Beta Finch - Pharma & Biotech - EN

Beta Finch
  • 0.0 (0)
  • Investing
  • Semimonthly

Leading pharmaceutical and biotechnology companies. AI-powered earnings call analysis for Pharma & Biotech (PHARMA). Two AI hosts break down quarterly results, key metrics, and market implications in digestible podcast episodes.

  1. 2d ago

    AbbVie Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: PHARMA (https://betafinch.com/groups/PHARMA) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, joined as always by Jordan, and today we're digging into AbbVie's third quarter 2026 results — and folks, this is another quarter where the raised-guidance train just keeps rolling. **JORDAN:** It really does. Before we get into it though, let's cover our bases. **ALEX:** Right — quick disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Perfect. Now let's get into AbbVie. **ALEX:** So AbbVie reported adjusted EPS of $3.82, beating guidance by seven cents, and total revenue of $17.4 billion — that's over 10% operational growth. And get this, Jordan, nine different products posted double-digit growth this quarter. **JORDAN:** Nine! That's the kind of breadth investors love to see. It's not just one blockbuster carrying the whole company. And because of that strength, they raised full-year revenue guidance again — now up $800 million since the start of the year total, landing around $67.8 billion for 2026. **ALEX:** They also bumped up EPS guidance to a range of $13.95 to $13.99 for the full year. And here's the cherry on top — a 5.2% dividend increase, bringing the quarterly payout to $1.82 per share starting in February 2027. **JORDAN:** Since AbbVie's inception as a standalone company, that dividend has grown over 350%. That's a pretty remarkable track record for income-focused investors. **ALEX:** Let's talk about where the growth is actually coming from, because the Humira patent cliff story is basically old news at this point. **JORDAN:** Completely. Humira sales were down 30.6% this quarter to $683 million — but that barely matters anymore because immunology overall grew 16.6% to $9.2 billion. Skyrizi alone did nearly $5.8 billion, up almost 23%. Rinvoq did $2.7 billion, up over 24%. **ALEX:** And management keeps raising Skyrizi guidance — this is the third time this year they've bumped it up. CEO Rob Michael made a great point on the call: Skyrizi and Rinvoq combined are adding $6 billion in growth this year despite being eight years on the market and facing new oral competition. **JORDAN:** That's the story investors should really sit with. Everyone worried about biosimilars and new entrants cannibalizing AbbVie's immunology franchise, and instead these two drugs are capturing roughly half of all new or switching patients in psoriasis and IBD. They just approved a new subcutaneous induction dosing for Skyrizi in Crohn's disease, and the data was described as "striking" — better endoscopic remission rates than their own IV formulation. **ALEX:** Neuroscience is the other big story — up almost 20% to $3.4 billion. Vraylar, Ubrelvy, Qulipta all posting strong double-digit growth. And they just launched a new Parkinson's drug called Juvmo. **JORDAN:** Juvmo is interesting because it targets different dopamine receptors than older Parkinson's drugs — D1/D5 instead of D2/D3 — which means lower rates of nasty side effects like impulse control disorders and sleep attacks. Combined with their existing Parkinson's drug Vyalev, management thinks this franchise alone could hit $5 billion in peak sales. **ALEX:** Now let's touch on the big strategic move this quarter — the completed acquisition of Apogee Therapeutics. **JORDAN:** Yeah, this is AbbVie doubling down on immunology depth. Apogee brings dermatology and respiratory assets, with the lead drug — zumilokibart — heading into Phase III trials for atopic dermatitis later this year. Rob Michael was pretty clear on the call that going forward, they're looking at bolt-on deals rather than another mega-merger like Allergan. Think "add depth, not breadth." ** This episode includes AI-generated content.

