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23700.0 | 2022-01-14 00:00:00 UTC | FDA approves expanded use of AbbVie's arthritis drug to treat eczema | ABBV | https://www.nasdaq.com/articles/fda-approves-expanded-use-of-abbvies-arthritis-drug-to-treat-eczema | nan | nan | Jan 14 (Reuters) - The U.S. Food and Drug Administration approved the expanded use of AbbVie Inc's ABBV.N arthritis drug to treat eczema, a skin disease, the company said on Friday.
The approval of Rinvoq for the treatment of moderate to severe atopic dermatitis, or eczema, was for patients 12 years and older who do not respond to previous treatment or when use of other treatments is not recommended.
Approval for Rinvoq follows significant delays amid concerns over safety of the class of drugs it belongs to, called JAK inhibitors, which block inflammation-causing enzymes known as Janus kinases and target a range of autoimmune diseases.
The FDA last month added its strictest warning to labels of JAK inhibitor drugs from Pfizer PFE.N, Eli Lilly LLY.N and AbbVie following the agency's review of Pfizer's Xeljanz, in which initial results from a trial showed an increased risk of serious heart-related problems and cancer in some patients being treated with the drug.
(Reporting by Leroy Leo; Editing by Shailesh Kuber)
((Leroy.Dsouza@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Jan 14 (Reuters) - The U.S. Food and Drug Administration approved the expanded use of AbbVie Inc's ABBV.N arthritis drug to treat eczema, a skin disease, the company said on Friday. The FDA last month added its strictest warning to labels of JAK inhibitor drugs from Pfizer PFE.N, Eli Lilly LLY.N and AbbVie following the agency's review of Pfizer's Xeljanz, in which initial results from a trial showed an increased risk of serious heart-related problems and cancer in some patients being treated with the drug. Approval for Rinvoq follows significant delays amid concerns over safety of the class of drugs it belongs to, called JAK inhibitors, which block inflammation-causing enzymes known as Janus kinases and target a range of autoimmune diseases. | Jan 14 (Reuters) - The U.S. Food and Drug Administration approved the expanded use of AbbVie Inc's ABBV.N arthritis drug to treat eczema, a skin disease, the company said on Friday. The FDA last month added its strictest warning to labels of JAK inhibitor drugs from Pfizer PFE.N, Eli Lilly LLY.N and AbbVie following the agency's review of Pfizer's Xeljanz, in which initial results from a trial showed an increased risk of serious heart-related problems and cancer in some patients being treated with the drug. Approval for Rinvoq follows significant delays amid concerns over safety of the class of drugs it belongs to, called JAK inhibitors, which block inflammation-causing enzymes known as Janus kinases and target a range of autoimmune diseases. | Jan 14 (Reuters) - The U.S. Food and Drug Administration approved the expanded use of AbbVie Inc's ABBV.N arthritis drug to treat eczema, a skin disease, the company said on Friday. The FDA last month added its strictest warning to labels of JAK inhibitor drugs from Pfizer PFE.N, Eli Lilly LLY.N and AbbVie following the agency's review of Pfizer's Xeljanz, in which initial results from a trial showed an increased risk of serious heart-related problems and cancer in some patients being treated with the drug. (Reporting by Leroy Leo; Editing by Shailesh Kuber) ((Leroy.Dsouza@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Jan 14 (Reuters) - The U.S. Food and Drug Administration approved the expanded use of AbbVie Inc's ABBV.N arthritis drug to treat eczema, a skin disease, the company said on Friday. The FDA last month added its strictest warning to labels of JAK inhibitor drugs from Pfizer PFE.N, Eli Lilly LLY.N and AbbVie following the agency's review of Pfizer's Xeljanz, in which initial results from a trial showed an increased risk of serious heart-related problems and cancer in some patients being treated with the drug. The approval of Rinvoq for the treatment of moderate to severe atopic dermatitis, or eczema, was for patients 12 years and older who do not respond to previous treatment or when use of other treatments is not recommended. |
23701.0 | 2022-01-14 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABBV | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-4 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24%
Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08%
AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91%
McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69%
Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46%
RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93%
AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13%
McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64%
Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86%
AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04%
McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on ABBV — FREE Get the latest Zacks research report on MCD — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24% Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77% RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08% AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91% McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69% Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93% AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13% McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42% Another consideration with dividend growth stocks is just how much the dividend is growing. | Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24% Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77% RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08% AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91% McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69% Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93% AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13% McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64% Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86% AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04% McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17% These five stocks are part of our full Dividend Aristocrats List. | Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24% Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77% RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08% AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91% McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69% Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93% AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13% McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64% Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86% AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04% McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17% These five stocks are part of our full Dividend Aristocrats List. | Abbott Laboratories (Symbol: ABT) $129.65 $140.33 8.24% Sherwin-Williams Co (Symbol: SHW) $317.39 $342.06 7.77% RenaissanceRe Holdings Ltd. (Symbol: RNR) $169.68 $180.00 6.08% AbbVie Inc (Symbol: ABBV) $133.52 $141.42 5.91% McDonald's Corp (Symbol: MCD) $261.41 $275.29 5.31% The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Abbott Laboratories (Symbol: ABT) 1.45% 8.24% 9.69% Sherwin-Williams Co (Symbol: SHW) 0.69% 7.77% 8.46% RenaissanceRe Holdings Ltd. (Symbol: RNR) 0.85% 6.08% 6.93% AbbVie Inc (Symbol: ABBV) 4.22% 5.91% 10.13% McDonald's Corp (Symbol: MCD) 2.11% 5.31% 7.42% Another consideration with dividend growth stocks is just how much the dividend is growing. Abbott Laboratories (Symbol: ABT) $1.44 $2.27 57.64% Sherwin-Williams Co (Symbol: SHW) $1.78666666666667 $2.2 23.13% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.4 $1.44 2.86% AbbVie Inc (Symbol: ABBV) $4.72 $6.61 40.04% McDonald's Corp (Symbol: MCD) $5.04 $5.25 4.17% These five stocks are part of our full Dividend Aristocrats List. |
23702.0 | 2022-01-13 00:00:00 UTC | Pfizer's (PFE) Prevnar 20 Plus COVID Vaccine Study Succeeds | ABBV | https://www.nasdaq.com/articles/pfizers-pfe-prevnar-20-plus-covid-vaccine-study-succeeds | nan | nan | Pfizer PFE announced positive top-line data from a phase III study evaluating the co-administration of its newly approved 20-valent pneumococcal conjugate vaccine, Prevnar-20 with it and partner BioNTech’s BNTX mRNA-based COVID-19 vaccine at the same time in adults 65 years of age or older.
The study also evaluated the safety and immunogenicity of Prevnar 20 and COVID vaccine each given with a placebo. Data from the study demonstrated similar responses elicited by Prevnar 20 for all 20 serotypes whether given with a dose of COVID-19 vaccine or with placebo. The responses generated by a booster shot of the COVID-19 vaccine were also similar when given with Prevnar 20 or a placebo
The safety profile for the co-administration of Prevnar 20/COVID-19 vaccine booster dose was similar to that observed with the booster dose.
The data clearly shows that the COVID-19 and pneumococcal vaccines can be given at the same time, thereby reducing the number of patient visits to the doctor. The study evaluating the coadministration of Prevnar 20 along with a booster dose of the COVID-19 vaccine was initiated in May last year.
Pfizer’s stock has risen 60.2% in the past year compared with an increase of 21.4% for the industry.
Image Source: Zacks Investment Research
Prevnar-20 was approved in the United States in June 2021 while it is under review in the EU.
Pfizer and BioNTech’s COVID-19 vaccine was developed in record time and is now approved for emergency/temporary use in several countries worldwide and fully approved in the United States. Pfizer and BioNTech’s vaccine was approved for younger patients (5-17 years) while a booster vaccine dose was also approved in the United States in 2021.
Pfizer and BioNTech’s COVID-19 vaccine has become a key contributor to the top line. In the first nine months of 2021, the vaccine contributed $24.3 billion to Pfizer’s global sales. The pharma giant expects 2021 Comirnaty revenues to be $36.0 billion. The fourth-quarter and full-year 2021 results are expected to be announced on Feb 8.
Pfizer sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked stock large drug/biotech stocks are AbbVie ABBV and Regeneron REGN, both with a Zacks Rank of 2 (Buy).
AbbVie’s stock has risen 27.3% in the past year. Estimates for AbbVie’s 2022 earnings have gone up from $13.99 to $14.09 over the past 60 days.
AbbVie’s earnings performance has been strong with the company exceeding earnings expectations in each of the last four quarters. AbbVie has a four-quarter earnings surprise of 3.02%, on average.
Regeneron’s 2022 earnings per share estimates have risen from $46.98 to $48.06 over the past 60 days. REGN’s stock is up 21.9% year over year.
Regeneron’s earnings performance has been strong with the company exceeding earnings expectations in each of the last four quarters. Regeneron has a four-quarter earnings surprise of 28.93%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some other top-ranked stock large drug/biotech stocks are AbbVie ABBV and Regeneron REGN, both with a Zacks Rank of 2 (Buy). AbbVie’s stock has risen 27.3% in the past year. Estimates for AbbVie’s 2022 earnings have gone up from $13.99 to $14.09 over the past 60 days. | Some other top-ranked stock large drug/biotech stocks are AbbVie ABBV and Regeneron REGN, both with a Zacks Rank of 2 (Buy). AbbVie’s stock has risen 27.3% in the past year. Estimates for AbbVie’s 2022 earnings have gone up from $13.99 to $14.09 over the past 60 days. | Some other top-ranked stock large drug/biotech stocks are AbbVie ABBV and Regeneron REGN, both with a Zacks Rank of 2 (Buy). AbbVie’s stock has risen 27.3% in the past year. Estimates for AbbVie’s 2022 earnings have gone up from $13.99 to $14.09 over the past 60 days. | Some other top-ranked stock large drug/biotech stocks are AbbVie ABBV and Regeneron REGN, both with a Zacks Rank of 2 (Buy). AbbVie’s stock has risen 27.3% in the past year. Estimates for AbbVie’s 2022 earnings have gone up from $13.99 to $14.09 over the past 60 days. |
23703.0 | 2022-01-13 00:00:00 UTC | 4 Top Dividend Payers of the S&P 500 | ABBV | https://www.nasdaq.com/articles/4-top-dividend-payers-of-the-sp-500 | nan | nan | While for some stocks in the S&P 500, it's their large dividend yields that make them attractive picks, I like to focus on companies with payout ratios below 50%. This shows a balance between fueling future business growth and returning cash to shareholders. Ultimately, these dividend growth stocks steadily outperform the market, despite paying smaller dividends initially.
Let's look at four stocks that fit this bill and offer some of the highest dividend potential in the S&P 500.
Image source: Getty Images
1. AbbVie
While Humira's 2023 loss of exclusivity (LOE) still looms over AbbVie (NYSE: ABBV), its stock has delivered total shareholder returns of nearly 400% since its spinoff from Abbott Laboratory on Jan. 1, 2013. An LOE event occurs when the patent on a drug ends, exposing the drug to competition fromgeneric and biosimilar versions.
Accounting for more than one-third of AbbVie's $14.4 billion in revenue during the third quarter of 2021, Humira's loss will weigh on overall sales and the company's valuation somewhat deflated in anticipation of this downside. However, trading at only nine times forward earnings, AbbVie's diverse operations should prove that it is more than a one-trick pony.
For example, AbbVie's two other immunology drugs, Rinvoq and Skyrizi, are expected to combine for $15 billion in sales by 2025, helping offset Humira's decline. Furthermore, the company has several additional prospects across its other three business segments, which are hematologic oncology, neuroscience, and Allergan aesthetics.
With the largest dividend yield of this group at 4.2% and the highest dividend growth rate of 18% annualized over the last five years, AbbVie would be a great core holding for dividend growth investors over the long term. Trading at just 11 times its trailing-12-month free cash flow (FCF), the company may be a sneaky value play to start 2022.
2. Target
Despite its status as a Dividend King, Target (NYSE: TGT) could quietly be a surprise growth pick in 2022, thanks to its promising omnichannel development. Led by its burgeoning digital sales, up 29% year over year for the third quarter, Target saw comparable sales rise 13% for the quarter and growth in all five of its main product lines.
This digital sales growth is exciting to investors once you consider that it was on top of 155% growth in Q3 2021 -- meaning that the company blew past unbelievably tough pandemic-aided comparisons. This highlights that Target's omnichannel strategy is core to the company's future and not just a one-off occurrence thanks to a more locked-down economy.
Furthermore, with a Net Promoter Score (NPS) of 51, the company essentially has four promoters of its product for every detractor -- making it the No. 8 brand on Comparably's top 100 global brands. Rated on a scale of -100 to 100, Target's NPS of 51 shows it is a beloved brand in an often commoditized industry, especially considering rival Walmart has a score of only 14.
With a dividend yield of 1.5% and a 53-year streak of consecutive annual dividend increases, Target offers investors the rare blend of Dividend King safety and growth potential.
3. FedEx
Sporting a newly raised dividend in 2021, international shipping juggernaut FedEx (NYSE: FDX) restarted its dividend growth story after pausing it for two years. Better yet, management aims to grow earnings per share (EPS) by 10% to 15% over the long term, thanks to the emergence of e-commerce.
With its core FedEx Ground operations now commanding a 33% share of the overall ground market, the company looks beautifully positioned to drive efficiency throughout its international operations -- especially as its 2016 acquisition of TNT Express becomes fully integrated. As of its most recent quarter, FedEx grew its sales 14% year over year while EPS stayed the same, leaving the company to trade at 12 times its forward earnings.
Ultimately, the company's massive network (which connects 99% of the world's gross domestic products), its 33% ground market share, and e-commerce tailwinds give FedEx investors a lot to be excited about over the long term. Pair these facts with its reasonable valuation and a dividend yield of 1.1%, and it's clear to see that the shipping behemoth makes for an extraordinary holding.
4. Kroger
Finally, Kroger (NYSE: KR) and its quietly accelerating digital grocery operations have grown by 103% over the last two years. While Kroger's Q3 2021 digital sales did decline 5%, management still expects digital sales to double by 2023.
These digital sales are hugely important to investors as they help the company grow its treasure trove of customer data on over 60 million households. With this valuable customer data, Kroger can continue personalizing its Boost loyalty program for each member, adding valuable cost savings and unique recommendations.
While trailing-12-month revenue has only increased by 4% year over year, the company generated just shy of $3 billion in FCF during this time. Compared to Kroger's market capitalization of $33 billion, this FCF has the company in great shape to continue chipping away at its $21 billion in debt and raising its dividend along the way.
Having lowered its share count by 21% over the last five years and maintaining a promising dividend yield of 1.8%, Kroger stock could anchor any portfolio looking for dividend growth and stability.
Four dynamic dividend prospects
METRIC ABBVIE TARGET FEDEX KROGER
Dividend yield 4.2% 1.5% 1.1% 1.8%
Payout ratio 45% 27% 14% 24%
Dividend yield potential 10% 7% 7% 8%
5-year dividend growth CAGR 18% 6% 15% 12%
Years of consecutive dividend growth 8 53 1 15
Data source: Seeking Alpha. Dividend yield potential = yield/payout ratio. CAGR = compound annual growth rate.
AbbVie may have the largest dividend yield, but all four stocks have similar dividend yield potential, which is dividend yield divided by payout ratio. This shows us what a company's dividend yield would be if it paid out 100% of its net income.
Thanks to this potential for payout growth and their history of dividend increases, I believe these stocks are great selections for almost any investor looking to see some green in their portfolio.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool owns and recommends FedEx. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Accounting for more than one-third of AbbVie's $14.4 billion in revenue during the third quarter of 2021, Humira's loss will weigh on overall sales and the company's valuation somewhat deflated in anticipation of this downside. AbbVie While Humira's 2023 loss of exclusivity (LOE) still looms over AbbVie (NYSE: ABBV), its stock has delivered total shareholder returns of nearly 400% since its spinoff from Abbott Laboratory on Jan. 1, 2013. However, trading at only nine times forward earnings, AbbVie's diverse operations should prove that it is more than a one-trick pony. | AbbVie While Humira's 2023 loss of exclusivity (LOE) still looms over AbbVie (NYSE: ABBV), its stock has delivered total shareholder returns of nearly 400% since its spinoff from Abbott Laboratory on Jan. 1, 2013. Accounting for more than one-third of AbbVie's $14.4 billion in revenue during the third quarter of 2021, Humira's loss will weigh on overall sales and the company's valuation somewhat deflated in anticipation of this downside. However, trading at only nine times forward earnings, AbbVie's diverse operations should prove that it is more than a one-trick pony. | With the largest dividend yield of this group at 4.2% and the highest dividend growth rate of 18% annualized over the last five years, AbbVie would be a great core holding for dividend growth investors over the long term. AbbVie may have the largest dividend yield, but all four stocks have similar dividend yield potential, which is dividend yield divided by payout ratio. AbbVie While Humira's 2023 loss of exclusivity (LOE) still looms over AbbVie (NYSE: ABBV), its stock has delivered total shareholder returns of nearly 400% since its spinoff from Abbott Laboratory on Jan. 1, 2013. | For example, AbbVie's two other immunology drugs, Rinvoq and Skyrizi, are expected to combine for $15 billion in sales by 2025, helping offset Humira's decline. With the largest dividend yield of this group at 4.2% and the highest dividend growth rate of 18% annualized over the last five years, AbbVie would be a great core holding for dividend growth investors over the long term. AbbVie While Humira's 2023 loss of exclusivity (LOE) still looms over AbbVie (NYSE: ABBV), its stock has delivered total shareholder returns of nearly 400% since its spinoff from Abbott Laboratory on Jan. 1, 2013. |
23704.0 | 2022-01-12 00:00:00 UTC | Does Johnson & Johnson's Split Make Sense? | ABBV | https://www.nasdaq.com/articles/does-johnson-johnsons-split-make-sense | nan | nan | Johnson & Johnson (NYSE: JNJ) has been in business for well over a century. Many were blindsided when the company announced late last year that it would be splitting its medical device and pharmaceutical businesses from its consumer health business. The split is set to close sometime in the next two years. In this segment of Backstage Pass, recorded on Dec. 17, Fool.com contributors Rachel Warren, Jason Hall, Travis Hoium, Toby Bordelon, and Lou Whiteman discuss.
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Rachel Warren: The next deal we're talking about is Johnson & Johnson. This isn't an acquisition. We talked about this on the show a few weeks back. But last month, the 135-year-old pharmaceutical giant Johnson & Johnson, announced that it would be splitting its business in two. This came as a huge surprise to I think just about everyone.
The company's current business contains three segments. It has a pharmaceutical business which has been its fastest growing, a medical device business, and a consumer health business.
Once the split goes into effect, Johnson & Johnson will be two publicly traded dividend paying entities. One of these entities will contain the pharmaceutical and medical devices businesses that will retain the Johnson & Johnson name. The second publicly traded business will be the consumer health business. We don't know yet what the name of that will be and the management structure and names for that new company.
Jason Hall: Has got to be better than Block. We know that.
Rachel Warren: It have to be. I mean, that's a low bar to start with but [laughs] I have faith that it's going to go up from there. The split is expected to take anywhere from 18-24 months to complete. The consumer health business, I find it interesting that this is the business that's not going to retain the name of Johnson & Johnson because I think that this is the one that most people think of when they think of Johnson & Johnson. Those brands like Tylenol, Motrin, Neutrogena that everyone uses. The pharmaceutical business features drugs across the range of medical concerns.
Everything from ones that treat cardiovascular ailments to vaccines and then of course, it's medical devices are used in a range of procedures. The idea here the company said is to fuel business growth in the words of management to enhance operational performance and strategic flexibility, unlock more value for stakeholders, the traditional explanation you would expect them to give. I think the thing here is that these businesses, they don't really rely on each other for growth.
The direction the consumer health business is going is really very different than where its pharmaceutical and medical devices are. I think it makes sense that maybe there would come a point where they would split it off.
There was some speculation that it was related to the ongoing litigation that Johnson & Johnson is facing regarding its talc cancer claims, which it essentially created a subsidiary, moved all the claims into that subsidiary and then filed that subsidiary for bankruptcy, but they have denied that.
We can only speculate there. Just as a final few points here, the pharmaceutical and medical devices segments are expected to generate revenue of about $77 billion this year alone. The consumer health segment is expected to generate revenue of about $15 billion. It's clear where that high area of growth lies and I think this split will enable both of the companies to grow at their own pace and succeed.
If you're currently invested in the company like I am and you stay invested through the split, the understanding we have now is you'll remain invested in both of those public companies.
The company had already announced the CEO change to replace its current CEO, Alex Gorsky, who's headed up the companies since 2012. The new CEO will be a man named Joaquin Duato. He takes over on January 3rd and he will head up the Johnson & Johnson company. As I mentioned before, we don't know yet who is going to head up the new consumer health business. I think this is a positive deal.
I think that it will enable both of those businesses to grow and to tap into different consumer bases. I think you have a lot of different customers for each. There's some overlap, but it's clear that these businesses have been going in different directions. I think the stock is a great dividend payer.
It has lagged the S&P 500's performance this year, it's up about 20% compared to the S&P 500's total return of about 30%. One to watch, it sounds like it's going to be a bit before it goes through, but I don't see any reason why it won't.
Jason Hall: To me Rachel, this reminds me of when Abbott split up back and it was 2013. It wasn't exactly the same, but Abbott split off AbbVie which is it's pharma business from Abbott's lab which is their medical devices and that stuff. I guess they have some little bit of consumer stuff. But I was looking before the show and I saw that's gone swimmingly for investors.
Rachel Warren: Quite well, yes. [laughs]
Jason Hall: Yeah. Because it's allowed a little bit more focused on different segments by management. I think that's important because the resource allocation and focus is a little better.
Rachel Warren: Absolutely, yeah.
Travis Hoium: Well, this is a theme across the market, GE splitting up, I think these conglomerates and this is just only split into two, but this has been a theme in the last quarter and I think could be for the next year as companies like Jason said, start to focus on something that they do well and not trying to do a million things halfheartedly.
Toby Bordelon: It's certainly going to be interesting. I wonder about that, is 2022 going to be more acquisitions or more split-ups?
Lou Whiteman: Are there any left?
Toby Bordelon: There's a few--
Lou Whiteman: Oh there are?
Toby Bordelon: There's a few that on the tech side that I think would prefer not to split out. Maybe there will be some force split ups we'll see.
Jason Hall: Maybe shown the door as they say.
Lou Whiteman: Real quick on this, I think actually Toby and Travis, I think we talked about it on the show, but I think an under-appreciated part of this is the tech is making this possible.
A lot of the old-school argument for conglomerate or building was the back-office. The back-office is becoming so much cheaper with cloud software. HR as a function can be spread thinner now, and that old argument that you just need all of this back-office functions under one roof to save money.
It just doesn't hold as true anymore because that whole back-office has been automated and it is allowing for smaller, more nimble companies to be just as cost-competitive as the conglomerates on that HR finance, accounting, just the non-customer-facing side of it. I think that is a huge trend that's really under-appreciated in looking at all the splits.
Travis Hoium: To that point, I think that maybe the answer to Toby's question that I could see more tech acquisitions or mergers next year as we've talked about on a number of these already.
You try to put more software under one bundle as opposed to the hard goods in consumer products. Those maybe don't make as much sense together today as they did 20 or 30 years ago.
We may be seeing these old guard companies splitting up and these newer companies merging as they're trying to have a land grab in whatever space there in.
Jason Hall owns Block, Inc. Lou Whiteman has no position in any of the stocks mentioned. Rachel Warren owns AbbVie and Johnson & Johnson. Toby Bordelon owns Block, Inc. Travis Hoium owns Block, Inc. The Motley Fool owns and recommends Block, Inc. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It wasn't exactly the same, but Abbott split off AbbVie which is it's pharma business from Abbott's lab which is their medical devices and that stuff. Rachel Warren owns AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Dec. 17, Fool.com contributors Rachel Warren, Jason Hall, Travis Hoium, Toby Bordelon, and Lou Whiteman discuss. | It wasn't exactly the same, but Abbott split off AbbVie which is it's pharma business from Abbott's lab which is their medical devices and that stuff. Rachel Warren owns AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Dec. 17, Fool.com contributors Rachel Warren, Jason Hall, Travis Hoium, Toby Bordelon, and Lou Whiteman discuss. | It wasn't exactly the same, but Abbott split off AbbVie which is it's pharma business from Abbott's lab which is their medical devices and that stuff. Rachel Warren owns AbbVie and Johnson & Johnson. Many were blindsided when the company announced late last year that it would be splitting its medical device and pharmaceutical businesses from its consumer health business. | It wasn't exactly the same, but Abbott split off AbbVie which is it's pharma business from Abbott's lab which is their medical devices and that stuff. Rachel Warren owns AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Dec. 17, Fool.com contributors Rachel Warren, Jason Hall, Travis Hoium, Toby Bordelon, and Lou Whiteman discuss. |
23705.0 | 2022-01-12 00:00:00 UTC | Notable Wednesday Option Activity: EOG, EBIX, ABBV | ABBV | https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-eog-ebix-abbv | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in EOG Resources, Inc. (Symbol: EOG), where a total of 132,488 contracts have traded so far, representing approximately 13.2 million underlying shares. That amounts to about 329.5% of EOG's average daily trading volume over the past month of 4.0 million shares. Especially high volume was seen for the $78 strike call option expiring January 21, 2022, with 17,700 contracts trading so far today, representing approximately 1.8 million underlying shares of EOG. Below is a chart showing EOG's trailing twelve month trading history, with the $78 strike highlighted in orange:
Ebix Inc (Symbol: EBIX) saw options trading volume of 6,708 contracts, representing approximately 670,800 underlying shares or approximately 307.6% of EBIX's average daily trading volume over the past month, of 218,105 shares. Especially high volume was seen for the $30 strike call option expiring February 18, 2022, with 3,975 contracts trading so far today, representing approximately 397,500 underlying shares of EBIX. Below is a chart showing EBIX's trailing twelve month trading history, with the $30 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 180,273 contracts thus far today. That number of contracts represents approximately 18.0 million underlying shares, working out to a sizeable 257.8% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Especially high volume was seen for the $120 strike call option expiring February 18, 2022, with 30,281 contracts trading so far today, representing approximately 3.0 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for EOG options, EBIX options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $120 strike call option expiring February 18, 2022, with 30,281 contracts trading so far today, representing approximately 3.0 million underlying shares of ABBV. Below is a chart showing EBIX's trailing twelve month trading history, with the $30 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 180,273 contracts thus far today. That number of contracts represents approximately 18.0 million underlying shares, working out to a sizeable 257.8% of ABBV's average daily trading volume over the past month, of 7.0 million shares. | Below is a chart showing EBIX's trailing twelve month trading history, with the $30 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 180,273 contracts thus far today. Especially high volume was seen for the $120 strike call option expiring February 18, 2022, with 30,281 contracts trading so far today, representing approximately 3.0 million underlying shares of ABBV. That number of contracts represents approximately 18.0 million underlying shares, working out to a sizeable 257.8% of ABBV's average daily trading volume over the past month, of 7.0 million shares. | Especially high volume was seen for the $120 strike call option expiring February 18, 2022, with 30,281 contracts trading so far today, representing approximately 3.0 million underlying shares of ABBV. Below is a chart showing EBIX's trailing twelve month trading history, with the $30 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 180,273 contracts thus far today. That number of contracts represents approximately 18.0 million underlying shares, working out to a sizeable 257.8% of ABBV's average daily trading volume over the past month, of 7.0 million shares. | Especially high volume was seen for the $120 strike call option expiring February 18, 2022, with 30,281 contracts trading so far today, representing approximately 3.0 million underlying shares of ABBV. Below is a chart showing EBIX's trailing twelve month trading history, with the $30 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 180,273 contracts thus far today. That number of contracts represents approximately 18.0 million underlying shares, working out to a sizeable 257.8% of ABBV's average daily trading volume over the past month, of 7.0 million shares. |
23706.0 | 2022-01-12 00:00:00 UTC | 2 Monster Stocks to Buy for 2022 That Are Practically Minting Money | ABBV | https://www.nasdaq.com/articles/2-monster-stocks-to-buy-for-2022-that-are-practically-minting-money | nan | nan | Since March 2009, growth stocks have enjoyed a very strong rally mainly due to the easy availability of cheap capital, thanks to an extremely low-interest rate environment. However, many growth stocks seem to have lost their sheen in the last few months of 2021 and early 2022. Stickier-than-expected inflation, a resurgence in COVID-19 cases causing a drag on global economic recovery, ongoing labor shortages, and ineffective policies seems to have undermined investor sentiment.
Instead of putting their money in speculative businesses, investors are now going back to basics and are opting for safer investments -- companies with stable business models and robust cash flows. Against this backdrop, AbbVie (NYSE: ABBV) and Meta Platforms (NASDAQ: FB) could prove to be attractive picks for retail investors. Here's why.
Image source: Getty Images.
1. AbbVie
Shares of leading biopharma company AbbVie rallied just over 26% in 2021, yet the company looks reasonably valued at 9.7 times forward earnings. The company has generated almost $17 billion in free cash flow in the first nine months of 2021 and carried a cash balance of $12 billion at the end of the third quarter, which ended Sept. 30, 2021. The company belongs to the prestigious Dividend Aristocrat list (companies that have raised dividend payouts annually for at least 25 years). It pays a solid dividend yield of 4.18%, much higher than the drug manufacturers' average yield of 2.87%.
