Notable healthcare headlines for the week: Novo Nordisk, Bristol Myers Squibb and J&J in focus

Tom Werner

Wall Street's major averages plummeted on Friday after U.S. President Donald Trump threatened higher tariffs to China, saying it had "become very hostile" sending letters to other countries wanting to "impose export controls."

Week-to-date, the S&P lost -2.4%, while the Nasdaq ended -2.5%, and the Dow, -2.7%.

The S&P 500 Health Care Index Sector (NYSEARCA:XLV [https://seekingalpha.com/symbol/XLV]) was almost flat during the week.

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

TOP 5 GAINERS:

Cencora (COR [https://seekingalpha.com/symbol/COR]) +5.04%

Gilead Sciences (GILD [https://seekingalpha.com/symbol/GILD]) +4.14%

McKesson (MCK [https://seekingalpha.com/symbol/MCK]) +3.59%

Quest Diagnostics (DGX [https://seekingalpha.com/symbol/DGX]) +2.53%

Insulet (PODD [https://seekingalpha.com/symbol/PODD]) +1.80%

TOP 5 LOSERS:

Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) -9.41%

Biogen (BIIB [https://seekingalpha.com/symbol/BIIB]) -8.30%

Baxter International (BAX [https://seekingalpha.com/symbol/BAX]) -7.98%

Centene (CNC [https://seekingalpha.com/symbol/CNC]) -7.82%

GE HealthCare Technologies (GEHC [https://seekingalpha.com/symbol/GEHC]) -7.51%

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

FAMILIES OF TRUMP AND COMMERCE SECRETARY STAND TO BENEFIT FROM U.S. DRUG OVERHAUL: WSJ

Family members of President Donald Trump and Commerce Secretary Howard Lutnick are set to profit [https://seekingalpha.com/news/4502589-trump-family-stands-benefit-from-us-drug-overhaul] as the U.S. government steps up its efforts to lower drug prices and boost the local production of pharmaceuticals, The Wall Street Journal reported on Tuesday.

The Journal said that BlinkRx, an online prescription drug delivery company whose board members include the President’s son Donald Trump Jr., would become a major beneficiary as the White House pushes for direct-to-consumer drug sales.

Last month, Trump announced the launch of a DTC platform called TrumpRx, through which Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) has agreed to sell four of its prescription medicines at sharp discounts to cash-paying consumers.

NOVO NORDISK’S APPEAL TO HALT MEDICARE PRICE NEGOTIATIONS REJECTED

Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) (OTCPK:NONOF [https://seekingalpha.com/symbol/NONOF#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) has lost [https://seekingalpha.com/news/4502401-novo-nordisk-loses-bid-halt-medicare-price-negotiations] its bid to halt Medicare drug pricing negotiations after a federal appeals court reaffirmed a lower court ruling that dismissed the Danish drugmaker’s challenge to the program, which has targeted some of its best-selling products.

On Monday, a three-judge panel at the Philadelphia-based 3rd U.S. Circuit Court of Appeals upheld a lower court ruling that denied the weight loss drugmaker’s bid to challenge Medicare’s bargaining process.

According to Reuters, the appeals court judges argued in a unanimous ruling that the federal law specifically bars courts from reviewing the drugs selected under the program, established under the Inflation Reduction Act in 2022.

J&J HIT WITH $966M JURY AWARD IN LOS ANGELES OVER TALC-RELATED CANCER CASE

Johnson & Johnson (JNJ [https://seekingalpha.com/symbol/JNJ]) will have to pay [https://seekingalpha.com/news/4502425-jj-hit-with-966m-jury-award-over-talc-related-cancer-case] $966M after a jury in Los Angeles issued a verdict in favor of a woman who claimed that the pharma giant’s talc-based baby powder caused her to develop a rare cancer called mesothelioma.

The jury ordered J&J (JNJ [https://seekingalpha.com/symbol/JNJ]) to pay $16M in compensatory damages and $950M in punitive damages on Monday in a lawsuit filed by the family [https://www.reuters.com/legal/litigation/johnson-johnson-ordered-pay-966-million-after-jury-finds-company-liable-talc-2025-10-07/] of Mae Moore, who died in 2021 from mesothelioma after allegedly using the company’s asbestos-containing talc baby powder.

