Wall Street Breakfast UnitedHealth warns on rising medical costs
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Jul 29, 2025 Rising medical costs are sending UnitedHealth's stock plummeting as they reveal a grim outlook for 2025. The company faced disappointing quarterly results and leadership changes, adding to investor anxiety. In the transportation sector, the merger between Union Pacific and Norfolk Southern sparks discussions on its economic impact amid fluctuating demand and inventory challenges. Meanwhile, Novo Nordisk sees a hit as it warns about obesity drug sales, leaving the market buzzing with concern over these developments.
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UnitedHealth's Cost-Driven Outlook Miss
- UnitedHealth's 2025 revenue and adjusted earnings projections fell short due to rising medical costs and Medicare funding cuts.
- Despite Q2 revenue growth, legal and fraud issues continue to depress investor confidence.
Novo Nordisk Lowers Growth Outlook
- Novo Nordisk cut its full-year growth forecast amid pressure on obesity drug sales, highlighting challenges in the GLP-1 medication market.
- Leadership transition marks a pivotal moment as they face competition and slowing U.S. growth for semaglutide products.
Merck Trims Expenses Amid Competition
- Merck plans to cut $3 billion in annual expenses to prepare for competition to its cancer drug Keytruda.
- The company revised 2025 sales and EPS outlook slightly amid this strategic cost-adjustment.