Chances that AbbVie will continue minting money in the coming years remain high. Investors remain concerned about the company's growth prospects because leading immunology drug Humira is going off-patent -- it already lost patent protection in the EU and will lose its patent in the U.S. in 2023. However, based on the drug's sales trajectory in international markets post-patent expiry, it is unlikely that its U.S. revenues will drop to zero overnight even in the face of significant biosimilar competition. The drop in Humira's U.S. revenues will likely happen at a much slower pace than that seen for small molecule drugs after they go off-patent. Patients may also be more reluctant to switch to biosimilars during the pandemic, as it would entail additional physician visits and laboratory testing. AbbVie is expecting Humira headwinds to negatively affect its overall revenues in 2023, but it has also projected a reversal to modest top-line growth in 2024.
AbbVie has also succeeded in gradually reducing its over-reliance on the Humira franchise. In Q3, Humira accounted for around 38% of the company's total Q3 revenues, much lower than the 68% revenue exposure in 2017. The company's non-Humira immunology drugs, such as Rinvoq and Skyrizi, which had total sales of $1.2 billion in Q3, are also reporting strong uptake. The company's blockbuster oncology assets, Imbruvica and Venclexta together raked in sales of $1.87 billion in Q3. Finally, AbbVie's neuroscience and aesthetics portfolio, Botox and Juvederm, have also reported double-digit year-over-year operational sales growth rates in Q3 and will continue to be solid growth drivers in the coming years.
Against this backdrop, AbbVie offers an attractive blend of growth and income to retail investors. Therefore, I remain highly bullish on this stock.
2. Meta Platforms
Meta Platforms, previously known as Facebook, is another cash-rich company that generated lackluster gains in 2021. The company generated free cash flow of $9.5 billion in Q3, which ended Sept. 30, 2021, and has $58.1 billion in cash and marketable securities on its balance sheet. Yet, the stock rose by just over 23% in 2021, lower than the S&P 500's gain of 27% in the same time frame.
For the past few years, the company has been plagued by several challenges, including bad press related to its misuse of private data, failure to spread hate speech, antitrust issues, and reduced effectiveness of advertisements due to ongoing phasing out of third-party cookies. Despite this, the now-rebranded Meta Platforms seems well-poised to continue printing money in the coming quarters. The company reported 3.58 billion people logging into Meta's products -- Facebook, Whatsapp, and Instagram -- at least once a month, and average revenue per person of $8.18 in Q3. Thanks to its large and highly engaged customer base, Meta enjoys strong advertising revenue streams from its Facebook and Instagram applications. To better monetize these apps through increased engagement, the company has also introduced new features such as Instagram Reels and Facebook Watch.
Meta has also emerged as one of the frontrunners in the metaverse market. Matthew Ball, the CEO of venture capital firm Epyllion Industries, expects the metaverse to be a $10 trillion to $30 trillion market opportunity in the next 10 to 15 years. Meta has already built up a solid virtual reality-focused product portfolio through targeted acquisitions and is investing significant resources in developing data infrastructure, artificial intelligence, and machine learning capabilities. While not yet monetized today, the metaverse can prove to be a huge growth driver for the company in the coming years.
With a very sturdy business model, new growth opportunities, and healthy cash flows, Meta can prove to be a smart pick for retail investors.
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Manali Bhade has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool owns and recommends Meta Platforms, Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Against this backdrop, AbbVie (NYSE: ABBV) and Meta Platforms (NASDAQ: FB) could prove to be attractive picks for retail investors. AbbVie Shares of leading biopharma company AbbVie rallied just over 26% in 2021, yet the company looks reasonably valued at 9.7 times forward earnings. Chances that AbbVie will continue minting money in the coming years remain high. | Against this backdrop, AbbVie (NYSE: ABBV) and Meta Platforms (NASDAQ: FB) could prove to be attractive picks for retail investors. AbbVie Shares of leading biopharma company AbbVie rallied just over 26% in 2021, yet the company looks reasonably valued at 9.7 times forward earnings. Chances that AbbVie will continue minting money in the coming years remain high. | AbbVie Shares of leading biopharma company AbbVie rallied just over 26% in 2021, yet the company looks reasonably valued at 9.7 times forward earnings. Against this backdrop, AbbVie (NYSE: ABBV) and Meta Platforms (NASDAQ: FB) could prove to be attractive picks for retail investors. Chances that AbbVie will continue minting money in the coming years remain high. | Against this backdrop, AbbVie (NYSE: ABBV) and Meta Platforms (NASDAQ: FB) could prove to be attractive picks for retail investors. AbbVie Shares of leading biopharma company AbbVie rallied just over 26% in 2021, yet the company looks reasonably valued at 9.7 times forward earnings. Chances that AbbVie will continue minting money in the coming years remain high. |
23707.0 | 2022-01-12 00:00:00 UTC | Here's A Better Pharmaceutical Pick Over Merck Stock | ABBV | https://www.nasdaq.com/articles/heres-a-better-pharmaceutical-pick-over-merck-stock | nan | nan | We think that Bristol Myers Squibb stock (NYSE: BMY) currently is a better pick compared to its industry peer, Merck stock (NYSE: MRK), given its better growth prospects and comparatively lower valuation, with its stock trading at 3.0x trailing revenues, compared to 3.6x for MRK stock. That said, this gap in valuation is also justified given Merck’s better profitability. However, looking at future prospects, we believe that Bristol Myers Squibb will outperform Merck, as we discuss in the sections below. We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Merck vs Bristol Myers Squibb: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Bristol Myers Squibb’s Revenue Growth Is Stronger
Merck’s sales have jumped from $39.8 billion in 2016 to $54.1 billion over the last twelve months, while Bristol Myers Squibb’s revenues have surged from $19.4 billion to $45.5 billion over the same period, primarily reflecting the impact of its Celgene acquisition in 2019.
However, Merck’s revenue growth of 22% over the last twelve month period was higher than the 15% growth for Bristol Myers Squibb, given continued uptick in Keytruda sales with its label expansion and a rebound in demand for vaccines, including Gardasil, after a fall in 2020, due to the impact of the pandemic.
Looking at a slightly longer time frame, both the companies have seen a rise in sales. That said, Bristol Myers Squibb’s last three-year revenue CAGR of 29%, aided by the Celgene acquisition, compares with a 6% CAGR for Merck.
Looking forward, with economies now opening up, the demand for pharmaceuticals is likely to remain high in the near term, boding well for revenue growth of both the companies. Our Merck Revenue and Bristol Myers Squibb Revenue dashboards provides more insight on the companies’ revenues.
Bristol Myers Squibb’s revenue is expected to grow at a faster pace compared to Merck. The table below summarizes our revenue expectation for MRK and BMY over the next three years, and points to a CAGR of 9.5% for Bristol Myers Squibb, compared to a CAGR of 5.1% for Merck.
Note that we have different methodologies for companies negatively impacted by Covid, and for companies not impacted or positively impacted by Covid while forecasting future revenues. For companies negatively impacted by Covid, we consider quarterly revenue recovery trajectory to forecast recovery to pre-Covid revenue run rate, and beyond the recovery point, we apply average annual growth observed in three years prior to Covid to simulate return to normal conditions. For companies registering positive revenue growth during Covid, we consider average annual growth prior to Covid with certain weight to growth during Covid and the last twelve months.
2. Merck Is Also More Profitable And It Has A Better Debt Position
Merck’s operating margin of 18% over the last twelve month period is much better than -16% for Bristol Myers Squibb.
Furthermore, if we were to look at the recent margin growth, both of the companies have seen negative growth, with last twelve month vs last three year margin change at -2.6% for Merck, compared to a large -23.6% change for Bristol Myers Squibb.
Note that Bristol Myers Squibb margins over the last twelve month period were negatively impacted due to a one-time in-process R&D charge of $11.4 billion arising from its MyoKardia acquisition. Bristol Myers Squibb’s operating margin figure stood at 19% for the nine months period ending Sep 2021, still lower compared to around 25% for Merck.
Looking at financial risk, Merck’s 14% debt as a percentage of equity is lower than 32% for Bristol Myers Squibb, while the latter’s 14% cash as a percentage of assets is higher than the 11% for Merck, implying that MRK has a better debt position, but BMY stock has a better cash position.
3. The Net of It All
We see that the revenue growth over the recent quarters has been stronger for Merck and it is more profitable compared to Bristol Myers Squibb. That said, BMY has a better cash position and it is trading at a comparatively lower valuation.
Bristol Myers Squibb has recently announced a 10% increase in its quarterly dividend, and that it is boosting its share repurchase program by $15 billion, implying better than earlier anticipated earnings growth over the coming years.
Now, looking at future prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe BMY is the better choice of the two. The table below summarizes our revenue and return expectation for MRK and BMY over the next three years, and points to an expected return of 30% for BMY over this period vs. 24% for MRK, implying that both the stocks are likely to offer good returns going forward. But if one has to choose between the two, investors are better off buying BMY over MRK, in our view. Our dashboard Merck vs Bristol Myers Squibb has more details on how we arrive at these numbers.
Note that Covid-19 is proving more difficult to contain than initially thought, due to the spread of more contagious virus variants and infections in many geographies, including the U.S. and Europe, are higher than what they were a few months back. The concerns around Omicron have spooked the markets at large. If this recent large spike in Covid-19 cases from the new variant that we are witnessing now, results in a disruption in healthcare services, it is likely to impact the sales growth of both, Merck and Bristol Myers Squibb.
While MRK and BMY stock may see higher levels, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Xylem vs. Merck.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Jan 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
MRK Return 5% 5% 36%
BMY Return 1% 1% 8%
S&P 500 Return -2% -2% 109%
Trefis MS Portfolio Return -6% -6% 271%
[1] Month-to-date and year-to-date as of 1/10/2022
[2] Cumulative total returns since the end of 2016
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We compare a slew of factors such as historical revenue growth, returns, and valuation multiple in an interactive dashboard analysis Merck vs Bristol Myers Squibb: Which Stock Is A Better Bet? Note that Bristol Myers Squibb margins over the last twelve month period were negatively impacted due to a one-time in-process R&D charge of $11.4 billion arising from its MyoKardia acquisition. Bristol Myers Squibb has recently announced a 10% increase in its quarterly dividend, and that it is boosting its share repurchase program by $15 billion, implying better than earlier anticipated earnings growth over the coming years. | We think that Bristol Myers Squibb stock (NYSE: BMY) currently is a better pick compared to its industry peer, Merck stock (NYSE: MRK), given its better growth prospects and comparatively lower valuation, with its stock trading at 3.0x trailing revenues, compared to 3.6x for MRK stock. Bristol Myers Squibb’s Revenue Growth Is Stronger Merck’s sales have jumped from $39.8 billion in 2016 to $54.1 billion over the last twelve months, while Bristol Myers Squibb’s revenues have surged from $19.4 billion to $45.5 billion over the same period, primarily reflecting the impact of its Celgene acquisition in 2019. Furthermore, if we were to look at the recent margin growth, both of the companies have seen negative growth, with last twelve month vs last three year margin change at -2.6% for Merck, compared to a large -23.6% change for Bristol Myers Squibb. | We think that Bristol Myers Squibb stock (NYSE: BMY) currently is a better pick compared to its industry peer, Merck stock (NYSE: MRK), given its better growth prospects and comparatively lower valuation, with its stock trading at 3.0x trailing revenues, compared to 3.6x for MRK stock. Bristol Myers Squibb’s Revenue Growth Is Stronger Merck’s sales have jumped from $39.8 billion in 2016 to $54.1 billion over the last twelve months, while Bristol Myers Squibb’s revenues have surged from $19.4 billion to $45.5 billion over the same period, primarily reflecting the impact of its Celgene acquisition in 2019. Furthermore, if we were to look at the recent margin growth, both of the companies have seen negative growth, with last twelve month vs last three year margin change at -2.6% for Merck, compared to a large -23.6% change for Bristol Myers Squibb. | Our Merck Revenue and Bristol Myers Squibb Revenue dashboards provides more insight on the companies’ revenues. The Net of It All We see that the revenue growth over the recent quarters has been stronger for Merck and it is more profitable compared to Bristol Myers Squibb. The table below summarizes our revenue and return expectation for MRK and BMY over the next three years, and points to an expected return of 30% for BMY over this period vs. 24% for MRK, implying that both the stocks are likely to offer good returns going forward. |
23708.0 | 2022-01-11 00:00:00 UTC | AbbVie To Present At J.P. Morgan Healthcare Conference; Webcast At 3:45 PM ET | ABBV | https://www.nasdaq.com/articles/abbvie-to-present-at-j.p.-morgan-healthcare-conference-webcast-at-3%3A45-pm-et | nan | nan | (RTTNews) - AbbVie (ABBV) will participate in the 40th Annual J.P. Morgan Healthcare Conference.
The event is scheduled to begin at 3:45 PM ET on January 11, 2022.
To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will participate in the 40th Annual J.P. Morgan Healthcare Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 3:45 PM ET on January 11, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the 40th Annual J.P. Morgan Healthcare Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 3:45 PM ET on January 11, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the 40th Annual J.P. Morgan Healthcare Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 3:45 PM ET on January 11, 2022. | (RTTNews) - AbbVie (ABBV) will participate in the 40th Annual J.P. Morgan Healthcare Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 3:45 PM ET on January 11, 2022. |
23709.0 | 2022-01-11 00:00:00 UTC | AbbVie Confirms Outlook Of Over $15 Bln In Combined Risk-Adj. Sales For Rinvoq, Skyrizi In 2025 | ABBV | https://www.nasdaq.com/articles/abbvie-confirms-outlook-of-over-%2415-bln-in-combined-risk-adj.-sales-for-rinvoq-skyrizi-in | nan | nan | (RTTNews) - AbbVie (ABBV) confirmed prior revenue guidance of more than $15 billion in combined Rinvoq or upadacitinib and Skyrizi or risankizumab risk-adjusted sales in 2025.
AbbVie now expects 2025 risk-adjusted sales of greater than $7.5 billion for Rinvoq and greater than $7.5 billion for Skyrizi.
The new Rinvoq sales guidance is the result of lower expected Rinvoq sales in the U.S. following the recent label updates in approved indications, partially offset by higher anticipated sales in international markets, as well as higher anticipated global sales in Crohn's disease and ulcerative colitis following positive Phase 3 study readouts.
The updated Skyrizi sales guidance is based on continued strong performance in psoriasis.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) confirmed prior revenue guidance of more than $15 billion in combined Rinvoq or upadacitinib and Skyrizi or risankizumab risk-adjusted sales in 2025. AbbVie now expects 2025 risk-adjusted sales of greater than $7.5 billion for Rinvoq and greater than $7.5 billion for Skyrizi. The new Rinvoq sales guidance is the result of lower expected Rinvoq sales in the U.S. following the recent label updates in approved indications, partially offset by higher anticipated sales in international markets, as well as higher anticipated global sales in Crohn's disease and ulcerative colitis following positive Phase 3 study readouts. | AbbVie now expects 2025 risk-adjusted sales of greater than $7.5 billion for Rinvoq and greater than $7.5 billion for Skyrizi. (RTTNews) - AbbVie (ABBV) confirmed prior revenue guidance of more than $15 billion in combined Rinvoq or upadacitinib and Skyrizi or risankizumab risk-adjusted sales in 2025. The new Rinvoq sales guidance is the result of lower expected Rinvoq sales in the U.S. following the recent label updates in approved indications, partially offset by higher anticipated sales in international markets, as well as higher anticipated global sales in Crohn's disease and ulcerative colitis following positive Phase 3 study readouts. | AbbVie now expects 2025 risk-adjusted sales of greater than $7.5 billion for Rinvoq and greater than $7.5 billion for Skyrizi. (RTTNews) - AbbVie (ABBV) confirmed prior revenue guidance of more than $15 billion in combined Rinvoq or upadacitinib and Skyrizi or risankizumab risk-adjusted sales in 2025. The new Rinvoq sales guidance is the result of lower expected Rinvoq sales in the U.S. following the recent label updates in approved indications, partially offset by higher anticipated sales in international markets, as well as higher anticipated global sales in Crohn's disease and ulcerative colitis following positive Phase 3 study readouts. | (RTTNews) - AbbVie (ABBV) confirmed prior revenue guidance of more than $15 billion in combined Rinvoq or upadacitinib and Skyrizi or risankizumab risk-adjusted sales in 2025. AbbVie now expects 2025 risk-adjusted sales of greater than $7.5 billion for Rinvoq and greater than $7.5 billion for Skyrizi. The new Rinvoq sales guidance is the result of lower expected Rinvoq sales in the U.S. following the recent label updates in approved indications, partially offset by higher anticipated sales in international markets, as well as higher anticipated global sales in Crohn's disease and ulcerative colitis following positive Phase 3 study readouts. |
23710.0 | 2022-01-10 00:00:00 UTC | Noteworthy ETF Inflows: VLUE, MU, ABBV, C | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-vlue-mu-abbv-c | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Value Factor ETF (Symbol: VLUE) where we have detected an approximate $242.6 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 146,950,000 to 149,100,000). Among the largest underlying components of VLUE, in trading today Micron Technology Inc. (Symbol: MU) is off about 2%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Citigroup Inc (Symbol: C) is lower by about 0.6%. For a complete list of holdings, visit the VLUE Holdings page » The chart below shows the one year price performance of VLUE, versus its 200 day moving average:
Looking at the chart above, VLUE's low point in its 52 week range is $89.4067 per share, with $114.96 as the 52 week high point — that compares with a last trade of $111.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of VLUE, in trading today Micron Technology Inc. (Symbol: MU) is off about 2%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Citigroup Inc (Symbol: C) is lower by about 0.6%. For a complete list of holdings, visit the VLUE Holdings page » The chart below shows the one year price performance of VLUE, versus its 200 day moving average: Looking at the chart above, VLUE's low point in its 52 week range is $89.4067 per share, with $114.96 as the 52 week high point — that compares with a last trade of $111.76. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of VLUE, in trading today Micron Technology Inc. (Symbol: MU) is off about 2%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Citigroup Inc (Symbol: C) is lower by about 0.6%. For a complete list of holdings, visit the VLUE Holdings page » The chart below shows the one year price performance of VLUE, versus its 200 day moving average: Looking at the chart above, VLUE's low point in its 52 week range is $89.4067 per share, with $114.96 as the 52 week high point — that compares with a last trade of $111.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of VLUE, in trading today Micron Technology Inc. (Symbol: MU) is off about 2%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Citigroup Inc (Symbol: C) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Value Factor ETF (Symbol: VLUE) where we have detected an approximate $242.6 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 146,950,000 to 149,100,000). For a complete list of holdings, visit the VLUE Holdings page » The chart below shows the one year price performance of VLUE, versus its 200 day moving average: Looking at the chart above, VLUE's low point in its 52 week range is $89.4067 per share, with $114.96 as the 52 week high point — that compares with a last trade of $111.76. | Among the largest underlying components of VLUE, in trading today Micron Technology Inc. (Symbol: MU) is off about 2%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Citigroup Inc (Symbol: C) is lower by about 0.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Value Factor ETF (Symbol: VLUE) where we have detected an approximate $242.6 million dollar inflow -- that's a 1.5% increase week over week in outstanding units (from 146,950,000 to 149,100,000). For a complete list of holdings, visit the VLUE Holdings page » The chart below shows the one year price performance of VLUE, versus its 200 day moving average: Looking at the chart above, VLUE's low point in its 52 week range is $89.4067 per share, with $114.96 as the 52 week high point — that compares with a last trade of $111.76. |
23711.0 | 2022-01-09 00:00:00 UTC | 3 No-Brainer Big Pharma Stocks to Buy in 2022 | ABBV | https://www.nasdaq.com/articles/3-no-brainer-big-pharma-stocks-to-buy-in-2022 | nan | nan | Going big can sometimes pay off. That's especially the case when you invest in the stocks of top large drugmakers.
We asked three Motley Fool contributors to identify the big pharma stocks that they think are no-brainer picks to buy in 2022. Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX).
Image source: Getty Images.
This company isn't a one-trick pony
Prosper Junior Bakiny (AbbVie): The bears have been predicting AbbVie's doom since the company lost patent protection for its blockbuster rheumatoid arthritis drug, Humira, back in 2018. But time and time again, the pharma giant has proved the doubters wrong. I think that it will continue to do so in 2022 and beyond.
While Humira's sales have been dropping like a rock in international markets, the drug continues to make headway in the U.S. During the third quarter, Humira's domestic sales grew by 10.1% year over year to $4.6 billion. So while the medicine's revenue dropped by 14.6% internationally, total sales of Humira came in at $5.4 billion -- a 5.6% year-over-year increase.
Moreover, AbbVie's already on track to adapt to a post-Humira world. Its newer immunosuppressants, Skyrizi and Rinvoq, are firing on all cylinders, sales-wise. During the third quarter, sales of Rinvoq more than doubled year over year to $453 million, while Skyrizi's sales jumped by 83.3% to $796 million.
CEO Rick Gonzalez has high hopes for these medicines. As he said during the company's third-quarter earnings conference call: "[Skyrizi and Rinvoq] are either approved, under regulatory review, or in late-stage development across all of Humira's major indications, and we remain confident that they will both be significant contributors to AbbVie's long-term growth."
AbbVie also got its hands on a raft of exciting products via its 2020 acquisition of Allergan. Most notably, it now owns the Botox franchise, which continues to report growing sales. That's before we get into AbbVie's dozens of clinical programs, or the $21.68 billion in free cash flow it generated in the trailing 12-month period. This is a company with plenty of financial capacity to acquire other promising clinical compounds in development.
AbbVie is already a Dividend Aristocrat, and is set to join the even more exclusive group of Dividend Kings this year. And at current share prices, its payout offers an above-average yield of 3.83%.
Last but not least, the drugmaker's shares trade at just 11.4 times next year's forecast earnings, making its stock reasonably valued. It may not stay that way for too long. Interested investors might want to scoop up AbbVie's shares before they soar.
A money-making machine that looks unstoppable
David Jagielski (Pfizer): There aren't many stocks that look like surefire winners for 2022, but healthcare giant Pfizer deserves a place near the top of that short list. Its pre-pandemic business was profitable and solid. Now, with a COVID-19 vaccine that generated tens of billions of dollars last year and is likely to do so again in 2022, Pfizer is as safe a buy as there can be. In addition, with a yield of 2.7% at current share prices, it's also a great option for dividend investors. By comparison, the average S&P 500 stock only has a dividend yield of 1.3%.
Over the trailing 12 months, the company's operating income has been 26% of revenue, which is in line with the results it was generating before the pandemic. And during the past four quarters, it has also brought in more than $29 billion in free cash flow. In the period from 2016 to 2020, the company only generated about half that amount during its best year.
Investing in Pfizer could be an excellent way to hedge against the omicron variant this year, but it's a no-brainer buy for the long term as well. The excess cash the company is generating now could set it up for significant expansion down the road. In 2021, Pfizer announced multiple acquisitions, including a $2.3 billion deal for immuno-oncology company Trillium Therapeutics and its $6.7 billion purchase of Arena Pharmaceuticals, a clinical-stage company working on therapies to treat immuno-inflammatory diseases. Those acquisitions, funded entirely through cash, expand the company's pipeline and growth prospects. With Pfizer still generating tons of money today, there could be more acquisition opportunities in 2022.
The future looks bright for Pfizer, regardless of what happens with COVID-19. And with a solid dividend as well, it is an easy investment to justify for both conservative and growth-oriented investors.
Ready to conquer new markets
Keith Speights (Vertex Pharmaceuticals): Vertex has reigned supreme in the cystic fibrosis market for years. It developed the only approved drugs that treat the underlying cause of the rare genetic disease, and still has growth opportunities in that indication as it secures additional reimbursement agreements and wins approvals for its drugs to be used to treat younger patients.
However, the big drugmaker now appears to be ready to conquer new markets. Vertex and its partner, CRISPR Therapeutics, hope to file for regulatory approvals of CTX001 as a treatment for beta-thalassemia and sickle cell disease by late 2022. Clinical trial results have demonstrated that the gene-editing therapy holds the potential to effectively cure these rare blood disorders.
Vertex is advancing another non-cystic fibrosis program into pivotal testing early this year. In December, it reported overwhelmingly positive results from a phase 2 study of VX-147 in treating APOL1-mediated focal segmental glomerulosclerosis (FSGS). The company's late-stage study will include FSGS and other kidney diseases caused by APOL1 gene variants.
Investors have a good reason to be excited about the prospects for VX-147. APOL1-mediated kidney diseases affect more than 100,000 individuals in the U.S. and Europe. By comparison, it is estimated that 83,000 individuals worldwide suffer from cystic fibrosis.
In addition, Vertex expects to report data from a pair of phase 2 studies of its pain drug VX-548 within the next couple of months or so. The company is also making progress on a potential cure for type 1 diabetes. It already reported positive early results from a phase 1/2 study of VX-880 and plans to file this year for U.S. approval to begin an early-stage study evaluating an even more promising type 1 diabetes therapy.
Vertex's shares trade at less than 16 times expected earnings, and its price-to-earnings-to-growth ratio is a super-low 0.32 thanks to its multiple growth drivers. At these bargain valuations, my view is that Vertex is definitely a no-brainer stock pick for 2022.
10 stocks we like better than AbbVie
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David Jagielski has no position in any of the stocks mentioned. Keith Speights owns AbbVie, Pfizer, and Vertex Pharmaceuticals. Prosper Junior Bakiny owns Vertex Pharmaceuticals. The Motley Fool owns and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As he said during the company's third-quarter earnings conference call: "[Skyrizi and Rinvoq] are either approved, under regulatory review, or in late-stage development across all of Humira's major indications, and we remain confident that they will both be significant contributors to AbbVie's long-term growth." Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX). This company isn't a one-trick pony Prosper Junior Bakiny (AbbVie): The bears have been predicting AbbVie's doom since the company lost patent protection for its blockbuster rheumatoid arthritis drug, Humira, back in 2018. | Keith Speights owns AbbVie, Pfizer, and Vertex Pharmaceuticals. Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX). This company isn't a one-trick pony Prosper Junior Bakiny (AbbVie): The bears have been predicting AbbVie's doom since the company lost patent protection for its blockbuster rheumatoid arthritis drug, Humira, back in 2018. | This company isn't a one-trick pony Prosper Junior Bakiny (AbbVie): The bears have been predicting AbbVie's doom since the company lost patent protection for its blockbuster rheumatoid arthritis drug, Humira, back in 2018. Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX). Moreover, AbbVie's already on track to adapt to a post-Humira world. | * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! Here's why they chose AbbVie (NYSE: ABBV), Pfizer (NYSE: PFE), and Vertex Pharmaceuticals (NASDAQ: VRTX). This company isn't a one-trick pony Prosper Junior Bakiny (AbbVie): The bears have been predicting AbbVie's doom since the company lost patent protection for its blockbuster rheumatoid arthritis drug, Humira, back in 2018. |
23712.0 | 2022-01-08 00:00:00 UTC | Just Four Days Till AbbVie Inc. (NYSE:ABBV) Will Be Trading Ex-Dividend | ABBV | https://www.nasdaq.com/articles/just-four-days-till-abbvie-inc.-nyse%3Aabbv-will-be-trading-ex-dividend | nan | nan | AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in four days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase AbbVie's shares before the 13th of January to receive the dividend, which will be paid on the 15th of February.
The company's upcoming dividend is US$1.41 a share, following on from the last 12 months, when the company distributed a total of US$5.20 per share to shareholders. Based on the last year's worth of payments, AbbVie stock has a trailing yield of around 4.2% on the current share price of $134.88. If you buy this business for its dividend, you should have an idea of whether AbbVie's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. AbbVie paid out 123% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. A useful secondary check can be to evaluate whether AbbVie generated enough free cash flow to afford its dividend. Thankfully its dividend payments took up just 42% of the free cash flow it generated, which is a comfortable payout ratio.
It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and AbbVie fortunately did generate enough cash to fund its dividend. Still, if the company repeatedly paid a dividend greater than its profits, we'd be concerned. Very few companies are able to sustainably pay dividends larger than their reported earnings.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABBV Historic Dividend January 8th 2022
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. This is why it's a relief to see AbbVie earnings per share are up 6.0% per annum over the last five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the past nine years, AbbVie has increased its dividend at approximately 15% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
Final Takeaway
Should investors buy AbbVie for the upcoming dividend? AbbVie has been steadily growing its earnings per share, and it is paying out just 42% of its cash flow but an uncomfortably high 123% of its income. In summary, it's hard to get excited about AbbVie from a dividend perspective.
