Pharma & Food Giants Face Critical Scrutiny Amid Market Moves

Recent health industry updates reveal Sun Pharma's profit surge due to specialty drugs, Pfizer's strategic focus under pressure from activist investors, and McDonald's efforts to address a serious E. coli outbreak. Meanwhile, significant acquisitions and approvals in the pharma sector signal strategic pivots by companies like AbbVie, Novartis and Eli Lilly.

Sun Pharmaceuticals, India's leading drugmaker by revenue, reported a substantial 28% rise in second-quarter profits, thanks to increased demand for specialty drugs. This sharp uptick, translating to a net profit of 30.40 billion rupees, surpasses analyst projections and underscores the robust performance of Sun Pharma in addressing niche medical conditions.

In contrast, Pfizer is under the spotlight as it faces mounting pressure from activist hedge fund Starboard Value to manifest a promised corporate turnaround. Investors and analysts are anxiously awaiting Tuesday's financial report to assess the effectiveness of cost-cutting measures and revenue growth, particularly from their recent acquisitions focused on cancer drugs.

Elsewhere in the sector, AbbVie advances its strategic expansion by acquiring Alzheimer's therapy developer Aliada for $1.4 billion. Meanwhile, Eli Lilly eyes a new market as it gains approval to introduce its weight-loss drug in Hong Kong, marking another critical step for the company. Additionally, Novartis continues its investment in innovation, paying $150 million upfront to Monte Rosa for a novel class of drugs targeting challenging diseases.

(With inputs from agencies.)