  2. 2d ago

    Regeneron Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: PHARMA (https://betafinch.com/groups/PHARMA) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown, where we turn dense earnings calls into conversations you'd actually want to have with a friend. I'm Alex. **JORDAN:** And I'm Jordan. Alex, we've got a big one today. **ALEX:** We really do — Regeneron, ticker REGN, reporting Q3 2026 results. But before we jump in, our standard disclaimer: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Important stuff. Okay, so Alex, let's set the scene — the stock popped nearly 13% on this print. That's not a small move for a company this size. **ALEX:** No kidding. And when you look at the numbers, it's easy to see why. Total revenue grew 36% year-over-year to $5.1 billion. Non-GAAP earnings per share jumped 70% to $20.07. This is the third straight quarter of double-digit growth on both the top and bottom line. **JORDAN:** And it wasn't just one product carrying the load. Dupixent, EYLEA HD, and Libtayo — their three biggest commercial brands — each hit all-time-high quarterly sales. Two quarters in a row, actually. **ALEX:** Let's break those down one at a time, because the Dupixent number alone is wild. Global sales hit $6.5 billion, up 35% at constant currency. In the U.S. specifically, sales crossed $5 billion for the first time ever. **JORDAN:** For a drug that's approaching its tenth year on the market, that's genuinely remarkable. Most blockbuster drugs plateau or start fading by year ten — Dupixent is accelerating. It's the leading biologic in eight of its nine approved indications. **ALEX:** Then there's EYLEA HD, the next-gen eye medicine. U.S. sales hit $699 million, up 62% year-over-year, and it now makes up almost two-thirds of their retinal franchise. Physician demand grew 20% sequentially. **JORDAN:** Though I'll note — the older EYLEA formulation is declining fast, down 41%, as biosimilar competition eats into that market. So this is really a story of EYLEA HD cannibalizing its predecessor successfully, which is the right problem to have. **ALEX:** Right, it's a managed transition, not just pure growth. And then Libtayo, their cancer immunotherapy — $550 million globally, up 51%. It's now running at an annual pace of about $2.2 billion. **JORDAN:** Now here's the part that I think got Wall Street really excited — the Sanofi relationship. Regeneron finished repaying its development cost balance to Sanofi, which means for the first time, they're collecting their FULL share of Dupixent collaboration profits. No more clawbacks eating into the number. **ALEX:** And on top of that, they announced an expanded alliance — four next-generation long-acting antibodies targeting the same pathways that made Dupixent a hit. Regeneron gets a $1 billion upfront payment landing in Q4, and going forward, they split both R&D costs and profits 50/50 with Sanofi. That's a much better deal structurally than before. **JORDAN:** CEO Leonard Schleifer called it leading "the next era of type 2 inflammation medicines." And CSO George Yancopoulos made an interesting point in the Q&A — he argued their antibodies are "naturally derived" from their humanized mouse platform, versus competitors using heavily engineered older antibodies, which historically have more immune and safety issues. **ALEX:** That's classic Regeneron — leaning on their genetics-driven science story. Speaking of which, the CIDEB program in NASH, or fatty liver disease, might be the most eye-popping pipeline data point this quarter. **JORDAN:** Yeah, this one's worth pausing on. Regeneron's genetics database found people with a naturally occurring loss-of-function in the CIDEB gene have dramatically lower rates of fatty liver di This episode includes AI-generated content.

