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This article first appeared on GuruFocus. Total Revenue: $928 million in Q2 fiscal 2027. Non-GAAP Operating Income: $416 million for the quarter. CRM Performance: Best CRM quarter ever recorded. AI Progress: Accelerating momentum in AI, particularly with Veeva Falcon. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Veeva Systems Inc (NYSE:VEEV) delivered a strong Q2 with total revenue of $928 million and non-GAAP operating income of $416 million, exceeding guidance. The company achieved its best-ever CRM quarter, with notable wins including two TOP20 biopharma customers (Lilly and Biogen) selecting Vault CRM, bringing the total to 12 of TOP20. Veeva Falcon, the company's agentic AI product, is generating high customer interest, with early adopters showing promising results and a faster implementation process compared to traditional software. Commercial subscription revenue grew 13% year-over-year, with broad-based strength across CRM, content, data, and Crossix, even excluding Crossix's contribution. The partnership with IQVIA is progressing well, with both companies expressing satisfaction, and it is expected to drive further growth in the life sciences industry. The company is confident in winning back customers who chose Salesforce, citing Salesforce's struggles with large projects and Veeva's strong execution and customer trust. Veeva's R&D segment is transitioning to new growth products like EDC, eCOA, RTSM, Safety, and LIMS, which are early but have significant long-term potential. The company's focus on tech-enabled services is expected to enhance the value of its software, leading to faster implementations and increased customer success. Veeva's China business is growing and synergistic with its global offerings, providing a competitive advantage in that market. The company's pricing model for Aspen is simple and predictable, modeled after AWS, which could attract customers seeking transparency and ease of use. Veeva Systems Inc (NYSE:VEEV) faces execution risks with Falcon, as it is a new market and motion for the company, and the product is still in early stages with only five early adopters. The company acknowledges that some customers have chosen Salesforce, and while it expects to win some back, this is not guaranteed and may take until 2027-2028. R&D growth is experiencing a 'changing of the guards' as older products like ETMF and CTMF mature, while newer products are still ramping, which could create a temporary growth slowdown. The company's Aspen product is very early-stage, and there is uncertainty about whether it can execute well enough to compete with established horizontal CRM platforms. Falcon's pricing is still being determined, and the company is working with customers to find a model that balances predictability with the product's rapidly improving capabilities. The company faces potential gross margin pressure from AI models, although it believes it can mitigate this by pushing more work into deterministic software. There are only two remaining TOP20 CRM decisions left, and while Veeva is confident, these are not yet finalized, and there is no guarantee of winning both. The departure of Tom Schwenger, a key executive, could potentially impact some customer relationships, although the company downplays this risk. The company is not dependent on acquisitions for Falcon, but it may need to be selective in M&A to find cultural fits, which could limit growth opportunities. Macro uncertainties, such as interest rates and geopolitical tensions, could still disrupt the life sciences industry and impact Veeva's business. Warning! GuruFocus has detected 3 Warning Sign with P. Is VEEV fairly valued? Test your thesis with our free DCF calculator. Q: What drove the record performance in the commercial segment, and can you unpack the strength in the subscription line item?A: Brian Van Wagener (CFO) noted that commercial subscriptions were up about 13% year over year, with double-digit growth even when excluding Crossix. The strength was broad-based across CRM, content, data, Crossix, and Ostra. He highlighted that Crossix continues to be a strong performer with significant headroom, and CRM is growing despite prior concerns, reflecting a healthy market and strong execution. Q: How is customer interest in Veeva Falcon and the new AI offerings, and what is the mentality of customers adopting these new technologies?A: Peter Gassner (CEO) stated that interest in Falcon is very high, as it offers quick cost savings, compliance, and efficiency. He noted that Veeva is currently the rate limiter, needing to get the product ready and work with early adopters. He emphasized that Falcon represents a new category of "agentic labor" for Veeva, distinct from its cloud software, data, and consulting offerings, and that the company is well-positioned due to its structural advantages across multiple life sciences areas. Q: Can you provide an update on the Aspen product, its market