Perrigo Company (PRGO, Financial) has updated its fiscal 2025 projections for reported net sales growth, modifying the range to 0% to 3%, compared to the previously stated 1% to 3%. The company also adjusted its forecast for organic net sales growth to a range of 1.5% to 4.5%, down from the earlier 2.5% to 4.5%. Despite these changes, Perrigo has maintained its other financial targets for 2025, including adjusted earnings per share (EPS). This updated outlook takes into consideration the known effects of economic uncertainties, such as tariffs.
Wednesday, May 7, 2025
Earnings call transcript: Lantheus Q1 2025 results miss estimates, stock drops
Lantheus Holdings Inc. reported its Q1 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company’s EPS came in at $1.53, below the expected $1.64, and revenue reached $372.8 million, falling short of the $377.79 million forecast. Following the announcement, Lantheus’ stock declined by 12.25% in pre-market trading, reflecting investor concerns over the financial performance.
Key Takeaways
- Lantheus missed both EPS and revenue forecasts for Q1 2025.
- The company’s stock dropped significantly in pre-market trading due to the earnings miss.
- Despite financial setbacks, Lantheus continues to focus on product innovation and strategic acquisitions.
Company Performance
Lantheus’ overall performance in Q1 2025 showed slight revenue growth of 0.8% year-over-year, reaching $372.8 million. While the company’s operating profit and adjusted net income decreased by 7.1% and 7.5% respectively, InvestingPro analysis reveals strong fundamentals with a 64.4% gross profit margin and an impressive five-year revenue CAGR of 35%. The flat performance in its key segments suggests a temporary slowdown rather than a structural issue, supported by the company’s robust cash flows and moderate debt levels. InvestingPro subscribers can access 8 additional key insights about Lantheus’ financial health and growth prospects.
Financial Highlights
- Revenue: $372.8 million, a 0.8% increase year-over-year.
- EPS: $1.53, a 9.5% decrease year-over-year.
- Gross profit margin: 67%, a decrease of 180 basis points.
- Operating profit: $144.3 million, a 7.1% decrease year-over-year.
- Earnings vs. Forecast
Lantheus missed its EPS forecast by $0.11, or 6.7%, and its revenue forecast by $5 million, or 1.3%. These misses indicate challenges in meeting market expectations, potentially affecting investor sentiment.
Market Reaction
Lantheus’ stock dropped by 12.25% to $92 in pre-market trading following the earnings announcement. This decline reflects investor disappointment with the earnings miss, overshadowing potential long-term growth prospects highlighted by the company’s strategic initiatives.
Outlook & Guidance
Lantheus provided a revenue guidance range of $1.55 billion to $1.585 billion for 2025, with an adjusted EPS guidance of $6.60 to $6.70. The company anticipates double-digit revenue growth in 2026, driven by potential product launches and continued focus on PET diagnostics and radiotherapeutics.
Executive Commentary
CEO Brian Markison emphasized the company’s diversification and long-term growth potential, stating, "We are diversifying our revenues and setting up the business for continued long-term growth." Additionally, President Paul Blanchfield highlighted the strategic focus, saying, "We are ruthlessly prioritizing key growth areas like PET radio diagnostics and radio therapeutics."
Novo Nordisk hopes to see US Wegovy sales recover soon
Drugmaker Novo Nordisk expects Wegovy weight-loss drug sales in the United States to start to recover once a ban on compound copycats is enforced this month, its CEO said on Wednesday after the company cut its 2025 forecasts.
U.S. pharmacies that have been allowed to produce compounded copies of Wegovy and Ozempic due to a shortage of supply have been given until May 22 to stop, following a review by the U.S. Food and Drug Administration (FDA).
Compounders copy brand-name medicines by combining, mixing or altering drug ingredients.
Booming sales of Wegovy helped to make Novo the most valuable listed company in Europe, worth $615 billion at its peak, but its market value has halved to about $310 billion since peaking in June last year.
Prescriptions in the United States, its biggest market, have not grown since February despite Novo having increased supplies.
"Growth is expected to pick up in the second-half of the year," CEO Lars Fruergaard Jorgensen said on a call with journalists.
Investors have been concerned that Novo's first-to-market drug is losing its lead to Eli Lilly, whose U.S. prescriptions for its Zepbound obesity shot have surpassed Wegovy since mid-March.
Novo Nordisk said first-quarter sales of Wegovy were 17.36 billion Danish crowns ($2.64 billion), declining 13% from the previous quarter, and below the 18.7 billion crowns expected by analysts.
"Over the summer, it's going to be put up or shut up for Wegovy," Barclays' analyst Emily Field said on CNBC. "Either prescriptions come back, or people are going to assume that Eli Lilly is going to take this whole market."
On a call with analysts, Novo executives said the company had a strategy for winning the market share currently held by compounding pharmacies.
Novo's shares were 3.4% higher at 1300 GMT.
Novo estimates that around one-third of the U.S. obesity drug market has been "captured" by compounding pharmacies, CEO Jorgensen said.
He said this had "dampened" the company's growth in the key U.S. market. "It's unprecedented in our industry to have very large volumes of products flowing to patients that are not approved," he said. "We were really surprised about that."
Jorgensen also said sales would benefit from a decision by the largest pharmacy benefit management unit in the U.S., CVS Health, to drop Zepbound from some lists of medicines it covers for reimbursement.
POTENTIAL NEW TARIFFS LOOM
Novo has launched Wegovy in three countries within the last month, bringing the total to 25 countries, and said it would further accelerate launches having removed supply constraints.
Still, the Danish company on Wednesday cut its 2025 sales and profit forecasts for the first time since the launch of Wegovy four years ago.