The New Jersey-based company didn’t immediately respond to requests for comments, including whether it plans to appeal the ruling.

UNITEDHEALTH TO BUY MEDICAL GROUP IN MASSACHUSETTS

UnitedHealth Group (UNH [https://seekingalpha.com/symbol/UNH]) is set to purchase [https://seekingalpha.com/news/4503109-unitedhealth-to-buy-medical-group-in-massachusetts] a medical practice in Massachusetts that employs 45 doctors, indicating that its Optum division will continue to grow its network of physicians despite facing challenges in the industry, a Bloomberg report said.

The company's Atrius Health affiliate has reached an agreement to acquire Acton Medical Associates, PC, a primary care group located in the Boston area.

This acquisition highlights UnitedHealth's ongoing efforts to broaden its presence in primary care and among physician groups, even as this segment of its business has encountered difficulties.

Details regarding the financial terms of the acquisition have not been made public.

AKERO THERAPEUTICS SOARS ON $5.2 BILLION ACQUISITION DEAL WITH NOVO NORDISK

Akero Therapeutics (AKRO [https://seekingalpha.com/symbol/AKRO]) has entered [https://seekingalpha.com/pr/20260097-akero-therapeutics-to-be-acquired-by-novo-nordisk-for-up-to-5_2-billion#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]into a definitive agreement to be acquired by Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]) for up to $5.2 billion in cash, it said on Thursday, boosting shares ahead of the market open.

Under the terms of the agreement, Akero (AKRO [https://seekingalpha.com/symbol/AKRO]) shareholders will receive $54.00 per share in cash at closing and a non-transferable contingent value right. The stock was up over 19% at $55.61.

Shares of Danish drugmaker Novo Nordisk (NVO [https://seekingalpha.com/symbol/NVO]), maker of the blockbuster weight-loss drugs Wegovy and Ozempic, in contrast, slipped 2.5% to $58.27.

Each CVR will entitle its holder to receive a cash payment of $6.00 per share upon full U.S. regulatory approval of efruxifermin for treatment of compensated cirrhosis due to MASH by June 30, 2031, the companies said.

BRISTOL MYERS SQUIBB TO BUY ORBITAL THERAPEUTICS FOR $1.5B IN CASH

Bristol Myers Squibb (BMY [https://seekingalpha.com/symbol/BMY]) has agreed to acquire [https://seekingalpha.com/news/4503262-bristol-myers-squibb-to-buy-orbital-therapeutics-for-15b-in-cash] privately held biotechnology company Orbital Therapeutics for $1.5 billion in cash.

Orbital Therapeutics is advancing a new generation of RNA medicines designed to reprogram cells in vivo, treating diseases at their source. Its lead RNA immunotherapy preclinical candidate, OTX-201, targets autoimmune disease through B cell depletion to reset the immune system.

In addition to OTX-201, the deal covers Orbital’s proprietary RNA platform, which integrates circular and linear RNA engineering, advanced lipid nanoparticles delivery, and AI-driven design to enable durable, programmable RNA therapies tailored to the distinct biology of a broad spectrum of diseases.

MORE ON THE HEALTH CARE SELECT SECTOR SPDR® FUND ETF

* XLV: Market Overreaction Could Drive Double Digit Shareholder Yield [https://seekingalpha.com/article/4822422-xlv-market-overreaction-could-drive-double-digit-shareholder-yield]
* XLV Vs. IHE: Will Pharmaceuticals Outperform Healthcare? [https://seekingalpha.com/article/4817656-xlv-vs-ihe-will-pharmaceuticals-outperform-healthcare]
* XLV: Life Expectancy, Patents, And A Positive Outlook Will Pave The Way [https://seekingalpha.com/article/4801594-xlv-life-expectancy-patents-and-a-positive-outlook-will-pave-the-way]
* Generic drug imports unlikely to face tariffs - report [https://seekingalpha.com/news/4502853-generic-drug-imports-unlikely-to-face-tariffs]
* Notable healthcare headlines for the week: Pfizer, Novo Nordisk and JNJ in focus [https://seekingalpha.com/news/4501782-notable-healthcare-headlines-for-the-week-pfizer-novo-nordisk-and-jnj-in-focus]