Thermo Fisher Surges, Lilly Delays Obesity Filing

Thermo Fisher Scientific ($TMO) shares surged 8.7% to close at $572.32 after the company reported stronger-than-expected second-quarter results and raised its full-year outlook. Chairman and Chief Executive Officer Marc Casper cited improving customer activity across end markets, broad-based growth, and contributions from recent acquisitions as key drivers of the performance. The company's net income grew 7% in the quarter.

Separately, $TMO was selected by ImmuPharma as the key drug product and contract development manufacturer for its Kapiglucagon diabetes treatment program. The partnership covers development and manufacturing support for Kapiglucagon, an experimental therapy aimed at addressing diabetes, adding a new project to Thermo Fisher's pharmaceutical services portfolio focused on complex drug development work.

Eli Lilly ($LLY) announced it will delay filing for FDA approval of its next-generation weight-loss drug, retatrutide, until the first quarter of 2027. Two additional Phase 3 trials showed weight loss above 20%, demonstrating continued efficacy in the company's expanding obesity franchise. The delay pushes back the potential commercial launch of what analysts view as a key growth driver in the $500 billion obesity treatment market.

The postponement comes as $LLY continues to build out its metabolic disease portfolio beyond its current GLP-1 medications. The company's decision to delay the filing despite positive trial data suggests strategic considerations around manufacturing capacity, market positioning, or regulatory pathway optimization.

Genmab and AbbVie ($ABBV) clarified that overall survival was the sole U.S. primary endpoint in the Phase 3 EPCORE DLBCL-1 trial evaluating epcoritamab in patients with relapsed/refractory diffuse large B-cell lymphoma, and that endpoint was not met. The trial evaluated monotherapy epcoritamab, a T-cell engaging bispecific antibody administered subcutaneously, compared with investigator's choice of therapy. The miss on the primary endpoint represents a setback for the companies' efforts to expand epcoritamab's label in DLBCL.

In pancreatic cancer, the FDA accepted Revolution Medicines' filing for daraxonrasib in metastatic pancreatic cancer, entering an accelerated review program. The acceptance brings the biotech's first commercial product closer to potential approval in a difficult-to-treat indication.

Medical device stocks are trading at attractive valuations, with device makers offering cash flow yields of 5% to 6% now trading at a 20% to 30% discount to the S&P 500 index. The sector includes six stocks identified as potential value opportunities. Separately, Johnson & Johnson ($JNJ) received clearance for its Ottava surgical robotic system, finally providing a rival to Intuitive Surgical's ($ISRG) da Vinci platform.

However, one number in $ISRG's last quarter suggests recurring revenue and surgeon switching costs create significant competitive moats. Analysts note that $ISRG's expanding robotic surgery ecosystem and innovation pipeline give it an edge over Abbott ($ABT) for investors seeking stronger long-term MedTech growth, despite the new competition from $JNJ.

Regeneron Pharmaceuticals ($REGN) is drawing attention as a quality value stock with a P/E ratio of 14.29, strong profitability, and solid financial health. The stock combines a discount valuation with decent growth prospects, making it a compelling pick for value investors seeking to avoid value traps in the healthcare sector.

Pfizer ($PFE) continues to offer income investors a 7% dividend yield, though questions persist about the sustainability of the payout amid the company's post-COVID revenue transition. Meanwhile, Amgen ($AMGN) closed at $371.47, gaining 1.48%, while Bristol Myers Squibb ($BMY) finished at $61.40, up 1.05%, as both large-cap biopharma names outperformed during broader market weakness.

UnitedHealth Group ($UNH) delivered a strong quarter that beat Wall Street's profit predictions, with the health care company increasing its most widely monitored cost index and boosting its full-year earnings outlook. The results appeared to vindicate investors who held through recent challenges facing the managed care giant.

However, the earnings comeback may hide a risk that Wall Street cannot easily price, according to analysts. Despite the better-than-expected results and raised guidance, structural questions about the managed care business model and cost trends remain areas of focus for investors monitoring the sector.

Gilead Sciences' HIV franchise continues to gain momentum with strong demand for Biktarvy and Descovy, along with Yeztugo growth and a promising pipeline targeting long-term expansion. The company's efforts to develop new treatments are aimed at solidifying its position in the HIV market against competition from other major players.

Roche posted 6% constant-currency sales growth in the first half of 2026, as strong demand for key drugs offset legacy product declines. Currency headwinds impacted reported results, though FDA pipeline progress supports momentum for the Swiss pharma giant heading into the second half of the year.