Pharmaceutical Industry Roundup: Strong Financials, Drug Developments, and Leadership Changes

In a week of significant developments across the pharmaceutical industry, major players reported strong financial results, key drugs showed promising sales growth, and leadership changes were announced. Meanwhile, regulatory bodies continue to scrutinize new treatments, particularly in the Alzheimer's space.

Financial Strength and Growth Projections

Novartis and AbbVie both reported impressive financial results, signaling robust growth in the pharmaceutical sector. Novartis saw its net sales rise from $45.4 billion to $50.3 billion between 2023 and 2024, with net income climbing from $8.6 billion to $11.9 billion. The company projects mid- to high-single-digit net sales growth for 2025, a target described as "ambitious" by Stifel analyst Eric Le Berrigaud, given the upcoming patent expiration for Entresto.

AbbVie's performance was equally strong, with 2024 revenue reaching $56 billion, a 4% increase over 2023. The company raised its sales forecast for autoimmune drugs Skyrizi and Rinvoq, now expecting annual sales to reach $31 billion by 2027. This projection surpasses previous estimates and analyst expectations, with Skyrizi alone anticipated to match Humira's peak annual sales of $20 billion.

Drug Development and Market Performance

Several key drugs are driving growth across the industry. Novartis reported sales growth for heart drug Entresto, cholesterol-lowering medicine Leqvio, and breast cancer therapy Kisqali. AbbVie's Skyrizi and Rinvoq are successfully offsetting declines in Humira revenue due to biosimilar competition.

Merck's new lung-disease drug Winrevair showed such clear benefits for people with pulmonary arterial hypertension that the company halted its Hyperion trial early. The drug, launched in March, recorded sales of $219 million through September 30.

Sanofi's antibody shot for respiratory syncytial virus, Beyfortus, achieved blockbuster status in its first full year, generating sales of 1.7 billion euros (about $1.8 billion) in 2024. The recent sales uptick was primarily attributed to European markets.

Regulatory Developments and Clinical Trials

The European Commission has requested additional review of Eisai and Biogen's Alzheimer's drug Leqembi before granting approval. The European Medicines Agency will seek an updated opinion on potential safety considerations and monitoring measures at a February meeting. While this delay is not ideal, RBC Capital Markets analyst Brian Abrahams suggests it "should not necessarily lead to an opinion reversal" given existing risk management protocols.

Merck's early termination of the Hyperion trial for Winrevair was based on evidence of clear benefits for people with functional Class 2 or 3 pulmonary arterial hypertension. This decision followed previous positive results in more severely ill PAH patients.

Leadership Changes and Strategic Shifts

Daiichi Sankyo announced a significant leadership change, with CEO Sunao Manabe to be replaced by Chief Operating Officer Hiroyuki Okuzawa on April 1. Manabe, who has led the company since 2019, oversaw Daiichi Sankyo's rise as a leader in antibody-drug conjugate development, including partnerships with AstraZeneca and Merck & Co. Manabe will transition to executive chair once Okuzawa, a company veteran since 1986, takes over.

This leadership transition comes at a time when Daiichi Sankyo's cancer drug Enhertu has become a blockbuster medicine, highlighting the company's successful strategic focus on ADC development.