  3. 2d ago

    Gilead Sciences Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: PHARMA (https://betafinch.com/groups/PHARMA) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! Today we're diving into Gilead Sciences' third quarter 2026 results, and folks, this is a big one. But before we get into the numbers, just a quick note: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** And with that out of the way, Alex, I have to say — this was a genuinely impressive quarter for Gilead. The stock popped over 3.6% on the back of it. **ALEX:** Right, so let's start with the headline number. Base business sales — that's excluding their COVID drug Veklury — came in at $8.2 billion, up 16% year-over-year. CEO Daniel O'Day called it their strongest growth in over a decade. **JORDAN:** And that's not just a one-off blip either. This is the third time this year they've raised full-year guidance. They're now projecting total product sales of up to $31.3 billion for 2026, which is $1.65 billion higher than where they started the year. **ALEX:** Let's talk about where that growth is actually coming from, because it's broad-based. HIV is still the engine — sales grew 18% year-over-year to $6.2 billion. Biktarvy hit an all-time high U.S. market share of 53%. **JORDAN:** That's the number that jumped out at me. Fifty-three percent market share for a drug that's been on the market for years, still gaining share. And then you layer on Yeztugo, their long-acting injectable for HIV prevention — that thing is on fire. Combined with Descovy, they now control 50% of the PrEP market with a $4 billion annual run rate. **ALEX:** And get this — more than 70% of Yeztugo patients are coming back for their second injection, which means you get up to a full year of protection from just two shots. That's a sticky, durable franchise. **JORDAN:** It really is. But HIV wasn't the only story. Oncology is becoming a real second pillar here. Trodelvy, their breast cancer treatment, grew 42% year-over-year and crossed a $2 billion annual run-rate. They also got European approval to use it in combination therapy for first-line triple-negative breast cancer, which opens up the patient pool even earlier in the treatment journey. **ALEX:** And liver disease — specifically Livdelzi for a condition called PBC — sales nearly doubled, up 93% year-over-year. Smaller dollar figure at $203 million, but that growth rate tells you something about how fast that franchise is scaling. **JORDAN:** Now, on the flip side, Cell Therapy — that's their Kite business — was actually down 18% year-over-year due to competitive pressure. But management is leaning hard into a near-term catalyst there: a potential FDA approval for anito-cel, a new multiple myeloma treatment, with a decision expected December 23rd. If that lands, it's Gilead's fourth approval of the year. **ALEX:** Let's talk profitability for a second, because the top line wasn't the only good news. Gross margin hit 88%, up from 86% a year ago. Operating margin was 50% — top quartile for their peer group. And non-GAAP EPS came in at $2.55 versus $2.47 last year. **JORDAN:** Now here's where it gets interesting — and a little more complicated. There's a real cloud on the horizon, and it's policy-driven, not business-driven. **ALEX:** Right, let's get into that, because this was clearly the elephant in the room during the Q&A. Biktarvy was selected for the government's Maximum Fair Price determination under the IRA, and CMS has now set that price — a 38% discount in the Medicare channel. Gilead says this translates to a $1.5 billion net revenue hit to Biktarvy specifically in 2028. **JORDAN:** And CEO Dan O'Day didn't hold back on this one. He basically said the price CMS set doesn't reflect the actual val This episode includes AI-generated content.