opportunity, and the level of investment being made?A: Peter Gassner (CEO) described Aspen as a startup inside Veeva, moving rapidly on 90-day plans. He is 100% convinced there is a market for the product, which targets horizontal CRM with modern technology and AI capabilities. The investment is very small on Veeva's scale and not a financial drain. He noted that the pricing model is simple ($50 per user per month) and modeled after AWS, with overage charges for excessive usage, aiming for predictability while allowing for flexibility. Q: What are the key regulatory hurdles for Falcon, and how will human-in-the-loop requirements evolve?A: Peter Gassner (CEO) explained that agentic labor is non-deterministic, so Veeva must prove proper training and guardrails, similar to human labor. Falcon provides for human-in-the-loop by allowing visibility into agent outcomes within Vault applications. He noted that customers are already familiar with AI concepts and are looking for a partner that can scale agentic labor across multiple areas, rather than needing extensive education. Q: How is the Data Cloud performing, and where is it proving most differentiated?A: Peter Gassner (CEO) stated that Data Cloud is positioned as an accelerator for AI, not a prerequisite. It is proving differentiated in open data (clean reference data), Compass for complex therapies, and the Lync product for key people and medical insights. He described data as a long, slow grind rather than a fast-moving trend, but noted it is highly synergistic with Veeva's broader product plan, including software, data, consulting, and agents. Q: Are the early adopters of Falcon exclusively sponsors, or are service providers also showing interest?A: Peter Gassner (CEO) confirmed that early adopters are sponsors, though there has been some interest from service providers. Veeva is focusing on sponsors first because their needs differ from service providers, and the company must remain focused when working with initial customers. He expects Falcon to eventually be useful for outsourced service providers, but the priority is on sponsors for now. Q: How should we think about the impact of Falcon and AI products on gross margins and free cash flow margins?A: Peter Gassner (CEO) stated that he does not expect a gross margin problem, with margins likely similar to software. He explained that much of the work goes into deterministic software, using non-deterministic models only when needed. He also noted that model costs are expected to decline over time due to better hardware and open-weight models, which would further support margins. He emphasized that even without cost declines, Falcon would be a great business due to the deterministic layer. Q: Can you provide more color on the R&D subscription line and the transition between older products and newer growth areas?A: Brian Van Wagener (CFO) acknowledged that Veeva is in the middle of a transition, with older products like ETMF, CTMF, QDOX, and QMS fueling growth to date. The next wave of growth will come from newer products like EDC, eCOA, RTSM, Safety, and LIMS, which are large and strategic but still early. He noted that the S-curves don't stack up exactly, which is factored into guidance, but expressed confidence in the long-term trajectory of the R&D business. Q: What is the ideal customer profile for Aspen, and how is Veeva prioritizing its go-to-market?A: Peter Gassner (CEO) indicated that the ideal customer profile for Aspen is nimble companies, likely young tech startups, that want innovative CRM solutions rather than traditional offerings. He noted early indications that these companies will be great partners, but said more details will be available in a year as the product matures and early adopters provide feedback. Q: How is the partnership with IQVIA progressing, and what impact has it had on the business?A: Peter Gassner (CEO) expressed strong satisfaction with the IQVIA partnership, noting that both companies are happy with the collaboration. He highlighted that customers appreciate the reduced hassle of working with both Veeva and IQVIA, and that the partnership is already yielding benefits. He described it as one of the best things to happen to Veeva in the past 12 months, with great potential for future collaboration in AI, data, and services. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Veeva Systems Inc.? Here are five stocks we like better. Veeva exceeded guidance in fiscal 2027 Q2, reporting $928 million in revenue and $416 million in non-GAAP operating income. Management raised its full-year outlook, with commercial subscription revenue up approximately 13% year over year. Commercial-cloud growth was broad-based across CRM, content, data products, Crossix and Ostro. Veeva cited strong CRM momentum, including Vault CRM selections from Eli Lilly, Biogen and Regeneron, and sees potential to win back customers that encountered challenges with Salesforce implementations. Falcon AI is emerging as a major growth focus, with strong customer interest in AI agents designed to improve efficiency, compliance and costs. Veeva is also investing in newer clinical products such as EDC, eCOA, RTSM, Safety and LIMS, while developing its horizontal CRM initiative, Aspen. Buy the Dip or Run: 3 Software Stocks Down 50% Face Their Moment of Truth Veeva Systems (NYSE:VEEV) reported fiscal 2027 second-quarter revenue of $928 million and non-GAAP operating income of $416 million, with Chief Executive Officer Peter Gassner saying results exceeded the company’s guidance. Management highlighted record CRM performance, broad commercial-cloud momentum and growing customer interest in its AI offerings. The quarter ended July 31, 2026, and the company said it raised its guidance for the fiscal year. Chief Financial Officer Brian Van Wagener said commercial subscription revenue increased about 13% year over year, with double-digit growth even excluding Crossix. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects Down 20%+, These 3 Software Stocks Are Boosting Buybacks Van Wagener said commercial-cloud growth was not driven by a single offering. Instead, performance was broad-based across CRM, content, data products, Crossix and Ostro. Crossix continued to have “a lot of headroom for growth,” he said, while CRM revenue continued to grow despite prior investor concerns that the category could decline. Veeva’s commercial performance also reflected new customers and brands in Data Cloud, growth in Crossix measurement and audiences, and demand for CRM add-ons and content products, according to Van Wagener. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? Veeva Systems: Increasing NDR and Other Wins Paul Shawah, Veeva’s executive vice president of strategy, said the company had an “exceptional” CRM quarter, citing Vault CRM selections by Eli Lilly, Biogen and Regeneron. He attributed the wins to customer trust in Veeva’s ability to deliver and to product performance. Shawah said Veeva has commitments from 12 of the top 20 biopharma companies, with two remaining decisions expected by the end of the year. Management also discussed customers that previously chose Salesforce over Veeva CRM. Gassner said a handful of large customers selected Salesforce, in some cases about two years ago, but those implementations have encountered delays and challenges because of the complexity of the product. He said Veeva believes it could win back some of those customers, potentially in full or in selected regions, with most potential win-backs occurring in 2027 and 2028. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding “We want to be your plan B,” Gassner said of Veeva’s discussions with those customers. Veeva CRM remains available as a backstop through the end of 2029, he noted. Gassner described Veeva Falcon as a new category for the company: “agentic labor.” Unlike Veeva’s traditional cloud software, data and consulting businesses, Falcon is intended to perform work through AI agents. He said customer interest is high, particularly because organizations see potential for cost savings, compliance improvements and greater efficiency. However, Gassner said Veeva is currently the limiting factor because it needs to further prepare the product and work with early adopters. He emphasized that Falcon deployments should not require the extensive data mapping, system cutovers or extract-transform-load work often associated with enterprise software implementations. Veeva expects Falcon sales to be directed primarily toward business-unit leaders and operations executives rather than IT departments. Gassner said the company’s initial focus is on life-sciences sponsors, though service providers have also expressed interest. He said Falcon could eventually be used by outsourced service providers, but Veeva is prioritizing sponsor use cases first. On regulatory requirements, Gassner said agentic labor is non-deterministic and therefore requires training and guardrails similar to those used for human workers. Falcon includes human-in-the-loop capabilities that let users review an agent’s work within a Vault application, he said. Management did not provide detailed Falcon pricing. Gassner said customers want predictable costs, and Veeva could use enterprise subscription agreements based on the size of a customer or its functional organization. Pricing could increase as Falcon’s capabilities mature, he added. Gassner said he expects Falcon’s gross margins to be broadly similar to Veeva’s software margins over time. He said Veeva is placing more functionality in deterministic software layers and expects AI-model costs to decline over time through hardware improvements, open-weight models or other technology advances. Van Wagener said Veeva’s R&D business is in the middle of a transition from established products toward newer growth offerings. Earlier growth was supported by products including eTMF, CTMS, QualityDocs, Veeva QMS and the company’s regulatory suite. Looking further out, Veeva sees growth opportunities