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Truist sees neutral to favorable biopharma outlook under Trump

Published 12/12/2024, 02:56 AM
JNJ
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In her overall assessment, Shah believes that the biotech industry could face challenges but also opportunities in the next four years. She emphasized that the confirmation of specific nominees will be crucial as it will significantly influence policy direction and impact on the industry. According to InvestingPro analysis, Johnson & Johnson's current market position shows promise, with analysts predicting continued profitability and the stock trading near its 52-week low, potentially presenting an attractive entry point for investors seeking exposure to the healthcare sector.

According to InvestingPro analysis, Johnson & Johnson's current market position shows promise, with analysts predicting continued profitability and the stock trading near its 52-week low, potentially presenting an attractive entry point for investors seeking exposure to the healthcare sector.

In her overall assessment, Shah believes that the biotech industry could face challenges but also opportunities in the next four years. She emphasized that the confirmation of specific nominees will be crucial as it will significantly influence policy direction and impact on the industry.

According to InvestingPro analysis, Johnson & Johnson's current market position shows promise, with analysts predicting continued profitability and the stock trading near its 52-week low, potentially presenting an attractive entry point for investors seeking exposure to the healthcare sector.

During the discussion, Shah expressed her views on various nominees relevant to healthcare and their potential impact if confirmed. She noted a 50% or lesser chance of approval for controversial pick RFK Jr. and ruled out the likelihood of a recess appointment. However, Shah was positive about the nominees for the Centers for Medicare & Medicaid Services (CMS) and the Food and Drug Administration (FDA), predicting a balance and rigor in their approach. She described the CMS nominee as pro-pharma and the FDA nominee as scientifically and data-driven, which could be a balancing factor.

Shah also touched upon the Prescription Drug User Fee Act (PDUFA), which is authorized until September 2027, and she does not anticipate any changes to it. Regarding the Inflation Reduction Act (IRA), she mentioned that it might not be a primary focus but did not rule out the possibility of more relaxed pricing negotiations.

In her overall assessment, Shah believes that the biotech industry could face challenges but also opportunities in the next four years. She emphasized that the confirmation of specific nominees will be crucial as it will significantly influence policy direction and impact on the industry.

In other recent news, Johnson & Johnson is actively navigating several significant developments. The company is facing a pause on baby powder lawsuits until mid-March due to bankruptcy trial plans, as it seeks a resolution to tens of thousands of cancer-related claims. Concurrently, Johnson & Johnson has submitted applications to the FDA for the use of its drug TREMFYA® in treating children with specific conditions, and for a new subcutaneous induction regimen of TREMFYA® for adults with moderately to severely active ulcerative colitis.

Further, the FDA has awarded a second Breakthrough Therapy designation to nipocalimab, a drug developed by Johnson & Johnson, for the treatment of Sjögren's disease. The company has also applied for a new indication of DARZALEX FASPRO® in the treatment of high-risk smoldering multiple myeloma.

Financially, Johnson & Johnson demonstrated stability with operational sales growth of 6.3% in Q3, reaching $22.5 billion. RBC Capital Markets and Stifel Financial (NYSE:SF) have upgraded their ratings for the company following this strong performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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