company is banking on its RSV vaccine in 2H 2025, especially after its flu/COVID-19 combination vaccine was pushed back into 2026 after the FDA requested Phase 3 flu efficacy data. This most recent setback is emblematic of the regulatory and competitive risks in the vaccine market,” said Seeking Alpha analyst Stephen Ayers.

Moderna (NASDAQ:MRNA) reiterated its expected revenue of $1.5B to $2.5B for 2025, with approximately $0.2B projected in the first half of the year, reflecting the seasonality of its respiratory business. Analysts expect sales of $2.13B for the year.

https://www.msn.com/en-us/money/markets/moderna-to-deepen-cost-cuts-amid-declining-covid-vaccine-demand/ar-AA1DYTNW

CVS Health's Aetna to exit Obamacare business, boost Wegovy access

CVS's stock surges toward a one-year high after profit and revenue beat expectations, amid strength in the pharmacy business, and the full-year outlook was raised

Shares of CVS Health Corp. (CVS) soared toward a one-year high in early Thursday trading, after the healthcare-services company dropped a bombshell on investors - it's leaving the Obamacare business and will increase access to weight-loss drug Wegovy as it reported blowout earnings.

The company said it decided to exit the individual-healthcare exchange business, where its Aetna insurance business operates Affordable Care Act plans for 2026, as part of its focus on the more profitable businesses.

CVS said it would continue to serve and provide support for its ACA members through 2025, and will provide "residual activities" in 2026.

The company also said its CVS Caremark pharmacy-benefit-manager business is partnering with Denmark-based Novo Nordisk A/S (NVO) to "significantly increase access to Wegovy" for its members.

Starting July 1, CVS said Wegovy will be the preferred weight-loss prescription drug for its members.

CVS's stock shot up 9.6% in premarket trading, making it one of the S&P 500 index's SPX top performers ahead of the open. That put the stock on track to open at around the highest closing prices since early April 2024.

Meanwhile, shares of Eli Lilly & Co. (LLY), which makes Wegovy rival Zepbound, slumped 4.2% in the premarket.

CVS also reported first-quarter earnings and raised its full-year outlook.

Net income for the quarter to March 31 jumped 60% from the same period a year ago to $1.78 billion.

Adjusted earnings per share, which excludes nonrecurring items, rose to $2.25 from $1.31 - well above the average analyst EPS estimate compiled by FactSet of $1.70. The margin of that bottom-line beat was the widest since the second quarter of 2020.

Total revenue grew 7% to $94.59 billion, exceeding the FactSet consensus of $93.66 billion.

CVS's fastest-growing business segment was pharmacy and consumer wellness, which saw revenue rise 11.1% to $31.91 billion, above the FactSet consensus of $30.86 billion. Growth was driven by a favorable mix of drug sales and higher prescription volumes.

Revenue from the healthcare benefits business, which includes Aetna, was up 8% to $34.81 billion. The medical-benefit ratio, or what the company pays out relative to what it takes in - in this case, lower is better - fell to 87.3% from 90.4%, while membership increased by 1.1%.

For health services, which include CVS Caremark, revenue increased 7.9% to $43.46 billion, helped by growth in specialty pharmacy and higher prices on branded drugs. Pharmacy claims processed rose 1.3%.

For 2025, the company lifted its guidance for adjusted EPS to $5.00 to $6.20 from $5.75 to $6.00, and for cash flow from operations to about $7 billion from about $6.5 billion.

Even before Thursday's gains, CVS shares have soared 48.6% in 2025, while the Health Care Select Sector SPDR ETF XLV has gained 2.1% and the S&P 500 has lost 5.3%.

https://www.morningstar.com/news/marketwatch/20250501185/cvs-healths-aetna-to-exit-obamacare-business-boost-wegovy-access

Lilly's strong quarter undercut by CVS move to drop Zepbound coverage

 Eli Lilly on Thursday posted better-than-expected quarterly results, but CVS Health's decision to drop the company's obesity drug Zepbound from the list of medicines it covers for reimbursement dragged shares down over 5%.

CVS said its pharmacy benefit management unit, which is the largest in the U.S., would drop Zepbound coverage from July 1, but keep reimbursing for rival GLP-1 weight-loss drug Wegovy after negotiating a more favorable price from Danish drugmaker Novo Nordisk.