  4. 3d ago

    Merck Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: PHARMA (https://betafinch.com/groups/PHARMA) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex. **JORDAN:** And I'm Jordan. Today we're diving into Merck's third quarter 2026 results, reported this past Thursday. **ALEX:** Before we get into it — quick disclaimer. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Good to have that squared away. So Alex, Merck's a company everyone's watching right now because of the Keytruda patent cliff looming. What'd the quarter actually look like? **ALEX:** Solid, honestly. Revenue came in at $18.1 billion, up 5% year-over-year, or 4% excluding currency effects. And they actually narrowed and raised the midpoint of their full-year guidance — now expecting $66.8 to $67.3 billion in revenue and EPS of $2.77 to $2.82. **JORDAN:** That's a good sign. Companies don't usually raise guidance if they're nervous about the quarter. Let's talk Keytruda specifically, since that's the elephant in the room. **ALEX:** Right, the Keytruda franchise — including the newer subcutaneous version, Keytruda Qlex — grew 6% to $8.6 billion. Still their biggest product by a mile. But management was candid: they're now approaching peak revenues in certain indications, and growth is moderating as they've basically saturated the eligible patient population. **JORDAN:** And that subcutaneous version, Qlex, is actually really interesting as its own story. $830 million in sales this quarter, and there's litigation drama in Europe — a Dutch court issued an injunction over hyaluronidase IP that's blocking sales in several smaller European markets. **ALEX:** Yeah, but CEO Robert Davis was pretty firm that this doesn't change their confidence. The U.S. business is humming — they're targeting 30-40% subcutaneous adoption by end of 2027, and the affected European markets are described as lower-volume anyway. **JORDAN:** Okay, so that's the "today" story. But the real headline for me is what they said about 2027 — because that's when the real Keytruda cliff pressure, plus generic competition for Bridion and Januvia, starts biting. **ALEX:** CFO Caroline Litchfield called it directly: more than $2 billion in headwinds next year from generics hitting Bridion, the Januvia family, and Adempas. Plus continued Keytruda moderation and some German pricing policy pressure. **JORDAN:** But — and this is the part I think investors should really sit with — she described 2027 as "a year of investment," not decline. They're framing the whole Keytruda loss-of-exclusivity period as more of a "hill" in revenue rather than a cliff, with earnings expected to largely mirror that shallow dip and then resume growth. **ALEX:** That's the bet they're making. And it's backed by what might be the most exciting part of this whole call — the pipeline news out of the ESMO oncology conference last weekend. **JORDAN:** Walk us through it, because there were a lot of acronyms flying around. **ALEX:** The biggest one: sac-TMT, their antibody-drug conjugate, showed nearly a 7-month improvement in median overall survival for endometrial cancer patients compared to chemo alone. That's a disease with rising incidence and a really poor prognosis, so that's meaningful. **JORDAN:** And then there's entismodigene — the individualized mRNA cancer vaccine they're developing with Moderna. This one actually got some strong outside validation. **ALEX:** Right, Dean Li, their research chief, quoted oncologist Antoni Ribas calling the melanoma data "a landmark in cancer drug development." It showed meaningful improvements in recurrence-free survival when combined with Keytruda in resected melanoma patients. They're now talking with the FDA about filing it. This episode includes AI-generated content.

  5. 3d ago

    Eli Lilly Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: PHARMA (https://betafinch.com/groups/PHARMA) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, joined as always by Jordan, and today we're digging into Eli Lilly's Q3 2026 results — and folks, this is a big one. **JORDAN:** Huge one. Stock popped over 6.5% on the news. **ALEX:** It really did. But before we get into it — quick disclaimer. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Important stuff. Okay, Alex, let's talk numbers because they're staggering. **ALEX:** Revenue grew 39% year-over-year — that's nearly $7 billion in additional revenue in a single quarter. Non-GAAP EPS came in at $7.48, and gross margin actually expanded to 84.4%. **JORDAN:** And the guidance raise is what really got everyone's attention. Full-year revenue guidance moved up to $91-92 billion, and EPS guidance jumped to $35-36 — that's roughly a $4 per share increase at the midpoint from where they were tracking before. **ALEX:** Which is wild because this isn't the first raise this year. CFO Lucas Montarce basically said they've now raised full-year revenue guidance by about $10 billion since the start of 2026. **JORDAN:** And when analysts pushed on that — like, "are you guys just being too conservative?" — CEO David Ricks had a great answer. He basically said, look, we're in the middle of the largest category expansion in pharma history. There's real uncertainty here, and he'd rather beat estimates than miss them. Two big unknowns this year were the Medicare bridge program uptake and how deep international out-of-pocket demand would go — and both surprised to the upside. **ALEX:** Let's talk about that Medicare bridge program because it's honestly the story of the quarter. This opened up obesity medicine access to about 20 million seniors starting July 1st, and in just one quarter, over half a million people already filled a prescription. **JORDAN:** And Lilly is absolutely dominating that channel — 7 out of 10 new bridge patients are starting on a Lilly medicine. There was even a USC Schaeffer Center study cited saying this program could save Medicare over $20 billion cumulatively over ten years. That's a pretty powerful argument for why this program might get extended or made permanent. **ALEX:** Right, and that was actually a direct question in the Q&A — will this bridge program survive past 2026? Ricks sounded genuinely optimistic, citing strong uptake, appropriate use based on BMI and comorbidities, and that cost-effectiveness data. He thinks it could get folded into the permanent Part D benefit going forward. **JORDAN:** Let's not overlook the core business though — Mounjaro and Zepbound combined for over $16 billion in the quarter alone, contributing $6 billion of year-over-year growth. China was a standout too — Mounjaro became the first medicine there ever to cross $1 billion in its first full year, with 62% constant currency growth. **ALEX:** And it's not just incretins anymore. Management specifically called out that oncology, immunology, and neuroscience revenue combined actually doubled year-over-year. Jaypirca up 59%, Ebglyss up 59%, and Kisunla — their Alzheimer's drug — up a staggering 175%. **JORDAN:** That diversification story matters. David Ricks made a point of saying three-fourths of their clinical pipeline is actually outside of obesity. They don't want to be a one-trick pony, even though the trick is working extremely well right now. **ALEX:** Speaking of the pipeline, there was some really juicy data this quarter. Retatrutide — their triple agonist — went head-to-head with semaglutide in type 2 diabetics and basically more than doubled the weight loss, 20-21% versus 9.4%. **JORDAN:** And then there This episode includes AI-generated content.

