Health Sector Updates: Major Moves and Approvals

CVS's decision impacts Eli Lilly shares as it drops Zepbound, while Biogen reports strong sales in rare disease drugs. CVS revises profit outlook upwards, and the FDA approves drugs from J&J and UK’s Genus. Key mergers, tariffs, and legislative shifts impact the health sector landscape.

The health sector was marked by significant developments, with CVS Health's decision to exclude Eli Lilly's obesity drug Zepbound from coverage adversely affecting Lilly's shares. In contrast, CVS raised its annual profit forecast amid a turnaround across its businesses, highlighting a year of recovery.

Biogen reported noteworthy first-quarter profits and revenues, attributed to robust demand for its rare disease medications, despite declining sales of its multiple sclerosis products. Meanwhile, the FDA granted approval to Johnson & Johnson's new immune disorder drug, expected to significantly boost revenues.

In other highlights, Australia's CSL evaluates China's tariff exemptions, possibly alleviating impacts from the ongoing trade tensions, while Novartis's acquisition of Regulus Therapeutics signals strategic expansion in kidney disease treatment. Legislative actions also loom, with potential Medicaid cuts under consideration by Republicans.

(With inputs from agencies.)