It now expects 2025 sales growth in local currencies of between 13% and 21%, compared to the 16%-24% range given at the beginning of the year and operating profit growth of between 16% and 24% this year, compared to previous guidance of between 19% and 27%.
Novo shareholder, Markus Manns, portfolio manager at mutual funds firm Union Investment, said: "The guidance cut was widely expected and is seen as a clearing event and people are hoping for a sales inflection in June from the exit of compounders and in July from the preferred CVS formulary status."
While the U.S. tariffs currently in place did not have a material effect on Novo's outlook, potential new tariffs on pharmaceuticals imposed by President Donald Trump could have a negative impact, the company said.
Novo reported first-quarter earnings before interest and taxation of 38.79 billion crowns, compared with the 37.20 billion forecast in a company-compiled consensus based on 26 analysts and up 22% from a year ago.
https://finance.yahoo.com/news/obesity-drugmaker-novo-nordisk-cuts-053519401.html
Apellis Pharmaceuticals stock tumbles on Q1 revenue miss, inventory issues
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) saw its stock plummet 12.1% after reporting first quarter 2025 results that fell short of analyst expectations, primarily due to inventory challenges and funding issues with co-pay assistance programs.
The biopharmaceutical company posted adjusted earnings per share of -$0.74, missing the analyst consensus of -$0.34 by $0.40. Revenue for the quarter came in at $166.8 million, significantly below the $197.77 million estimate and down 3.2% YoY.
Apellis’ flagship product SYFOVRE, used to treat geographic atrophy, generated $130.2 million in U.S. net product sales, down from $137.5 million in the same quarter last year. The company cited a "larger-than-expected drawdown of total channel inventory" and "funding shortages at third-party co-pay assistance programs" as key factors impacting revenue.
Despite the revenue shortfall, SYFOVRE injection demand grew 4% quarter-over-quarter, with the company delivering approximately 92,000 doses to physician offices. Apellis also reported capturing over 60% share of the overall geographic atrophy market.
"In the first quarter, we were pleased to see continued growth in SYFOVRE injection demand—a key indicator of long-term market strength—and an increase in share of new patient starts, already reaching 55% in April," said Cedric Francois, M.D., Ph.D., chief executive officer at Apellis.
The company’s other product, EMPAVELI, used to treat paroxysmal nocturnal hemoglobinuria, generated $19.7 million in U.S. net product revenue, down from $25.6 million in Q1 2024.
Apellis ended the quarter with $358.4 million in cash and cash equivalents. The company expects its current cash position, combined with future product sales and ex-US royalties, to be sufficient to fund operations to profitability.
Teva 9th Consecutive Quarter of Growth, Key Innovative Medicines Growing ~40%; Profit Outlook Up
On track for 30% operating profit margin by 2027 in line with our Pivot to Growth Strategy; Q1 2025 shows ninth consecutive quarter of revenue growth, excluding revenues recorded for Sanofi collaboration.
Q1 2025 revenues of $3.9 billion, an increase of 5%; net of $100 million foreign exchange impact, reported revenues growth of 2%.
AUSTEDO® – shows continued strong growth, with worldwide revenues of $411 million in Q1 2025, an increase of 39% in local currency terms compared to Q1 2024; increasing 2025 full-year revenue outlook from ~$1.9-2.05 billion to $1.95-2.05 billion.
AJOVY® – global revenues of $139 million in Q1 2025, an increase of 26% in local currency terms compared to Q1 2024. Reaffirming $600M 2025 revenue outlook.
UZEDY® continues strong momentum – global revenues of $39 million in Q1 2025.
The generics business grew across all regions – increased by 5% in the U.S., 1% in Europe and 2% in International Markets, all in local currency terms, as compared to Q1 2024.
Duvakitug (Anti-TL1A) Phase 3 ready; program initiation expected in H2 2025; preparing for olanzapine LAI FDA NDA submission in H2 2025.
Transforming Teva: Targeted programs to deliver~$700 million of net savings, after incremental reinvestment behind growth, to transform Teva into a modern biopharmaceutical company and achieving 30% operating margin target in 2027.
Current, confirmed U.S. tariffs expected to have immaterial impact; absorbed in updated 2025 non-GAAP outlook.
Teva to host Innovation & Strategy Day on Thursday, May 29 in New York, NY.
Avadel Pharma gains after appeals court ruling in Lumryz case with Jazz Pharma
Avadel Pharmaceuticals (NASDAQ:AVDL) rose 1.6% after an appeals court ruling in its dispute with Jazz Pharmaceuticals (NASDAQ:JAZZ) over narcolepsy drug Lumryz.
"We have considered the parties' remaining arguments and find them unpersuasive," a federal appeals court wrote in its opinion on Tuesday. "We reverse the injunction to the extent it enjoins Avadel from initiating new clinical trials for Lumryz and from offering OLE periods to current clinical trial participants. We vacate the injunction to the extent it enjoins Avadel from seeking FDA approval for new indications for Lumryz, and remand to the district court for reconsideration of that issue in light of this opinion."
The appeals court ruling comes after Jazz (NASDAQ:JAZZ) in late August won an order that blocked some sales of Lumryz.
Y-mAbs Therapeutics (YMAB) Gains NCCN Recommendation for Naxitamab Treatment
Y-mAbs Therapeutics (YMAB, Financial) recently shared that the National Comprehensive Cancer Network (NCCN) has endorsed naxitamab-gqgk. This approval is part of the NCCN Clinical Practice Guidelines in Oncology, marking it as a Category 2A treatment option for patients with high-risk neuroblastoma.
The inclusion of naxitamab-gqgk in these guidelines underscores its significance as a preferred anti-GD2 therapy for healthcare professionals dealing with relapsed or refractory cases of high-risk neuroblastoma.
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