  6. 3d ago

    Bristol-Myers Squibb Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: PHARMA (https://betafinch.com/groups/PHARMA) ────────── **ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we turn dense earnings calls into conversations you'd actually want to listen to. I'm Alex. **JORDAN:** And I'm Jordan. Today we're digging into Bristol Myers Squibb's third quarter 2026 results, reported this past Thursday. **ALEX:** Before we get into it, our standard disclaimer: this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. **JORDAN:** Right, let's get into the numbers because honestly, Alex, this was a pretty strong quarter for BMS. **ALEX:** It was. Total revenue came in at $13.1 billion, up 7% year-over-year. But the number that really matters is the growth portfolio — that's their newer, patent-protected medicines — which jumped 12% to $7.7 billion. **JORDAN:** And that's the story investors want to hear with Bristol, right? They've got this massive legacy portfolio dealing with patent cliffs, but the growth portfolio is now carrying real weight. Eight products are annualizing over a billion dollars each. That's a surprisingly diversified base. **ALEX:** Diversified is the key word. Reblozyl grew 22% to $750 million, Breyanzi — their CAR-T therapy — grew 48% to $526 million. Camzyos jumped 42%. These aren't just incremental wins. **JORDAN:** The one that caught my eye is Qvantig, the subcutaneous version of Opdivo. Sequential growth of 28%, now annualizing over $1.3 billion. They've converted about 17% of their IV Opdivo business to this subcutaneous form, and management said they're tracking toward the higher end of their 30-40% conversion target. **ALEX:** Which matters because Opdivo itself actually declined 6% as patients shift over — but that's by design. It's essentially the same revenue moving to a better-margin, more convenient format. A three-minute in-office injection instead of an infusion. **JORDAN:** Meanwhile, Eliquis — still their biggest legacy product — grew 26% to $4.7 billion. Management flagged that Q4 will see some impact from loss of exclusivity in Europe, and there's a bigger $1.5 to $2 billion step-down expected in 2027. So enjoy this number while it lasts. **ALEX:** On the bottom line, diluted EPS was $1.35, though that includes a $0.58 hit from acquired IP R&D charges and licensing income. Strip that out, and the underlying EPS story actually improved by about 15 cents versus their prior guide. **JORDAN:** And they raised full-year guidance — new EPS range of $6.35 to $6.55. Gross margin held around 68.4%, and they're sitting on $13 billion in cash with $4.2 billion in operating cash flow this quarter alone. That's a company with real flexibility. **ALEX:** Let's talk pipeline, because this quarter was genuinely eventful. Bristol got FDA approval for Symvexis, their first CELMoD — that's a targeted protein degradation drug — for multiple myeloma. Early launch feedback has been positive. **JORDAN:** And it wasn't just one win. In the span of about two months, they had four positive registrational readouts. Admilparant hit its primary endpoint in a Phase 3 pulmonary fibrosis trial. Their radiopharmaceutical RYZ101 showed meaningful progression-free survival improvement in a rare tumor type called GEP-NETs. And Arlocel, their CAR-T for multiple myeloma, delivered positive Phase 2 results. **ALEX:** CEO Christopher Boerner was clearly feeling good about this streak, calling it a "next wave of launches coming into sharper focus." They're even putting real money behind it — $2.3 billion for a new manufacturing campus in Houston, plus $170 million for a radiopharmaceutical facility in Indiana. **JORDAN:** Now, the Q&A had some interesting tension. On admilparant, an analyst pushed on why the higher 12 This episode includes AI-generated content.