in Veeva EDC, eCOA, RTSM, Safety and LIMS. Van Wagener described each as a large and strategic market opportunity, though all remain relatively early in their development cycles. He said the timing of their growth curves does not align exactly, which is reflected in the company’s outlook for the rest of the fiscal year. Gassner said Veeva has EDC relationships with nine of the top 20 biopharma companies. He characterized EDC implementations as long-cycle projects and said the company expects continued progress over the next several years. Veeva is also expanding its clinical portfolio with site solutions and eSource capabilities. Veeva also discussed Aspen, its emerging horizontal CRM initiative. Gassner called Aspen a startup within Veeva, operating with small investment levels and focused on early customers and rapid product iteration. He said the company is targeting nimble technology startups initially and is confident there is demand for a new approach to horizontal CRM. Aspen’s public pricing model is designed to be simpler and more predictable than traditional enterprise software pricing, according to Gassner. The company has discussed a price of $50 per user per month, with potential overage charges for unusual levels of data storage or compute usage. Gassner said Aspen aims to address concerns around unpredictable pricing, vendor dependability, scalability, heavy data-entry requirements and lengthy CRM implementations. He said AI could reduce much of the data entry required in existing CRM systems. In Data Cloud, Veeva said OpenData, Compass and Link are key areas of progress. Gassner described OpenData as clean reference data, Compass as particularly useful in certain complex-therapy markets, and Link as a market-leading product with expansion opportunities in medical insights, key accounts and congress workflows. While data products tend to grow gradually, he said they are strategically valuable because they work alongside Veeva’s applications, consulting services and AI agents. Management also said its partnership with IQVIA has been productive. Gassner said customers appreciate reduced friction in working with the two companies and that greater collaboration across software, data and services could benefit the life-sciences industry. Veeva Systems (NYSE: VEEV) is a cloud software company that develops industry-specific applications and data solutions for the global life sciences sector. Founded in 2007 and headquartered in Pleasanton, California, Veeva focuses on helping pharmaceutical, biotechnology, medical device and consumer health companies manage regulated content, clinical and regulatory processes, quality systems, and commercial operations in a compliant, cloud-native environment. The company completed its initial public offering in 2013 and has since expanded its product suite and international footprint. Veeva's product portfolio centers on its Vault platform and related application suites, which provide content and data management, clinical trial and regulatory workflows, quality management, and structured commercial capabilities such as customer relationship management and promotional content management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Veeva Systems Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Eli Lilly and Company’s LLY stock has risen 5.8% since it announced solid second-quarter results on Aug. 5. Lilly’s earnings and revenues comfortably exceeded estimates. Revenues rose 48% year over year to $22.97 billion while adjusted EPS rose 33% to $8.38. Mounjaro and Zepbound remained the primary growth engines, with both drugs beating their respective consensus estimates. Newer medicines also made meaningful contributions across immunology, oncology and neuroscience. The company also raised its sales expectations for the second time this year. However, a single quarter’s results are not so important for long-term investors. To make an informed decision on whether to buy, sell or hold the stock, it is important to evaluate the company’s fundamentals by examining its key strengths and weaknesses. Lilly has seen extraordinary momentum in its cardiometabolic franchise. Its blockbuster drugs, Mounjaro for type II diabetes and Zepbound for obesity, have become some of the fastest-growing medicines in pharmaceutical history, gaining from enormous global demand for GLP-1 therapies. These therapies account for around 65% of the company’s total revenues and have become key top-line drivers for Lilly, with demand rising rapidly. In the first half of 2026, the drugs generated combined sales of $27.6 billion. Robust growth trends in the U.S. incretin analogs market and positive uptake trends of Mounjaro and Zepbound in new international markets led to strong sales growth, with the positive trend expected to continue. On the call, Lilly said that though Mounjaro’s revenue growth was robust in the second quarter, future growth will depend increasingly on market expansion rather than share gains. Mounjaro and