Pharmaceutical revolution 2025: Why Novo Nordisk, NetraMark Holdings, and Bayer are doubling their returns through AI efficiency

Novo Nordisk – Between storm and innovation

Novo Nordisk is currently battling significant headwinds. Significant price pressure from low-cost pharmacy replicas (compounders) of blockbusters such as Ozempic and Wegovy is eating into margins. It is estimated that around a quarter of patients already use these cheaper alternatives. Added to this is aggressive competition from Eli Lilly's Zepbound, which has already overtaken Wegovy in prescriptions in the US. At the same time, the promising combination CagriSema disappointed in trials, and the surprise CEO change is increasing uncertainty. Political tensions between the US and Denmark pose additional risks.

Despite the storms, the fundamentals remain strong. The Q1 2025 figures were robust. Revenue rose by 18%, operating profit by as much as 20%, and the margin of just under 50% is also impressive. Management is responding proactively to price pressure. New direct sales channels are being established for Wegovy, and exclusive listings with major US suppliers such as CVS are intended to manage demand. In addition, there has been an important legal victory. US authorities removed semaglutide from the shortage list, which makes it much more challenging to distribute compounders legally. Novo is also driving innovation forward with partnerships like the recent one with NVIDIA in the AI sector.

The future depends on new active ingredients. Here, Novo is focusing strongly on amycretin, an innovative combination of GLP-1 and amylin receptor agonists. Following promising early data showing weight loss of up to 22%, the decisive Phase 3 study will start in 2026. The development of an oral therapy for obesity is also being pushed forward. The current phase could offer long-term investors an opportunity to invest in an innovative market leader despite real risks. Despite the share price recovery to its current level of EUR 68.02, the price-to-earnings ratio remains attractive.

NetraMark Holdings – AI against the billion-dollar pitfall of clinical trials

For pharmaceutical companies, late-stage clinical trials are an expensive gamble. Up to 65% of drug candidates fail at this stage after investments of hundreds of millions of dollars. This is precisely where NetraMark Holdings comes in. Unlike many AI players, the Company focuses not on drug discovery but on optimizing study protocols. Its unique selling point is a specialized AI that identifies hidden patient subgroups within small, complex datasets. These groups, such as patients with strong placebo responses, can skew study results. The probability of success increases by factoring them in inclusion/exclusion criteria.

A key lever is the recently concluded global partnership with Worldwide Clinical Trials (WCT), a leading contract research organization. WCT is integrating NetraMark's solution into its Phase 2 studies for neuroscience and oncology, as well as selected Phase 3 projects. This catapults the technology from a niche product into the heart of clinical research. At the same time, a recent scientific publication co-authored by NetraMark's founder, Dr. Joseph Geraci, highlighted the importance of such AI approaches for improving data quality and study results, sending an important signal to industry.

NetraMark operates with unusually low fixed costs of less than CAD 200,000 per month and a margin of around 90%. The profitability threshold is already reached at revenues of just over CAD 2 million. The successful annual general meeting on June 9 confirmed the current management team led by CEO George Achilleos. For investors, the WCT alliance reduces customer acquisition costs and offers planning security. The focus is now on validating the technology with other pharmaceutical companies and through WCT. If successful, NetraMark will not only address a billion-dollar problem but also establish itself as a key partner for more robust drug development. The stock is consolidating after its strong breakout at the end of February and is trading at CAD 1.36.

Bayer – Pharmaceutical innovations drive business

Bayer's pharmaceuticals division is delivering robust results. The Phase II CONFIDENCE study shows that combining the kidney drug finerenone with SGLT-2 inhibitors reduces the key marker UACR by 52% in diabetes patients with kidney damage, significantly more than with single therapies. The effect sets in within 14 days and could slow the progression of the disease. At the same time, the prostate cancer blockbuster Nubeqa expanded its position. US approval was extended to metastatic patients regardless of prior chemotherapy.

However, other candidates also highlight the potential of the pharmaceuticals division. Bayer received priority status from the FDA for the lung cancer drug sevabertinib, which will accelerate its review. The data in HER2-mutated patients was impressive, with high response rates. In addition, the breast cancer companion therapy elinzanetant could soon be approved. In the Phase 3 OASIS-4 study, it halved hormone-related hot flashes and significantly improved quality of life. These innovations can at least partially offset patent losses for established products.

While the pharmaceutical division is shining, the agricultural division is under pressure. In addition to declining sales of herbicides, glyphosate remains the biggest liability. Thousands of US lawsuits are weighing on the balance sheet. However, two events in August could bring clarity. The Supreme Court may review the scientific basis of the allegations. At the same time, the US Environmental Protection Agency (EPA) will decide on reapproval. The expiry of the active ingredient would be a shock for agriculture and a strategic turning point for Bayer. Industry is hoping for regulatory common sense, but political uncertainties remain. The share price has recently risen on the back of the good news and is currently trading at EUR 27.63.

The pharmaceutical industry is being fundamentally transformed by AI in 2025, increasing efficiency and reducing costs – an ideal breeding ground for high-yield investments. Despite price pressure and competition, Novo Nordisk is successfully weathering the storm with robust operational performance, AI from NVIDIA, and groundbreaking innovations such as Amycretin. NetraMark Holdings is addressing the billion-dollar issue of high late-stage failures with its unique AI for identifying critical patient subgroups in studies. It is also on the verge of breaking out of its niche thanks to its global WCT partnership. Bayer shines with a strong pharmaceutical pipeline with lots of promising data that can cushion patent losses, while the agricultural division is waiting for regulatory clarity on glyphosate. Despite specific risks, all three companies offer attractive upside potential in the AI-driven growth of the pharmaceutical market for long-term investors.