Notable healthcare headlines for the week: Eli Lilly, Novo Nordisk and J&J in focus

U.S. stocks wavered amid increased volatility on Friday but managed to resurge, as Wall Street was rattled by concerns on the health of regional banks and credit risks while the U.S. government shutdown entered its 17th day.

The benchmark S&P 500 ended +0.5%, while the Nasdaq Composite closed +0.5%, and the Dow also finished +0.5%.

Week-to-date, the S&P 500 rose 1.7%, while the Nasdaq advanced 2.1%, and the Dow was 1.6% higher.

The S&P 500 Health Care Index Sector (NYSEARCA:XLV [https://seekingalpha.com/symbol/XLV]) gained about 0.25% during the week.

The top S&P 500 healthcare gainers and losers for the last week are as follows:

TOP 5 GAINERS:

Zimmer Biomet (ZBH [https://seekingalpha.com/symbol/ZBH]) +7.61%

Charles River Laboratories International (CRL [https://seekingalpha.com/symbol/CRL]) +6.88%

Mettler-Toledo International (MTD [https://seekingalpha.com/symbol/MTD]) +5.94%

CVS Health (CVS [https://seekingalpha.com/symbol/CVS]) +5.93%

Revvity (RVTY [https://seekingalpha.com/symbol/RVTY]) +5.81%

TOP 5 LOSERS:

Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]) -3.68%

Moderna (MRNA [https://seekingalpha.com/symbol/MRNA]) -3.09%

Abbott Laboratories (ABT [https://seekingalpha.com/symbol/ABT]) -3.04%

Biogen (BIIB [https://seekingalpha.com/symbol/BIIB]) -2.44%

Humana (HUM [https://seekingalpha.com/symbol/HUM]) -1.86%

Here are some of the important healthcare stories from this week:

NOVO NORDISK, ELI LILLY SLIDE AFTER TRUMP PLEDGES 'MUCH LOWER' OZEMPIC PRICE

Danish drugmaker Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) slipped [https://seekingalpha.com/news/4505095-novo-nordisk-eli-lilly-slide-after-trump-pledges-much-lower-ozempic-price] on Friday after U.S. President Donald Trump said on Thursday that the price of the company's top-selling weight-loss medication would be reduced.

Trump made the comments during a White House event on fertility treatments and drug pricing, as per reports.

He said the price of the blockbuster diabetes drug Ozempic could come down to just $150 a month, as per _Bloomberg News._

The U.S. list price of Ozempic, which Trump called “the fat loss drug,” is roughly $1,000 for a month’s supply. Trump told reporters on Thursday that the cost of the drug, made by Novo, will soon be “much lower.”

Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]), which sells similar treatments, including Mounjaro and Zepbound, also ticked 2% lower.

J&J RISES AFTER GUIDANCE BOOST; PLANS TO SEPARATE ORTHOPEDICS UNIT

Johnson & Johnson (JNJ [https://seekingalpha.com/symbol/JNJ]) reported [https://seekingalpha.com/news/4503797-jj-rises-q3-2025-results-guidance-boost] better-than-expected results for Q3 2025 and raised its full-year sales outlook.

JNJ increased its full-year reported sales outlook to $93.5B–$93.9B, compared to $93.45B in the consensus and $93.2B–$93.6B projected in July. However, the company reiterated its profit guidance to absorb higher tax costs, indicating $10.80–$10.90 of adjusted full-year earnings at diluted share for 2025, compared to $10.85 in the consensus. [https://seekingalpha.com/pr/20264056-johnson-and-johnson-reports-q3-2025-results-raises-2025-sales-outlook#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]

Concurrently, J&J (JNJ [https://seekingalpha.com/symbol/JNJ]) announced plans to separate its orthopedics division as a standalone unit named DePuy Synthes within 18–24 months in a bid to fast-track its MedTech portfolio’s shift toward higher-growth and higher-margin markets.

The company named Namal Nawana, a former CEO and a board member of U.K.-based MedTech company Smith & Nephew (SNN [https://seekingalpha.com/symbol/SNN]), as Worldwide President of DePuy Synthes, effective immediately. [https://seekingalpha.com/pr/20264057-johnson-and-johnson-announces-intent-to-separate-its-orthopaedics-business#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]

In other note of news, for the first time in the U.K., Johnson & Johnson (JNJ [https://seekingalpha.com/symbol/JNJ]) is facing [https://seekingalpha.com/news/4504695-jj-sued-uk-over-talc-related-cancer-claims] lawsuits over claims that the company’s talc-based products caused cancer after thousands of people sued the U.S. drugmaker this week over the issue.