With that being said, if dividends aren't your biggest concern with AbbVie, you should know about the other risks facing this business. Case in point: We've spotted 4 warning signs for AbbVie you should be aware of.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Based on the last year's worth of payments, AbbVie stock has a trailing yield of around 4.2% on the current share price of $134.88. AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in four days. Meaning, you will need to purchase AbbVie's shares before the 13th of January to receive the dividend, which will be paid on the 15th of February. | It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and AbbVie fortunately did generate enough cash to fund its dividend. NYSE:ABBV Historic Dividend January 8th 2022 Have Earnings And Dividends Been Growing? AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in four days. | If you buy this business for its dividend, you should have an idea of whether AbbVie's dividend is reliable and sustainable. It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and AbbVie fortunately did generate enough cash to fund its dividend. AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in four days. | It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and AbbVie fortunately did generate enough cash to fund its dividend. AbbVie has been steadily growing its earnings per share, and it is paying out just 42% of its cash flow but an uncomfortably high 123% of its income. AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in four days. |
23713.0 | 2022-01-07 00:00:00 UTC | AbbVie Submits Applications For Upadacitinib In Non-Radiographic Axial Spondyloarthritis To FDA | ABBV | https://www.nasdaq.com/articles/abbvie-submits-applications-for-upadacitinib-in-non-radiographic-axial-spondyloarthritis | nan | nan | (RTTNews) - AbbVie (ABBV) said Friday that it has submitted applications seeking approvals for upadacitinib (RINVOQ, 15 mg once daily) to the U.S. Food and Drug Administration and the European Medicines Agency for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have responded inadequately to nonsteroidal anti-inflammatory drugs (NSAIDs).
Axial spondyloarthritis is a chronic inflammatory disease that affects the spine, causing back pain, limited mobility, and structural damage.
AbbVie said it has also submitted results from two studies of upadacitinib in adult patients with ankylosing spondylitis (AS) to request label enhancements in the European Union.
RINVOQ is approved for use in active psoriatic arthritis (PsA), moderate to severe active rheumatoid arthritis (RA), moderate to severe atopic dermatitis (AD) and active AS in the EU, and for PsA and RA in the U.S.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said Friday that it has submitted applications seeking approvals for upadacitinib (RINVOQ, 15 mg once daily) to the U.S. Food and Drug Administration and the European Medicines Agency for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have responded inadequately to nonsteroidal anti-inflammatory drugs (NSAIDs). AbbVie said it has also submitted results from two studies of upadacitinib in adult patients with ankylosing spondylitis (AS) to request label enhancements in the European Union. Axial spondyloarthritis is a chronic inflammatory disease that affects the spine, causing back pain, limited mobility, and structural damage. | (RTTNews) - AbbVie (ABBV) said Friday that it has submitted applications seeking approvals for upadacitinib (RINVOQ, 15 mg once daily) to the U.S. Food and Drug Administration and the European Medicines Agency for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have responded inadequately to nonsteroidal anti-inflammatory drugs (NSAIDs). AbbVie said it has also submitted results from two studies of upadacitinib in adult patients with ankylosing spondylitis (AS) to request label enhancements in the European Union. Axial spondyloarthritis is a chronic inflammatory disease that affects the spine, causing back pain, limited mobility, and structural damage. | (RTTNews) - AbbVie (ABBV) said Friday that it has submitted applications seeking approvals for upadacitinib (RINVOQ, 15 mg once daily) to the U.S. Food and Drug Administration and the European Medicines Agency for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have responded inadequately to nonsteroidal anti-inflammatory drugs (NSAIDs). AbbVie said it has also submitted results from two studies of upadacitinib in adult patients with ankylosing spondylitis (AS) to request label enhancements in the European Union. RINVOQ is approved for use in active psoriatic arthritis (PsA), moderate to severe active rheumatoid arthritis (RA), moderate to severe atopic dermatitis (AD) and active AS in the EU, and for PsA and RA in the U.S. | (RTTNews) - AbbVie (ABBV) said Friday that it has submitted applications seeking approvals for upadacitinib (RINVOQ, 15 mg once daily) to the U.S. Food and Drug Administration and the European Medicines Agency for the treatment of adults with active non-radiographic axial spondyloarthritis (nr-axSpA) with objective signs of inflammation who have responded inadequately to nonsteroidal anti-inflammatory drugs (NSAIDs). AbbVie said it has also submitted results from two studies of upadacitinib in adult patients with ankylosing spondylitis (AS) to request label enhancements in the European Union. Axial spondyloarthritis is a chronic inflammatory disease that affects the spine, causing back pain, limited mobility, and structural damage. |
23714.0 | 2022-01-06 00:00:00 UTC | Abbvie Inc Shares Near 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-near-52-week-high-market-mover-1 | nan | nan | Abbvie Inc (ABBV) shares closed today at 1.7% below its 52 week high of $138.15, giving the company a market cap of $240B. The stock is currently up 0.3% year-to-date, up 33.7% over the past 12 months, and up 168.1% over the past five years. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 fell 1.9%.
Trading Activity
Trading volume this week was 12.1% higher than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -117.1%
The company's stock price performance over the past 12 months beats the peer average by 83.0%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 19.0% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed today at 1.7% below its 52 week high of $138.15, giving the company a market cap of $240B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -117.1% The company's stock price performance over the past 12 months beats the peer average by 83.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 19.0% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 1.7% below its 52 week high of $138.15, giving the company a market cap of $240B. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 fell 1.9%. Trading Activity Trading volume this week was 12.1% higher than the 20-day average. | Abbvie Inc (ABBV) shares closed today at 1.7% below its 52 week high of $138.15, giving the company a market cap of $240B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -117.1% The company's stock price performance over the past 12 months beats the peer average by 83.0% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 19.0% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 1.7% below its 52 week high of $138.15, giving the company a market cap of $240B. This week, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 fell 1.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23715.0 | 2022-01-06 00:00:00 UTC | 4 EV Charging Stocks to Buy Ahead of Biden’s National Network | ABBV | https://www.nasdaq.com/articles/4-ev-charging-stocks-to-buy-ahead-of-bidens-national-network | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If you’ve been thinking about electric vehicle charging stocks, you’re not alone.
The electric vehicle space has been a hot one on Wall Street for a couple of years now. And now the White House is putting renewed emphasis on the sector with its recent infrastructure package.
The $1 trillion package championed by President Joe Biden includes $7.5 billion that is earmarked for a national network of 500,000 EV charging stations by 2030.
The Energy Department says there are currently fewer than 46,000 EV charging stations in the U.S. The White House is emphasizing putting EV stations in rural, disadvantaged and hard-to-reach locations.
Federal regulators are expected to provide guidance by Feb. 11 for how cities and states can deploy EV stations to be part of the network.
7 Tech Stocks to Buy That Also Have Solid Dividends
The landmark legislation will ensure that EV charging stocks are hot commodities over the next decade. Now the trick is finding which ones are the best ones to buy now.
Here are four to consider:
ChargePoint Holdings (NYSE:CHPT)
EVgo (NASDAQ:EVGO)
Beam Global (NASDAQ:BEEM)
Volta Charging (NYSE:VLTA)
It’s also worth noting here that three of these — CHPT, EVGO and VLTA — are among the 47 stocks in the exchange-traded fund portfolio of ALPS Clean Energy ETF (NYSEARCA:ACES).
EV Charging Stocks to Buy: ChargePoint Holdings (CHPT)
CHPT) charging station." width="300" height="169">
Source: YuniqueB / Shutterstock.com
Based in Campbell, California, ChargePoint operates what is currently the largest online network of independent EV charging stations in 14 countries.
Just as importantly, ChargePoint makes the technology used to power the network. It installs, monitors and maintains the charging station as part of a subscription-based product line.
The company is relatively new to Wall Street — it began trading on the New York Stock Exchange on March 1 after completing its blank-check deal Switchback Energy Acquisition, a special purpose acquisition company. It has the distinction of being the first publicly traded EV charging network.
Cowen analyst Gabe Daould Jr recently called CHPT stock a “best idea for 2022” based on the growing EV market.
He set a price target of $37, which represents 98% upside from today’s price.
EVgo (EVGO)
Source: Sundry Photography / Shutterstock.com
Los Angeles-based EVgo has a smaller footprint than ChargePoint, but it’s still a solid bet for growth as among EV charging stocks.
With more than 800 locations in the U.S. EVgo says more than 130 million Americans live within 10 miles of an EVgo station. EVGo says 80% of Californians live close to one of its fast-charging stations, which number more than 330 in the Golden State alone.
The consensus price target of $16.83 is more than 70% higher than the current stock price, which currently sits at less than $10. And JPMorgan analyst Bill Peterson is even more bullish, projecting that EVGO stock will reach $20.
The 10 Best Stocks to Buy for a Whole New Year of Returns
InvestorPlace’s Louis Navellier is also a fan of EVGO stock. “Between its high share of the DC fast charger market, and the partnerships it has made within the automotive industry, it has more potential than the market’s current view of it would suggest,” he wrote last month. “In other words, if you’re looking for more under-the-radar EV plays, this is one of your best options.
EV Charging Stocks to Buy: Beam Global (BEEM)
Source: Videomatic/Shutterstock.com
Beem Global sells EV charging infrastructure that is powered fully by renewable energy. According to Insider Monkey, the cleantech company has contracts with the U.S. Marines Corps and NASA, and commercial contracts with AbbVie (NYSE:ABBV) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).
CEO Desmond Wheatley is already promoting the company’s products fitting well with the White House’s EV charging station network.
Key pillars in the Executive Order (14057) for a Clean Energy Economy are perfectly aligned with what we’ve been passionately building for over a decade: resilient, clean, sustainable and rapidly deployed EV charging infrastructure solutions. We’ve seen an increase in federal GSA orders and opportunities siting federal initiatives and we anticipate this latest Executive Order will further fuel Beam’s business.
BTIG Research issued a “buy” rating on BEEM stock and set a price target at $42, more than 100% upside from its current price.
Volta Charging (VLTA)
VLTA) charging station." width="300" height="169">
Source: Tada Images / Shutterstock.com
San Francisco-based Volta is an interesting play on EV charging stocks because of its business model. Yes, it sells EV charging networks, but it also sells the advertising time on the stations’ digital ad screens.
That is the lion’s share of Volta’s business. Sales in the third quarter were $8.5 billion, with the company’s ad revenue accounting for $7.36 billion of that figure.
And Volta is growing fast. Year-over-year revenue was up 77% in the third quarter. And with the White House’s plans to create its huge national network of EV charging stations, VLTA stock has a huge opportunity in the next year.
Volta stock is down 48.5% from a February 2021 high, so shares are heavily discounted right now.
On the date of publication, Patrick Sanders did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Patrick Sanders is a freelance writer and editor in Maryland, and from 2015 to 2019 was head of theinvestment advicesection at U.S. News & World Report. Follow him on Twitter at @1patricksanders.
The post 4 EV Charging Stocks to Buy Ahead of Biden’s National Network appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | According to Insider Monkey, the cleantech company has contracts with the U.S. Marines Corps and NASA, and commercial contracts with AbbVie (NYSE:ABBV) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). The $1 trillion package championed by President Joe Biden includes $7.5 billion that is earmarked for a national network of 500,000 EV charging stations by 2030. width="300" height="169"> Source: YuniqueB / Shutterstock.com Based in Campbell, California, ChargePoint operates what is currently the largest online network of independent EV charging stations in 14 countries. | According to Insider Monkey, the cleantech company has contracts with the U.S. Marines Corps and NASA, and commercial contracts with AbbVie (NYSE:ABBV) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Here are four to consider: ChargePoint Holdings (NYSE:CHPT) EVgo (NASDAQ:EVGO) Beam Global (NASDAQ:BEEM) Volta Charging (NYSE:VLTA) It’s also worth noting here that three of these — CHPT, EVGO and VLTA — are among the 47 stocks in the exchange-traded fund portfolio of ALPS Clean Energy ETF (NYSEARCA:ACES). EV Charging Stocks to Buy: ChargePoint Holdings (CHPT) CHPT) charging station." | According to Insider Monkey, the cleantech company has contracts with the U.S. Marines Corps and NASA, and commercial contracts with AbbVie (NYSE:ABBV) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Here are four to consider: ChargePoint Holdings (NYSE:CHPT) EVgo (NASDAQ:EVGO) Beam Global (NASDAQ:BEEM) Volta Charging (NYSE:VLTA) It’s also worth noting here that three of these — CHPT, EVGO and VLTA — are among the 47 stocks in the exchange-traded fund portfolio of ALPS Clean Energy ETF (NYSEARCA:ACES). EV Charging Stocks to Buy: ChargePoint Holdings (CHPT) CHPT) charging station." | According to Insider Monkey, the cleantech company has contracts with the U.S. Marines Corps and NASA, and commercial contracts with AbbVie (NYSE:ABBV) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). EV Charging Stocks to Buy: ChargePoint Holdings (CHPT) CHPT) charging station." EVgo (EVGO) Source: Sundry Photography / Shutterstock.com Los Angeles-based EVgo has a smaller footprint than ChargePoint, but it’s still a solid bet for growth as among EV charging stocks. |
23716.0 | 2022-01-05 00:00:00 UTC | July 15th Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/july-15th-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 15th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 191 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 15th contracts and identified one put and one call contract of particular interest.
The put contract at the $90.00 strike price has a current bid of 46 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $90.00, but will also collect the premium, putting the cost basis of the shares at $89.54 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $137.24/share today.
Because the $90.00 strike represents an approximate 34% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.51% return on the cash commitment, or 0.98% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $90.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $4.30. If an investor was to purchase shares of ABBV stock at the current price level of $137.24/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $145.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.79% if the stock gets called away at the July 15th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red:
Considering the fact that the $145.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 66%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.13% boost of extra return to the investor, or 5.99% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 43%, while the implied volatility in the call contract example is 21%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $137.24) to be 20%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 15th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 15th contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $90.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $145.00 strike price has a current bid of $4.30. Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 15th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new July 15th contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $145.00 strike highlighted in red: Considering the fact that the $145.00 strike represents an approximate 6% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the July 15th expiration. |
23717.0 | 2022-01-05 00:00:00 UTC | AbbVie Gets Breakthrough Therapy Designation for Lung Cancer Treatment | ABBV | https://www.nasdaq.com/articles/abbvie-gets-breakthrough-therapy-designation-for-lung-cancer-treatment | nan | nan | The U.S. Food and Drug Administration (FDA) has granted Breakthrough Therapy Designation (BTD) to biopharmaceutical company AbbVie, Inc.’s (ABBV) investigational telisotuzumab vedotin (Teliso-V) to treat patients suffering from advanced/metastatic epidermal growth factor receptor (EGFR) wild type, nonsquamous non-small cell lung cancer (NSCLC).
The BTD program expedites the development and review of investigational medicines that have demonstrated preliminary clinical evidence of substantial improvement over existing therapies on at least one clinically significant endpoint.
The Vice-President and Global Head of Oncology Clinical Development at AbbVie, Mohamed Zaki, said, “Patients with non-small cell lung cancer have a high unmet need and Teliso-V has the potential to provide them with an additional treatment option to manage their disease.”
Teliso-V’s BTD designation is based on data from an ongoing Phase 2 study, LUMINOSITY. The study is designed to identify the target NSCLC populations with high levels of c-Met overexpression and for whom Teliso-V monotherapy is best suited in the second- or third-line setting.
About AbbVie
Based out of Illinois, AbbVie is focused on therapeutic areas like immunology, oncology, neuroscience, eye care, virology, women's health and gastroenterology. Its subsidiary Allergan Aesthetics develops, manufactures and sells products, including facial injectables, body contouring, plastics, and skincare, among others.
Wall Street’s Take
Recently, Bernstein analyst Aaron Gal reiterated a Buy rating on the stock and raised the price target to $155 from $130 (14.7% upside potential).
Additionally, Christopher Raymond, an analyst with Piper Sandler (PIPR), maintained a Buy rating on AbbVie and increased the price target from $129 to $160 (18.4% upside potential).
In a research note to investors, Raymond said, “ABBV remains a top pick for me in 2022 amid continued commercial momentum from Skyrizi and Rinvoq. AbbVie also has an emerging neurology franchise as well as continued outperformance from the legacy Allergan aesthetics business.”
Overall, the stock has a Strong Buy consensus rating based on 12 Buys and 3 Holds. The average ABBV stock forecast of $136.79 implies 1.2% upside potential. Shares have gained 34.2% over the past year.
Investors' Opinion
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on AbbVie with 1.4% of investors on TipRanks increasing their exposure to the stock over the past 30 days.
Download the TipRanks app now, available on iOS and Android.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The U.S. Food and Drug Administration (FDA) has granted Breakthrough Therapy Designation (BTD) to biopharmaceutical company AbbVie, Inc.’s (ABBV) investigational telisotuzumab vedotin (Teliso-V) to treat patients suffering from advanced/metastatic epidermal growth factor receptor (EGFR) wild type, nonsquamous non-small cell lung cancer (NSCLC). Additionally, Christopher Raymond, an analyst with Piper Sandler (PIPR), maintained a Buy rating on AbbVie and increased the price target from $129 to $160 (18.4% upside potential). The Vice-President and Global Head of Oncology Clinical Development at AbbVie, Mohamed Zaki, said, “Patients with non-small cell lung cancer have a high unmet need and Teliso-V has the potential to provide them with an additional treatment option to manage their disease.” Teliso-V’s BTD designation is based on data from an ongoing Phase 2 study, LUMINOSITY. | The U.S. Food and Drug Administration (FDA) has granted Breakthrough Therapy Designation (BTD) to biopharmaceutical company AbbVie, Inc.’s (ABBV) investigational telisotuzumab vedotin (Teliso-V) to treat patients suffering from advanced/metastatic epidermal growth factor receptor (EGFR) wild type, nonsquamous non-small cell lung cancer (NSCLC). The Vice-President and Global Head of Oncology Clinical Development at AbbVie, Mohamed Zaki, said, “Patients with non-small cell lung cancer have a high unmet need and Teliso-V has the potential to provide them with an additional treatment option to manage their disease.” Teliso-V’s BTD designation is based on data from an ongoing Phase 2 study, LUMINOSITY. Additionally, Christopher Raymond, an analyst with Piper Sandler (PIPR), maintained a Buy rating on AbbVie and increased the price target from $129 to $160 (18.4% upside potential). | The U.S. Food and Drug Administration (FDA) has granted Breakthrough Therapy Designation (BTD) to biopharmaceutical company AbbVie, Inc.’s (ABBV) investigational telisotuzumab vedotin (Teliso-V) to treat patients suffering from advanced/metastatic epidermal growth factor receptor (EGFR) wild type, nonsquamous non-small cell lung cancer (NSCLC). The Vice-President and Global Head of Oncology Clinical Development at AbbVie, Mohamed Zaki, said, “Patients with non-small cell lung cancer have a high unmet need and Teliso-V has the potential to provide them with an additional treatment option to manage their disease.” Teliso-V’s BTD designation is based on data from an ongoing Phase 2 study, LUMINOSITY. Investors' Opinion TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on AbbVie with 1.4% of investors on TipRanks increasing their exposure to the stock over the past 30 days. | The Vice-President and Global Head of Oncology Clinical Development at AbbVie, Mohamed Zaki, said, “Patients with non-small cell lung cancer have a high unmet need and Teliso-V has the potential to provide them with an additional treatment option to manage their disease.” Teliso-V’s BTD designation is based on data from an ongoing Phase 2 study, LUMINOSITY. Investors' Opinion TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on AbbVie with 1.4% of investors on TipRanks increasing their exposure to the stock over the past 30 days. The U.S. Food and Drug Administration (FDA) has granted Breakthrough Therapy Designation (BTD) to biopharmaceutical company AbbVie, Inc.’s (ABBV) investigational telisotuzumab vedotin (Teliso-V) to treat patients suffering from advanced/metastatic epidermal growth factor receptor (EGFR) wild type, nonsquamous non-small cell lung cancer (NSCLC). |
23718.0 | 2022-01-04 00:00:00 UTC | AbbVie: Teliso-V Gets Breakthrough Therapy Designation | ABBV | https://www.nasdaq.com/articles/abbvie%3A-teliso-v-gets-breakthrough-therapy-designation | nan | nan | (RTTNews) - AbbVie (ABBV) announced FDA granted Breakthrough Therapy Designation to investigational telisotuzumab vedotin (Teliso-V) for the treatment of patients with advanced/metastatic epidermal growth factor receptor wild type, nonsquamous non-small cell lung cancer with high levels of c-Met overexpression whose disease has progressed on or after platinum-based therapy.
Teliso-V is an investigational antibody-drug conjugate targeting c-Met, a receptor tyrosine kinase that is overexpressed in tumors including non-small cell lung cancer.
Mohamed Zaki, Vice President and Global Head of Oncology Clinical Development at AbbVie, said: "Today's announcement marks an important step in our mission to advance new oncology treatments across tumor types to improve standards of care for patients with cancer."
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced FDA granted Breakthrough Therapy Designation to investigational telisotuzumab vedotin (Teliso-V) for the treatment of patients with advanced/metastatic epidermal growth factor receptor wild type, nonsquamous non-small cell lung cancer with high levels of c-Met overexpression whose disease has progressed on or after platinum-based therapy. Mohamed Zaki, Vice President and Global Head of Oncology Clinical Development at AbbVie, said: "Today's announcement marks an important step in our mission to advance new oncology treatments across tumor types to improve standards of care for patients with cancer." Teliso-V is an investigational antibody-drug conjugate targeting c-Met, a receptor tyrosine kinase that is overexpressed in tumors including non-small cell lung cancer. | (RTTNews) - AbbVie (ABBV) announced FDA granted Breakthrough Therapy Designation to investigational telisotuzumab vedotin (Teliso-V) for the treatment of patients with advanced/metastatic epidermal growth factor receptor wild type, nonsquamous non-small cell lung cancer with high levels of c-Met overexpression whose disease has progressed on or after platinum-based therapy. Mohamed Zaki, Vice President and Global Head of Oncology Clinical Development at AbbVie, said: "Today's announcement marks an important step in our mission to advance new oncology treatments across tumor types to improve standards of care for patients with cancer." Teliso-V is an investigational antibody-drug conjugate targeting c-Met, a receptor tyrosine kinase that is overexpressed in tumors including non-small cell lung cancer. | (RTTNews) - AbbVie (ABBV) announced FDA granted Breakthrough Therapy Designation to investigational telisotuzumab vedotin (Teliso-V) for the treatment of patients with advanced/metastatic epidermal growth factor receptor wild type, nonsquamous non-small cell lung cancer with high levels of c-Met overexpression whose disease has progressed on or after platinum-based therapy. Mohamed Zaki, Vice President and Global Head of Oncology Clinical Development at AbbVie, said: "Today's announcement marks an important step in our mission to advance new oncology treatments across tumor types to improve standards of care for patients with cancer." The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced FDA granted Breakthrough Therapy Designation to investigational telisotuzumab vedotin (Teliso-V) for the treatment of patients with advanced/metastatic epidermal growth factor receptor wild type, nonsquamous non-small cell lung cancer with high levels of c-Met overexpression whose disease has progressed on or after platinum-based therapy. Mohamed Zaki, Vice President and Global Head of Oncology Clinical Development at AbbVie, said: "Today's announcement marks an important step in our mission to advance new oncology treatments across tumor types to improve standards of care for patients with cancer." Teliso-V is an investigational antibody-drug conjugate targeting c-Met, a receptor tyrosine kinase that is overexpressed in tumors including non-small cell lung cancer. |
23719.0 | 2022-01-04 00:00:00 UTC | Abbvie Inc Shares Approach 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-approach-52-week-high-market-mover-1 | nan | nan | Abbvie Inc (ABBV) shares closed today at 1.0% below its 52 week high of $136.83, giving the company a market cap of $239B. The stock is currently up 0.0% year-to-date, up 32.4% over the past 12 months, and up 173.0% over the past five years. This week, the Dow Jones Industrial Average rose 0.8%, and the S&P 500 rose 0.1%.
Trading Activity
Trading volume this week was 42.9% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date lags the peer average by -82.7%
The company's stock price performance over the past 12 months beats the peer average by 48.7%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 15.4% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed today at 1.0% below its 52 week high of $136.83, giving the company a market cap of $239B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by -82.7% The company's stock price performance over the past 12 months beats the peer average by 48.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 15.4% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 1.0% below its 52 week high of $136.83, giving the company a market cap of $239B. This week, the Dow Jones Industrial Average rose 0.8%, and the S&P 500 rose 0.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbvie Inc (ABBV) shares closed today at 1.0% below its 52 week high of $136.83, giving the company a market cap of $239B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date lags the peer average by -82.7% The company's stock price performance over the past 12 months beats the peer average by 48.7% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 15.4% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 1.0% below its 52 week high of $136.83, giving the company a market cap of $239B. This week, the Dow Jones Industrial Average rose 0.8%, and the S&P 500 rose 0.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23720.0 | 2022-01-04 00:00:00 UTC | This Big Pharma Stock Is Enriching Shareholders With Its Dividend. But Is It a Buy? | ABBV | https://www.nasdaq.com/articles/this-big-pharma-stock-is-enriching-shareholders-with-its-dividend.-but-is-it-a-buy | nan | nan | Two signs that a company is focused on creating significant value for its shareholders are when the company boosts its dividend and when it repurchases its shares at attractive valuations.
Pharma stock Bristol Myers Squibb (NYSE: BMY) recently announced a 10.2% hike in its quarterly dividend to $0.54 per share. And if that wasn't enough to please shareholders, the company also authorized an additional $15 billion in share buybacks -- or nearly 11% of its $139 billion market capitalization.
This ambitious capital return plan raises two questions: Can the company afford it? And is the stock currently a buy? Let's dig into Bristol Myers Squibb's cash flow capabilities, balance sheet, and valuation to try to answer these questions.
Image source: Getty Images.
Bristol Myers Squibb is a cash flow machine
At the heart of Bristol Myers Squibb's tremendous capital return program for shareholders is the company's anticipated production of between $45 billion and $50 billion in cumulative free cash flow (FCF) for shareholders from 2021 through 2023. That's approximately a third of its market cap in free cash flow in just three years, which would be amazing. But because some companies tend to overpromise and underdeliver, let's delve into whether this forecast is grounded in reality, or the management team has been wearing rose-colored glasses.
For the first three quarters, Bristol Myers Squibb had generated $12.1 billion in operating cash flow against $653 million in capital expenditures. In just nine months, the company has provided $11.5 billion in free cash flow for shareholders. At the rate it's going, this would work out to $46 billion in free cash flow between 2021 and 2023. Bristol Myers Squibb is positioned to hit the low end of its FCF target before even considering another important lever that it can use to bump its free cash flow even higher.
That lever is its $13.5 billion cash position as of the most recent quarter. This gives Bristol Myers Squibb flexibility to execute the purchase of a medium-sized company if it believed such an acquisition target could fit well within its existing drug portfolio.
Bristol Myers Squibb's 2021 free cash flow easily covered its $3.5 billion in share buybacks executed and $3.3 billion in dividends paid during that time. Simply put, the company is a free cash flow monster capable of affording its market-beating 3.5% dividend yield and significant share repurchases.
The balance sheet is solid
Bristol Myers Squibb is throwing off more than enough free cash flow to fund its dividend and share repurchases. But could the state of its balance sheet force the stock to cut back on the dividend or on share repurchases?
The company's ratio of debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) is 2.2. Note that the company's EBITDA has varied wildly for more than a decade but the Q3 results are in line with its 13-year median of 2.2. While Bristol Myers Squibb's debt-to-EBITDA ratio is weaker than Johnson & Johnson's of 1.5, it's stronger than AbbVie's of 3.2.
Despite its generous capital allocation, Bristol Myers Squibb was able to reduce its long-term debt by $8.7 billion year-to-date (through Sep. 30, 2021), to $39.7 billion in the quarter. This indicates that the company can take a balanced approach to its dividend and share-repurchase activity, as well as to debt repayment.
Quality at a reasonable valuation
Bristol Myers Squibb appears to be a financially healthy business. But is it worth buying at the current valuation? Well, its forward price-to-earnings (P/E) ratio of 7.9 is considerably lower than the drug manufacturing industry average of 11.4. This implies that the stock could be an undervalued dividend growth stock for income investors.
Let's also weigh its growth prospects against its industry. The company's forecast 6% annual earnings growth over the next five years is moderately lower than the industry average of 10%. This justifies a somewhat lower valuation multiple until the company proves that it can overcome looming patent cliffs on its top three drugs -- Revlimid, Eliquis, and Opdivo.
However, if you're an income investor who believes Bristol Myers Squibb's pipeline will be sufficient to move past its current top-selling drugs, the current $63 share price would seem to provide a nice buying opportunity.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | While Bristol Myers Squibb's debt-to-EBITDA ratio is weaker than Johnson & Johnson's of 1.5, it's stronger than AbbVie's of 3.2. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Bristol Myers Squibb, and Johnson & Johnson. Bristol Myers Squibb is positioned to hit the low end of its FCF target before even considering another important lever that it can use to bump its free cash flow even higher. | See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Bristol Myers Squibb, and Johnson & Johnson. While Bristol Myers Squibb's debt-to-EBITDA ratio is weaker than Johnson & Johnson's of 1.5, it's stronger than AbbVie's of 3.2. Let's dig into Bristol Myers Squibb's cash flow capabilities, balance sheet, and valuation to try to answer these questions. | While Bristol Myers Squibb's debt-to-EBITDA ratio is weaker than Johnson & Johnson's of 1.5, it's stronger than AbbVie's of 3.2. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Bristol Myers Squibb, and Johnson & Johnson. Bristol Myers Squibb is a cash flow machine At the heart of Bristol Myers Squibb's tremendous capital return program for shareholders is the company's anticipated production of between $45 billion and $50 billion in cumulative free cash flow (FCF) for shareholders from 2021 through 2023. | While Bristol Myers Squibb's debt-to-EBITDA ratio is weaker than Johnson & Johnson's of 1.5, it's stronger than AbbVie's of 3.2. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Bristol Myers Squibb, and Johnson & Johnson. Let's dig into Bristol Myers Squibb's cash flow capabilities, balance sheet, and valuation to try to answer these questions. |
23721.0 | 2022-01-03 00:00:00 UTC | My Top 5 Dividend Stocks to Buy for 2022 | ABBV | https://www.nasdaq.com/articles/my-top-5-dividend-stocks-to-buy-for-2022 | nan | nan | A strong dividend portfolio can be a powerful wealth-building tool, delivering gains from rising share prices and passive income. Many stocks pay dividends, but I would argue that blue chip companies are the winning strategy for long-term investors. In other words, let high-quality stocks do all the heavy lifting for you.
