Johnson & Johnson beat analyst expectations in the third quarter but left Wall Street wanting more; BMS dominated the news cycle on Monday with a Phase 3 win validating its $4.1 billion RayzeBio buy and mixed data in a late-stage pulmonary fibrosis trial; Revolution Medicines’ newly approved pancreatic cancer drug works better for patients with certain mutations; and Caribou Biosciences may be on its way out.
Third quarter earnings are upon us, as Johnson & Johnson kicked off this spooky season on Tuesday with a report “in line” with analyst expectations. While the earnings beat was supported by the company’s innovative medicines division, J&J’s stock slipped about 4% on the underperformance of its medtech unit.
Meanwhile, Bristol Myers Squibb, which reports Q3 earnings Oct. 29, has had a “mixed” week. The company’s lung disease asset scored a low-dose win in a Phase 3 idiopathic pulmonary fibrosis trial but failed to significantly improve exhalation capacity at a higher dose. BMS enjoyed a more decisive Phase 3 victory with RYZ-101 as the asset, picked up in the company’s $4.1 billion acquisition of RayzeBio, improved progression-free survival for patients with a rare type of gastrointestinal tract cancer. This all comes as BMO Capital Markets questions the company’s plan to manage the upcoming loss of exclusivity for Opdivo and Eliquis.
One company analysts will be watching closely when smaller biotechs begin to report Q3 earnings is Revolution Medicines, whose “miracle” pancreatic cancer drug Rasonque won FDA approval in August. While the drug’s launch is widely expected to set records, RevMed dipped last week after the FDA released review documents showing that Rasonque appeared to work better in some patient subgroups than others.
Speaking of smaller biotechs, it’s been a rough month for Adecto Pharmaceuticals and Aviceda Therapeutics, both of which are exiting the scene. And last week, news broke that Caribou Biosciences—co-founded by Nobel Prize-winning CRISPR pioneer Jennifer Doudna—has discontinued its entire clinical-stage pipeline and will part with 87 employees—the majority of its staff—by the end of the year.
Finally, enjoy our thoughts on the Major League Baseball playoffs and our favorite all-time Halloween movies.