A lawsuit was filed by KP Law at the High Court in London on Tuesday on behalf of more than 3,000 people who alleged that they or a family member developed ovarian cancer, mesothelioma, or other tumors after using J&J’s (JNJ [https://seekingalpha.com/symbol/JNJ]) baby powder between 1965 and 2023.

The claimants seek damages from J&J (JNJ [https://seekingalpha.com/symbol/JNJ]) and Kenvue UK Limited, a unit of Kenvue (KVUE [https://seekingalpha.com/symbol/KVUE]), the consumer care spinoff of the New Brunswick, New Jersey-based pharma giant.

NOVO NORDISK BOOSTS OMEROS WITH LICENSING DEAL WORTH UP TO $2.1B

Omeros (OMER [https://seekingalpha.com/symbol/OMER]) shares surged [https://seekingalpha.com/news/4504255-omeros-stock-spikes-novo-licensing-deal] 154% on Wednesday after Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) entered into an asset purchase and license agreement worth up to $2.1B with the Seattle, Washington-based biotech.

As part of the agreement, the Danish drugmaker is set to obtain exclusive global rights to develop and commercialize an experimental therapy identified as zaltenibart (formerly known as OMS906), which is designed to target rare blood and kidney disorders.

According to the deal terms, Omeros (OMER [https://seekingalpha.com/symbol/OMER]) will receive $340M in upfront and near-term milestone payments and up to $2.1B in payments, including development and commercial milestones, in addition to tiered royalties on potential net sales. The transaction is expected to be complete in Q4 2025. [https://seekingalpha.com/pr/20266711-novo-nordisk-and-omeros-announce-asset-purchase-and-license-agreement-for-omeros-clinical#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]

In other news of note, Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) started [https://seekingalpha.com/news/4504360-novo-nordisk-has-begun-u-s-layoffs] a round of job cuts in the U.S. as the weight loss drugmaker continues its plans to eliminate about 9,000 roles globally under a major restructuring drive, Reuters reported on Wednesday, citing an email and two sources familiar with the matter.

BAVARIAN NORDIC DRAWS HIGHER BID FOR TAKE-PRIVATE DEAL

Bavarian Nordic (OTCPK:BVNRY [https://seekingalpha.com/symbol/BVNRY]) (OTCPK:BVNKF [https://seekingalpha.com/symbol/BVNKF]) announced [https://seekingalpha.com/news/4504396-bavarian-nordic-draws-higher-bid-take-private-deal] on Wednesday that Nordic Capital and Permira, which agreed to take the Danish vaccine maker private in an all-cash deal worth nearly $3B in July, have raised their offer price.

After initially agreeing to an offer price of 233 Danish kroner per share, Innosera, a newly formed company controlled by the duo, has increased its bid for Bavarian Nordic (OTCPK:BVNRY [https://seekingalpha.com/symbol/BVNRY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) to 250 kroner ($38.94) per share, according to the company.

The revised bid, which Innosera has termed as its best and final offer price, will be valid until Nov. 5, 2025, 5:00 p.m. (CET), as the companies race to complete the transaction by Q4 2025. [https://seekingalpha.com/news/4472592-bavarian-nordic-agrees-to-299b-takeover-by-permira-and-nordic-capital#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]

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* Seeking Alpha's healthcare quant picks ahead of Q3 earnings: McKesson, Incyte top-rated stocks [https://seekingalpha.com/news/4503551-seeking-alphas-healthcare-quant-picks-ahead-of-q3-earnings-mckesson-incyte-top-rated-stocks]
* Short bets on S&P 500 Healthcare sector rises marginally to 1.91% in September; MRNA remains most shorted stock [https://seekingalpha.com/news/4503493-short-bets-on-sp-500-healthcare-sector-rises-marginally-to-191-in-september-mrna-remains-most-shorted-stock]
* Seeking Alpha’s Quant Rating on The Health Care Select Sector SPDR® Fund ETF [https://seekingalpha.com/symbol/XLV/ratings/quant-ratings]