Don't know where to start or simply looking for some new dividend ideas? No worries, I've identified my top five dividend stocks for 2022.
Image source: Getty Images.
AbbVie
Pharmaceutical company AbbVie (NYSE: ABBV) is one of the world's largest drug companies, behind well-known products like Botox and Humira, the world's top-selling prescription drug. Its dividend legacy goes back to its days as a part of Abbott Labs but it has continued putting money into shareholder pockets since spinning off as its own company in 2013.
ABBV Cash Dividend Payout Ratio data by YCharts
Usually dividend stocks either pay a small starting yield and grow rapidly, or pay a high starting yield and grow modestly. AbbVie is a rare combination of both. The company's dividend yields 4.1% and has grown at an average of 18% annually over the past five years. Its 41% dividend payout ratio should give you confidence in AbbVie's ability to keep paying you to hold shares.
Philip Morris International
Tobacco's addictive nature gives tobacco stocks a reputation as fine dividend stocks. Philip Morris International (NYSE: PM) is arguably the king of the tobacco mountain, formed when parent company Altria Group spun off its international business as its own company, leaving Philip Morris International to sell the Marlboro brand of cigarettes worldwide.
PM Cash Dividend Payout Ratio data by YCharts
Philip Morris International is the highest-yielding dividend stock on this list, offering up a 5.3% dividend yield. But its growth has been somewhat tame; the average annual raise has been 3.3% over the past five years. It's common for tobacco stocks to carry a higher payout ratio, so investors shouldn't rush to judgment on the 71% dividend payout ratio. The company's IQOS product is its future and could ensure Philip Morris International's payout for years to come.
Sherwin-Williams
Most homeowners have probably used Sherwin-Williams' (NYSE: SHW) products, as the company is one of the world's largest paint and coatings makers. Its products include its namesake network of stores across North America and a wide range of brands sold worldwide, like Valspar, Minwax, Purdy, Krylon, and Thompson's WaterSeal.
SHW Cash Dividend Payout Ratio data by YCharts
Paint is a great business because the material fades, chips, or simply becomes boring, requiring customers to keep buying more. The company has raised its dividend for 43 consecutive years. The dividend yield is small at 0.6%, but the dividend has averaged 14.6% growth annually over the past five years. The dividend's 22% payout ratio should leave plenty of room for that growth to continue.
Home Depot
Paint isn't the only business that homeowners support. Home Depot (NYSE: HD) is a leading home improvement retail chain that operates in the U.S., Canada, and Mexico. E-commerce has disrupted many retail categories, but Home Depot's strong network of stores and success in integrating its digital storefront has helped it continue growing and paying dividends.
HD Cash Dividend Payout Ratio data by YCharts
Home Depot's dividend yields 1.6%, and the payout has grown at an average of 19.7% annually over the past five years. The dividend payout ratio is still manageable at 56%, so investors should continue seeing their dividend checks grow. Consumers gladly spend money to improve and maintain their homes, so Home Depot is among the "bluest" blue chips in the retail sector.
Realty Income
Real estate is one of humanity's oldest businesses, but many people cannot afford to own rental properties. Real estate investment trusts (REITs) are a workaround; these businesses acquire and rent out properties and pay out dividends to their shareholders. Realty Income (NYSE: O) is among the best known, specializing in retail properties. It's the landlord for customers like Walgreens, Dollar General, FedEx, AMC, and more.
O Cash Dividend Payout Ratio data by YCharts
REITs are excellent dividend stocks because their business structure requires paying at least 90% of their taxable income out as dividends to investors. Realty Income's dividend yield is currently 4.1%, and the company has raised its dividend for 28 years and running. Over the past five years, the dividend has grown at an average of 3.79%. Realty Income won't make you a millionaire overnight, but its steady business model makes it a reliable way to generate passive income from real estate.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool owns and recommends FedEx and Home Depot. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) is one of the world's largest drug companies, behind well-known products like Botox and Humira, the world's top-selling prescription drug. ABBV Cash Dividend Payout Ratio data by YCharts Usually dividend stocks either pay a small starting yield and grow rapidly, or pay a high starting yield and grow modestly. AbbVie is a rare combination of both. | ABBV Cash Dividend Payout Ratio data by YCharts Usually dividend stocks either pay a small starting yield and grow rapidly, or pay a high starting yield and grow modestly. AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) is one of the world's largest drug companies, behind well-known products like Botox and Humira, the world's top-selling prescription drug. AbbVie is a rare combination of both. | AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) is one of the world's largest drug companies, behind well-known products like Botox and Humira, the world's top-selling prescription drug. ABBV Cash Dividend Payout Ratio data by YCharts Usually dividend stocks either pay a small starting yield and grow rapidly, or pay a high starting yield and grow modestly. AbbVie is a rare combination of both. | AbbVie Pharmaceutical company AbbVie (NYSE: ABBV) is one of the world's largest drug companies, behind well-known products like Botox and Humira, the world's top-selling prescription drug. ABBV Cash Dividend Payout Ratio data by YCharts Usually dividend stocks either pay a small starting yield and grow rapidly, or pay a high starting yield and grow modestly. AbbVie is a rare combination of both. |
23722.0 | 2022-01-03 00:00:00 UTC | What Does This Regulatory News Mean for Bristol Myers Squibb's Shareholders? | ABBV | https://www.nasdaq.com/articles/what-does-this-regulatory-news-mean-for-bristol-myers-squibbs-shareholders | nan | nan | In late November, the U.S. Food and Drug Administration (FDA) announced that it accepted Bristol Myers Squibb's (NYSE: BMY) New Drug Application for deucravacitinib as a treatment for patients with moderate-to-severe psoriasis.
With the FDA targeting a decision on deucravacitinib in September 2022, let's dive into the drug's efficacy and sales potential if approved.
Image source: Getty Images.
Clinical results that beat out Otezla
Paraphrasing the Mayo Clinic, psoriasis is a skin disease that results in red and itchy patches, especially on the knees, elbows, and scalp. The symptoms of psoriasis can include swollen and stiff joints, dry and cracked skin, and itching and burning skin.
Psoriasis can range from mild to severe in nature. Using the Psoriasis Area and Severity Index (PASI), the extent of the disease is measured by the surface area and severity for six regions of the body. PASI scores range from 0 to 72, according to WebMD. A PASI score greater than 10 is generally a moderate-to-severe case of psoriasis.
The first-line treatment for psoriasis is usually topical treatments. However, patients don't often comply for various reasons, which is evidenced by 50% to 70% compliance rates for topical treatments. If patients don't adequately respond to topical treatments, those medications are often discontinued or another treatment is added.
Deucravacitinib is one investigational drug that could soon become a part of many treatment regimens for patients struggling to manage their psoriasis. Bristol Myers Squibb enrolled nearly 1,700 moderate-to-severe psoriasis patients into two phase 3 clinical trials to examine the efficacy of deucravacitinib against placebo and Amgen's (NASDAQ: AMGN) blockbuster psoriasis and psoriatic arthritis drug Otezla. Half of the patients enrolled in the studies were randomized to receive 6 milligrams of deucravacitinib once daily, whereas the other half received either a placebo or 30 milligrams of Otezla twice daily.
Up to 59% of patients taking deucravacitinib achieved PASI 75 at week 16. This was significantly higher than the 40% rate for those receiving Otezla and nearly 13% of those taking a placebo. For context, PASI 75 means that a psoriasis patient's PASI score was reduced by at least 75%. The PASI score is calculated by accounting for a patient's PASI score both before and during treatment.
Significant sales potential
Deucravacitinib demonstrated itself to be a highly effective treatment for moderate-to-severe psoriasis patients. But how much would a potential moderate-to-severe psoriasis indication mean for pharma stock Bristol Myers Squibb in terms of annual revenue if approved?
First, there are roughly 7.4 million adults in the U.S. with psoriasis. What's more, it's estimated that about 20% of those patients have moderate-to-severe disease, which works out to nearly 1.5 million patients. Next, I'll assume that 30% of patients with moderate to severe disease aren't adequately controlling their condition. So, Bristol Myers Squibb's potential patient population is realistically around 450,000.
Because the market is flush with psoriasis treatments like Johnson & Johnson's (NYSE: JNJ) Tremfya, AbbVie's (NYSE: ABBV) Humira, and Amgen's Otezla, I expect that deucravacitinib will achieve a 6% patient share. This equates to 27,000 patients.
While pricing information for deucravacitinib won't be available until after it is likely approved by the FDA, I'll use Otezla's $47,000 annual list price as a guide. Because health insurers negotiate this amount significantly lower, I'll assume an annual net price of $25,000 per patient.
This works out to almost $700 million in additional annual sales for Bristol Myers Squibb. By itself, this is less than 2% of the company's projected $46.5 billion in sales. But with deucravacitinib in clinical trials for inflammatory bowel disease and psoriatic arthritis, Bristol Myers Squibb anticipates that the drug will reach peak annual sales of $4 billion.
A top-notch income stock at an attractive valuation
Bristol Myers Squibb is up 14% in the past month, which raises the following question: Should income investors buy the stock?
The stock trades at a forward P/E ratio of only 7.9, which appears to be an appealing price considering that analysts are forecasting 6% annual non-GAAP earnings per share (EPS) growth over the next five years.
And the stock offers investors a well-covered, market-topping 3.5% dividend yield. Bristol Myers Squibb's high yield, decent growth prospects, and cheap valuation make it a stock that income investors should consider buying for their portfolios.
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Kody Kester owns AbbVie, Amgen, Bristol Myers Squibb, and Johnson & Johnson. The Motley Fool owns and recommends Bristol Myers Squibb. The Motley Fool recommends Amgen and Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Because the market is flush with psoriasis treatments like Johnson & Johnson's (NYSE: JNJ) Tremfya, AbbVie's (NYSE: ABBV) Humira, and Amgen's Otezla, I expect that deucravacitinib will achieve a 6% patient share. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Amgen, Bristol Myers Squibb, and Johnson & Johnson. But with deucravacitinib in clinical trials for inflammatory bowel disease and psoriatic arthritis, Bristol Myers Squibb anticipates that the drug will reach peak annual sales of $4 billion. | Because the market is flush with psoriasis treatments like Johnson & Johnson's (NYSE: JNJ) Tremfya, AbbVie's (NYSE: ABBV) Humira, and Amgen's Otezla, I expect that deucravacitinib will achieve a 6% patient share. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Amgen, Bristol Myers Squibb, and Johnson & Johnson. Bristol Myers Squibb enrolled nearly 1,700 moderate-to-severe psoriasis patients into two phase 3 clinical trials to examine the efficacy of deucravacitinib against placebo and Amgen's (NASDAQ: AMGN) blockbuster psoriasis and psoriatic arthritis drug Otezla. | Because the market is flush with psoriasis treatments like Johnson & Johnson's (NYSE: JNJ) Tremfya, AbbVie's (NYSE: ABBV) Humira, and Amgen's Otezla, I expect that deucravacitinib will achieve a 6% patient share. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Amgen, Bristol Myers Squibb, and Johnson & Johnson. In late November, the U.S. Food and Drug Administration (FDA) announced that it accepted Bristol Myers Squibb's (NYSE: BMY) New Drug Application for deucravacitinib as a treatment for patients with moderate-to-severe psoriasis. | Because the market is flush with psoriasis treatments like Johnson & Johnson's (NYSE: JNJ) Tremfya, AbbVie's (NYSE: ABBV) Humira, and Amgen's Otezla, I expect that deucravacitinib will achieve a 6% patient share. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Amgen, Bristol Myers Squibb, and Johnson & Johnson. Bristol Myers Squibb enrolled nearly 1,700 moderate-to-severe psoriasis patients into two phase 3 clinical trials to examine the efficacy of deucravacitinib against placebo and Amgen's (NASDAQ: AMGN) blockbuster psoriasis and psoriatic arthritis drug Otezla. |
23723.0 | 2022-01-02 00:00:00 UTC | Could This FDA Approval Create a Blockbuster Drug for AbbVie? | ABBV | https://www.nasdaq.com/articles/could-this-fda-approval-create-a-blockbuster-drug-for-abbvie | nan | nan | On Dec. 14, the U.S. Food and Drug Administration (FDA) approved AbbVie's (NYSE: ABBV) Rinvoq as a treatment for adult patients with psoriatic arthritis who failed at least one other tumor necrosis factor (TNF) inhibitor. A new indication is always a positive sign for a drugmaker, especially one like AbbVie that is seeking new growth avenues.
What prompted the FDA's approval of Rinvoq for its second indication? And what is the sales potential for the indication? Let's dig into the phase 3 clinical trial results of Rinvoq in treating psoriatic arthritis to answer these questions and decide if AbbVie stock looks like a good buy today.
Image source: Getty Images.
Another effective treatment for a debilitating condition
Psoriatic arthritis is an inflammatory condition of the joints, according to the National Psoriasis Foundation. Approximately 30% of patients with the skin condition known as psoriasis eventually develop psoriatic arthritis which can cause symptoms including fatigue, joint pain/swelling/stiffness, and reduced range of joint motion.
Because psoriatic arthritis progressively gets worse without treatment and can cause permanent joint damage, it's important to seek medical treatment for the disease. Similar to other chronic conditions, the best outcomes for patients can be achieved through early diagnosis and the development of a treatment plan with a specialist.
Based on guidelines from the American College of Rheumatology, the first line of treatment for psoriatic arthritis patients is TNF inhibitors like Humira (which is also owned by AbbVie.) However, roughly 20% of psoriatic arthritis patients are not helped by TNF inhibitors.
Fortunately, rheumatologists and psoriatic arthritis patients have a new treatment option in Rinvoq thanks to its FDA approval for the indication. What's behind the agency's decision to give the go-ahead to Rinvoq?
Across the two phase 3 clinical trials, patients receiving 15 milligrams of Rinvoq once daily achieved meaningful improvement in their joint pain and fatigue at a much higher rate than the placebo. Up to 71% of patients taking Rinvoq attained a significant reduction in their joint pain and fatigue at week 12, whereas only up to 36% of patients receiving placebo were able to do so.
A second-line treatment in a massive market
So, Rinvoq has been demonstrated to be a powerful treatment for psoriatic arthritis. But will this create a blockbuster indication for the pharma stock AbbVie?
According to estimates, there are between 1 million to 2 million psoriatic arthritis patients in the U.S., so for the sake of an informal calculation, let's assume there are 1.5 million U.S. patients. And because 20% of psoriatic arthritis patients fail the first-line treatment, that means there are about 300,000 U.S. patients who need a second-line treatment.
There are numerous drugs on the market in the U.S. for psoriatic arthritis, like Amgen's (NASDAQ: AMGN) Otezla and Enbrel, so Rinvoq will face plenty of competition. Because Janus kinase (JAK) inhibitors like Rinvoq still face the potential of more restrictions from the FDA, I'll conservatively assume that Rinvoq will capture a 7% market share.
This equates to a pool of around 21,000 patients. Rinvoq's annual list price is $63,000, but this is before considering price adjustments negotiated by health insurers. So, let's assume that the net annual list price is $44,000. Using these assumptions, Rinvoq would eclipse $900 million in annual sales but falls a bit short of the $1 billion blockbuster mark.
While this is less than 2% of the $56.2 billion in revenue that analysts are expecting AbbVie will report this year, this scenario would still be huge for Rinvoq. That's because the drug is on pace to record $1.5 billion or so in revenue this year, so a $900 million addition to its annual sales would be a nearly 60% boost.
AbbVie remains an appealing income stock
Even though AbbVie's stock is up 25% in the fourth quarter, it still appears reasonably priced. To this point, AbbVie's forward price-to-earnings ratio of 9.6 is well below the drug manufacturer industry average of 11.4.
ABBV Total Return Level data by YCharts
While value investors wait for AbbVie to experience further capital appreciation, they can sit back and collect a sustainable 4.2% yield. AbbVie's $5.64 in dividends per share that will be paid next year should work out to a 40% dividend payout ratio, which leaves the dividend with plenty of room to grow going forward.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Dec. 14, the U.S. Food and Drug Administration (FDA) approved AbbVie's (NYSE: ABBV) Rinvoq as a treatment for adult patients with psoriatic arthritis who failed at least one other tumor necrosis factor (TNF) inhibitor. Let's dig into the phase 3 clinical trial results of Rinvoq in treating psoriatic arthritis to answer these questions and decide if AbbVie stock looks like a good buy today. A new indication is always a positive sign for a drugmaker, especially one like AbbVie that is seeking new growth avenues. | On Dec. 14, the U.S. Food and Drug Administration (FDA) approved AbbVie's (NYSE: ABBV) Rinvoq as a treatment for adult patients with psoriatic arthritis who failed at least one other tumor necrosis factor (TNF) inhibitor. Based on guidelines from the American College of Rheumatology, the first line of treatment for psoriatic arthritis patients is TNF inhibitors like Humira (which is also owned by AbbVie.) A new indication is always a positive sign for a drugmaker, especially one like AbbVie that is seeking new growth avenues. | On Dec. 14, the U.S. Food and Drug Administration (FDA) approved AbbVie's (NYSE: ABBV) Rinvoq as a treatment for adult patients with psoriatic arthritis who failed at least one other tumor necrosis factor (TNF) inhibitor. Let's dig into the phase 3 clinical trial results of Rinvoq in treating psoriatic arthritis to answer these questions and decide if AbbVie stock looks like a good buy today. A new indication is always a positive sign for a drugmaker, especially one like AbbVie that is seeking new growth avenues. | But will this create a blockbuster indication for the pharma stock AbbVie? On Dec. 14, the U.S. Food and Drug Administration (FDA) approved AbbVie's (NYSE: ABBV) Rinvoq as a treatment for adult patients with psoriatic arthritis who failed at least one other tumor necrosis factor (TNF) inhibitor. A new indication is always a positive sign for a drugmaker, especially one like AbbVie that is seeking new growth avenues. |
23724.0 | 2022-01-02 00:00:00 UTC | 22 Top Dividend Stocks to Buy and Hold in 2022 | ABBV | https://www.nasdaq.com/articles/22-top-dividend-stocks-to-buy-and-hold-in-2022 | nan | nan | I don't know how the stock market will perform in the new year. Wall Street analysts don't know, either. Any predictions are really only guesses.
There's no guesswork required, though, to expect that many stocks will continue to pay solid dividends regardless of what happens with the overall market. These are the kinds of stocks that income investors can own without losing any sleep.
Which specific stocks make the list? Here are 22 top dividend stocks to buy and hold in 2022.
Image source: Getty Images.
22 top dividend stocks for 2022
Below are 22 top dividend stocks to buy and hold in 2022, listed in alphabetical order:
COMPANY
MARKET CAP
DIVIDEND YIELD
Abbott Labs (NYSE: ABT) $248 billion 1.33%
AbbVie (NYSE: ABBV) $238 billion 4.20%
Air Products & Chemicals (NYSE: APD) $68 billion 1.97%
Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47%
Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97%
Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40%
Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31%
Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43%
CVS Health (NYSE: CVS) $136 billion 2.15%
Devon Energy (NYSE: DVN) $30 billion >9%*
Duke Energy (NYSE: DUK) $81 billion 3.81%
Easterly Government Properties (NYSE: DEA) $2 billion 4.66%
Enterprise Products Partners (NYSE: EPD) $47 billion 8.33%
Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29%
Intel (NASDAQ: INTC) $212 billion 2.69%
Johnson & Johnson (NYSE: JNJ) $450 billion 2.50%
Eli Lilly & Company (NYSE: LLY) $266 billion 1.42%
Medical Properties Trust (NYSE: MPW) $14 billion 4.86%
Pepsico (NASDAQ: PEP) $239 billion 2.51%
Pfizer (NYSE: PFE) $323 billion 2.70%
Verizon Communications (NYSE: VZ) $222 billion 4.86%
Viatris (NASDAQ: VTRS) $16 billion 3.23%
Data sources: Yahoo! Finance and company investor presentations. *Includes fixed+variable dividend.
Healthcare
You might have noticed there are more stocks from healthcare than any other sector. That's primarily because many healthcare stocks offer steady dividends and often provide solid growth prospects as well.
Three healthcare stocks boast especially impressive dividend track records. Abbott Labs and Johnson & Johnson are Dividend Kings -- S&P 500 members with at least 50 consecutive years of dividend increases. AbbVie is likely to join the club in 2022.
Eli Lilly and Pfizer could be attractive to growth investors. Lilly has multiple catalysts on the way in the new year. Pfizer handily outperformed the broader market in 2021 and could do so again in 2022 with strong sales of its COVID-19 vaccine and pill.
Value investors might like the other healthcare picks. CVS Health's shares trade at only 12 times expected earnings. Bristol Myers Squibb is even cheaper with a forward earnings multiple of a little over seven. And Viatris is dirt cheap, with its shares trading at less than 3.4 times expected earnings.
Energy
Companies in the energy sector are also often known for their dividends. Devon Energy certainly stands out with its fixed-plus-variable dividend of more than 9%. That's more than seven times higher than the S&P 500 average dividend yield.
Midstream energy leader Enterprise Products Partners isn't too far behind Devon, though, with a dividend yield of 8.33%. While the shift away from fossil fuels could impact these companies' businesses over the long term, their prospects over the next several years look bright.
That shift will work to the benefit of Brookfield Renewable. The company has two stocks on our list. It was originally formed as a limited partnership (LP), Brookfield Renewable Partners (BEP). In 2020, the company created Brookfield Renewable Corporation (BEPC) for investors who wanted to avoid the tax hassles associated with LPs.
Duke Energy isn't likely to deliver sizzling growth. However, income investors should be able to depend on the utility company's steady dividend. Duke has paid a dividend uninterrupted for 95 consecutive years.
REITs
Three of the top dividend stocks for 2022 are real estate investment trusts (REITs). They're required to return at least 90% of taxable income to shareholders in the form of dividends.
Medical Properties Trust is a REIT that focuses, as its name indicates, on medical properties -- primarily acute care hospitals. Its dividend yield of 4.86% is especially attractive. The company has increased its dividend payout for eight consecutive years.
Easterly Government Properties arguably ranks as one of the safest dividend stocks on the market. It specializes in leasing properties to the U.S. government.
Meanwhile, Innovative Industrial Properties is one of the fastest-growing REIT stocks. The company leases properties to regulated cannabis operators in the U.S. Its shares have skyrocketed nearly 1,300% over the past five years. IIP's dividend payout increased by 10 times during this period.
Technology and telecommunications
Intel underperformed the overall market in 2021. However, investors should focus more on where the chipmaker will be in 10 years or more than how its stock fared in one 12-month period. Intel's future should be better than its immediate past. More importantly for income investors, the company's dividend should be safe.
Likewise, Verizon was one of the worst-performing Dow Jones stocks in 2021. However, investors should love the telecom giant's juicy dividend. With the increased adoption of 5G networks, Verizon should have solid prospects over the coming years.
Other
Rounding out the list of top dividend stocks for 2022 are Air Products & Chemicals, Brookfield Infrastructure, and PepsiCo. As was the case with Brookfield Renewable, Brookfield Infrastructure has two stocks -- one an LP (BIP) and the other a corporation (BIPC). There's only one underlying business, though. And that business is rock-solid thanks to steady cash flow from a wide variety of infrastructure assets.
Like some of the other stocks in the top 22, Air Products & Chemicals probably won't deliver jaw-dropping gains. However, it's a Dividend Aristocrat with 39 consecutive years of dividend hikes. You should be able to count on those dividends continuing to flow and grow in 2022.
PepsiCo is also a Dividend Aristocrat and will likely become a Dividend King in the new year. With its strong product lineup and dividend, PepsiCo is arguably one of the best consumer staples stocks to buy right now.
10 stocks we like better than Abbott Laboratories
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Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. The Motley Fool owns and recommends Bristol Myers Squibb, Brookfield Renewable Corporation Inc., Innovative Industrial Properties, and Intel. The Motley Fool recommends Brookfield Infra Partners LP Units, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, CVS Health, Duke Energy, Easterly Government Properties, Enterprise Products Partners, Johnson & Johnson, Verizon Communications, and Viatris Inc. and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbott Labs (NYSE: ABT) $248 billion 1.33% AbbVie (NYSE: ABBV) $238 billion 4.20% Air Products & Chemicals (NYSE: APD) $68 billion 1.97% Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47% Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97% Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40% Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31% Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43% CVS Health (NYSE: CVS) $136 billion 2.15% Devon Energy (NYSE: DVN) $30 billion >9%* Duke Energy (NYSE: DUK) $81 billion 3.81% Easterly Government Properties (NYSE: DEA) $2 billion 4.66% Enterprise Products Partners (NYSE: EPD) $47 billion 8.33% Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29% Intel (NASDAQ: INTC) $212 billion 2.69% Johnson & Johnson (NYSE: JNJ) $450 billion 2.50% Eli Lilly & Company (NYSE: LLY) $266 billion 1.42% Medical Properties Trust (NYSE: MPW) $14 billion 4.86% Pepsico (NASDAQ: PEP) $239 billion 2.51% Pfizer (NYSE: PFE) $323 billion 2.70% Verizon Communications (NYSE: VZ) $222 billion 4.86% Viatris (NASDAQ: VTRS) $16 billion 3.23% Data sources: Yahoo! AbbVie is likely to join the club in 2022. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. | Abbott Labs (NYSE: ABT) $248 billion 1.33% AbbVie (NYSE: ABBV) $238 billion 4.20% Air Products & Chemicals (NYSE: APD) $68 billion 1.97% Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47% Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97% Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40% Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31% Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43% CVS Health (NYSE: CVS) $136 billion 2.15% Devon Energy (NYSE: DVN) $30 billion >9%* Duke Energy (NYSE: DUK) $81 billion 3.81% Easterly Government Properties (NYSE: DEA) $2 billion 4.66% Enterprise Products Partners (NYSE: EPD) $47 billion 8.33% Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29% Intel (NASDAQ: INTC) $212 billion 2.69% Johnson & Johnson (NYSE: JNJ) $450 billion 2.50% Eli Lilly & Company (NYSE: LLY) $266 billion 1.42% Medical Properties Trust (NYSE: MPW) $14 billion 4.86% Pepsico (NASDAQ: PEP) $239 billion 2.51% Pfizer (NYSE: PFE) $323 billion 2.70% Verizon Communications (NYSE: VZ) $222 billion 4.86% Viatris (NASDAQ: VTRS) $16 billion 3.23% Data sources: Yahoo! See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. AbbVie is likely to join the club in 2022. | Abbott Labs (NYSE: ABT) $248 billion 1.33% AbbVie (NYSE: ABBV) $238 billion 4.20% Air Products & Chemicals (NYSE: APD) $68 billion 1.97% Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47% Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97% Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40% Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31% Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43% CVS Health (NYSE: CVS) $136 billion 2.15% Devon Energy (NYSE: DVN) $30 billion >9%* Duke Energy (NYSE: DUK) $81 billion 3.81% Easterly Government Properties (NYSE: DEA) $2 billion 4.66% Enterprise Products Partners (NYSE: EPD) $47 billion 8.33% Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29% Intel (NASDAQ: INTC) $212 billion 2.69% Johnson & Johnson (NYSE: JNJ) $450 billion 2.50% Eli Lilly & Company (NYSE: LLY) $266 billion 1.42% Medical Properties Trust (NYSE: MPW) $14 billion 4.86% Pepsico (NASDAQ: PEP) $239 billion 2.51% Pfizer (NYSE: PFE) $323 billion 2.70% Verizon Communications (NYSE: VZ) $222 billion 4.86% Viatris (NASDAQ: VTRS) $16 billion 3.23% Data sources: Yahoo! See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. AbbVie is likely to join the club in 2022. | See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie, Air Products & Chemicals, Bristol Myers Squibb, Brookfield Infrastructure Corporation, Brookfield Infrastructure Partners, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., Devon Energy, Enterprise Products Partners, Innovative Industrial Properties, PepsiCo, Pfizer, and Viatris Inc. Abbott Labs (NYSE: ABT) $248 billion 1.33% AbbVie (NYSE: ABBV) $238 billion 4.20% Air Products & Chemicals (NYSE: APD) $68 billion 1.97% Bristol Myers Squibb (NYSE: BMY) $138 billion 3.47% Brookfield Industrial Corporation (NYSE: BIPC) $5 billion 2.97% Brookfield Industrial Partners (NYSE: BIP) $18 billion 3.40% Brookfield Renewable Corporation (NYSE: BEPC) $6 billion 3.31% Brookfield Renewable Partners (NYSE: BEP) $10 billion 3.43% CVS Health (NYSE: CVS) $136 billion 2.15% Devon Energy (NYSE: DVN) $30 billion >9%* Duke Energy (NYSE: DUK) $81 billion 3.81% Easterly Government Properties (NYSE: DEA) $2 billion 4.66% Enterprise Products Partners (NYSE: EPD) $47 billion 8.33% Innovative Industrial Properties (NYSE: IIPR) $6 billion 2.29% Intel (NASDAQ: INTC) $212 billion 2.69% Johnson & Johnson (NYSE: JNJ) $450 billion 2.50% Eli Lilly & Company (NYSE: LLY) $266 billion 1.42% Medical Properties Trust (NYSE: MPW) $14 billion 4.86% Pepsico (NASDAQ: PEP) $239 billion 2.51% Pfizer (NYSE: PFE) $323 billion 2.70% Verizon Communications (NYSE: VZ) $222 billion 4.86% Viatris (NASDAQ: VTRS) $16 billion 3.23% Data sources: Yahoo! AbbVie is likely to join the club in 2022. |
23725.0 | 2021-12-31 00:00:00 UTC | AbbVie Reaches Analyst Target Price | ABBV | https://www.nasdaq.com/articles/abbvie-reaches-analyst-target-price | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $135.54, changing hands for $135.93/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 13 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $118.00. And then on the other side of the spectrum one analyst has a target as high as $172.00. The standard deviation is $15.992.
