News about healthcare

Warren Buffett, now chairman emeritus of Berkshire Hathaway, warned at the May shareholder meeting that 'we've never had people in a more gambling mood than now,' pointing to individuals rushing into short-term options and market bets. The article argues the S&P 500 and quality stocks have historically recovered from turmoil, and that pharma and biotech firms can hold up in tough times because patients always need treatment. It highlights three picks: Vertex Pharmaceuticals (VRTX), the cystic fibrosis leader that recently purchased Crinetics; Eli Lilly (LLY), whose tirzepatide brought in more than $14 billion of its $23 billion revenue in the recent quarter; and AbbVie (ABBV), where Rinvoq and Skyrizi each grew 24% and which is a Dividend King with more than 50 consecutive years of dividend increases.

Biotech news this week focuses on kidney cancer, multiple sclerosis, Huntington's disease and personalized cancer treatment, as Arcus Biosciences (RCUS), Alnylam (ALNY), Moderna (MRNA) and Merck (MRK) release clinical updates alongside earnings and conferences. Last week, the health care ETF XLV gained 3%, outperforming SPY (down 2%) and QQQ (down 6%), while the biotech ETF XBI fell 6%. Arcus will present kidney-cancer data from its ARC-20 study of Casdatifan, Achieve Life Sciences will report year-long Cytisinicline findings for smoking cessation after a June FDA rejection it says concerned manufacturing and labeling, and Alnylam will share initial Phase 1 ALN-HTT02 results for Huntington's disease. Moderna and Merck will present Phase 3 INTerpath-001 melanoma data on Saturday, comparing individualized treatment intismeran autogene plus Keytruda with Keytruda alone after surgery, while a number of other companies will present multiple sclerosis updates through the week.

Shares of CRISPR Therapeutics have fallen about 47% since mid-October 2021, while the S&P 500 has gained almost 73% as of writing, despite clinical and regulatory progress over the past five years. Casgevy, developed with Vertex Pharmaceuticals, was approved in 2023 and early 2024 for transfusion-dependent beta-thalassemia and sickle cell disease, making it the company's first commercial product and the first approved CRISPR-based gene-editing therapy. Other candidates include CTX310, aimed at lowering LDL cholesterol and triglycerides, where Phase 1 data showed significant decreases in both; zugo-cel for autoimmune diseases and blood cancers; and CTX611, an anticoagulant that could be given twice a year. Casgevy's label now covers patients as young as two, adding about 5,500 U.S. patients at $2.2 million per treatment course. The article warns of possible clinical failures and the costly, one-time nature of many gene-editing therapies, which makes profitability uncertain.

Larry Elder argues that the Washington Post Editorial Board has repeatedly exposed Medicare for All promises by Democrats, including Michigan Senate candidate Abdul El-Sayed, as flat-out lies. He cites Post editorials on Britain's National Health Service, where 6.24 million patients were waiting for treatment in England as of October, and on California, where single-payer was estimated to cost $494 billion to $552 billion a year, compared with a proposed state budget of $349.4 billion. The column notes that roughly three-quarters of Medicare for All supporters believe billionaires could pay for it, but only 40% knew it would require raising taxes on most taxpayers. Elder says politicians make similar claims about green energy, expanded Social Security, free college and government-run childcare.

Medicare open enrollment runs until Dec. 7 for plans effective Jan. 1, and several changes could raise costs. The Part D out-of-pocket cap rises to $2,400 from $2,100 in 2026, the standard deductible rises from $615 to $700, and the Trump administration is ending a temporary Part D premium subsidy. KFF estimates that AARP Part D enrollees who don't change plans will see monthly premiums rise by $50 or more in all 50 states, more than $75 in 37 states and more than $100 in four states, while the AARP Medicare Rx Saver plan will rise by $50 or more in 33 states. Together the two plans have more than 2 million members, and 15 drugs including Ozempic, Rybelsus and Wegovy will get Medicare-negotiated prices starting Jan. 1.

Eli Lilly (LLY) returned 36.37% over the six months to October 15, compared with 21.5% for the Insider Monkey Billionaire Index and 15.74% for the State Street SPDR S&P 500 ETF Trust. Mounjaro and Zepbound still drive most growth, while Lilly is expanding with the oral obesity drug Foundayo, international markets and treatments beyond obesity, and is investing an additional $4.5 billion in its Indiana facilities. In the second quarter of 2026, revenue rose 48% on a 60% increase in volume, but realized prices fell 13%, partly due to lower international prices, while immunology, oncology and neuroscience products grew 121% combined. LLY trades at 38.64x trailing and 24.39x forward earnings, with forecasts pointing to earnings roughly doubling from last year to next year. The article also flags risks including pricing pressure, heavy spending on production, research and acquisitions, and significant acquired R&D charges in the second quarter.

Novo's shares have fallen more than 60% after losing GLP-1 market share to Eli Lilly, and the stock trades at 11.8x forward earnings versus an 18.6x average for healthcare stocks. The article cites clinical setbacks, including CagriSema missing a 25% mean weight-loss target and losing a head-to-head trial to Zepbound, plus a failed Phase 3 study of ziltivekimab. Second-quarter net sales rose 2% to 78.5 billion Danish kroner, and adjusted earnings per share rose 5% to 6.18 DKK. Oral Wegovy has helped widen the market, and the pipeline includes zenagamtide, which showed up to 24.3% mean weight loss over 36 weeks in an early study. The author concludes Novo is not a once-in-a-decade buy, though it could deliver solid returns over the medium term.

Nasdaq Inc. added Moderna to its Nasdaq-100 index earlier this month; the index tracks the 100 largest non-financial companies listed on the Nasdaq. The move does not change the company's financial performance, but it raises visibility and prompts ETFs that mirror the index, such as Invesco QQQ Trust, to buy the stock. Invesco's ETF alone holds about $2 billion of Moderna, more than 2% of the $94 billion company, and roughly 80% of outstanding shares are now institutionally owned. The article argues this leaves fewer shares for individual investors, making the stock harder and more expensive for them to buy. It says the bigger driver remains the potential of Moderna's cancer vaccine intismeran autogene, combined with Merck's Keytruda, alongside COVID-19 and flu vaccine approvals, which contributed to the stock's 700% gain this year.

Prime Minister Lê Minh Hưng said intermediary stages in healthcare, electricity and petroleum distribution will be cut so people do not pay high prices. Under a draft decree on petroleum trading, the number of key petroleum traders is expected to fall to 14-15, with requirements of at least 40 retail stores and storage capacity of at least 15,000 m3. In healthcare, the government will propose amending the Law on Medical Examination and Treatment and the Pharmaceutical Law to cut intermediaries in drug and medical equipment distribution. Inflation was held at 4.52% over nine months, but he said keeping it there will be hard without responsive management, as world fuel prices have risen between 65% and nearly 90%.

Prime Minister Lê Minh Hưng said the government will cut intermediary stages in fuel distribution, electricity and healthcare to lower input costs for the economy. The draft new fuel-business decree would reduce the main trader types to 4 and tighten conditions for wholesale traders, with their number expected to fall to 14-15. In healthcare, the government will amend the Law on Medical Examination and Treatment and the Pharmacy Law to remove intermediaries, as medical equipment and drugs have been marked up through overseas intermediary transactions. According to the government's report, inflation was held at 4.52% after 9 months, but world oil prices rising 65% to nearly 90% could push domestic fuel prices up 60-80% without tax adjustments.