  7. Oct 15

    Johnson & Johnson Q3 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: PHARMA (https://betafinch.com/groups/PHARMA), INCOME (https://betafinch.com/groups/INCOME) ────────── ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, joined as always by Jordan, and today we're diving into Johnson & Johnson's third quarter 2026 results, reported Tuesday. Before we get going, a quick note — this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. JORDAN: And there's a lot to unpack here, Alex, because on the surface this looks like a messy quarter, but underneath it's actually a pretty strong one. ALEX: Right, let's start with the headline numbers. J&J posted $25.4 billion in revenue for Q3, up 6% operationally, which actually beat analyst expectations. Management raised full-year guidance and now expects full-year operational sales growth of 6.7% to 7.1%, putting them on track to cross $100 billion in annual revenue for the very first time in the company's 140-year history. JORDAN: That's a huge milestone. But here's where it gets messy — GAAP net earnings were just $210 million, and diluted EPS came in at nine cents, compared to $2.12 a year ago. That's a massive drop. ALEX: And the reason is a one-time hit, not a business problem. J&J took a $5.5 billion charge tied to resolving the ovarian talc litigation, plus costs from two acquisitions — Firefly Bio in oncology and a collaboration with Cell BioMedicine in cell therapy. Strip those out, and adjusted EPS was $2.59, down about 7.5% year-over-year, but mostly because of those deal-related expenses, not underlying weakness. JORDAN: Exactly. The core business is actually accelerating. Innovative Medicine — that's their pharma segment — grew 7.9% operationally to $16.8 billion, with eight brands growing double digits. Oncology alone grew 17%. ALEX: Let's talk about the stars of the show. Tremfya, their immunology drug, grew 68% in the quarter. CARVYKTI, their multiple myeloma cell therapy, up 35%. And RYBREVANT, for lung cancer, up 64%. Tom Cavanaugh, the head of Innovative Medicine, specifically called out Icotrokinra — their new oral psoriasis treatment — saying it's tracking better than almost any launch they've seen in psoriatic disease, with over 20,000 patients started in just months. JORDAN: What stood out to me is they're calling this a path to double-digit growth by 2030, and when an analyst from Goldman pressed CFO Joe Wolk on whether that assumes big acquisitions, he was pretty direct — no, it's organic. That's a meaningful claim given how reliant a lot of pharma growth stories are on M&A. ALEX: Now, MedTech is the other side of the story, and it's where things got rockier. That division only grew 2.5%, missing expectations. Management was candid about it — Timothy Schmid, who runs MedTech, basically said "our performance is below the standard we set internally." JORDAN: Two specific problem areas: international markets, especially due to disruption from the Middle East conflict affecting hospital purchasing and tender timing, and Abiomed, their heart pump business, which actually declined 1.5% because of a disputed study on high-risk PCI procedures. Execs pushed back hard on that study's methodology. ALEX: But it wasn't all bad news in MedTech. Shockwave, their cardiovascular device business, grew 17%. And they got FDA clearance for Ottava, their new surgical robot — first commercial customer already signed. That's a big long-term bet on competing with Intuitive Surgical in robotics. JORDAN: One housekeeping item investors should note — J&J confirmed they're still on track to spin off their orthopedics business, DePuy Synthes, by mid-2027, and they're leaning toward a straight spin-off rather than a sale. ALEX: Let's hit a couple of Q&A highlights. On Icotrokinra, This episode includes AI-generated content.