But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $135.54/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $135.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AbbVie Inc:
RECENT ABBV ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 9 8 9 9
Buy ratings: 1 1 1 1
Hold ratings: 3 3 2 3
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.54 1.58 1.42 1.54
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABBV — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $135.54, changing hands for $135.93/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $135.54/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $135.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $135.54, changing hands for $135.93/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. There are 13 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. | There are 13 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. And so with ABBV crossing above that average target price of $135.54/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $135.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $135.54, changing hands for $135.93/share. | There are 13 different analyst targets within the Zacks coverage universe contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $135.54, changing hands for $135.93/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. |
23726.0 | 2021-12-30 00:00:00 UTC | Best Stocks for 2022: Why AbbVie Looks Like High Dividend Growth Stock | ABBV | https://www.nasdaq.com/articles/best-stocks-for-2022%3A-why-abbvie-looks-like-high-dividend-growth-stock | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s note: This column is part of InvestorPlace.com’s Best Stocks for 2021 contest. Bob Ciura’s pick for the contest is AbbVie Inc. (NYSE:ABBV) stock.
Source: InvestorPlace
The stock market has something to offer every investor. There are stocks with high dividend yields, although these usually offer less growth through capital appreciation. There are growth stocks that could generate superior share price gains, but growth stocks typically have elevated valuations and low dividend yields. One such company that comes to mind that offers this type of opportunity is AbbVie Inc. (NYSE:ABBV) and ABBV stock.
Every now and then, investors will come across a unique stock that offers dividends and growth. These rare finds have the potential for outsized returns, through their high dividend yields and their potential for share price appreciation. With that in mind, AbbVie has all the makings of a high-dividend stock that also offers growth at a reasonable valuation — which is why it’s my top pick for 2022.
What makes ABBV stock this way? Let’s dive in and take a closer look.
Business Overview
AbbVie is a pharmaceutical company that was spun off from Abbott Laboratories (NYSE:ABT) in 2013. AbbVie was spun off so that it could operate independently, with its own dedicated management team. According to AbbVie, it generated annual revenue and adjusted earnings per share (EPS) growth of 13.5% and 18.8%, respectively, from 2013-2020.
The impressive growth over the past several years was due primarily to its flagship multi-purpose drug Humira. However, Humira’s patent expired in the international markets, which has led to a deep slowdown in growth abroad. Humira faces patent expiration in the U.S. in 2023.
Patent expirations are a leading risk factor for pharmaceutical companies. The entrance of generic and biosimilar products often causes branded pharmaceuticals to lose their pricing power. However, the good news is that AbbVie has prepared for this by investing heavily in new products and acquisitions.
Growth Catalysts for ABBV Stock
Overall, AbbVie has invested significant resources in its research and development (R&D) platform to restock its pipeline. In fact, AbbVie’s R&D expense totaled $6.56 billion in 2020. The result of this investment is that AbbVie has multiple growth opportunities to replace Humira, particularly in the therapeutic areas of immunology, hematology and neuroscience.
Next, AbbVie has pursued growth through acquisitions. Its biggest acquisition was the $63 billion takeover of Allergan. Allergan’s flagship product is Botox, which diversified AbbVie’s portfolio with exposure to global aesthetics, a high-growth market. For example, in the third quarter, global net revenues from AbbVie’s aesthetics portfolio increased 29% operationally to $1.25 billion.
7 Stocks to Buy if Covid-19 Becomes Endemic
Additionally, AbbVie raised its guidance and now expects adjusted EPS in a range of $12.63 to $12.67 for 2021. At the midpoint of guidance, AbbVie’s adjusted EPS is expected to rise by roughly 20% this year — making 2021 another year of strong growth for ABBV stock.
Attractive Stock For Income And Total Returns
Moreover, shareholders benefit from this growth with a high dividend payout and regular dividend increases.
Not only is AbbVie generating strong growth, but the company also pays a hefty dividend with strong dividend raises each year. AbbVie announced a 2022 dividend increase of 8.5%. The company’s forward annualized dividend payout of $5.64 per share represents a current yield of 4.3%. This is a very strong yield, considering the average yield of the S&P 500 index is around 1.4%.
Furthermore, AbbVie is a dividend growth company. Going back to its days as a subsidiary of Abbott, AbbVie has increased its dividend for over 40-consecutive years. As a result, it is a member of the Dividend Aristocrats index, a group of stocks in the S&P 500 with more than 25-consecutive years of dividend growth.
Lastly, despite shares of ABBV stock rising 21% year-to-date (YTD), the stock still has a reasonable valuation. Based on expected EPS of $12.65 for 2021, AbbVie stock trades for a P/E of about 9. With such a low P/E ratio, AbbVie has lots of appeal for value investors. There is plenty of room for AbbVie’s P/E multiple to expand, which would further boost shareholder returns in the form of a rising stock price.
Final Thoughts on ABBV Stock
Putting it all together, AbbVie is a rare example of a growth company with a reasonable valuation and a high dividend yield. This is a unique find in the stock market, and it means AbbVie could generate superior returns through dividends and capital gains.
Furthermore, AbbVie has a positive outlook for 2022, as the company continues to diversify its portfolio and invest for growth. As a result, AbbVie is my top pick for the best stocks for 2022.
On the date of publication, Bob Ciura was LONG ABBV stock. He did not have (either directly or indirectly) any positions in the other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bob Ciura has worked at Sure Dividend since 2016. He oversees all content for Sure Dividend and its partner sites. Prior to joining Sure Dividend, Bob was an independent equity analyst. His articles have been published on major financial websites such as The Motley Fool, Seeking Alpha, Business Insider and more. Bob received a bachelor’s degree in Finance from DePaul University and an MBA with a concentration in investments from the University of Notre Dame.
The post Best Stocks for 2022: Why AbbVie Looks Like High Dividend Growth Stock appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Growth Catalysts for ABBV Stock Overall, AbbVie has invested significant resources in its research and development (R&D) platform to restock its pipeline. The result of this investment is that AbbVie has multiple growth opportunities to replace Humira, particularly in the therapeutic areas of immunology, hematology and neuroscience. Final Thoughts on ABBV Stock Putting it all together, AbbVie is a rare example of a growth company with a reasonable valuation and a high dividend yield. | At the midpoint of guidance, AbbVie’s adjusted EPS is expected to rise by roughly 20% this year — making 2021 another year of strong growth for ABBV stock. This is a unique find in the stock market, and it means AbbVie could generate superior returns through dividends and capital gains. Bob Ciura’s pick for the contest is AbbVie Inc. (NYSE:ABBV) stock. | Final Thoughts on ABBV Stock Putting it all together, AbbVie is a rare example of a growth company with a reasonable valuation and a high dividend yield. The post Best Stocks for 2022: Why AbbVie Looks Like High Dividend Growth Stock appeared first on InvestorPlace. Bob Ciura’s pick for the contest is AbbVie Inc. (NYSE:ABBV) stock. | One such company that comes to mind that offers this type of opportunity is AbbVie Inc. (NYSE:ABBV) and ABBV stock. At the midpoint of guidance, AbbVie’s adjusted EPS is expected to rise by roughly 20% this year — making 2021 another year of strong growth for ABBV stock. Furthermore, AbbVie is a dividend growth company. |
23727.0 | 2021-12-30 00:00:00 UTC | 5 Dividend Stocks To Watch In 2022 | ABBV | https://www.nasdaq.com/articles/5-dividend-stocks-to-watch-in-2022 | nan | nan | Are These The Best Dividend Stocks To Buy In 2022?
Despite the recent volatility in the stock market, 2021 is ending the year with strong gains. The S&P 500 is up 29%, which is significantly higher than its historical average. With the rising threats of the Omicron variant and inflation fears, it’s not difficult to imagine that a market crash could be underway. While it’s impossible to predict when that will happen, some are expecting it to happen in the near term.
As such, it would not surprise me to see high dividend stocks being among the most active stocks around now. For the most part, this would be thanks to the more defensive nature of this group of stocks. Now, when it comes to picking dividend stocks, investors would ideally want to look at firms whose businesses are rock solid. Because, said companies are often the ones that can afford to pay and increase their dividends consistently.
All in all, if investors are looking for more defensive plays in the market, dividend stocks could be their go-to’s. That’s considering these stocks’ generally stable growth and consistent payouts. Nevertheless, dividend stocks remain a viable play for those looking to diversify their portfolios. With that said, could one of these top dividend stocks be worth watching in the stock market today?
Top Dividend Stocks To Watch In 2022
Pfizer Inc. (NYSE: PFE)
Brookfield Renewable Partners LP (NYSE: BEP)
Caterpillar Inc. (NYSE: CAT)
Abbott Laboratories (NYSE: ABT)
Abbvie Inc. (NYSE: ABBV)
Pfizer
Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. Following the successful rollout of the vaccine, the company’s revenue soared 130% year over year to $24.1 billion in the third quarter.
Yet, despite its enormous drug development success and massive profit generation, the company is not resting on its laurels. Pfizer continues to help the world battle COVID-19 with its new oral antiviral treatment, Paxlovid. The pill has been shown to reduce the risk of hospitalization or death by nearly 90% in clinical trials.
Furthermore, the pill can be taken at home and this would change the way we could treat the viral infection. Thus, it would hopefully help reduce the burden on health care centers and hospital systems. Well, the company claims that it is now ready to begin delivery in the U.S. immediately into the hands of appropriate patients as quickly as possible. Pfizer has a dividend yield of over 2.7%. Considering the rising threat of the Omicron variant, do you have PFE stock on your watchlist right now?
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Brookfield Renewable Partners
Brookfield Renewable Partners (BEP) is a renewable energy company that owns and operates renewable power assets. In brief, it operates one of the world’s largest publicly traded, pure-play renewable power platforms. Its portfolio consists of wind, solar, and hydroelectric facilities all over the world. This adds up to approximately 21 gigawatts of installed capacity. What’s more, BEP has a massive development pipeline of 36 gigawatts of renewable-energy assets.
From its latest third quarter results, Brookfield Renewable generated $210 million of funds from operations. That’s up 32% year-over-year. This shows that the company has strong growth prospects, which many other dividend stocks are lacking.
Moreover, the company is also generating plenty of cash to support its dividend yield, which currently stands around 3.4%. And if you’re looking for a renewable energy company with strong growth, BEP stock seems like an obvious choice for many.
Caterpillar
Heavy machinery giant Caterpillar is one of the stocks that will benefit from the infrastructure bill. The funding package combined with strong construction demand, is setting the stage for more growth in 2022 and beyond. For the uninitiated, the infrastructure package includes a 35% increase in spending on highways over the current authorized allocation of $46 billion.
For these reasons, some would argue that this presents a buying opportunity for investors looking to jump on any post-pandemic tailwinds for Caterpillar. The company currently has a dividend yield of 2.1%.
What’s more, the company seems to be kicking into high gear across the board. Caterpillar posted stellar figures in its latest quarterly earnings report. Notably, Caterpillar saw its net income surge by over 113% year-over-year. Secondly, Caterpillar is also working to diversify its portfolio. This is evident from its ongoing partnership with Chevron (NYSE: CVX) with hydrogen fuel cell-powered locomotives. Having read all of this, would you consider CAT stock a top dividend stock to buy now?
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Abbott Laboratories
Health care company Abbott Laboratories is one of the most reliable dividend stocks in the stock market today. Earlier this month, the company announced that its board of directors has yet again increased its quarterly common dividend. This marks the company’s 50th consecutive year of dividend growth. It has now increased to $0.47 per share, a 4.4% increase that follows a 25% increase to the company’s quarterly dividend in 2021. This also marks the company’s 392nd dividend increase in a row, dating back to 1924. Abbott currently has a dividend yield of 1.3%.
On top of that, the company also launched Similac 360 Total Care last month. This represents its next generation of infant formula with human milk oligosaccharides (HMOs).
Besides that, it is also the first and only infant formula in the U.S. with a blend of five different HMOs, previously only found in breast milk. Thus, the formula aims to provide nutrition to support the whole baby’s health and development. Safe to say, Abbott does not appear to be resting on its laurels. All things considered, would you add ABT stock to your portfolio?
Abbvie
Similar to Abbott, AbbVie is another attractive income play in the pharmaceutical space. For investors looking for best dividend stocks in 2022, look no further than AbbVie. The drugmaker currently pays out just over 4% dividend yield.
More notably, the company has boosted its dividends by a whopping 225% since 2013. All of this is possible with the company’s strong pipeline of treatments spanning numerous medical fields. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology.
Financially, the company’s business remains healthy with a total revenue of $14.34 billion in its latest quarter. The company also maintains strong profit margins, coming in at 22.2% in the latest quarter. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. AbbVie has radically transformed its product portfolio ahead of the patent expiration of the anti-inflammatory medicine Humira. That aside, the company still boasts a solid lineup of drugs that could continue to drive top and bottom line growth. With all that said, would you consider adding ABBV stock to your watchlist anytime soon?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Dividend Stocks To Watch In 2022 Pfizer Inc. (NYSE: PFE) Brookfield Renewable Partners LP (NYSE: BEP) Caterpillar Inc. (NYSE: CAT) Abbott Laboratories (NYSE: ABT) Abbvie Inc. (NYSE: ABBV) Pfizer Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. Abbvie Similar to Abbott, AbbVie is another attractive income play in the pharmaceutical space. For investors looking for best dividend stocks in 2022, look no further than AbbVie. | Top Dividend Stocks To Watch In 2022 Pfizer Inc. (NYSE: PFE) Brookfield Renewable Partners LP (NYSE: BEP) Caterpillar Inc. (NYSE: CAT) Abbott Laboratories (NYSE: ABT) Abbvie Inc. (NYSE: ABBV) Pfizer Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. Abbvie Similar to Abbott, AbbVie is another attractive income play in the pharmaceutical space. For investors looking for best dividend stocks in 2022, look no further than AbbVie. | Top Dividend Stocks To Watch In 2022 Pfizer Inc. (NYSE: PFE) Brookfield Renewable Partners LP (NYSE: BEP) Caterpillar Inc. (NYSE: CAT) Abbott Laboratories (NYSE: ABT) Abbvie Inc. (NYSE: ABBV) Pfizer Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. Abbvie Similar to Abbott, AbbVie is another attractive income play in the pharmaceutical space. For investors looking for best dividend stocks in 2022, look no further than AbbVie. | For investors looking for best dividend stocks in 2022, look no further than AbbVie. Top Dividend Stocks To Watch In 2022 Pfizer Inc. (NYSE: PFE) Brookfield Renewable Partners LP (NYSE: BEP) Caterpillar Inc. (NYSE: CAT) Abbott Laboratories (NYSE: ABT) Abbvie Inc. (NYSE: ABBV) Pfizer Pfizer has been stealing the show since its Comirnaty coronavirus vaccine was approved in most major countries. Abbvie Similar to Abbott, AbbVie is another attractive income play in the pharmaceutical space. |
23728.0 | 2021-12-30 00:00:00 UTC | Teva fueled opioid addiction in New York, jury finds | ABBV | https://www.nasdaq.com/articles/teva-fueled-opioid-addiction-in-new-york-jury-finds | nan | nan | By Brendan Pierson
NEW YORK, Dec 30 (Reuters) - Teva Pharmaceutical Industries Ltd TEVA.TA fueled opioid addiction in New York state, a jury found on Thursday, a setback for a company still facing thousands of other opioid-related lawsuits around the United States.
The verdict, which followed a nearly six-month New York state court trial in a case brought by the state and two of its counties, does not include damages, which will be determined later.
The judge in the case is still considering a request Teva made for a mistrial after a lawyer for the state cited an inaccurate statistic about opioid prescriptions in his closing argument. If the verdict stands, it could put pressure on Teva to reach a nationwide settlement with other states and local governments over opioid claims.
New York and Nassau and Suffolk counties had accused the Israel-based drugmaker of engaging in misleading marketing practices that fueled opioid addiction in the state, including by pushing drugs for off-label use.
They focused on Actiq and Fentora, cancer pain drugs made by Cephalon Inc, a company Teva bought in 2011, as well as generic opioids sold by Teva.
The evidence at trial included a parody video made for a Cephalon sales meeting in 2006 in which the villain, Dr. Evil from the "Austin Powers" films, talks about promoting the drugs for non-cancer pain, and another video, based on a courtroom scene in the film "A Few Good Men," in which a Cephalon employee tells a lawyer played by Tom Cruise that he "can't handle the truth" about what sales representatives need to do to meet quotas.
Teva argued at trial that it complied with federal and state regulations and denied engaging in deceptive marketing. It attributed a surge in opioid prescriptions to a change in medical standards of care emphasizing pain treatment beginning in the 1990s.
U.S. officials have said that by 2019, the health crisis had led to nearly 500,000 opioid overdose deaths over two decades. More than 100,000 people died from drug overdoses during the 12-month period ending April 2021, the U.S. Centers for Disease Control and Prevention said in a report in November, a record driven in large part by deaths from opioids like fentanyl.
The New York lawsuit is one of more than 3,300 filed by state, local and Native American tribal governments across the country accusing drugmakers of minimizing the addictiveness of opioid pain medications, and distributors and pharmacies of ignoring red flags that they were being diverted into illegal channels.
Other defendants in the case settled before or during trial - major pharmacies, distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc, and drugmakers Johnson & Johnson, Endo International Plc and AbbVie Inc. AbbVie's settlement, for $200 million, came at the very end of the trial, on the day of closing arguments.
The settlement with J&J and the distributors was part of a nationwide deal worth up to $26 billion. Teva did not take part in that deal.
Teva previously prevailed in a similar case when a California judge on Nov. 2 ruled that it and other drugmakers were not liable in a lawsuit brought by several counties in the state.
OxyContin maker Purdue Pharma filed for bankruptcy in 2019 and had hoped to resolve a flood of lawsuits over the painkiller through a deal in which the company's former owners, the Sackler family, would pay $4.5 billion in exchange for immunity from future lawsuits. However, a federal judge on Dec. 17 scrapped the deal, a decision the company was expected to appeal.
(Reporting By Brendan Pierson in New York, Editing by Alexia Garamfalvi, Jonathan Oatis and Lisa Shumaker)
((Brendan.Pierson@thomsonreuters.com; 646-223-6017 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other defendants in the case settled before or during trial - major pharmacies, distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc, and drugmakers Johnson & Johnson, Endo International Plc and AbbVie Inc. AbbVie's settlement, for $200 million, came at the very end of the trial, on the day of closing arguments. New York and Nassau and Suffolk counties had accused the Israel-based drugmaker of engaging in misleading marketing practices that fueled opioid addiction in the state, including by pushing drugs for off-label use. More than 100,000 people died from drug overdoses during the 12-month period ending April 2021, the U.S. Centers for Disease Control and Prevention said in a report in November, a record driven in large part by deaths from opioids like fentanyl. | Other defendants in the case settled before or during trial - major pharmacies, distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc, and drugmakers Johnson & Johnson, Endo International Plc and AbbVie Inc. AbbVie's settlement, for $200 million, came at the very end of the trial, on the day of closing arguments. By Brendan Pierson NEW YORK, Dec 30 (Reuters) - Teva Pharmaceutical Industries Ltd TEVA.TA fueled opioid addiction in New York state, a jury found on Thursday, a setback for a company still facing thousands of other opioid-related lawsuits around the United States. New York and Nassau and Suffolk counties had accused the Israel-based drugmaker of engaging in misleading marketing practices that fueled opioid addiction in the state, including by pushing drugs for off-label use. | Other defendants in the case settled before or during trial - major pharmacies, distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc, and drugmakers Johnson & Johnson, Endo International Plc and AbbVie Inc. AbbVie's settlement, for $200 million, came at the very end of the trial, on the day of closing arguments. By Brendan Pierson NEW YORK, Dec 30 (Reuters) - Teva Pharmaceutical Industries Ltd TEVA.TA fueled opioid addiction in New York state, a jury found on Thursday, a setback for a company still facing thousands of other opioid-related lawsuits around the United States. They focused on Actiq and Fentora, cancer pain drugs made by Cephalon Inc, a company Teva bought in 2011, as well as generic opioids sold by Teva. | Other defendants in the case settled before or during trial - major pharmacies, distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc, and drugmakers Johnson & Johnson, Endo International Plc and AbbVie Inc. AbbVie's settlement, for $200 million, came at the very end of the trial, on the day of closing arguments. New York and Nassau and Suffolk counties had accused the Israel-based drugmaker of engaging in misleading marketing practices that fueled opioid addiction in the state, including by pushing drugs for off-label use. The evidence at trial included a parody video made for a Cephalon sales meeting in 2006 in which the villain, Dr. |
23729.0 | 2021-12-30 00:00:00 UTC | Abbvie Inc Shares Near 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-near-52-week-high-market-mover-0 | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.4% below its 52 week high of $135.87, giving the company a market cap of $239B. The stock is currently up 32.4% year-to-date, up 35.5% over the past 12 months, and up 171.5% over the past five years. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%.
Trading Activity
Trading volume this week was 19.7% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 40.8%
The company's stock price performance over the past 12 months beats the peer average by 47.5%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.1% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed today at 0.4% below its 52 week high of $135.87, giving the company a market cap of $239B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 40.8% The company's stock price performance over the past 12 months beats the peer average by 47.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.1% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 0.4% below its 52 week high of $135.87, giving the company a market cap of $239B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbvie Inc (ABBV) shares closed today at 0.4% below its 52 week high of $135.87, giving the company a market cap of $239B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 40.8% The company's stock price performance over the past 12 months beats the peer average by 47.5% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.1% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.4% below its 52 week high of $135.87, giving the company a market cap of $239B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23730.0 | 2021-12-30 00:00:00 UTC | Notable Thursday Option Activity: BIIB, ABBV, GPN | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-biib-abbv-gpn | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Biogen Inc (Symbol: BIIB), where a total of 29,370 contracts have traded so far, representing approximately 2.9 million underlying shares. That amounts to about 191% of BIIB's average daily trading volume over the past month of 1.5 million shares. Particularly high volume was seen for the $235 strike put option expiring December 31, 2021, with 1,908 contracts trading so far today, representing approximately 190,800 underlying shares of BIIB. Below is a chart showing BIIB's trailing twelve month trading history, with the $235 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 92,132 contracts thus far today. That number of contracts represents approximately 9.2 million underlying shares, working out to a sizeable 132.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Especially high volume was seen for the $140 strike call option expiring February 18, 2022, with 31,661 contracts trading so far today, representing approximately 3.2 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $140 strike highlighted in orange:
And Global Payments Inc (Symbol: GPN) options are showing a volume of 31,756 contracts thus far today. That number of contracts represents approximately 3.2 million underlying shares, working out to a sizeable 118.5% of GPN's average daily trading volume over the past month, of 2.7 million shares. Especially high volume was seen for the $150 strike call option expiring January 21, 2022, with 17,056 contracts trading so far today, representing approximately 1.7 million underlying shares of GPN. Below is a chart showing GPN's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for BIIB options, ABBV options, or GPN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $140 strike call option expiring February 18, 2022, with 31,661 contracts trading so far today, representing approximately 3.2 million underlying shares of ABBV. Below is a chart showing BIIB's trailing twelve month trading history, with the $235 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 92,132 contracts thus far today. That number of contracts represents approximately 9.2 million underlying shares, working out to a sizeable 132.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. | Below is a chart showing BIIB's trailing twelve month trading history, with the $235 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 92,132 contracts thus far today. That number of contracts represents approximately 9.2 million underlying shares, working out to a sizeable 132.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Especially high volume was seen for the $140 strike call option expiring February 18, 2022, with 31,661 contracts trading so far today, representing approximately 3.2 million underlying shares of ABBV. | That number of contracts represents approximately 9.2 million underlying shares, working out to a sizeable 132.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Below is a chart showing BIIB's trailing twelve month trading history, with the $235 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 92,132 contracts thus far today. Especially high volume was seen for the $140 strike call option expiring February 18, 2022, with 31,661 contracts trading so far today, representing approximately 3.2 million underlying shares of ABBV. | Below is a chart showing GPN's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for BIIB options, ABBV options, or GPN options, visit StockOptionsChannel.com. Below is a chart showing BIIB's trailing twelve month trading history, with the $235 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 92,132 contracts thus far today. That number of contracts represents approximately 9.2 million underlying shares, working out to a sizeable 132.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. |
23731.0 | 2021-12-30 00:00:00 UTC | 3 Dividend Kings That Are Yielding More Than 3% | ABBV | https://www.nasdaq.com/articles/3-dividend-kings-that-are-yielding-more-than-3 | nan | nan | Dividend Kings are among the safest dividend growth stocks you can invest in. These are stocks of companies that have track records of increasing dividend payments for at least 50 years in a row. To break that streak would require something massive to happen, which is why it's generally a safe assumption that not only will the stocks in this exclusive club keep the payouts going, but will also increase them. At a time when inflation is high and eroding purchasing power, a rising dividend can be a way to help fight that and ensure investors' dividend income isn't diminishing over time.
Three Dividend Kings to consider today are AbbVie (NYSE: ABBV), 3M (NYSE: MMM), and Northwest Natural Holding (NYSE: NWN). In addition to being safe, these stocks all yield more than 3%, which is well above the S&P 500 average of just 1.3%.
Image source: Getty Images.
1. AbbVie
AbbVie announced on Oct. 29 that it would be increasing its dividend by 8.5%. Its first quarterly payment of 2022 will be $1.41, which, at a share price of around $134, yields 4.2% annually. AbbVie's streak of dividend increases will hit the 50-year mark next year if its time when the business was part of Abbott Labs (it spun off in 2013) is included, which will also become a Dividend King in 2022.
For 2021, AbbVie projects that its adjusted diluted earnings per share (EPS) will come in at $12.63 or better. Based on that adjusted EPS, the company is paying out less than 50% of its profits. And on a cash basis, the picture looks just as solid: AbbVie has generated $21.7 billion in free cash flow and paid out only $9 billion of that in dividends.
AbbVie's broad portfolio of products includes treatments for immunology, cancer, aesthetics, eye care, women's health, and others. That broad mix of drugs can make this an incredibly secure dividend stock to just buy and forget about. The healthcare company has reported a profit margin of at least 10% in each of the past five years and is a stock that long-term investors won't need to worry about.
2. 3M
Another conservative stock to hold is 3M. The conglomerate sells a wide array of products that serve the medical industry, construction, and other areas of the economy. With more than 100,000 patents, the company's brand has been synonymous with innovation. Although it may not be a high-growth stock these days, it still makes for a stable investment, especially for a dividend investor.
In the past five years, its profit margin hasn't dipped below 14%, and annual revenue has remained fairly steady between $30 billion and $33 billion. 3M is a model of consistency, and the last thing dividend investors want is a suprise. Even though its returns are flat this year while the S&P 500 has risen 27%, what investors will love about the stock is that its dividend yields a solid 3.4% right now. And 3M has increased its dividend for an incredible 63 years in a row. While the company's latest increase was a modest 1% hike, it's still far better than many dividend stocks out there that don't boost payouts at all.
The company's payout ratio sits comfortably below 60% right now, and there's no reason to expect that its dividend-increasing streak will end anytime soon. The company's operations are diverse and with some strong margins, 3M is a good, boring dividend stock investors can buy and hold for years.
3. Northwest Natural Holding
A utility stock often makes for a solid dividend investment because its services are essential and the business can count on recurring sales from customers. Maintaining the status quo can be enough to keep the business generating solid results and leading to predictable dividend payments for investors. And Northwest Natural certainly fills that mold, as the company serves millions of people through its gas, water, and wastewater utilities.
Northwest Natural's margins aren't as high as 3M's or AbbVie's, but at 11% over the trailing 12 months, the company has been generating a consistent profit. However, the business hasn't been generating free cash flow in recent years, that's because the company has been busy growing its business and investing in new opportunities. To grow its water business, Northwest has taken on several acquisitions in recent years, including Idaho-based Falls Water and Sunriver Water & Environmental, which operates in Oregon.