Zepbound are also consistently gaining approvals for new indications. Lilly’s newly launched once-daily oral GLP-1 pill, Foundayo (orforglipron) for treating obesity, generated $98 million in sales in the second quarter, its first full quarter on the market. Medicare access is becoming an increasingly important growth driver for Lilly's obesity portfolio. Eligible Medicare Part D beneficiaries gained access to Zepbound and Foundayo for weight management through the Medicare GLP-1 Bridge program beginning July 2026, while Mounjaro already has Medicare coverage for its type II diabetes indication. The obesity market is still in the early stages of expansion, with millions of eligible patients yet to begin treatment. As manufacturing capacity improves and global reimbursement gradually expands, Lilly has significant room to grow sales over the next several years. To maintain leadership in the GLP-1 market, Lilly is developing several next-generation, more powerful and more convenient GLP-1–based treatments, including oral options and multi-acting candidates. Foundayo, which offers the benefits of GLP-1 therapy in a pill form, can prove to be a commercial game-changer for Lilly. Oral pills will be a more convenient alternative to the currently available once-weekly injectable obesity treatments like Zepbound and rival Novo Nordisk’s NVO Wegovy. The launch uptake for Foundayo has been encouraging as Lilly expands physician engagement and direct-to-consumer promotion in the United States. Lilly has also secured coverage across all three major PBMs. Lilly is also continuing Foundayo’s international expansion. Foundayo is currently under regulatory review in more than 40 additional countries, with further approvals expected later this year. Lilly expects to launch Foundayo in most international markets by 2027. Lilly expects Foundayo to become a multi-indication cardiometabolic opportunity. For the type II diabetes indication, Lilly has filed regulatory applications in several countries, including the United States. In addition to obesity and type II diabetes, Lilly is also evaluating Foundayo in six phase III studies for other diabetes and obesity-related diseases, with data from some of these expected later this year. In its GLP pipeline, retatrutide is one of Lilly’s most important late-stage candidates, as it targets three biological pathways — GLP-1, GIP and glucagon — potentially offering greater weight-loss and metabolic benefits than existing medicines, which mostly act on one or two biological pathways. The company is evaluating retatrutide in type II diabetes and obesity, along with other indications like obstructive sleep apnea (OSA), knee osteoarthritis, chronic low back pain and MASH, in late-stage studies. Across its TRIUMPH program, retatrutide has demonstrated profound levels of weight loss and improvements in A1C, cardiovascular risk factors, osteoarthritis pain and sleep apnea. Lilly has completed the clinical data package needed to support global regulatory submissions for retatrutide in obesity, obstructive sleep apnea and knee osteoarthritis pain. The company plans to submit the treatment to the FDA in the first quarter of 2027. If approved, retatrutide could become another multibillion-dollar product. Lilly's investment case is no longer dependent solely on its GLP-1 franchise. Lilly has secured approvals for several non-GLP1 therapies over the past few years. These include Omvoh for treating ulcerative colitis and Crohn’s disease, BTK inhibitor Jaypirca for mantle cell lymphoma and chronic lymphocytic leukemia, Ebglyss for moderate-to-severe atopic dermatitis, Kisunla (donanemab) for early symptomatic Alzheimer’s disease and Inluriyo (imlunestrant) for metastatic breast cancer. These drugs are also contributing to Lilly’s revenue growth, with the positive trend expected to continue. Key product revenues outside cardiometabolic health grew 121% in the second quarter. Lilly has also embarked on an aggressive M&A spree in the past couple of years, acquiring biotech companies across oncology, neuroscience, cardiovascular disease, gene editing, inflammation, cell therapy and vaccines to diversify its long-term growth drivers beyond GLP-1 therapies. The company has announced more than $20 billion in biotech deals this year. Novo Nordisk had gained approval for an oral version of its obesity drug, Wegovy, in December 2025 and launched the pill in January 2026. Novo Nordisk announced sales of around $500 million (DKK 3.22 billion) from the Wegovy oral pill in its second-quarter results announced on Aug 4. Total prescriptions for Wegovy pill reached around 2.9 million in the second quarter. While Lilly and Novo Nordisk currently dominate this space, smaller biotechs like Structure Therapeutics GPCR and Viking Therapeutics VKTX are also developing oral GLP-1 drugs for treating obesity. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026. Structure Therapeutics recently initiated the phase III ACCOMPLISH program on its once-daily oral small molecule GLP-1 receptor agonist, aleniglipron. Lilly’s stock has risen 9.8% so far this year compared with the industry’s increase of 11.5% over the same timeframe. Image Source: Zacks Investment Research From a valuation standpoint, Lilly’s stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 27.99 forward earnings, higher than 18.47 for the industry. However, the stock is trading below its 5-year mean of 34.57. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2026 has risen from $34.55 to $35.93 per share over the past 30 days, while that for 2027 has risen from $45.10 to $45.87 per share over the same timeframe. Image Source: Zacks Investment Research Lilly has its share of problems. Prices of most of Lilly’s products are declining in the United States.  Price is expected to continue to be a drag on top-line growth in the low to mid-teens percentage in 2026. Rising competition in the GLP-1 diabetes/obesity market is a key headwind. Also, sales of late-life cycle products like Trulicity, Taltz and Verzenio are expected to be flat to down in 2026. Also, second-half sales growth could be slower than in the first half, as the U.S. rebate/discount estimate adjustments that benefited first-half sales are not expected to recur in the second half. Moreover, the second half faces tougher comparisons from prior-year international launches and normal vacation seasonality in Europe. Moreover, U.S. diabetes has also historically shown fourth-quarter seasonality. Due to these factors, second-half percentage growth may appear to decelerate, though Lilly expects significant absolute-dollar growth in the second half. Nonetheless, Lilly remains one of the most compelling growth stories in the pharmaceutical industry, supported by its significant price appreciation, dominant position in the rapidly expanding obesity and diabetes markets, a diversified late-stage pipeline and strong financial performance. While the stock trades at a premium valuation after a remarkable multi-year rally, the company's long-term growth prospects remain among the strongest in the healthcare sector. An existing investor should stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. New investors may consider accumulating on market corrections rather than buying aggressively at current levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Eli Lilly and Company (LLY) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Viking Therapeutics, Inc. (VKTX) : Free Stock Analysis Report Structure Therapeutics Inc. Sponsored ADR (GPCR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Nektar Therapeutics NKTR reported a loss of $1.23 per share for the second quarter of 2026, much narrower than the Zacks Consensus Estimate of a loss of $2.06. In the year-ago quarter, the company had incurred a loss of $2.95 cents per share. Total revenues in the second quarter came in at $10.1 million, down 9.8% year over year. The reported figure missed the Zacks Consensus Estimate of $11 million. Nektar sold its Huntsville manufacturing facility in December 2024, following which the company no longer records product revenues and lower non-cash royalty revenues. The company’s top line currently comprises non-cash royalty revenues. Year to date, shares of Nektar have rallied 79.6% against the industry’s decrease of 0.7%. Image Source: Zacks Investment Research In the second quarter, research and development (R&D) expenses were $39.1 million, up 30.8% year over year, reflecting higher costs for developing its pipeline candidate, rezpegaldesleukin (rezpeg). General and administrative (G&A) expenses decreased 25.1% year over year to $12.8 million in the reported quarter, owing to lower legal expenses. As of June 30, 2026, Nektar had cash and cash equivalents and marketable securities worth $1.02 billion compared with $731.6 million as of March 31, 2026. Nektar expects its non-cash royalty revenues to be around $40-$45 million in 2026. R&D costs for 2026 are expected to be between $210 million and $230 million. G&A expenses are anticipated to be in the range of $60-$65 million. Nektar expects to end 2026 with approximately $815-$840 million in cash. Nektar's lead pipeline candidate, rezpeg, is being developed as a self-administered injection for several autoimmune and inflammatory diseases. Rezpeg selectively activates regulatory T-cells to calm the immune system and reduce inflammation. Last month, Nektar initiated two late-stage studies – ZENITH AD-1 and ZENITH AD-2 – which are part of the phase III ZENITH AD program, investigating rezpeg in patients who are aged 12 years or above with moderate-to-severe atopic dermatitis. The phase III ZENITH AD program comprises three double-blind, placebo-controlled studies evaluating rezpeg in moderate-to-severe atopic dermatitis, also known as eczema. The ZENITH AD-1 and ZENITH AD-2 studies will enroll patients who are systemic biologic/JAK inhibitor treatment-naïve, while the third study – ZENITH AD-3 – will enroll patients with prior systemic biologic