You know a lot is going on in the world of healthcare when RFK’s declaration that he’s going to find the cause of autism by September is only a headline for one day. Here are a few more headlines making that are waves today.
First off, UnitedHealthcare stock plummeted 22.38%, making today its worst day of trading in 25 years, thanks to a tough earnings report.
The health giant said it now expects its fiscal 2025 earnings per share to come in between $26 and $26.50—far below its December 2024 forecast of between $29.50 and $30, and much lower than the $29.73 per share analysts expected this year.
The healthcare sector has had a particularly tough year, including lower government payments and mass backlash from patients unhappy with their care. However, the sector was still considered a bright spot that was somewhat immune from the tariff wrecking ball, given that health stocks are defensive investments.
United said rising costs from Medicare Advantage plans, which cover older adults and children with disabilities, contributed to the lower profit margins. Other health insurance firms sank on the news. Humana fell 7.44%, Centene dropped 2.07%, and CVS Health lost 1.84%.
Eli Lilly slims down to make gains
On the other end of the spectrum, pharmaceutical giant Eli Lilly shot up 14.30% after its newest weight-loss pill proved to be just as effective as Ozempic in a clinical trial. That’s bad news for Ozempic-maker Novo Nordisk, which fell 7.63%.
The new drug, called orforglipron (really rolls off the tongue, doesn’t it?), is an oral pill, as opposed to an injection, which makes the drug much easier to use than the GLP-1 shots currently on the market. Eli Lilly has beaten AstraZeneca to market with a weight-loss pill, while Pfizer recently discontinued the development of its own pill.
Zoom out: President Trump wrote in a Truth Social post a few weeks ago that pharma would be the next industry to get hit with steep levies. That threat is a cloud hanging over the entire healthcare sector that could throw a wrench into stocks at a moment’s notice.—LB
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