In October, Northwest announced that it would be increasing its dividend for the 66th year in a row, with a modest bump in its annual dividend from $1.92 to $1.93. Although it's not a change, with a payout ratio of around 62%, there's room for Northwest to make bigger increases in the future should it decide to do so.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Three Dividend Kings to consider today are AbbVie (NYSE: ABBV), 3M (NYSE: MMM), and Northwest Natural Holding (NYSE: NWN). AbbVie AbbVie announced on Oct. 29 that it would be increasing its dividend by 8.5%. AbbVie's streak of dividend increases will hit the 50-year mark next year if its time when the business was part of Abbott Labs (it spun off in 2013) is included, which will also become a Dividend King in 2022. | And on a cash basis, the picture looks just as solid: AbbVie has generated $21.7 billion in free cash flow and paid out only $9 billion of that in dividends. Three Dividend Kings to consider today are AbbVie (NYSE: ABBV), 3M (NYSE: MMM), and Northwest Natural Holding (NYSE: NWN). AbbVie AbbVie announced on Oct. 29 that it would be increasing its dividend by 8.5%. | AbbVie's streak of dividend increases will hit the 50-year mark next year if its time when the business was part of Abbott Labs (it spun off in 2013) is included, which will also become a Dividend King in 2022. Three Dividend Kings to consider today are AbbVie (NYSE: ABBV), 3M (NYSE: MMM), and Northwest Natural Holding (NYSE: NWN). AbbVie AbbVie announced on Oct. 29 that it would be increasing its dividend by 8.5%. | AbbVie AbbVie announced on Oct. 29 that it would be increasing its dividend by 8.5%. Northwest Natural's margins aren't as high as 3M's or AbbVie's, but at 11% over the trailing 12 months, the company has been generating a consistent profit. Three Dividend Kings to consider today are AbbVie (NYSE: ABBV), 3M (NYSE: MMM), and Northwest Natural Holding (NYSE: NWN). |
23732.0 | 2021-12-30 00:00:00 UTC | AbbVie Is Much More than Humira | ABBV | https://www.nasdaq.com/articles/abbvie-is-much-more-than-humira | nan | nan | AbbVie (NYSE: ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. The company was spun off of Abbott Labs in 2013 with essentially one product to sell, Humira.
The company took the huge amounts of cash that was thrown off by Humira and invested more than $50 dollars into research and development to prepare for when Humira comes off patent in 2023.
Today AbbVie has 48,000 employees and operates in the immunology, oncology, neuroscience, eye care, virology, woman’s health, and aesthetics spaces. Three-quarters of the medicines in its pipeline are first-of-kind, meaning they are the first to treat a particular disease through that mechanism of action.
This is quite remarkable when considering this is a dividend stock that returns almost 4% of its value back to investors.
After reviewing AbbVie’s stock’s intrinsic value, the company’s plans to move past Humira, and what the Wall Street analysts and bloggers are saying, I am bullish on this stock.
This is a good investment for value investors looking for a payout of approximately 4% with significant upside potential as the market realizes that AbbVie is much more than the company that markets and produces Humira.
Recent Results and Dividend
AbbVie brought in revenues of $55.169 billion over the last 12 months, with a net income of $7.542 billion.
The company reported third-quarter earnings of $3.33 per share, beating analyst estimates of $3.21 per share. It has also reported $9.39 in earnings per share for the first nine months of 2021, beating analyst estimates of $9.10 for the first nine months of 2021.
It has declared a dividend payable on January 12, 2022, of $1.41 per share, with a dividend yield of 4%. This is an increase over the last quarterly dividend issued of $1.30 per share. This also marks the seventh straight year AbbVie has increased dividends.
This is the rare dividend-paying stock where the growth rate of the dividend is outpacing inflation, meaning investors are gaining real purchasing power. Most investments lose value during high inflation, and AbbVie is an exception.
The company shows strength on both the balance sheet and the income statement. The company has a current ratio of 1.015 which means that it has enough money and other current assets on hand to pay its bills over the next year.
When I calculated the stock’s intrinsic value by modeling discounted cash flows, I pegged it at $201.33.
Can The Stock Go Higher?
AbbVie has created a pipeline of pharmaceutical products that will act as a catalyst to drive the share price higher as investors realize that AbbVie is much more than the company that makes Humira.
In addition to carrying out research and development activities on its own, AbbVie has also done a great job using the cash flow from Humira to buy blockbuster drugs like Rivoq and the Botox brand of cosmetic botulinum toxin, used to reduce skin wrinkles and treat migraine headaches.
AbbVie has also partnered with over 220 companies, academic, and government institutions to strengthen its research and development pipeline.
Wall Street’s Take
Fourteen Wall Street analysts currently cover AbbVie and have issued 12-month estimates for the price. Of the 14, 11 rate the stock as a Buy with a high forecast stock price of $172, an average stock price of $133, and a low stock price of $105. The average AbbVie price target represents 2.4% downside potential.
Conclusion
AbbVie has done a great job taking the vast amounts of free cash flows that Humira has generated and purchasing other blockbuster drugs. These will continue to throw off plenty of free cash flow to continue to pay the significant dividend increases that investors have become accustomed to.
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Disclosure: At the time of publication, Tim O’Rourke did not own shares of any stocks mentioned above.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Today AbbVie has 48,000 employees and operates in the immunology, oncology, neuroscience, eye care, virology, woman’s health, and aesthetics spaces. In addition to carrying out research and development activities on its own, AbbVie has also done a great job using the cash flow from Humira to buy blockbuster drugs like Rivoq and the Botox brand of cosmetic botulinum toxin, used to reduce skin wrinkles and treat migraine headaches. Conclusion AbbVie has done a great job taking the vast amounts of free cash flows that Humira has generated and purchasing other blockbuster drugs. | In addition to carrying out research and development activities on its own, AbbVie has also done a great job using the cash flow from Humira to buy blockbuster drugs like Rivoq and the Botox brand of cosmetic botulinum toxin, used to reduce skin wrinkles and treat migraine headaches. Wall Street’s Take Fourteen Wall Street analysts currently cover AbbVie and have issued 12-month estimates for the price. AbbVie (NYSE: ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. | After reviewing AbbVie’s stock’s intrinsic value, the company’s plans to move past Humira, and what the Wall Street analysts and bloggers are saying, I am bullish on this stock. AbbVie has created a pipeline of pharmaceutical products that will act as a catalyst to drive the share price higher as investors realize that AbbVie is much more than the company that makes Humira. AbbVie (NYSE: ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. | AbbVie has created a pipeline of pharmaceutical products that will act as a catalyst to drive the share price higher as investors realize that AbbVie is much more than the company that makes Humira. AbbVie (NYSE: ABBV) discovers, develops, manufactures, and sells pharmaceuticals worldwide. Today AbbVie has 48,000 employees and operates in the immunology, oncology, neuroscience, eye care, virology, woman’s health, and aesthetics spaces. |
23733.0 | 2021-12-28 00:00:00 UTC | Abbvie Inc Shares Near 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-near-52-week-high-market-mover | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.1% below its 52 week high of $134.48, giving the company a market cap of $237B. The stock is currently up 31.5% year-to-date, up 36.4% over the past 12 months, and up 170.6% over the past five years. This week, the Dow Jones Industrial Average rose 3.9%, and the S&P 500 rose 4.9%.
Trading Activity
Trading volume this week was 37.5% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 42.6%
The company's stock price performance over the past 12 months beats the peer average by 56.3%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.8% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed today at 0.1% below its 52 week high of $134.48, giving the company a market cap of $237B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 42.6% The company's stock price performance over the past 12 months beats the peer average by 56.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.8% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 0.1% below its 52 week high of $134.48, giving the company a market cap of $237B. This week, the Dow Jones Industrial Average rose 3.9%, and the S&P 500 rose 4.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbvie Inc (ABBV) shares closed today at 0.1% below its 52 week high of $134.48, giving the company a market cap of $237B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 42.6% The company's stock price performance over the past 12 months beats the peer average by 56.3% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.8% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.1% below its 52 week high of $134.48, giving the company a market cap of $237B. This week, the Dow Jones Industrial Average rose 3.9%, and the S&P 500 rose 4.9%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23734.0 | 2021-12-28 00:00:00 UTC | AbbVie: Valuation, Debt, and Declining Margins Remain Risks | ABBV | https://www.nasdaq.com/articles/abbvie%3A-valuation-debt-and-declining-margins-remain-risks | nan | nan | AbbVie (ABBV) is a biopharmaceutical company focused on key therapeutic areas like immunology, oncology, neuroscience, eye care, virology, women's health, and gastroenterology. The company was founded on October 19, 2011, and is headquartered in North Chicago, IL.
Shares of AbbVie have gains of 25.9% in 2021 and have underperformed the S&P 500, although the underperformance is marginal. I am bearish on ABBV stock. High levels of debt and declining profitability margins are among the risk factors.
AbbVie Business News
Allergan Aesthetics, an AbbVie company, announced on December 16 that it had completed the acquisition of Soliton. The company believes that Solition's technology complements Allergan Aesthetics' portfolio of non-invasive body contouring treatments.
The company also announced that the U.S. Food and Drug Administration (FDA) has approved RINVOQ® for the treatment of adults with active psoriatic arthritis. In addition, VUITY™ (pilocarpine HCl ophthalmic solution) 1.25%, the first and only eye drop approved by the U.S. Food and Drug Administration (FDA) to treat presbyopia, is now available by prescription in pharmacies nationwide.
Q3 Earnings
ABBV stock has rallied over 24% in the past three-month period, partly attributed to strong Q3 2021 financial results. Third-quarter diluted EPS of $1.78 on a GAAP basis showed an increase of 38.0% compared to EPS of $1.29 in Q3 2020. Net revenue of $14.3 billion was up 11.2% on a GAAP basis, and the firm raised its 2021 GAAP diluted EPS guidance range from $6.04 to $6.14 to $6.29 to $6.33.
Additional positive news includes announcing an 8.5% dividend increase in 2022, beginning with a dividend payable in February. The quarterly cash dividend increased from $1.30 per share to $1.41 per share. AbbVie's dividend has been raised significantly over the past years.
Fundamental Risks
AbbVie's guidance increase and better than expected third-quarter earnings currently support the stock.
There are, however, several key risk factors to consider now. Gross margin, operating margins, and net margins have declined over the past five years. The TTM gross margin of 70.2% is very high, but it was even higher in 2019, at 77.6%.
The net margin of 9.9% in 2020 has declined significantly compared to 23.6% in 2019. The overall financial strength of AbbVie is not great due to a large debt level. In the last quarter, its D/E ratio was 5.96.
AbbVie has increased its dividend, but the dividend payout ratio is now considered too high. The current dividend payout ratio of AbbVie Inc is 120%, which does not seem sustainable. There is also a tradeoff between growth and expanding operations.
Very high dividend payout ratios come to at the expense of future growth opportunities and may lead to a dangerous decline in the firm's cash reserves. A stable payout ratio over many years is safer than a volatile trend.
On the positive side, AbbVie has a solid and positive free cash flow trend and, except for 2019, strong revenue growth. The revenue growth in the first nine months of 2021 has lost its momentum, especially for Q1, during which AbbVie reported a quarter-over-quarter decline of 6.12% compared to Q4 2020.
Valuation: Trading at a Premium
ABBV stock is relatively overvalued compared to its industry. Its P/E and P/B ratios are 31.5x and 17.4x, respectively. This compares to the industry averages of 26.1x and 2.7x, respectively.
Wall Street's Take
Turning to Wall Street, AbbVie has a Strong Buy consensus rating, based on 11 Buys and three Holds assigned in the past three months. The average AbbVie price target of $133.00 implies -0.7% downside potential.
Disclosure: At the time of publication, Stavros Georgiadis, CFA did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) is a biopharmaceutical company focused on key therapeutic areas like immunology, oncology, neuroscience, eye care, virology, women's health, and gastroenterology. Shares of AbbVie have gains of 25.9% in 2021 and have underperformed the S&P 500, although the underperformance is marginal. I am bearish on ABBV stock. | AbbVie Business News Allergan Aesthetics, an AbbVie company, announced on December 16 that it had completed the acquisition of Soliton. AbbVie (ABBV) is a biopharmaceutical company focused on key therapeutic areas like immunology, oncology, neuroscience, eye care, virology, women's health, and gastroenterology. Shares of AbbVie have gains of 25.9% in 2021 and have underperformed the S&P 500, although the underperformance is marginal. | AbbVie Business News Allergan Aesthetics, an AbbVie company, announced on December 16 that it had completed the acquisition of Soliton. AbbVie has increased its dividend, but the dividend payout ratio is now considered too high. AbbVie (ABBV) is a biopharmaceutical company focused on key therapeutic areas like immunology, oncology, neuroscience, eye care, virology, women's health, and gastroenterology. | AbbVie has increased its dividend, but the dividend payout ratio is now considered too high. AbbVie (ABBV) is a biopharmaceutical company focused on key therapeutic areas like immunology, oncology, neuroscience, eye care, virology, women's health, and gastroenterology. Shares of AbbVie have gains of 25.9% in 2021 and have underperformed the S&P 500, although the underperformance is marginal. |
23735.0 | 2021-12-28 00:00:00 UTC | What AbbVie's Recent Drug News Means for Shareholders | ABBV | https://www.nasdaq.com/articles/what-abbvies-recent-drug-news-means-for-shareholders | nan | nan | At the end of last month, AbbVie (NYSE: ABBV) informed shareholders that it had submitted its application for Skyrizi to the European Medicines Agency (EMA) to treat patients aged 16 and older diagnosed with moderate to severe Crohn's disease.
But if Crohn's is approved as a third indication for the drug in the European Union, what is Skyrizi's sales potential in that market? To answer that question, let's go over the phase 3 clinical trial results and assess the addressable market.
Image source: Getty Images.
Skyrizi could be an impactful treatment
According to Healthline, Crohn's disease is an inflammatory bowel disease that results in inflammation within the digestive tract. Although the disease can affect any part of the digestive tract, inflammation most often occurs in the small intestine and colon. The symptoms of Crohn's disease can include fatigue, weight loss, and abdominal cramps.
As is the case with other medical conditions, early detection and diagnosis can help patients minimize their chances of adverse complications and live fulfilling lives. Treatments can range from anti-inflammatory drugs for mild disease to biologics for patients with more severe disease.
Skyrizi is one biologic that could effectively treat patients with moderate to severe Crohn's disease, as shown by the data from its phase 3 clinical trials. Patients receiving two starter doses of 600 milligrams or 1200 mg of Skyrizi via injection achieved clinical remission of their Crohn's disease at a much higher rate than patients receiving placebo.
At week 12 after initial dosing, the Skyrizi groups achieved clinical remission at rates of 41% to 45% across the two clinical trials and two different dosing groups of 600 mg and 1200 mg. This was significantly higher than the 19% and 25% clinical remission rates among the placebo groups at the 12-week mark across the two clinical trials.
A significant market opportunity
With a decision on Skyrizi's Crohn's disease application in the EU likely just months away, the question becomes: If the indication is approved based on clinical trial results, what financial impact would this have on AbbVie as a pharma stock?
First, let's determine the overall patient population in the EU with Crohn's disease. Based on its estimated 0.32% prevalence and the EU population of 447.7 million, there are approximately 1.4 million Crohn's patients living in the EU.
But how many of those patients have moderate to severe disease activity? If 10% to 30% of patients have moderate to severe disease, then splitting those estimates down the middle at 20%, there are roughly 280,000 patients in this category.
In a fragmented market with other drugs like Johnson & Johnson's Stelara and Remicade also approved to treat Crohn's disease, I believe a reasonable estimate for Skyrizi's patient share would be 10%. If approved, this works out to around 28,000 patients for Skyrizi's Crohn's indication.
What's a reasonable estimate of how much the drug would generate per patient? Well, Skyrizi's annual list price in the U.S. is $68,000. But given that most patients have health insurance of some kind, this amount is often negotiated lower by insurance companies. This means that it's very rare for patients and insurers to pay the full list price, so let's assume that the actual net price between patients and insurers after insurance adjustments is $40,000. And since the cost of drugs in the EU averages half of what it is in the U.S., let's use an annual net price of $20,000 per patient.
Using these figures, we can estimate annual peak sales of $560 million for this indication alone. This is only 1% of the $56.2 billion in revenue expected this year for AbbVie, although it would be a notable boost to Skyrizi -- which is on track to generate $2.8 billion in revenue this year. And with dozens of other indications at various phases of clinical development within its pipeline, AbbVie appears positioned to quickly bounce back from Humira's U.S. patent expiration in 2023.
AbbVie is still attractively valued for income investors
Since AbbVie's stock is up 21% year to date, you may be wondering whether it is still a buy. Let's take a look at AbbVie's valuation relative to its industry and the stock's dividend payout ratio to find out.
At its current $132 share price, AbbVie is trading at a forward price-to-earnings (P/E) ratio of 9.3. This is well below the general drugmaker industry average of 11.1.
And as AbbVie continues to build a post-Humira future, income investors can collect a well-covered dividend, with a yield now at 4.3%. Based on AbbVie's $5.20 in dividends per share that it paid in 2021, the stock's payout ratio will be a sustainable 41.1% for this year.
AbbVie's undervaluation, safe dividend, and solid yield all make the stock a great pick for both value- and yield-oriented investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | At the end of last month, AbbVie (NYSE: ABBV) informed shareholders that it had submitted its application for Skyrizi to the European Medicines Agency (EMA) to treat patients aged 16 and older diagnosed with moderate to severe Crohn's disease. A significant market opportunity With a decision on Skyrizi's Crohn's disease application in the EU likely just months away, the question becomes: If the indication is approved based on clinical trial results, what financial impact would this have on AbbVie as a pharma stock? And with dozens of other indications at various phases of clinical development within its pipeline, AbbVie appears positioned to quickly bounce back from Humira's U.S. patent expiration in 2023. | A significant market opportunity With a decision on Skyrizi's Crohn's disease application in the EU likely just months away, the question becomes: If the indication is approved based on clinical trial results, what financial impact would this have on AbbVie as a pharma stock? At the end of last month, AbbVie (NYSE: ABBV) informed shareholders that it had submitted its application for Skyrizi to the European Medicines Agency (EMA) to treat patients aged 16 and older diagnosed with moderate to severe Crohn's disease. This is only 1% of the $56.2 billion in revenue expected this year for AbbVie, although it would be a notable boost to Skyrizi -- which is on track to generate $2.8 billion in revenue this year. | A significant market opportunity With a decision on Skyrizi's Crohn's disease application in the EU likely just months away, the question becomes: If the indication is approved based on clinical trial results, what financial impact would this have on AbbVie as a pharma stock? At the end of last month, AbbVie (NYSE: ABBV) informed shareholders that it had submitted its application for Skyrizi to the European Medicines Agency (EMA) to treat patients aged 16 and older diagnosed with moderate to severe Crohn's disease. This is only 1% of the $56.2 billion in revenue expected this year for AbbVie, although it would be a notable boost to Skyrizi -- which is on track to generate $2.8 billion in revenue this year. | A significant market opportunity With a decision on Skyrizi's Crohn's disease application in the EU likely just months away, the question becomes: If the indication is approved based on clinical trial results, what financial impact would this have on AbbVie as a pharma stock? At the end of last month, AbbVie (NYSE: ABBV) informed shareholders that it had submitted its application for Skyrizi to the European Medicines Agency (EMA) to treat patients aged 16 and older diagnosed with moderate to severe Crohn's disease. This is only 1% of the $56.2 billion in revenue expected this year for AbbVie, although it would be a notable boost to Skyrizi -- which is on track to generate $2.8 billion in revenue this year. |
23736.0 | 2021-12-27 00:00:00 UTC | 2 Top-Rated Biotech Stocks for 2022 | ABBV | https://www.nasdaq.com/articles/2-top-rated-biotech-stocks-for-2022 | nan | nan | In 2021, the biotech sector remained in the spotlight. It played a critical role in putting the pandemic under control by developing COVID-19 vaccinations.
In addition, the sector's expansion in 2021 was aided by solid quarterly results, new product introductions, and regular M&A activity.
The pandemic, however, is far from over, especially because the virus's extremely infectious Omicron form has already spread to a number of nations. As a result, biotech companies will remain the focus of interest in 2022.
Therefore, for investors looking for a high-growth choice while also being ready to take on some additional risk, the biotech industry presents an unrivaled opportunity.
With this in mind, we examined TipRanks' database to find two biotech stocks that fit the bullish profile: a solid portfolio and a Strong Buy consensus rating.
Here’s the scoop.
Eli Lilly & Co.
Let's begin with Eli Lilly & Co. (LLY), one of the top pharmaceutical companies in the world. Lilly's pipeline assets for cancer, diabetes and Alzheimer's disease are all attractive.
Dual GIP and GLP-1 receptor agonist for type 2 diabetes, and donanemab, a treatment for early Alzheimer's disease, are two promising pipeline prospects. Both candidates have the potential to deliver strong sales numbers. Both are anticipated to be approved next year.
Furthermore, due to increased projected revenues from its COVID-19 antibody drugs, Lilly upped its previously disclosed 2021 sales and earnings expectations earlier this month. In addition, Lilly's financial outlook for 2022 surpassed expectations: Lilly expects 2022 revenue to be between $27.8 billion and $28.3 billion. On February 3, the company is expected to release its upcoming earnings.
Trulicity and Jardiance (for treating Type 2 diabetes), along with Verzenio (an oncology drug), Taltz (an immunology drug), and other drugs, are expected to account for more than two-thirds of core sales in 2022, according to the company. Further, the expected launch of tirzepatide (a diabetes drug) and donanemab (an Alzheimer's drug) products should further drive sales in the near future.
Furthermore, Lilly is on track to introduce 20 new drugs between 2014 and 2023, having already introduced 16 new medicines in the previous eight years.
In response to the strong guidance provided by the management, Kerry Holford of Berenberg Bank rates Eli Lilly shares a Buy and increased the price target to $305 from $270. This figure suggests room for ~12% upside for the coming year.
Eli Lilly has a Strong Buy consensus rating from Wall Street analysts, with 12 recent assessments, including 9 Buys and 3 Holds. The stock is now trading at $273.1 and the average LLY price target of $291.75 implies around 7% upside from that level.
AbbVie
Second is AbbVie (ABBV), a biopharmaceutical firm that focuses on discovering and selling complete treatments for some of the world's most complex and severe diseases.
Imbruvica and Venclexta, the company's cancer medications, have been successful in increasing their labels. The company also has a number of novel medications in its pipeline that have the potential to boost income. It has a strong late-stage pipeline, with numerous early-stage and mid-stage candidates with blockbuster potential.
The business has been aggressively exploring partnerships and collaborations for candidates in immunology, cancer, aesthetics, neurology, eye care, and women's health, among other therapeutic areas. AbbVie's revenue base has been broadened into new therapeutic areas as a result of the acquisition of Allergan, improving its long-term growth prospects.
Furthermore, due to its diverse product offering and long-term dividend growth track record, the company is a popular choice among investors. Abbvie has been growing its dividend for the past 9 years, and boasts a payout ratio of 42.2%.
On the analyst side, BMO Capital analyst Gary Nachman maintained a Buy rating and a price target of $134.00.
AbbVie has a Strong Buy consensus rating from Wall Street analysts, with 14 recent assessments, including 11 Buys and 3 Holds. The stock is now trading at $133.09 and the average ABBV price target of $133.00 implies that shares are fully valued at current levels.
Disclosure: At the time of publication, Shalu Saraf did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Second is AbbVie (ABBV), a biopharmaceutical firm that focuses on discovering and selling complete treatments for some of the world's most complex and severe diseases. AbbVie's revenue base has been broadened into new therapeutic areas as a result of the acquisition of Allergan, improving its long-term growth prospects. Abbvie has been growing its dividend for the past 9 years, and boasts a payout ratio of 42.2%. | AbbVie has a Strong Buy consensus rating from Wall Street analysts, with 14 recent assessments, including 11 Buys and 3 Holds. AbbVie Second is AbbVie (ABBV), a biopharmaceutical firm that focuses on discovering and selling complete treatments for some of the world's most complex and severe diseases. AbbVie's revenue base has been broadened into new therapeutic areas as a result of the acquisition of Allergan, improving its long-term growth prospects. | AbbVie Second is AbbVie (ABBV), a biopharmaceutical firm that focuses on discovering and selling complete treatments for some of the world's most complex and severe diseases. AbbVie's revenue base has been broadened into new therapeutic areas as a result of the acquisition of Allergan, improving its long-term growth prospects. Abbvie has been growing its dividend for the past 9 years, and boasts a payout ratio of 42.2%. | AbbVie Second is AbbVie (ABBV), a biopharmaceutical firm that focuses on discovering and selling complete treatments for some of the world's most complex and severe diseases. AbbVie's revenue base has been broadened into new therapeutic areas as a result of the acquisition of Allergan, improving its long-term growth prospects. Abbvie has been growing its dividend for the past 9 years, and boasts a payout ratio of 42.2%. |
23737.0 | 2021-12-26 00:00:00 UTC | 3 Dividend Stocks to Buy If the Market Crashes in 2022 | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-if-the-market-crashes-in-2022 | nan | nan | Market crashes happen, and they tend to drag down the best stocks along with the rest of the market. It's impossible to predict the timing and severity of the next downturn, but it's easy to imagine one occurring in the near term.
The omicron variant keeps threatening to pinch the global economy. If the latest variant of concern quickly fizzles out, rising inflation could prompt the Federal Reserve to raise interest rates.
These three companies make reliable dividend payments in good times and bad. Their stocks are up near 52-week highs at the moment, but an overall market downturn could push them down to highly attractive prices. Here's why you want to add them to your watchlist.
Image source: Getty Images.
1. Abbott Laboratories
Abbott Laboratories (NYSE: ABT) shares have gained around 26% in 2021. At recent prices, the stock offers an anemic 1.4% dividend yield.
Patient investors who've held shares of this Dividend Aristocrat have seen their quarterly payments rise 77% over the past five years. Despite the big payout bumps, Abbott only needed around 33% of the free cash flow its operations generated over the past year to make dividend payments. That means the company shouldn't have any trouble raising the payout in line with earnings growth in the foreseeable future.
Abbott is a healthcare conglomerate that makes most of its money selling medical devices and diagnostics. Its medical-device segment is under some pressure due to COVID-19 because it takes a lot of doctor visits before patients can receive a new pacemaker or a replacement heart valve. Despite pandemic pressure, medical-device segment sales during the first nine months of 2021 rose 24.5% year over year to $10.6 billion.
Diagnostics sales in the first nine months of 2021 soared a whopping 73% year over year to $11.2 billion. Soaring demand for COVID-19 tests isn't good news for the medical-device segment, but improved diagnostics sales more than make up the difference.
It's been over 50 years since Abbott went a whole year without raising its dividend payout. Considering the company's well-diversified operation, investors can reasonably expect their payouts to keep rising for another decade or two.
Image source: Getty Images.
2. AbbVie
The second half of 2021 has been disastrous for most drugmaker stocks, but not AbbVie (NYSE: ABBV). Shares of the pharmaceutical giant are up more than 22% this year. Since spinning off from Abbott Laboratories in 2013, the stock has risen around 271%, but that's not the whole story. Once you factor in steadily rising dividend payments, investors who held on to their shares have already received a 438% total return since the beginning of 2013.
Over the past eight years, AbbVie's dividend has risen a whopping 253%, and at recent prices, the stock offers a tempting 4.3% yield. Despite the rapid raises, the company needed just 42% of free cash flow generated over the past year to meet its rapidly rising dividend obligation.
AbbVie has offered an above-average dividend since its inception because investors are rightfully nervous about the company's ability to keep raising it in the long run. This company's largest source of revenue, Humira, is also the world's top-selling drug, with sales that rose 5.6% year over year in the third quarter up to an annualized $21.7 billion.
Humira lost market exclusivity in the EU in 2018, and now 85% of its sales come from the U.S. market. In about a year, biosimilar versions of Humira that are already approved by the Food and Drug Administration (FDA) are expected to finally begin hammering Humira sales into the dirt.
A few years ago, Humira's demise would have been disastrous for AbbVie, but the company's done an outstanding job at using Humira cash flows to license, acquire, and develop new blockbuster drugs that will more than offset the losses. Third-quarter sales of Rinvoq, a once-daily pill for the treatment of rheumatoid arthritis that AbbVie launched in 2019, more than doubled year over year to an annualized $1.8 billion. Sales of Skyrizi, a psoriasis drug also launched in 2019, soared 83.3% year over year to an annualized $3.2 billion.
The Botox brand of injectable botulinum toxin is far more resilient to the loss of exclusivity issues facing Humira because it isn't exactly exclusive in the first place. Cosmetic Botox is more popular than ever, with third-quarter sales that soared 39% year over year to an annualized $2.2 billion. Therapeutic Botox sales rose 23% year over year to an annualized $2.6 billion.
Image source: Getty Images.
3. Johnson & Johnson
Johnson & Johnson (NYSE: JNJ) shares haven't performed as well as Abbott's or AbbVie's this year. Slow-growing sales of consumer-health products like Q-tips and Band-Aids have finally pushed the company to spin off its consumer-health segment into a new company.
You probably want to wait for the dips with Johnson & Johnson because at recent prices, the stock offers an uninspiring 2.5% yield. Once the company splits in two, shareholders will receive two quarterly payouts that should add up to the same amount they were receiving before the spin-off, or even more.
Johnson & Johnson has raised its dividend every year for 60 straight years. Over the past five years, the payout has risen by 32.5%, which isn't amazing but more than enough to outpace inflation.
While I'm not expecting a great deal of growth from the new consumer-health business, Johnson & Johnson's pharmaceutical division is firing on all cylinders. While the company's COVID-19 vaccine gets the most attention, it's not a very important part of the company's overall pharmaceutical business.