The success of Lilly's diabetes and weight-loss treatments has led the Indianapolis-based drugmaker to become the world's most valuable healthcare company, with a market value of more than $800 billion.

"The battle between Novo and Lilly is clearly adding meaningful price pressure" to the GLP-1 medicines, said Bernstein analyst Courtney Breen, adding that patients and doctors have shown preference toward Zepbound.

Lilly said lower prices for Zepbound trimmed revenue in the quarter, but that demand remained strong. Sales of the drug came in at $2.31 billion for the first quarter, compared to analysts' expectations of $2.33 billion, according to LSEG data.

In February, Lilly cut the price for vials of Zepbound by $50 or more and expanded the range of doses it sold online to address competition from compounding pharmacies and Novo. It now offers the two lowest doses of Zepbound for $349 and $499 for a month's supply.

Weekly U.S. prescriptions of Wegovy have plateaued since mid-February, according to IQVIA data provided by analysts, with Zepbound prescriptions overtaking Novo's obesity drug by more than 127,000 for the week ending April 18.

Lilly said it had captured about 53.3% of the U.S. market share.

"There's always the risk of a price competition when your competitor Novo Nordisk is frankly not doing enough with its pipeline. So they may try to get a bit too aggressive on pricing just to maintain market share," said Kevin Gade, portfolio manager at Bahl & Gaynor, which owns Lilly shares.

Sales of Lilly's diabetes drug Mounjaro, which has the same active ingredient as Zepbound, were $3.84 billion, exceeding analysts' estimates of $3.80 billion.

Lilly cut its full-year adjusted profit forecast to between $20.78 and $22.28 per share, from its previous view of $22.50 to $24.00 per share, citing deal charges.

The drugmaker said its forecast is based on "the existing tariff and trade environment," and did not quantify any impact from potential tariffs.

Lilly, like Novartis and Johnson & Johnson, has committed to increasing its U.S. manufacturing presence, pledging to spend at least $27 billion as the threat of tariffs from U.S. President Donald Trump looms over the sector.

On an adjusted basis, Lilly earned $3.34 per share for the quarter, topping analysts' estimates by 32 cents.

Total revenue for the period was $12.73 billion, above Wall Street expectations of $12.67 billion.

https://www.msn.com/en-us/money/markets/eli-lilly-s-strong-quarter-undercut-by-cvs-move-to-drop-zepbound-coverage/ar-AA1DZcwB

Arvinas stock tumbles following workforce reduction and trial removals

 Arvinas, Inc. (NASDAQ:ARVN) shares fell sharply by 29% as the market reacted to the company’s announcement of a significant workforce reduction and the removal of two Phase 3 trials from its development plan. Despite reporting positive topline results from the Phase 3 VERITAC-2 trial and presenting promising data for its neuroscience program, the clinical-stage biotechnology firm’s decision to re-prioritize its development strategy and reduce costs, including cutting approximately one-third of its workforce, has raised concerns among investors.

The company’s first-quarter financial results revealed a cash position of $954.3 million, down from $1,039.4 million at the end of the previous quarter. The decrease was mainly due to cash used in operations and minor purchases of lab equipment and leasehold improvements. Research and development expenses saw an increase of $6.5 million compared to the same quarter last year, largely driven by external expenses related to various programs.

General and administrative expenses also rose by $2.3 million, attributed mainly to an uptick in professional fees and costs associated with preparing for commercial operations. However, the company reported a significant increase in revenue to $188.8 million, up from $25.3 million in the first quarter of the previous year, primarily due to changes in total program cost estimates following the removal of certain trials from the development plan with Pfizer (NYSE:PFE).

Arvinas emphasized the positive outcomes from its VERITAC-2 trial, which supports global regulatory filings, and highlighted data showing that its ARV-102 therapy can penetrate the blood-brain barrier and degrade LRRK2 protein in the central nervous system and peripheral regions. Despite these advancements, the company’s strategic shift, including the discontinuation of certain trials in collaboration with Pfizer, has prompted a reassessment of its business priorities and capital needs in light of recent challenges in the capital markets.

https://www.investing.com/news/stock-market-news/arvinas-stock-tumbles-following-workforce-reduction-and-trial-removals-93CH-4016620