Blog

Stay informed with free updates

Simply sign up to the Pharmaceuticals sector myFT Digest — delivered directly to your inbox.

AstraZeneca, Daiichi Sankyo and Gilead have made big advances in treating the hardest-to-tackle type of breast cancer, boosting prospects for tens of thousands of patients a year.

The drugmakers are unveiling trial results for existing blockbuster drugs in “triple negative” breast cancer — so-called because it is not one of the three main types. These include the first ever study showing a medicine can extend the life of patients who cannot be treated with immunotherapy drugs, the majority of triple negative cases.

Patients with triple negative breast cancer make up about 10 per cent to 20 per cent of people diagnosed. Breast cancer is the most common type of the disease in the UK, and the second most common after skin cancer in the US.

AstraZeneca and Japanese pharma company Daiichi’s drug Datroway improved overall survival for patients by 23 per cent, and increased the time they lived without the cancer getting worse by 43 per cent, compared with those treated with chemotherapy.

David Frederickson, executive vice-president for oncology at AstraZeneca, said the results showed an “outstanding opportunity” to expand treatment to more patients. The company has had 10 positive late-stage trial results in oncology this year, five of which have been in breast cancer.

“It’s been an exceptional year,” he said. “The breast cancer studies alone have the opportunity to reach nearly half a million patients.”

Frederickson added AstraZeneca’s oncology sales rose 16 per cent year-on-year in the first half and he hopes they will contribute half of the company’s goal of $80bn of sales by 2030.

AstraZeneca and Daiichi also announced positive trial results for their Enhertu breast cancer drug in earlier-stage patients. The treatment is approved for later-stage patients but it is not available on the NHS in England, even though it is in many other countries including Scotland.

One of two Enhertu studies found a three-year disease-free survival rate of 92 per cent, compared with 84 per cent with the most commonly used drugs.

Fredrickson said there needs to be a “modernisation” of NHS methodologies, including valuing the end of life more, to ensure patients can get access.

The results were presented at the European Society for Medical Oncology this weekend, where US drugmaker Gilead also reported positive results for its cancer drug Trodelvy in patients with triple negative breast cancer.

Trodelvy, which is already approved for breast cancer, reduced the risk of cancer progression or death by 38 per cent versus other forms of chemotherapy. Survival rates were extended with the drug to 9.7 months versus 6.9 months for chemotherapy, the company said.

Trodelvy generated $657mn for Gilead in the first six months of 2025, up 5 per cent from the same period last year. Oncology accounts for about 12 per cent of the company’s sales.

The latest data for Trodelvy marks a bounceback for the drug. A year ago, Gilead withdrew it for certain urinary tract cancers after it failed a drug trial.

Eli Lilly also reported encouraging data. Its Verzenio drug prolonged survival for certain high-risk early breast cancers by 15.8 per cent versus conventional treatments. It is the first therapy in more than two decades to demonstrate a significant overall survival benefit in certain, high-risk early breast cancers.

Representative image
| Photo Credit: Getty Images/iStockphoto

With US stock prices reaching new record highs, the Warren Buffett Indicator has reached an alarming 218%. As a reminder, when it rises above 160% it’s historically suggested that US stocks are significantly overvalued.

This isn’t the only signal hinting that valuations might be getting stretched in 2025. And yet, despite rising concerns, the ’Oracle of Omaha’ and his team are still buying some US shares.

So what stocks is the billionaire investor buying? And should investors follow in his footsteps?

With a reputation for being a value-oriented investor, the fact that Buffett’s buying at a time when valuations are high seems strange, on the surface. But digging deeper, he’s actually still executing the same tried and tested strategy of prioritising value at a fair price.

Two of his recent investments in Nucor (NYSE:NUE) and UnitedHealth Group (NYSE:UNH) seem to demonstrate this perfectly.

So what do these businesses do? And why is Buffett’s team buying them now?

Nucor is a US steel producer. In fact, it’s one of the largest in the country, operating an expansive network of furnaces that recycle scrap metal into quality steel. This unique approach drastically reduces the cost of manufacturing, giving the group a notable competitive edge over its US rivals – something Buffett loves to see.

With the US imposing a 50% tariff on imported steel, Nucor now looks far more attractive to steel consumers. And when combined with surging steel demand courtesy of artificial intelligence (AI) infrastructure and national electrification spending, the business looks like it could be a new champion within the supply chain of countless US-based businesses.

Combining this with an undemanding forward price-to-earnings ratio of 12.2, it’s not so surprising that Buffett‘s taken an interest.

Of course, there are still risks. Even with tariffs, steel demand remains highly cyclical and sensitive to activity within the construction and industrials sectors.

Since higher interest rates often subdue activity within these industries, Nucor’s growth could prove lacklustre, especially if inflation continues to prove sticky. And if AI infrastructure spending starts to slow, the firm could lose a significant tailwind that’s currently driving it forward.

UnitedHealth’s also another seemingly cyclical strategy the billionaire’s pursuing. The firm’s the largest health insurance provider in the US. And with an ageing population, demand for its services is suspected to steadily trend upward.

That’s potentially great news for shareholders, given that UnitedHealth’s business model is both high-margin and cash-generative. However, given its leading role within the US healthcare (a sector that’s becoming increasingly scrutinised), the company has been getting a lot of attention from regulators.

The Department of Justice is already investigating the firm for anti-competitive practices. And with political pressure to curb healthcare costs, management’s long-term pricing power may be restricted. This, among other factors, is one of the reasons why UnitedHealth shares have tumbled close to 40% in the last 12 months.

For both Nucor and UnitedHealth, Buffett’s bullish stance makes a lot of sense given the long-term opportunities at seemingly reasonable valuations. Therefore, I think it’s wise for investors to dig a bit deeper and see whether or not these US stocks could be a good fit for their own portfolios.

The post With stock prices at record highs, Warren Buffett’s been buying these shares! appeared first on The Motley Fool UK.

More reading

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Motley Fool UK 2025