Notable healthcare headlines for the week: Pfizer, Novo Nordisk and JNJ in focus

Wall Street’s broader market averages closed mixed on Friday as market participants digested the U.S. government shutdown for the third day.

For the week, the Dow, S&P 500, and Nasdaq Composite advanced by 1.1%, 1.08%, and 1.32%, respectively.

The S&P 500 Health Care Index Sector (NYSEARCA:XLV [https://seekingalpha.com/symbol/XLV]) gained over 5.3% during the week.

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

TOP 5 GAINERS:

Bio-Techne (TECH [https://seekingalpha.com/symbol/TECH]) +21.60%

Charles River Laboratories International (CRL [https://seekingalpha.com/symbol/CRL]) +19.77%

Thermo Fisher Scientific (TMO [https://seekingalpha.com/symbol/TMO]) +17.04%

Moderna (MRNA [https://seekingalpha.com/symbol/MRNA]) +16.44%

Biogen (BIIB [https://seekingalpha.com/symbol/BIIB]) +16.41%

TOP 5 LOSERS:

Quest Diagnostics (DGX [https://seekingalpha.com/symbol/DGX]) -5.06%

McKesson (MCK [https://seekingalpha.com/symbol/MCK]) -2.72%

STERIS (STE [https://seekingalpha.com/symbol/STE]) -2.47%

Insulet (PODD [https://seekingalpha.com/symbol/PODD]) -2.20%

Labcorp Holdings (LH [https://seekingalpha.com/symbol/LH]) -1.21%

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

TRUMPRX UNVEILED WITH UP TO 85% DISCOUNT ON FOUR PFIZER DRUGS

The White House on Tuesday announced [https://seekingalpha.com/news/4500308-trumprx-unveiled-85-discount-pfizer-drugs] the launch of a direct-to-consumer website called TrumpRx, through which Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) has agreed to sell four of its prescription medicines, including its blockbuster arthritis drug Xeljanz, at up to an 85% discount.

In addition to Xeljanz, which will be available at a 40% discount, the New York-based company has agreed to offer discounts ranging from [https://x.com/RapidResponse47/status/1973072382324625602] 50% to 85% for its dermatitis drug Eucrisa, osteoporosis therapy Duavee, and migraine therapy Zavzpret.

The drugs will be available through Medicaid for cash-paying customers, with other leading drugmakers, including Eli Lilly (LLY [https://seekingalpha.com/symbol/LLY]), also expected to join the initiative. [https://seekingalpha.com/news/4500294-trump-seeks-more-drug-pricing-deals-similar-pfizers#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]

During an event at the White House attended by Pfizer (PFE [https://seekingalpha.com/symbol/PFE]) CEO Albert Bourla, President Donald Trump announced the agreement as part of his most-favored-nation (MFN) pricing policy, which requires drugmakers to lower U.S. drug prices in line with those in other developed nations.

Additionally, in light of Pfizer's (PFE [https://seekingalpha.com/symbol/PFE]) announcement to offer its drugs at reduced prices to American consumers, President Trump is backing off [https://seekingalpha.com/news/4501066-trump-holding-off-pharma-tariffs-negotiate-more-deals] his threat to impose 100% tariffs on imported pharmaceuticals to give other drugmakers time to cut their own deals.

NOVO NORDISK DOWNGRADED AT MORGAN STANLEY ON WEIGHT LOSS DRUG COMPETITION

Morgan Stanley downgraded [https://seekingalpha.com/news/4499943-novo-nordisk-downgraded-morgan-stanley-weight-loss-drug-competition] Novo Nordisk to underweight from equal-weight saying it sees slowing growth of its lucrative GLP-1 franchise, which includes the weight loss med Wegovy and the type 2 diabetes drug Ozempic.

The investment bank cut its price target to $47 from $59 (~15% downside based on Sept. 26 close).

Analyst Thibault Boutherin said that in the short term, Novo will be hampered by a lack of momentum for US prescriptions of the two blockbuster drugs.

"We forecast a decline in the US GLP-1 diabetes franchise in 2026 due to market share and price pressure, and we expect Ozempic ex-US growth to be impacted by the first generic competition in Canada and emerging markets," he wrote in a note. "We forecast modest growth for Wegovy, with volume uptake challenged by continued competition from compounded GLP-1s in the US and from" Eli Lilly's (LLY [https://seekingalpha.com/symbol/LLY]) Mounjaro and Zepbound.

GENMAB TO ACQUIRE CANCER DRUG DEVELOPER MERUS FOR $8B

Danish biotech Genmab (GMAB [https://seekingalpha.com/symbol/GMAB]) has agreed [https://seekingalpha.com/news/4499693-genmab-nearing-deal-acquire-merus] to acquire Merus (NASDAQ:MRUS [https://seekingalpha.com/symbol/MRUS#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]), a Dutch drug developer targeting head and neck cancer, for nearly $8B in cash, the companies announced on Monday.

The agreement, first reported by Bloomberg News on Sunday, is expected to add Merus’ (NASDAQ:MRUS [https://seekingalpha.com/symbol/MRUS#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) lead asset, a bispecific antibody called petosemtamab, which has two FDA breakthrough therapy designations, to Genmab’s (GMAB [https://seekingalpha.com/symbol/GMAB]) pipeline.

Under the agreement, GMAB is set to begin a tender offer to buy all outstanding shares of MRUS for $97 apiece, indicating a nearly 41% premium to the latter’s closing price on Friday and about a 44% premium to the stock’s 30-day volume-weighted average price.

Genmab (GMAB [https://seekingalpha.com/symbol/GMAB]) is set to fund the acquisition using cash on hand and approximately $5.5B of non-convertible debt financing, including a funding commitment from Morgan Stanley. With a minimum of $1B sales potential, the acquisition, which is set to close by the end of Q1 2026, will expand GMAB’s EBITDA by 2029, the companies said. However, Genmab (GMAB [https://seekingalpha.com/symbol/GMAB]) announced that the transaction will not impact its recently issued full-year outlook. [https://seekingalpha.com/pr/20246600-genmab-to-acquire-merus-expanding-late-stage-pipeline-and-accelerating-into-a-wholly-owned#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]

J&J UPGRADED AT WELLS FARGO ON VALUATION, PHARMA POTENTIAL

Wells Fargo upgraded [https://seekingalpha.com/news/4501656-johnson-and-johnson-upgraded-wells-fargo-valuation-pharma-potential] Johnson & Johnson (JNJ [https://seekingalpha.com/symbol/JNJ]) to Over-weight from Equal weight saying that the healthcare giant is attractively priced with pharmaceutical tariff risks and drug pricing concerns in the rear-view mirror.

The bank upped its price target to $212 from $170 (~14% upside based on Oct. 2 close).

Analyst Larry Biegelsen said that J&J's current share price provides an attractive entry point, given the potential upside to its pharma business.

In that segment, he expects better growth in 2026 than 2025, and in 2027, to exceed 2026's growth.

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