Risankizumab

The drug and biotech industry faced challenges due to political appointments, sales disappointments, and pipeline setbacks but is expected to recover by 2025. Innovation in rare diseases, oncology, obesity, and neuroscience drives growth. Eli Lilly, J&J, AbbVie, AstraZeneca, and Pfizer are key players to watch.

U.S. large-cap biopharma stocks underperformed the broader market for two consecutive years due to political uncertainty and sector rotation. JP Morgan analysts remain positive on key players like Eli Lilly, Bristol-Myers Squibb, Merck & Co., Regeneron Pharmaceuticals, Gilead Sciences, and AbbVie Inc. Animal health stocks, including Zoetis Inc and IDEXX Laboratories, are also projected to rebound in 2025. Specialty pharmaceuticals showed early signs of stabilization in 2024.

Skyrizi surpassed Humira in sales, raising concerns over 'product hopping' limiting biosimilar adoption. Despite US adalimumab biosimilar launches in 2023, uptake was slow. FDA and European approvals of ustekinumab biosimilars aim to improve access and reduce costs for Crohn disease and ulcerative colitis patients.

Sanofi and Teva announced positive phase IIb RELIEVE UCCD study results for duvakitug, an anti-TL1A therapy for Ulcerative Colitis and Crohn's disease, meeting primary endpoints. Plans for a late-stage study and detailed results presentation are underway. Shares of both companies surged post-announcement.

AbbVie to acquire Nimble Therapeutics for $200M, gaining its oral peptide drugs for immune diseases and technology for peptide-based drug synthesis. Nimble's lead candidate inhibits IL-23, same target as AbbVie's Skyrizi, and is in preclinical testing. The acquisition aims to strengthen AbbVie's immunology pipeline.

Johnson & Johnson filed two sBLAs for Tremfya, seeking expanded use in pediatric patients with moderate-to-severe plaque psoriasis and active juvenile psoriatic arthritis. Tremfya, an IL-23 inhibitor, is already approved for adult patients with psoriasis and psoriatic arthritis. The filings are based on phase III studies and PK data. Tremfya sales grew 21.6% year-over-year to $2.7 billion in the first nine months of 2024. J&J expects Tremfya to reach $5 billion with approvals for inflammatory bowel disease conditions.

AbbVie (NYSE: ABBV), Realty Income (NYSE: O), and Verizon Communications (NYSE: VZ) are recommended for long-term passive income due to their consistent dividend growth and strong financial positions.

J&J Innovation Medicine seeks FDA approval for Tremfya's subcutaneous injection initiation in ulcerative colitis, based on Phase III ASTRO study findings. If approved, it would be the first IL-23 inhibitor offering both SC and IV induction options, potentially enhancing treatment accessibility and convenience.

Top pharmaceutical companies like Pfizer, Roche, Johnson & Johnson, Novartis, Merck, AstraZeneca, Sanofi, GSK, AbbVie, and Bayer lead in innovation, focusing on areas such as mRNA vaccines, cancer treatments, immunology, and gene therapy, shaping the future of healthcare through R&D investments and strategic pivots.