Key Takeaways
- Novo Nordisk (NVO) shares plummeted 11% after its Phase 3 ZEUS trial for ziltivekimab failed to reduce major adverse cardiovascular events (MACE), despite hitting biological targets.
- AbbVie (ABBV) delivered a double beat in Q2 2026 with adjusted EPS of $3.65 and revenue of $16.99 billion, driven by explosive growth in its immunology and neuroscience portfolios.
- Federal Reserve official Neel Kashkari formally dissented at the July FOMC meeting, revealing he preferred a 0.25% rate hike rather than the decision to hold rates steady.
- Bank of England Chief Economist Huw Pill warned that risks to headline inflation remain firmly to the upside, citing persistent energy price volatility and "insidious" second-round effects.
Novo Nordisk Faces Major Pipeline Setback
Novo Nordisk (NVO) saw its market value crater on Friday morning, with shares dropping as much as 11% following the failure of its late-stage ZEUS trial. The study, which evaluated the experimental drug ziltivekimab in over 6,300 patients with cardiovascular and chronic kidney disease, failed to show a significant reduction in heart attacks, strokes, or cardiovascular death compared to a placebo.
The trial results were particularly disappointing because the drug successfully inhibited the IL-6 pathway and reduced inflammation markers as intended. However, this biological activity did not translate into clinical benefits, resulting in a hazard ratio of 0.99. The company confirmed it will record a non-cash impairment charge in Q3 2026 related to the program, though it maintained its full-year operating profit outlook.
AbbVie Outperforms on Strength of Skyrizi and Rinvoq
AbbVie (ABBV) reported robust second-quarter results that surpassed Wall Street expectations, signaling a successful transition away from its former blockbuster, Humira. The pharmaceutical giant posted net revenue of $16.99 billion, beating the estimated $16.77 billion. Growth was led by Skyrizi, which generated $5.51 billion in sales, and Rinvoq, which brought in $2.53 billion.
Despite the strong quarterly performance, AbbVie slightly narrowed its full-year adjusted EPS guidance to a range of $13.87 to $14.07. This update accounts for a $0.14 per share dilutive impact from the company's $10.9 billion acquisition of Apogee Therapeutics, which is expected to close in the third quarter. The neuroscience division also showed significant momentum, with revenues rising over 20% year-over-year.
Central Banks Grapple with Internal Dissent and Inflation
Monetary policy uncertainty intensified as officials from both the Federal Reserve and the Bank of England (BoE) voiced hawkish concerns. Minneapolis Fed President Neel Kashkari confirmed his dissent at the recent FOMC meeting, stating he preferred a 25-basis-point increase to the federal funds rate to combat persistent price pressures. This marks a notable shift in the committee's unity as it navigates a "solid" but uncertain economic expansion.
In the UK, BoE Chief Economist Huw Pill echoed these concerns, noting that the Monetary Policy Committee is "not edging toward a rate increase" yet, but remains wary of energy price volatility extending into next year. Pill highlighted that while a broad money overhang has not been identified, "insidious" second-round effects in wage and price setting could create lasting inflation persistence. The BoE recently held its base rate at 3.75% in a split 6-3 vote.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.