Johnson & Johnson's total pharmaceutical sales in the third quarter rose 13.8% year over year. A new psoriasis drug called Tremfya and a cancer therapy called Darzalex provided most of the growth. With the company's new products leading the way, investors can look forward to a steadily growing dividend payout for many years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie The second half of 2021 has been disastrous for most drugmaker stocks, but not AbbVie (NYSE: ABBV). Over the past eight years, AbbVie's dividend has risen a whopping 253%, and at recent prices, the stock offers a tempting 4.3% yield. AbbVie has offered an above-average dividend since its inception because investors are rightfully nervous about the company's ability to keep raising it in the long run. | Over the past eight years, AbbVie's dividend has risen a whopping 253%, and at recent prices, the stock offers a tempting 4.3% yield. AbbVie The second half of 2021 has been disastrous for most drugmaker stocks, but not AbbVie (NYSE: ABBV). AbbVie has offered an above-average dividend since its inception because investors are rightfully nervous about the company's ability to keep raising it in the long run. | Johnson & Johnson Johnson & Johnson (NYSE: JNJ) shares haven't performed as well as Abbott's or AbbVie's this year. AbbVie The second half of 2021 has been disastrous for most drugmaker stocks, but not AbbVie (NYSE: ABBV). Over the past eight years, AbbVie's dividend has risen a whopping 253%, and at recent prices, the stock offers a tempting 4.3% yield. | AbbVie The second half of 2021 has been disastrous for most drugmaker stocks, but not AbbVie (NYSE: ABBV). Over the past eight years, AbbVie's dividend has risen a whopping 253%, and at recent prices, the stock offers a tempting 4.3% yield. AbbVie has offered an above-average dividend since its inception because investors are rightfully nervous about the company's ability to keep raising it in the long run. |
23738.0 | 2021-12-25 00:00:00 UTC | Abbvie Inc Shares Close in on 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-close-in-on-52-week-high-market-mover | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. The stock is currently up 30.2% year-to-date, up 35.1% over the past 12 months, and up 168.6% over the past five years. This week, the Dow Jones Industrial Average rose 1.6%, and the S&P 500 rose 2.3%.
Trading Activity
Trading volume this week was 0.9% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 41.7%
The company's stock price performance over the past 12 months beats the peer average by 55.9%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.5% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 41.7% The company's stock price performance over the past 12 months beats the peer average by 55.9% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.5% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. This week, the Dow Jones Industrial Average rose 1.6%, and the S&P 500 rose 2.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 41.7% The company's stock price performance over the past 12 months beats the peer average by 55.9% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.5% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. This week, the Dow Jones Industrial Average rose 1.6%, and the S&P 500 rose 2.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23739.0 | 2021-12-24 00:00:00 UTC | Abbvie Inc Shares Approach 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-approach-52-week-high-market-mover-0 | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. The stock is currently up 30.2% year-to-date, up 35.0% over the past 12 months, and up 168.6% over the past five years. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 rose 1.2%.
Trading Activity
Trading volume this week was 0.9% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 41.7%
The company's stock price performance over the past 12 months beats the peer average by 57.4%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.5% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 41.7% The company's stock price performance over the past 12 months beats the peer average by 57.4% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.5% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 rose 1.2%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 41.7% The company's stock price performance over the past 12 months beats the peer average by 57.4% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 14.5% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.5% below its 52 week high of $133.77, giving the company a market cap of $235B. This week, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 rose 1.2%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23740.0 | 2021-12-24 00:00:00 UTC | 3 Best Buffett Stocks to Buy for the Long Haul | ABBV | https://www.nasdaq.com/articles/3-best-buffett-stocks-to-buy-for-the-long-haul | nan | nan | Since Warren Buffett took full control of Berkshire Hathaway in 1965, it became a diversified holding company with investments in publicly traded companies totaling nearly $345 billion at the time of writing.
The Oracle of Omaha's reputation of buying the highest quality businesses means that many individual investors could also benefit from adding these stocks to their portfolios. Here are three healthcare stocks that Buffett owns, which you may also want to consider buying and holding for the long run.
Image source: Getty Images.
1. Johnson & Johnson
The first pharma stock within Berkshire's portfolio to contemplate purchasing is Johnson & Johnson (NYSE: JNJ). While the stock is one of Buffett's smallest holdings, valued at just under $55 million, this doesn't take away from its 59 consecutive years of dividend increases that make the stock a Dividend King.
J&J will be spinning off its slower-growing and less profitable consumer health segment in the next 18 to 24 months, which should allow the company to focus on its faster-growing, more profitable pharmaceutical segment.
J&J has a strong existing drug portfolio, which should be able to make up for the upcoming 2025 to 2026 patent expirations for its top-selling drug known, Stelara. Year to date, the immunology drug made up just 9.9% of J&J's $69 billion in net sales.
These drugs include the immunology blockbuster Tremfya, which received its first of three U.S. Food and Drug Administration (FDA) approvals to date in July 2017. Another drug that was recently approved by the FDA was the oncology blockbuster called Darzalex, which received its first of nine FDA approvals to date in November 2015. These two drugs have grown their year-to-date revenue at high-40% clips year over year and should remain under patent most of this decade.
J&J's enviable existing drug portfolio and its nearly four dozen indications in late-stage clinical trials explain why analysts anticipate that the stock will deliver 8% annual non-GAAP (adjusted) earnings per share (EPS) growth over the next five years.
Income investors can scoop up J&J's 2.5% dividend yield at a forward P/E ratio of just 16.2 times, which makes the steady healthcare stock a great buy for the long term.
2. Bristol Myers Squibb
Another Buffett stock that could be a great fit in your portfolio is Bristol Myers Squibb (NYSE: BMY). Berkshire's Bristol Myers Squibb stake totals nearly $1.4 billion, making it one of the largest healthcare holdings in Berkshire's portfolio.
Bristol Myers Squibb's oncology blockbusters Revlimid and Opdivo and the anticoagulant blockbuster co-owned with Pfizer (NYSE: PFE) named Eliquis each face patent expirations later this decade. While looming patent expirations on three drugs that account for approximately two-thirds of your company's total revenue sounds frightening, this is nothing new; it's just the nature of Bristol Myers Squibb's industry.
What matters most is that a company is proactive in developing and acquiring its next generation of blockbuster drugs to absorb key patent expirations. With more than 50 compounds in over 40 different disease areas currently in development at Bristol Myers Squibb, this is exactly what the company has been doing for years now.
As a result, analysts are projecting that Bristol Myers Squibb will be able to generate 6% annual earnings growth through the next five years.
Yield-hungry investors can buy Bristol Myers Squibb's market-crushing 3.5% yield at a ridiculously cheap forward P/E ratio of 7.9, which is what makes the stock a buy for those looking to hedge against inflation.
3. AbbVie
Finally, a Buffett stock that'd also be a good fit for income investors is AbbVie (NYSE: ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock.
It's well known at this point that the biopharmaceutical's top-selling drug in the world, Humira, will be facing intense biosimilar competition in the U.S. beginning in 2023. Even though the immunology drug's U.S. sales made up 31% of AbbVie's $41.24 billion total year-to-date sales, the company's pipeline should be able to stabilize and grow its net revenue beyond 2023.
AbbVie has 54 compounds in various stages of clinical trials, which is why analysts are forecasting that the stock will grow its adjusted EPS 4.5% annually in the next five years.
AbbVie's massive 4.4% dividend yield can be picked up at a forward P/E ratio of only 9.3. This is an attractive valuation for a stock with the ability to fight off inflation with healthy dividend hikes.
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Kody Kester owns AbbVie, Bristol Myers Squibb, Johnson & Johnson, and Pfizer. The Motley Fool owns and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Finally, a Buffett stock that'd also be a good fit for income investors is AbbVie (NYSE: ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock. Even though the immunology drug's U.S. sales made up 31% of AbbVie's $41.24 billion total year-to-date sales, the company's pipeline should be able to stabilize and grow its net revenue beyond 2023. | Even though the immunology drug's U.S. sales made up 31% of AbbVie's $41.24 billion total year-to-date sales, the company's pipeline should be able to stabilize and grow its net revenue beyond 2023. AbbVie Finally, a Buffett stock that'd also be a good fit for income investors is AbbVie (NYSE: ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock. | See the 10 stocks *Stock Advisor returns as of December 16, 2021 Kody Kester owns AbbVie, Bristol Myers Squibb, Johnson & Johnson, and Pfizer. AbbVie Finally, a Buffett stock that'd also be a good fit for income investors is AbbVie (NYSE: ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock. | AbbVie Finally, a Buffett stock that'd also be a good fit for income investors is AbbVie (NYSE: ABBV). Berkshire currently holds about $1.9 billion worth of AbbVie stock. Even though the immunology drug's U.S. sales made up 31% of AbbVie's $41.24 billion total year-to-date sales, the company's pipeline should be able to stabilize and grow its net revenue beyond 2023. |
23741.0 | 2021-12-23 00:00:00 UTC | Interesting ABBV Put And Call Options For February 2022 | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-february-2022 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the February 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $131.00 strike price has a current bid of $3.75. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $131.00, but will also collect the premium, putting the cost basis of the shares at $127.25 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $133.23/share today.
Because the $131.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.86% return on the cash commitment, or 24.30% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $131.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $135.00 strike price has a current bid of $2.74. If an investor was to purchase shares of ABBV stock at the current price level of $133.23/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $135.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.39% if the stock gets called away at the February 2022 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $135.00 strike highlighted in red:
Considering the fact that the $135.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 2.06% boost of extra return to the investor, or 17.46% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $133.23) to be 20%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $135.00 strike highlighted in red: Considering the fact that the $135.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the February 2022 expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $135.00 strike highlighted in red: Considering the fact that the $135.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the February 2022 expiration. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $131.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $135.00 strike price has a current bid of $2.74. Below is a chart showing ABBV's trailing twelve month trading history, with the $135.00 strike highlighted in red: Considering the fact that the $135.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the February 2022 expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new February 2022 contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $135.00 strike highlighted in red: Considering the fact that the $135.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the February 2022 expiration. |
23742.0 | 2021-12-23 00:00:00 UTC | iShares Core S&P Total U.S. Stock Market ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-core-sp-total-u.s.-stock-market-etf-experiences-big-inflow | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $295.6 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 431,350,000 to 434,150,000). Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.8%, Coca-Cola Co (Symbol: KO) is up about 0.3%, and Chevron Corporation (Symbol: CVX) is higher by about 1.1%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average:
Looking at the chart above, ITOT's low point in its 52 week range is $84.11 per share, with $107.92 as the 52 week high point — that compares with a last trade of $106.16. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.8%, Coca-Cola Co (Symbol: KO) is up about 0.3%, and Chevron Corporation (Symbol: CVX) is higher by about 1.1%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $84.11 per share, with $107.92 as the 52 week high point — that compares with a last trade of $106.16. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.8%, Coca-Cola Co (Symbol: KO) is up about 0.3%, and Chevron Corporation (Symbol: CVX) is higher by about 1.1%. For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $84.11 per share, with $107.92 as the 52 week high point — that compares with a last trade of $106.16. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.8%, Coca-Cola Co (Symbol: KO) is up about 0.3%, and Chevron Corporation (Symbol: CVX) is higher by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $295.6 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 431,350,000 to 434,150,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $84.11 per share, with $107.92 as the 52 week high point — that compares with a last trade of $106.16. | Among the largest underlying components of ITOT, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.8%, Coca-Cola Co (Symbol: KO) is up about 0.3%, and Chevron Corporation (Symbol: CVX) is higher by about 1.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Core S&P Total U.S. Stock Market ETF (Symbol: ITOT) where we have detected an approximate $295.6 million dollar inflow -- that's a 0.6% increase week over week in outstanding units (from 431,350,000 to 434,150,000). For a complete list of holdings, visit the ITOT Holdings page » The chart below shows the one year price performance of ITOT, versus its 200 day moving average: Looking at the chart above, ITOT's low point in its 52 week range is $84.11 per share, with $107.92 as the 52 week high point — that compares with a last trade of $106.16. |
23743.0 | 2021-12-23 00:00:00 UTC | Abbvie Inc Shares Approach 52-Week High - Market Mover | ABBV | https://www.nasdaq.com/articles/abbvie-inc-shares-approach-52-week-high-market-mover | nan | nan | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $133.28, giving the company a market cap of $229B. The stock is currently up 27.1% year-to-date, up 31.3% over the past 12 months, and up 166.1% over the past five years. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%.
Trading Activity
Trading volume this week was 15.8% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis
The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 34.9%
The company's stock price performance over the past 12 months beats the peer average by 57.8%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 13.3% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $133.28, giving the company a market cap of $229B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.6. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 34.9% The company's stock price performance over the past 12 months beats the peer average by 57.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 13.3% higher than the average peer. | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $133.28, giving the company a market cap of $229B. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $133.28, giving the company a market cap of $229B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and beats it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and beats it on a 5-year basis The company share price is the same as the performance of its peers in the Health Care industry sector , beats it on a 1-year basis, and beats it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 34.9% The company's stock price performance over the past 12 months beats the peer average by 57.8% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 13.3% higher than the average peer. This story was produced by the Kwhen Automated News Generator. | Abbvie Inc (ABBV) shares closed today at 0.9% below its 52 week high of $133.28, giving the company a market cap of $229B. This week, the Dow Jones Industrial Average fell 0.5%, and the S&P 500 fell 0.3%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought. |
23744.0 | 2021-12-22 00:00:00 UTC | Noteworthy Wednesday Option Activity: CF, CAMP, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-cf-camp-abbv | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in CF Industries Holdings Inc (Symbol: CF), where a total of 14,266 contracts have traded so far, representing approximately 1.4 million underlying shares. That amounts to about 51.5% of CF's average daily trading volume over the past month of 2.8 million shares. Particularly high volume was seen for the $80 strike call option expiring January 21, 2022, with 3,586 contracts trading so far today, representing approximately 358,600 underlying shares of CF. Below is a chart showing CF's trailing twelve month trading history, with the $80 strike highlighted in orange:
CalAmp Corp (Symbol: CAMP) options are showing a volume of 1,067 contracts thus far today. That number of contracts represents approximately 106,700 underlying shares, working out to a sizeable 50% of CAMP's average daily trading volume over the past month, of 213,435 shares. Especially high volume was seen for the $7.50 strike call option expiring January 21, 2022, with 379 contracts trading so far today, representing approximately 37,900 underlying shares of CAMP. Below is a chart showing CAMP's trailing twelve month trading history, with the $7.50 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 35,778 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 7.2 million shares. Especially high volume was seen for the $105 strike put option expiring February 18, 2022, with 2,505 contracts trading so far today, representing approximately 250,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange:
For the various different available expirations for CF options, CAMP options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $105 strike put option expiring February 18, 2022, with 2,505 contracts trading so far today, representing approximately 250,500 underlying shares of ABBV. Below is a chart showing CAMP's trailing twelve month trading history, with the $7.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 35,778 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 7.2 million shares. | Below is a chart showing CAMP's trailing twelve month trading history, with the $7.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 35,778 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 7.2 million shares. Especially high volume was seen for the $105 strike put option expiring February 18, 2022, with 2,505 contracts trading so far today, representing approximately 250,500 underlying shares of ABBV. | Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange: For the various different available expirations for CF options, CAMP options, or ABBV options, visit StockOptionsChannel.com. Below is a chart showing CAMP's trailing twelve month trading history, with the $7.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 35,778 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 7.2 million shares. | That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 49.5% of ABBV's average daily trading volume over the past month, of 7.2 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $105 strike highlighted in orange: For the various different available expirations for CF options, CAMP options, or ABBV options, visit StockOptionsChannel.com. Below is a chart showing CAMP's trailing twelve month trading history, with the $7.50 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 35,778 contracts thus far today. |
23745.0 | 2021-12-22 00:00:00 UTC | 3 of the Best Biotech Stocks for 2022 to Buy Now | ABBV | https://www.nasdaq.com/articles/3-of-the-best-biotech-stocks-for-2022-to-buy-now | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The coronavirus is kicking back into gear again, with investors licking their lips over biotech stocks. The omicron variant has roiled the world, which makes biotech’s the most pertinent investment option at this time.
Naturally, most of the market-leading biotechs are those that have generated a sizeable amount of their revenues in the past couple of years from Covid-19. The Covid-19 market has been highly lucrative for most biotechs, with some witnessing a massive turnaround in their fortunes.
The biotech sector offers a multitude of opportunities for investors. Most biotech companies ruling the roost now boast incredible drug candidate pipelines and have winning drugs in the market.
7 Stay-At-Home Stocks to Buy as Remote Work Lingers On
Moreover, the pandemic-led tailwinds have also multiplied the opportunities in the biotech sector. Looking ahead, the pharma industry is set to grow at roughly 5% on an annual basis from $1.3 trillion in 2020 to $1.6 trillion by 2025.
Here are three top biotech stocks to buy for 2022:
Pfizer (NYSE:PFE)
AbbVie (NYSE:ABBV)
Novavax (NASDAQ:NVAX)
Best Biotech Stocks To Buy: Pfizer (PFE)
PFE) logo on the windows of a corporate building" width="300" height="169">
Source: photobyphm / Shutterstock.com
Pfizer struggled before the pandemic, with an unattractive portfolio and dwindling top-line growth. However, it’s been a 360-degree change after the successful release of its coronavirus vaccine.
With its antiviral drug Paxlovid, it could generate upwards of $100 billion within the next couple of years. Moreover, revenue growth on a year-over-year basis is at a staggering 114%, with EBITDA growth at 233%.
Approvals in several countries for booster shots and children are likely to increase vaccine sales within the next two years significantly. On top of that, Covid-19 could be endemic, which bodes well for sales of Pfizer’s vaccine and antiviral pill for years to come. Global sales from the company’s Covid-19 vaccine in the third quarter alone were superb $13 billion. Hence, there’s still an incredible growth runway ahead for PFE stock.
AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
Pharma giant AbbVie has been an incredible performer, outperforming the broader market in the past five years. Over the past several years, financial results have been solid, spearheaded by its mega-blockbuster rheumatoid arthritis drug Humira. Humira is the world’s most successful drug in terms of sales.
On top of that, it boasts a highly attractive dividend profile, with almost an 18% five-year dividend growth and a 4.3% yield.
The company has been highly consistent in maintaining an upward trend in the top and bottom-line results on the financial front. In the third quarter, the enterprise generated over $14.3 billion in sales, which came in 11.2% higher than the prior-year period. Moreover, its immunology business, which includes sales of Humira, witnessed a healthy 15.3% increase to $6.8 billion from the same period last year.
AbbVie’s earnings grew 38% to roughly $1.80 per share. Additionally, it generated a truckload of cash with a 282% increase from the prior-year period in free cash flows to $21.7 billion. ABBV stock is one of the most attractive biotech stocks out there.
Best Biotech Stocks to Buy: Novavax (NVAX)
NVAX) logo waving in the wind with the American flag in the background" width="300" height="169">
Source: rarrarorro / Shutterstock.com
Novavax is on the verge of commercializing its highly anticipated Covid-19 vaccine. Its vaccine was recently green-lit by the World Health Organization and should receive approval elsewhere. Moreover, its several exciting products in its pipeline which could result in monster revenues next year.
The vaccine technology company has an impeccable safety record and is conducive for distribution in lower and medium-income countries. Additionally, its vaccines are also safer than other market offerings for children.
Analysts’ estimate suggests that its revenues could go from just $18.6 million in 2019 to $4.8 billion in 2022. The company has plans to produce over 2 billion Covid-19 doses next year. If it doesn’t run into production troubles, it could comfortably achieve its target, resulting in hefty returns for NVAX stockholders.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 of the Best Biotech Stocks for 2022 to Buy Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are three top biotech stocks to buy for 2022: Pfizer (NYSE:PFE) AbbVie (NYSE:ABBV) Novavax (NASDAQ:NVAX) Best Biotech Stocks To Buy: Pfizer (PFE) PFE) logo on the windows of a corporate building" width="300" height="169"> Source: photobyphm / Shutterstock.com Pfizer struggled before the pandemic, with an unattractive portfolio and dwindling top-line growth. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharma giant AbbVie has been an incredible performer, outperforming the broader market in the past five years. AbbVie’s earnings grew 38% to roughly $1.80 per share. | Here are three top biotech stocks to buy for 2022: Pfizer (NYSE:PFE) AbbVie (NYSE:ABBV) Novavax (NASDAQ:NVAX) Best Biotech Stocks To Buy: Pfizer (PFE) PFE) logo on the windows of a corporate building" width="300" height="169"> Source: photobyphm / Shutterstock.com Pfizer struggled before the pandemic, with an unattractive portfolio and dwindling top-line growth. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharma giant AbbVie has been an incredible performer, outperforming the broader market in the past five years. AbbVie’s earnings grew 38% to roughly $1.80 per share. | Here are three top biotech stocks to buy for 2022: Pfizer (NYSE:PFE) AbbVie (NYSE:ABBV) Novavax (NASDAQ:NVAX) Best Biotech Stocks To Buy: Pfizer (PFE) PFE) logo on the windows of a corporate building" width="300" height="169"> Source: photobyphm / Shutterstock.com Pfizer struggled before the pandemic, with an unattractive portfolio and dwindling top-line growth. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharma giant AbbVie has been an incredible performer, outperforming the broader market in the past five years. AbbVie’s earnings grew 38% to roughly $1.80 per share. | ABBV stock is one of the most attractive biotech stocks out there. Here are three top biotech stocks to buy for 2022: Pfizer (NYSE:PFE) AbbVie (NYSE:ABBV) Novavax (NASDAQ:NVAX) Best Biotech Stocks To Buy: Pfizer (PFE) PFE) logo on the windows of a corporate building" width="300" height="169"> Source: photobyphm / Shutterstock.com Pfizer struggled before the pandemic, with an unattractive portfolio and dwindling top-line growth. AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com Pharma giant AbbVie has been an incredible performer, outperforming the broader market in the past five years. |
23746.0 | 2021-12-22 00:00:00 UTC | Got $1,000? These 3 Stocks Are Still Absurdly Cheap | ABBV | https://www.nasdaq.com/articles/got-%241000-these-3-stocks-are-still-absurdly-cheap | nan | nan | Let's face it: Many stocks are ridiculously expensive. Even after the recent pullback, the S&P 500 index remains only 3% or so below its all-time high. The Shiller cyclically adjusted price-to-earnings (CAPE) ratio for the index is at its highest level since 2000.
But some stocks are definite outliers. If you've got $1,000 to invest, these three stocks are still absurdly cheap.
Image source: Getty Images.
1. Viatris
Viatris' (NASDAQ: VTRS) valuation is so low that I had to double-check the numbers. But shares of this drugmaker actually do trade at less than 3.4 times expected earnings. If Viatris chose to use its profits on stock buybacks, it could scoop up every outstanding share by mid-2025.
The company isn't going to do that, of course. Viatris' main priorities for using its capital are to pay down debt and to fund its dividend program. Its dividend ranks as a key attraction for investors with a yield of nearly 3.4%.
No, Viatris isn't going to be a fantastic growth story anytime soon. Of course, with its rock-bottom valuation and solid dividend, it doesn't have to be. But the company's growth prospects are likely to improve over the next few years.
Viatris' Semglee biosimilar to Lantus is already winning spots on top drug formularies. The company recently won a key legal victory for its generic version of Biogen's multiple sclerosis drug Tecfidera. It should be in a great position to be the first to file for approval of a biosimilar to blockbuster eye-disease drug Eylea. Viatris' pipeline also includes several other biosimilars, generics, and injectables that are close to potentially winning approvals.
2. AbbVie
Another drugmaker isn't quite as inexpensive as Viatris but still sports a quite attractive valuation. AbbVie's (NYSE: ABBV) shares trade below nine times expected earnings. And that's after the stock jumped more than 20% this year.
Is the loss of U.S. exclusivity for top-selling Humira in 2023 enough to warrant AbbVie's bargain price tag? Maybe, but I think the pessimism is overdone. Although Humira's sales will certainly decline a lot, they won't evaporate.
More importantly, AbbVie has several drugs that should contribute growth to help offset Humira's lower sales. Newer autoimmune disease drugs Skyrizi and Rinvoq are key components of the company's post-Humira strategy. Although Rinvoq's sales will be lower than hoped due to the U.S. Food and Drug Administration's warnings for JAK inhibitors, it should still be a big winner.
Don't overlook AbbVie's dividend yield of nearly 4.4%. The company is one dividend increase away from becoming a Dividend King -- members of the S&P that have raised their dividends for at least 50 consecutive years. Expect AbbVie to keep its dividend increase streak going.
3. Enterprise Products Partners
It's not just pharma stocks that are available at discounts. Shares of midstream energy company Enterprise Products Partners (NYSE: EPD) currently trade at less than 10 times expected earnings.
The oil and gas industry has made a solid comeback as the global economy reopened in 2021. Demand is expected to reach 2019 levels again in 2022. That's good news for Enterprise, the world's largest exporter of liquified petroleum gas and a major operator of oil and natural gas pipelines.
Arguably the biggest knock against Enterprise Products Partners is that there's a transition in progress away from fossil fuels to renewable energy sources. The company thinks, though, that it will continue to benefit from growth in the demand for petrochemicals and natural gas over the next two decades.
Enterprise also offers investors a juicy dividend yield of more than 8.5%. The company has increased its dividend for 23 consecutive years.
10 stocks we like better than Viatris Inc.
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Keith Speights owns AbbVie, Enterprise Products Partners, and Viatris. The Motley Fool recommends Biogen, Enterprise Products Partners, and Viatris. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Another drugmaker isn't quite as inexpensive as Viatris but still sports a quite attractive valuation. AbbVie's (NYSE: ABBV) shares trade below nine times expected earnings. Is the loss of U.S. exclusivity for top-selling Humira in 2023 enough to warrant AbbVie's bargain price tag? | AbbVie Another drugmaker isn't quite as inexpensive as Viatris but still sports a quite attractive valuation. AbbVie's (NYSE: ABBV) shares trade below nine times expected earnings. Is the loss of U.S. exclusivity for top-selling Humira in 2023 enough to warrant AbbVie's bargain price tag? | See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie, Enterprise Products Partners, and Viatris. AbbVie Another drugmaker isn't quite as inexpensive as Viatris but still sports a quite attractive valuation. AbbVie's (NYSE: ABBV) shares trade below nine times expected earnings. | AbbVie Another drugmaker isn't quite as inexpensive as Viatris but still sports a quite attractive valuation. AbbVie's (NYSE: ABBV) shares trade below nine times expected earnings. Is the loss of U.S. exclusivity for top-selling Humira in 2023 enough to warrant AbbVie's bargain price tag? |
23747.0 | 2021-12-21 00:00:00 UTC | Why CytomX Therapeutics Stock Is Crashing Today | ABBV | https://www.nasdaq.com/articles/why-cytomx-therapeutics-stock-is-crashing-today | nan | nan | What happened
Shares of CytomX Therapeutics (NASDAQ: CTMX) were crashing 40.1% lower as of 11:44 a.m. ET on Tuesday. The steep decline came after the company announced disappointing preliminary results from a phase 2 study evaluating CX-2029 in treating patients with either advanced squamous non-small cell lung cancer (sqNSCLC) or head and neck squamous cell carcinoma (HNSCC). CX-2029 is an antibody-drug conjugate that's being co-developed by CytomX and AbbVie (NYSE: ABBV).
So what
CytomX Therapeutics Chairman and CEO Sean McCarthy said in a press release that the company was "pleased" to report the preliminary results. He added that CytomX is "encouraged" by the response rates seen and the low discontinuation rate in the phase 2 study.
So why did the biotech stock plunge with this seemingly positive reaction?
Image source: Getty Images.
McCarthy is doing what many biopharmaceutical executives do when they have disappointing news to share. Like Bing Crosby once sang, he accentuated the positive. However, the lyrics to that old song also mentioned eliminating the negative. CytomX wasn't able to do that.
The company reported an objective response rate (the percent of patients whose tumors decreased) of 18.8% in patients with advanced sqNSCLC who were treated with CX-2029. The objective response rate for patients with HNSCC was only 4%.
However, disease-control rates looked better with both types of cancer -- 87.5% for sqNSCLC and 56% for HNSCC. The safety profile for CX-2029 was also consistent with what was observed in the phase 1 study of the antibody-drug conjugate.
Now what
CytomX and AbbVie are continuing enrollment in the phase 2 study of patients with lung cancer. The partners expect to provide additional updates in 2022.
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Keith Speights owns AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Now what CytomX and AbbVie are continuing enrollment in the phase 2 study of patients with lung cancer. CX-2029 is an antibody-drug conjugate that's being co-developed by CytomX and AbbVie (NYSE: ABBV). See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie. | CX-2029 is an antibody-drug conjugate that's being co-developed by CytomX and AbbVie (NYSE: ABBV). Now what CytomX and AbbVie are continuing enrollment in the phase 2 study of patients with lung cancer. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie. | CX-2029 is an antibody-drug conjugate that's being co-developed by CytomX and AbbVie (NYSE: ABBV). Now what CytomX and AbbVie are continuing enrollment in the phase 2 study of patients with lung cancer. See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie. | Now what CytomX and AbbVie are continuing enrollment in the phase 2 study of patients with lung cancer. CX-2029 is an antibody-drug conjugate that's being co-developed by CytomX and AbbVie (NYSE: ABBV). See the 10 stocks *Stock Advisor returns as of December 16, 2021 Keith Speights owns AbbVie. |
23748.0 | 2021-12-21 00:00:00 UTC | Better Buy: Viatris vs. AbbVie | ABBV | https://www.nasdaq.com/articles/better-buy%3A-viatris-vs.-abbvie | nan | nan | With a market cap of nearly $16 billion, the generic drugmaker Viatris (NASDAQ: VTRS) is minuscule in comparison to the profitable pharma titan AbbVie's (NYSE: ABBV) $228 billion. But, with Viatris' revenue growth starting to take off just as AbbVie's is decelerating, the fact that the smaller company is currently unprofitable may not deter investors.