and/or JAK inhibitor treatment experience. The ZENITH AD-3 study is scheduled to begin in September. Initial top-line data from the ZENITH AD program are expected to be announced in mid-2028. If successful, the company expects to file a biologics license application for rezpeg to treat moderate-to-severe atopic dermatitis in 2029. Besides atopic dermatitis, rezpeg is being developed as a self-administered injection for other autoimmune and inflammatory diseases, including alopecia areata and type I diabetes. The company plans to initiate a single registrational phase III study on rezpeg for treating alopecia areata in early 2027. Meanwhile, initial data from the phase II study evaluating rezpeg in type I diabetes is also expected to be announced in 2027. Nektar regained full rights to rezpeg from pharma giant Eli Lilly LLY in April 2023 and took charge of its clinical development. Rezpeg was earlier developed in collaboration with LLY for several autoimmune indications. Rezpeg is now a wholly-owned asset of Nektar, and the company owes no royalty payments to Eli Lilly. Nektar Therapeutics price-consensus-eps-surprise-chart | Nektar Therapeutics Quote Nektar currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the drug/biotech sector are Repligen RGEN and Amneal Pharmaceuticals AMRX, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.62 during the same time. RGEN shares have gained 2.2% year to date. Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%. Over the past 60 days, estimates for Amneal’s 2026 earnings per share have risen from $1.00 to $1.02, while estimates for 2027 have increased from $1.12 to $1.21 during the same time. AMRX shares have surged 37.1% year to date. Amneal’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 32.82%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nektar Therapeutics (NKTR) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Repligen Corporation (RGEN) : Free Stock Analysis Report AMNEAL PHARMACEUTICALS, INC. (AMRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AbbVie's growth engine is firing on all cylinders, but on its latest earnings call, analysts focused on whether the company can defend its turf and execute on its next big pipeline bet. AbbVie (ABBV) is on a roll, with the stock up 29% in the past year and trading about 6% below its 52-week high. The company just posted a quarter of solid sales growth, beating expectations and raising its full-year guidance. But its latest call wasn't a victory lap. Instead, analysts focused sharply on whether this powerful momentum is built to last, probing the defensibility of its growth in the face of emerging competition and complex trials ahead. Is The SKYRIZI Moat Holding? The first test came on SKYRIZI, the immunology drug driving much of the company’s success with sales up 24% this quarter. The worry is straightforward: a new oral competitor has entered the psoriasis market, threatening to chip away at SKYRIZI’s dominance. For investors, this is a direct challenge to the durability of AbbVie’s primary growth engine. Management’s answer was direct and backed by data. They reported seeing “no degradation in any of our NBRx trends” since the competitor launched in March. In fact, they claimed that new prescription growth for SKYRIZI has actually accelerated. The company’s read is that the new drug is expanding the market for advanced therapies rather than stealing share. It was a confident, numbers-backed defense of their most important franchise. A Blind Spot In The Pipeline? The second challenge was more forward-looking, aimed at the next potential blockbuster franchise in hidradenitis suppurativa (HS), a chronic skin condition. AbbVie has two major assets, lutikizumab and RINVOQ, with crucial data coming soon. But one analyst highlighted a uniquely modern risk: the widespread use of GLP-1 weight-loss drugs. Because weight loss can reduce inflammation, the concern is that these drugs could “contribute to high placebo rates” in the trials, potentially masking the true benefit of AbbVie’s drugs and jeopardizing the studies. Management acknowledged the dynamic, explaining that the trials are large enough that any GLP-1 effect should appear in both the placebo and treatment groups, effectively canceling it out. The response was logical, but it left the risk on the table. Unlike the clear-cut defense of SKYRIZI, this answer underscored a real, external variable that could complicate a critical pipeline readout. Execution Now, Execution Next Ultimately, AbbVie’s management team successfully argued that its current commercial execution is holding strong against new competition. The stock's outperformance has been notable, and we recently looked at how ABBV stock moved away from its peer group. The call, however, shifted the focus from today's precision to tomorrow's pipeline. For investors who like the theme but not the single-stock risk, a broad healthcare ETF like XLV offers diversified exposure. The answer will come from the data. Management