  8. Aug 29

    Zoetis Q2 2026 Earnings Analysis

    More earnings analysis: https://betafinch.com Groups: PHARMA (https://betafinch.com/groups/PHARMA) ────────── ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown, where we take the numbers and the noise from corporate earnings calls and turn them into something you can actually digest. I'm Alex. JORDAN: And I'm Jordan. Today we're diving into Zoetis, ticker ZTS, the animal health giant. Q2 2026 results, and Alex, this one's a bit of a bumpy ride. ALEX: It really is. But before we get into it — quick disclaimer. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions. JORDAN: Good to have that out front. So let's set the scene. Zoetis reported second quarter revenue of $2.5 billion — flat on a reported basis, actually down 1% organically. Adjusted net income came in at $781 million, down 2% organically. And here's the headline: they cut full-year guidance. ALEX: Yeah, this wasn't a small tweak either. New revenue guidance is $9.12 to $9.32 billion, which works out to a decline of 3% to 1% for the year. Adjusted net income guidance dropped to a range implying a decline of 9% to 5%. That's a meaningful reset. JORDAN: So what happened? Basically, the U.S. Companion Animal business — think dogs and cats, not cattle and chickens — got hit hard. Revenue there was down 11% in the U.S. Fewer vet visits, pet owners being more price-conscious, and a lot more competitors piling into categories Zoetis basically invented, like dermatology treatments. ALEX: Right, and that's the key tension here. Their blockbuster drug Apoquel and the whole Key Dermatology franchise — U.S. dermatology revenue was down 18% in the quarter. New competitors are using aggressive discounting and rebates to steal share, and it's not growing the overall market, it's just splitting up a shrinking pie. JORDAN: Even so, Zoetis still holds about 86% in-clinic share in U.S. dermatology, even after losing 10 points year-over-year. So they're still dominant, just under real pressure for the first time in a while. ALEX: And parasiticides — flea, tick, heartworm meds like Simparica — were basically flat globally, with the U.S. side down 6%. Management said it's less about a specific competitor and more about a broader pullback in vet visits. JORDAN: But here's the plot twist — it's not all bad news. Livestock had a phenomenal quarter, up 11% globally, and 23% in the U.S., partly boosted by demand for cattle parasiticides tied to that New World screwworm outbreak. And Diagnostics grew 12%, driven by point-of-care testing demand. ALEX: So basically, the pet side is struggling, but the farm animal side and the diagnostics side are picking up a lot of the slack. JORDAN: Exactly — that diversification is doing real work for them right now. ALEX: Let's talk strategy, because CEO Kristin Peck was pretty clear about their playbook. Instead of cutting list prices — which she called a "permanent structural change" — they're doing what's called gross-to-net investment. Basically targeted rebates, promotions, and bundling deals to protect market share without blowing up their pricing structure long-term. JORDAN: It's a defend-the-fort strategy. Protect volume and share now, keep the sticker price intact, and hope the competitive intensity eases once the market sorts itself out. CFO Wetteny Joseph said full-year price realization could land anywhere from flat to down 2%, depending on how aggressive they need to get. ALEX: There's also a leadership shakeup worth mentioning. Wetteny Joseph, the CFO, is stepping down after five years — a new hire, Jay Saccaro, is coming in not just as CFO but in a newly created combined CFO and Chief Operating Officer role, overseeing manufacturing and supply chain too. That's a pretty significant restructuring of the C-suite, aimed at s This episode includes AI-generated content.

See All (36)

About

Leading pharmaceutical and biotechnology companies. AI-powered earnings call analysis for Pharma & Biotech (PHARMA). Two AI hosts break down quarterly results, key metrics, and market implications in digestible podcast episodes.

Information