confirmed that results from the pivotal HS trials for both RINVOQ and lutikizumab are expected “later this year.” Investors should watch for any sign of elevated placebo rates in those HS trial results, as that will be the first real test of whether AbbVie’s pipeline execution is as solid as its current sales machine. Where One Stock's Open Questions Fit A Bigger Plan Every stock carries unresolved questions like these, and no earnings call settles all of them. Owning a sector fund spreads that risk across more names, but it is still one bet on one theme: when the theme wobbles, the whole basket wobbles with it. The Trefis High Quality (HQ) Portfolio takes the next step out. It holds about 30 businesses diversified across sectors, selected not on a theme but on quality itself: consistent cash generation, strong margins, and resilient balance sheets. No single unresolved debate, and no single industry, carries your result. It has a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. Track the debates on names you like, on top of a core built on quality rather than any one story.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the successful design of ABS-201 to its AI platform, specifically achieving a target product profile that supports a 65-day half-life and potential for just 2 to 3 injections over six months. The company rebranded its lead indication from androgenetic alopecia to 'pattern hair loss' to better reflect the underlying biology where prolactin sits upstream of the androgen receptor and to improve consumer resonance. Strategic positioning is bolstered by a $40 million investment from Eli Lilly, which management views as validation of the prolactin receptor mechanism across multiple disease states. Operational efficiency is being driven by the new 'Atlas' agentic discovery engine, which has already independently recovered genetic evidence linking the prolactin pathway to hair loss and endometriosis. Management emphasizes a 'fail fast' high-throughput discovery engine, noting that recent origin model improvements allow for a 1,000x reduction in library size for identifying high-quality leads. The regenerative mechanism of ABS-201 is highlighted as a key differentiator from standard of care, as it aims to restore hair follicle stem cells rather than just antagonizing receptors. Interim proof-of-concept data for the HEADLINE trial (13-week readout) is anticipated in late 2026, followed by full 26-week data in early 2027. Management plans to initiate a Phase II study for ABS-201 in endometriosis in Q4 2026, leveraging safety and PK data from the ongoing SAD portion of the HEADLINE trial. Financial guidance indicates that the current cash balance of $201.1 million is sufficient to fund the operating plan into the second half of 2028. The company intends to commercialize ABS-201 and follow-on programs independently, focusing on high-ROI opportunities in the direct-to-consumer and cash-pay markets. Future clinical success is predicated on achieving greater than 90% receptor occupancy, which modeling suggests is possible with the current dosing regimen to maintain a prolonged anagen phase. Completed a $100 million financing in June 2026, including the strategic investment from Eli Lilly, to support pipeline expansion and clinical catalysts. R&D expenses increased to $22.6 million, driven by the advancement of internal programs and direct costs for ABS-201 clinical development. The partnership with Eli Lilly includes the addition of Lilly's SVP of Clinical Investigation to Absci's Endometriosis Advisory Board but does not confer program rights to Lilly. Management identified a $25 billion total available market in the U.S. for pattern hair loss, assuming a hair growth effect size roughly on par with high-dose oral minoxidil. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained the change reflects biology where prolactin drives androgen receptor expression, making it a more accurate descriptor than 'androgenetic'. The new name is intended to be more inclusive of the 30 million women in the U.S. suffering from the condition and is better understood by consumers. The 13-week readout is intended to provide a 'directionally positive signal' that the regenerative mechanism has begun to build the necessary machinery for hair growth. While 26-week data will show robust regrowth, the 13-week data will look at hair count, width, and pigmentation to confirm the mechanism is active. Management claims ABS-201 avoids the 'oscillation' seen in competitors by maintaining sustained receptor occupancy above 90%. This sustained blockade is viewed as critical for keeping the hair follicle in the anagen state long enough to rebuild the stem cell niche. Absci plans to take ABS-201 to market itself but maintains optionality to partner other programs based on capital requirements and indication type. The platform is becoming more efficient at generating molecules, creating more 'shots on goal' for both internal development and potential out-licensing.