And, since each company is in the midst of transitionary periods that are unprecedented, the risks of investing in either are higher than they'd normally be. Let's consider the merits of these stocks to weigh the chances of success moving forward.
Image source: Getty Images.
Viatris could become a generic drug juggernaut
Viatris owns the rights to manufacture money-printing drugs like Lipitor, Lyrica, Xanax, Viagra, and Zoloft, all of which are available as generics. Because the demand for generic drugs is largely predictable, it hopes to pay out an ever-increasing dividend to its shareholders using stable cash flows.
So far, things look like they're on the right track to accomplish that goal. In the third quarter, its earnings grew by 67.7% year over year. By 2024, management expects to realize around $1 billion in cost synergies stemming from the company's recent merger with Mylan. That'll help to grow its bottom line even faster, which should (eventually) support other shareholder rewards like stock buybacks.
Then there's Viatris' choice to focus its future expansion efforts on China, which currently only accounts for $1.8 billion in revenue and works out to be around 10% of its global revenue. If demand for generic drugs in China matches management's expectations, it'll pave the way for the company to reduce its $23.7 billion in debt and increase its top line even further. In the meantime, that debt will be weighing down Viatris' ability to reinvest its accumulated capital from operations.
Still, that won't stop it from adding more complex generic drugs to its repertoire over time. Whereas the Viatris of today "only" produces 17 complex biosimilars, the company plans to break into manufacturing 13 additional biosimilar therapies, which have a combinedglobal marketvalue in excess of $57 billion. Capturing even a small portion of that market would be enough to supercharge Viatris' recurring revenue, and that's one of the key ways in which it could be a great investment over the next decade.
AbbVie aims to regroup amid Humira's falloff
AbbVie's powerhouse drug for psoriatic arthritis, Humira, is approaching the end of its lifetime as a moneymaker. Though revenue from the drug's sales in the U.S. increased by 10.1% to reach $4.6 billion in the third quarter compared to the prior year, in international markets it's 16.7% on an operational basis.
The reason for this is that biosimilars for Humira are now widely available outside the U.S. That's a growing problem for shareholders, but the good news is that management has seen this moment coming for quite some time. To replace the revenues that are expected to be eroded by biosimilars, the company has worked to expand the indications of a few of its other commercialized drugs like Rinvoq and Skyrizi. This is so the drugs can continue to compete in the same markets as Humira.
Next year, AbbVie expects to get regulatory approvals for two more indications for Skyrizi, and one more for Rinvoq, not to mention seven other expanded indications for other drugs. It also plans to make regulatory submissions for two other Rinvoq indications plus a slew of other expansions. All of that is good news for investors because it means that there will be newly approved indications to start ramping up revenue just as Humira starts to ramp down more aggressively in 2023.
For the time being, AbbVie's forward dividend yield of 4.33% is a convincing reason for investors to buy the stock or stick around through the next few years of transition away from Humira. And, if management continues to hike the dividend as it has in the past, people who invest now could benefit significantly over the long term.
Which business will be succeeding in the future?
Both of these businesses are in a somewhat precarious state. Whereas AbbVie's ongoing pipeline projects may or may not be able to overcome the loss of revenue from Humira if they hit the market. Viatris has hardly established itself as a generic manufacturer that's as dependable for investors as its competitors are.
In the event that AbbVie fails to deliver on its promises of revenue growth returning with gusto once again, it'll be bad for shareholders. Likewise, if Viatris can't shore up its gross margin enough that it can start to report profits, the company will lack the steady cash flows that it needs to pay out a healthy dividend to investors.
In a nutshell, the question of which stock is the better buy is a question of what kind of stock you'd rather own in a few years when hopefully both will be done with navigating the challenges mentioned above. AbbVie is a drug developer at heart, which means that it has the potential to create massive returns for investors, provided that its clinical trials are successful. In contrast, Viatris carries a much lower risk, but also a minimized chance for a high reward, as demand for generics expands only slowly.
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Alex Carchidi owns AbbVie. The Motley Fool recommends Viatris Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With a market cap of nearly $16 billion, the generic drugmaker Viatris (NASDAQ: VTRS) is minuscule in comparison to the profitable pharma titan AbbVie's (NYSE: ABBV) $228 billion. But, with Viatris' revenue growth starting to take off just as AbbVie's is decelerating, the fact that the smaller company is currently unprofitable may not deter investors. AbbVie aims to regroup amid Humira's falloff AbbVie's powerhouse drug for psoriatic arthritis, Humira, is approaching the end of its lifetime as a moneymaker. | But, with Viatris' revenue growth starting to take off just as AbbVie's is decelerating, the fact that the smaller company is currently unprofitable may not deter investors. With a market cap of nearly $16 billion, the generic drugmaker Viatris (NASDAQ: VTRS) is minuscule in comparison to the profitable pharma titan AbbVie's (NYSE: ABBV) $228 billion. AbbVie aims to regroup amid Humira's falloff AbbVie's powerhouse drug for psoriatic arthritis, Humira, is approaching the end of its lifetime as a moneymaker. | With a market cap of nearly $16 billion, the generic drugmaker Viatris (NASDAQ: VTRS) is minuscule in comparison to the profitable pharma titan AbbVie's (NYSE: ABBV) $228 billion. For the time being, AbbVie's forward dividend yield of 4.33% is a convincing reason for investors to buy the stock or stick around through the next few years of transition away from Humira. But, with Viatris' revenue growth starting to take off just as AbbVie's is decelerating, the fact that the smaller company is currently unprofitable may not deter investors. | With a market cap of nearly $16 billion, the generic drugmaker Viatris (NASDAQ: VTRS) is minuscule in comparison to the profitable pharma titan AbbVie's (NYSE: ABBV) $228 billion. But, with Viatris' revenue growth starting to take off just as AbbVie's is decelerating, the fact that the smaller company is currently unprofitable may not deter investors. AbbVie aims to regroup amid Humira's falloff AbbVie's powerhouse drug for psoriatic arthritis, Humira, is approaching the end of its lifetime as a moneymaker. |
23749.0 | 2021-12-18 00:00:00 UTC | 3 Reasons Why This Healthcare Stock Is a Long-Term Buy | ABBV | https://www.nasdaq.com/articles/3-reasons-why-this-healthcare-stock-is-a-long-term-buy | nan | nan | If you think about it, discovering new treatments in healthcare can be similar to building a sound investment portfolio. A great deal of time is spent on research and monitoring, finding the right mix, and then waiting for that magical day. For pharmaceutical companies, that day might come when a product is approved or hits the market for commercial sales. For investors, that day might come when you cash in on your portfolio's gains that were the result of your hard work and due diligence.
Research-based pharmaceutical company AbbVie (NYSE: ABBV) is experiencing the excitement of U.S. Food and Drug Administration (FDA) approvals while also carrying an honored distinction of being a Dividend Aristocrat, combining to give investors three good reasons to consider it part of their long-term investment strategy.
Image source: Getty Images.
1. FDA-approved eye drops are a first-of-their-kind
On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). An inability to focus clearly on near objects typically affects adults over 40, which makes up nearly one half of the U.S. population -- 128 million people. Age-related blurry vision is usually remedied through the use of reading glasses or by zooming in on mobile device content while also holding it further away from the face, which can be quite annoying -- trust me on this one.
AbbVie's Vuity provides a treatment that could offer an alternative to surgery, reading glasses, or the minor annoyances experienced by those using the zoom-and-hold-at-a-distance method. It offers a once-daily prescription that lasts from six to 10 hours, aimed at improving near and intermediate sight without altering distance vision.
Many of us have been to an eye doctor. A routine exam sometimes consists of receiving eye drops. Afterwards they tell you that while your eyes are dilated, you may be sensitive to light and possibly have blurry vision for a short period of time. Vuity basically does the opposite, leaning on the eye's own ability to reduce pupil size, which results in the improved vision.
According to the World Health Organization, the number of people worldwide with age-related blurry vision is at 1.8 billion. That number is expected to increase to 2.1 billion by 2030. At an average cost of $79 per patient for a 30-day supply for even a fraction of the 2 billion people with age-related blurry vision, the potential for strong revenue growth is clear.
2. Expanded usage of Rinvoq could propel annual sales to increase eightfold
The announcement of Vuity came on the heels of another announcement by the company during the same week. AbbVie proudly announced that phase 3 clinical studies were performing well for the safety and efficacy of Rinvoq, as a treatment for moderate to severe Crohn's disease in adults who previously had inadequate response to biologic therapy.
The results of the studies showed that the oral therapy met its primary endpoints of clinical remission and endoscopic response. Compared to placebo treatment, clinical remission jumped from 21% to 39% at week 12, while endoscopic response jumped from 4% to 35% over the same time period, meaning patients reported that stool frequency and abdominal pain were significantly reduced.
The success of the studies will go a long way toward the ultimate goals of achieving FDA approval for Rinvoq as a treatment for Crohn's disease. It will not be the first approval for Rinvoq, which is currently FDA-approved for treating rheumatoid arthritis. But with sales success of Rinvoq comes ongoing concern related to the side effects caused by JAK inhibitors such as Rinvoq, leading the FDA to require mandatory label updates on the product warning of the potential for serious heart-related risks or the risk of cancer.
For now, the product continues to sell, and is expected to see an increase in sales over the next three to four years. Rinvoq brought in $425 million for the third quarter, and $1.1 billion through the first nine months of the year. The company expects that number to increase to $8 billion by 2025.
3. This Aristocrat's yield crushes other healthcare companies in the S&P 500
In addition to FDA approvals and positive clinical studies, AbbVie offers investors a little extra bonus, paying out quarterly dividends at a yield of 4.3%. This comes in at nearly twice the average healthcare company yield of 2.28% and above that of healthcare companies in the S&P 500, which average 1.75%. The overall S&P 500 dividend yield was at 2% for November, which also pales in comparison to AbbVie.
With these dividend payouts, investors could choose to receive the funds as cash in their brokerage account or reinvest dividends toward the purchase of additional shares of the company stock. To give you an idea of how much that might be, the quarterly dividend in 2021 was $1.30, resulting in an annualized payment of $5.20 per share. For 2022 the dividend has been raised to $1.41, which should equate to $5.64 annually if the remainder of the year stays consistent. This represents an 8.5% dividend increase for investors, and will begin paying out in February.
If you invested $5,000 in AbbVie stock at the current price of $126, it would get you 40 shares. Those 40 shares would gain you an extra $225 of annual dividends. That's an additional $225 in your pocket before taxes, or an extra 1.8 shares of stock if reinvested. And it's worth pointing out that in cases of stock price appreciation, an extra 1.8 shares can result in even more gains down the road.
As a result of increases in dividend from year to year, AbbVie has the honored distinction of being a Dividend Aristocrat, meaning it has increased annual dividends for 25 consecutive years. It gets this distinction through its spin-off from Abbott Laboratories in 2013.
It should also be noted that Abbott is one year shy of becoming a Dividend King, meaning it has increased dividends for 49 consecutive years -- next year being the magic 50. This should bode well for investors looking at AbbVie, because it provides support and confidence that AbbVie will continue its run of consecutive dividend increases well into the future.
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Jeff Little has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Research-based pharmaceutical company AbbVie (NYSE: ABBV) is experiencing the excitement of U.S. Food and Drug Administration (FDA) approvals while also carrying an honored distinction of being a Dividend Aristocrat, combining to give investors three good reasons to consider it part of their long-term investment strategy. AbbVie proudly announced that phase 3 clinical studies were performing well for the safety and efficacy of Rinvoq, as a treatment for moderate to severe Crohn's disease in adults who previously had inadequate response to biologic therapy. FDA-approved eye drops are a first-of-their-kind On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). | FDA-approved eye drops are a first-of-their-kind On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). This Aristocrat's yield crushes other healthcare companies in the S&P 500 In addition to FDA approvals and positive clinical studies, AbbVie offers investors a little extra bonus, paying out quarterly dividends at a yield of 4.3%. As a result of increases in dividend from year to year, AbbVie has the honored distinction of being a Dividend Aristocrat, meaning it has increased annual dividends for 25 consecutive years. | FDA-approved eye drops are a first-of-their-kind On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). This Aristocrat's yield crushes other healthcare companies in the S&P 500 In addition to FDA approvals and positive clinical studies, AbbVie offers investors a little extra bonus, paying out quarterly dividends at a yield of 4.3%. As a result of increases in dividend from year to year, AbbVie has the honored distinction of being a Dividend Aristocrat, meaning it has increased annual dividends for 25 consecutive years. | FDA-approved eye drops are a first-of-their-kind On Dec. 9, AbbVie celebrated the announcement of its Vuity 1.25% prescription eye drop, the first and only FDA-approved eye drop to treat age-related blurry vision (presbyopia). This Aristocrat's yield crushes other healthcare companies in the S&P 500 In addition to FDA approvals and positive clinical studies, AbbVie offers investors a little extra bonus, paying out quarterly dividends at a yield of 4.3%. As a result of increases in dividend from year to year, AbbVie has the honored distinction of being a Dividend Aristocrat, meaning it has increased annual dividends for 25 consecutive years. |
23750.0 | 2021-12-18 00:00:00 UTC | What to Make of the FDA's Latest Warning to AbbVie and Pfizer | ABBV | https://www.nasdaq.com/articles/what-to-make-of-the-fdas-latest-warning-to-abbvie-and-pfizer | nan | nan | The U.S. Food and Drug Administration (FDA) has placed additional warnings on the labels for JAK inhibitors marketed by AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). In this Motley Fool Live video recorded on Dec. 8, 2021, Motley Fool contributors Keith Speights and Brian Orelli talk about what to make of the FDA's latest warnings.
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Keith Speights: We talked earlier about some news about JAK inhibitors. The FDA has slapped additional warnings on AbbVie's JAK inhibitor, Rinvoq, and Pfizer's JAK inhibitor, Xeljanz.
What might the impact of these warnings be for the sales of these drugs? And do you think the worst is over as far as the FDA is concerned, or could more bad news be on the way?
Brian Orelli: This is definitely a huge deal. I'm not sure the warning labels in and of themselves were that big of a deal since it was already known, and obviously, AbbVie was hoping that it wouldn't get a warning label since it was only the issues we're only seeing with Pfizer's Xeljanz. But the FDA has signaled that it believes it's a class effect and so they -- it seems likely that AbbVie's Rinvoq was going to get a warning label, too.
AbbVie's warning labels are, for lack of a better word, softer than Pfizer, which got a black-box warning. The bigger deal, I think, is that FDA updated the indication, and so now, Rinvoq is only recommended after treatment with a TNF blocker, where before it could be used as a frontline treatment.
The JAK inhibitors are oral medications, and so the hope was that they would be used before TNF blockers that have to be injected or infused. Obviously, patients would prefer it that way to having oral medication, versus something that, where they have to get stuck with a needle. Many patients are going to end up seeing relief from the TNF blockers, so they won't have to end up going back and getting to try a JAK inhibitor, at least not initially. And so that's going to cause them to lose substantial potential sales.
Then to answer your question, could things get worse? I think the worst-case scenario would be that the FDA puts a restriction on the higher dose of the JAK inhibitors, because the lower dose has about equivalent to other drugs in terms of efficacy. But the higher dose has substantially better efficacy.
It's hard to see a patient getting a TNF blocker and then it not working, and then going onto a low level of JAK inhibitor. It's probably not going to work, too, since the low-level JAK inhibitor and the TNF blockers have about the same efficacy level. If the FDA decided that the patients shouldn't be taking the higher dose of the JAK inhibitors, I think it'd be a huge loss for the JAK inhibitors.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But the FDA has signaled that it believes it's a class effect and so they -- it seems likely that AbbVie's Rinvoq was going to get a warning label, too. The U.S. Food and Drug Administration (FDA) has placed additional warnings on the labels for JAK inhibitors marketed by AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). The FDA has slapped additional warnings on AbbVie's JAK inhibitor, Rinvoq, and Pfizer's JAK inhibitor, Xeljanz. | The U.S. Food and Drug Administration (FDA) has placed additional warnings on the labels for JAK inhibitors marketed by AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). The FDA has slapped additional warnings on AbbVie's JAK inhibitor, Rinvoq, and Pfizer's JAK inhibitor, Xeljanz. I'm not sure the warning labels in and of themselves were that big of a deal since it was already known, and obviously, AbbVie was hoping that it wouldn't get a warning label since it was only the issues we're only seeing with Pfizer's Xeljanz. | The U.S. Food and Drug Administration (FDA) has placed additional warnings on the labels for JAK inhibitors marketed by AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). The FDA has slapped additional warnings on AbbVie's JAK inhibitor, Rinvoq, and Pfizer's JAK inhibitor, Xeljanz. I'm not sure the warning labels in and of themselves were that big of a deal since it was already known, and obviously, AbbVie was hoping that it wouldn't get a warning label since it was only the issues we're only seeing with Pfizer's Xeljanz. | The FDA has slapped additional warnings on AbbVie's JAK inhibitor, Rinvoq, and Pfizer's JAK inhibitor, Xeljanz. I'm not sure the warning labels in and of themselves were that big of a deal since it was already known, and obviously, AbbVie was hoping that it wouldn't get a warning label since it was only the issues we're only seeing with Pfizer's Xeljanz. The U.S. Food and Drug Administration (FDA) has placed additional warnings on the labels for JAK inhibitors marketed by AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE). |
23751.0 | 2021-12-16 00:00:00 UTC | 5 Biotech Stocks For Your Late December 2021 Watchlist | ABBV | https://www.nasdaq.com/articles/5-biotech-stocks-for-your-late-december-2021-watchlist | nan | nan | 5 Biotech Stocks To Check Out Before The End Of 2021
With the coronavirus pandemic kicking back into full swing, biotech stocks are once again at the forefront. For one thing, this part of thestock market todayhas and continues to work towards dealing with the pandemic. Now, as the Omicron variant sweeps the globe, I could see investors looking out for the best biotech stocks to invest in.
By and large, some of the more prominent names in the industry today would be coronavirus vaccine makers. For instance, we could look at the likes of Moderna (NASDAQ: MRNA). As of yesterday, Japan’s health ministry officially approved Moderna’s vaccine for use as a booster shot. To elaborate, the current approval is for individuals aged 18 or older to receive the additional shot. Accordingly, this will set the stage for the local government to potentially greenlight the vaccine. Safe to say, this would further expand the addressable market for Moderna’s core vaccine offerings now. With early data suggesting that the Omicron variant could be more infectious than its Delta counterpart, this is welcomed news.
At the same time, there are also biotech firms looking to treat coronavirus patients as well. Namely, Regeneron (NASDAQ: REGN) is now developing new antibodies that specifically target the Omicron variant. According to CEO Leonard Schleifer, initial trials on the new antibodies will commence in the first quarter of 2022. All in all, these are but two instances of the biotech industry’s noble work. With that said, could one of these biotech stocks be worth knowing in the stock market now?
Top Biotech Stocks To Watch This Week
Calliditas Therapeutics (NASDAQ: CALT)
Valneva SE (NASDAQ: VALN)
Novavax Inc. (NASDAQ: NVAX)
AbbVie Inc. (NYSE: ABBV)
Pfizer Inc. (NYSE: PFE)
Calliditas Therapeutics
Calliditas is a clinical-stage biopharmaceutical company that focuses on developing and commercializing novel treatments in orphan indications, with an initial focus on renal and hepatic diseases with significant unmet medical needs. The company also has an experienced and dedicated management team with many years of experience from many leading companies like Pfizer and GlaxoSmithKline (NYSE: GSK). Calliditas is also supported by its Scientific Steering Committee, a highly regarded network of leading experts that serve as external advisors and investigators on clinical trials. CALT stock is up by over 23% on today’s trading session and trades at $22.93 a share.
Investors are likely responding positively to the FDA approving its Tarpeyo delayed-release capsules to reduce proteinuria in adults with primary immunoglobulin A nephropathy (IgAN) at risk of rapid disease progression. It is the first and only treatment indicated to reduce proteinuria in adults. IgAN is a rare, progressive autoimmune disease, which has a high unmet need with more than 50% of patients potentially progressing to end-stage renal disease (ESRD).
“We are very excited to bring the first and only FDA-approved treatment to reduce proteinuria in IgAN to market,” said Renée Aguiar-Lucander, Chief Executive Officer of Calliditas. “TARPEYO represents an FDA approved product to help these patients who are at risk of rapid disease progression.” Given this piece of news, is CALT stock worth adding to your portfolio right now?
Source: TD Ameritrade TOS
Valneva SE
Valneva is a biotech company that develops prophylactic vaccines for infectious diseases. In fact, it currently has several vaccines in development, including unique vaccines against Lyme disease, coronavirus, and chikungunya. The company’s portfolio also includes two commercial vaccines for travelers. The company also has approximately 700 employees across six countries. VALN stock currently trades at $58.95 as of Thursday’s close and is up by over 15% on the day.
This could be due to the company’s press release today. Diving in, Valneva announced positive homologous booster data from the Phase 1/2 study of its inactivated, adjuvanted coronavirus vaccine candidate, VLA2001. The company says that initial results confirm that VLA 2001 significantly boosted immunity in participants who received VLA2001 as a primary vaccination. In addition to these initial booster data, Valneva expects to report further homologous booster data from the Phase 3 Cov-Compare study. With this piece of information, is VALN stock worth investing in?
Source: TD Ameritrade TOS
Novavax Inc.
Following that, we have Novavax, a biotech company that also develops vaccines to counter serious infectious diseases. Its recombinant nanoparticles and adjuvant technology continue to be the foundation for groundbreaking innovation that improves global health through safe and effective vaccines. NVAX stock has year-to-date gains of over 60%.
On December 15, 2021, the company submitted a New Drug Application (NDA) to the Ministry of Health, Labor, and Welfare (MHLW) in Japan for its coronavirus vaccine by its partner Takeda Pharmaceutical Company. Novavax’s recombinant nanoparticle vaccine with Matrix-M adjuvant, known as TAK-019 in Japan, is the first protein-based coronavirus vaccine to be submitted under an NDA in Japan. The NDA submission includes an interim analysis from Takeda’s ongoing Phase 1/2 immunogenicity and safety clinical trial of NVX-CoV2373/TAK-019 in Japan, in which the vaccine demonstrated a robust immune response and was well tolerated with no serious adverse events. With that being said, is NVAX stock a buy?
Source: TD Ameritrade TOS
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AbbVie Inc.
Another top name to consider in the biotech space now would be AbbVie. It is a leading biopharmaceutical company that focuses on developing treatments across a wide array of therapeutic areas. Moreover, the company also offers aesthetics-based treatments via its Allergan Aesthetics portfolio.
Overall, the current movement in the company’s shares could be thanks to its latest acquisition. Earlier today, AbbVie completed its acquisition of Soliton, a medical tech firm specializing in tattoo removals. Through this move, AbbVie would be building its portfolio of non-invasive body contouring treatments. This includes the treatment for the appearance of cellulite. According to AbbVie SVP Carrie Strom, recent survey data points towards cellulite being a top aesthetic concern amongst aesthetics consumers. In the larger scheme of things, AbbVie continues to find new ways to expand its addressable markets. As such, would you consider ABBV stock a top buy?
Source: TD Ameritrade TOS
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Pfizer Inc.
Last but not least, we have Pfizer. As one of the most notable names in the fight against the coronavirus now, it would be hard to overlook this company. After all, its life-saving vaccines have and continue to help millions worldwide. Given the sheer scale and reach of the company’s work, investors may be considering PFE stock now.
More importantly, a new focus in Pfizer’s coronavirus-focused portfolio would be its oral antiviral pill, nirmatrelvir. According to Pfizer, the pill will ideally serve as a treatment for adults with less severe cases of coronavirus. Earlier today, the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency issued advice supporting the use of the pill for treatment. Given the rising case figures in parts of the world, this would make sense. With Pfizer hard at work figuring out new ways to deal with the pandemic, could PFE stock be worth investing in?
Source: TD Ameritrade TOS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Top Biotech Stocks To Watch This Week Calliditas Therapeutics (NASDAQ: CALT) Valneva SE (NASDAQ: VALN) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Pfizer Inc. (NYSE: PFE) Calliditas Therapeutics Calliditas is a clinical-stage biopharmaceutical company that focuses on developing and commercializing novel treatments in orphan indications, with an initial focus on renal and hepatic diseases with significant unmet medical needs. Source: TD Ameritrade TOS [Read More] 4 Semiconductor Stocks To Watch Right Now AbbVie Inc. Another top name to consider in the biotech space now would be AbbVie. Earlier today, AbbVie completed its acquisition of Soliton, a medical tech firm specializing in tattoo removals. | Top Biotech Stocks To Watch This Week Calliditas Therapeutics (NASDAQ: CALT) Valneva SE (NASDAQ: VALN) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Pfizer Inc. (NYSE: PFE) Calliditas Therapeutics Calliditas is a clinical-stage biopharmaceutical company that focuses on developing and commercializing novel treatments in orphan indications, with an initial focus on renal and hepatic diseases with significant unmet medical needs. Source: TD Ameritrade TOS [Read More] 4 Semiconductor Stocks To Watch Right Now AbbVie Inc. Another top name to consider in the biotech space now would be AbbVie. Earlier today, AbbVie completed its acquisition of Soliton, a medical tech firm specializing in tattoo removals. | Top Biotech Stocks To Watch This Week Calliditas Therapeutics (NASDAQ: CALT) Valneva SE (NASDAQ: VALN) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Pfizer Inc. (NYSE: PFE) Calliditas Therapeutics Calliditas is a clinical-stage biopharmaceutical company that focuses on developing and commercializing novel treatments in orphan indications, with an initial focus on renal and hepatic diseases with significant unmet medical needs. Source: TD Ameritrade TOS [Read More] 4 Semiconductor Stocks To Watch Right Now AbbVie Inc. Another top name to consider in the biotech space now would be AbbVie. Earlier today, AbbVie completed its acquisition of Soliton, a medical tech firm specializing in tattoo removals. | Top Biotech Stocks To Watch This Week Calliditas Therapeutics (NASDAQ: CALT) Valneva SE (NASDAQ: VALN) Novavax Inc. (NASDAQ: NVAX) AbbVie Inc. (NYSE: ABBV) Pfizer Inc. (NYSE: PFE) Calliditas Therapeutics Calliditas is a clinical-stage biopharmaceutical company that focuses on developing and commercializing novel treatments in orphan indications, with an initial focus on renal and hepatic diseases with significant unmet medical needs. Source: TD Ameritrade TOS [Read More] 4 Semiconductor Stocks To Watch Right Now AbbVie Inc. Another top name to consider in the biotech space now would be AbbVie. Earlier today, AbbVie completed its acquisition of Soliton, a medical tech firm specializing in tattoo removals. |
23752.0 | 2021-12-16 00:00:00 UTC | Unstoppable Dividend King for 2022: AbbVie or Johnson & Johnson? | ABBV | https://www.nasdaq.com/articles/unstoppable-dividend-king-for-2022%3A-abbvie-or-johnson-johnson | nan | nan | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) have plenty of similarities. They're both large-cap stocks in the healthcare space that are also Dividend Kings. Both appear to be undervalued based on their current and expected future earnings. They're the type of steady, long-term investments that retirees and other investors could love. Yet one of these two, in my view, is a better bet as an unstoppable stock in 2022. Let's take a closer look.
Image source: Getty Images.
The case for Johnson & Johnson
Johnson & Johnson had revenue of $82.5 billion last year, more than the gross domestic product of many countries. And the company keeps growing. Over the past five years, J&J has increased revenue each year -- or some 27% in total during that period.
J&J's greatest strengths are its size and diversity of revenue streams. The company operates three segments led by pharmaceuticals which had $13 billion in sales during the latest quarter, followed by medical devices which brought in $6.6 billion, and consumer health which achieved $3.7 billion. Combined, the company reported $23.3 billion in revenue, up 10.7% over the year-ago period.
Of note, the company actually plans to split off into two separate entities over the next two years. Pharmaceuticals and medical devices will form one company and consumer health will form the other. With most of the company's growth in its pharmaceutical segment, investors may want to stick with that part of the company when the split occurs.
In the latest quarter, pharmaceutical sales rose 13.8% over the year-ago period, led by strength in the company's growing stable of oncology drugs. Expect strong growth too in medical devices, helped by the Carto Vizigo and Carto 3 V7. These systems, which aid in stabilizing heart rhythms, could be in greater demand now that more non-COVID procedures are being performed again.
J&J has faced some notable challenges regarding opioid and baby-powder products in recent years. Just this week, the Supreme Court rejected the company's request to halt a talcum powder lawsuit by the state of Mississippi.
But many investors have remained loyal to the company, at least in part because it has raised its dividend for 59 consecutive years, including a 5% raise in 2021 to $1.06 per share. At present, this provides a yield of about 2.5%, and the dividend is well-covered with a payout ratio of 47.7%, leaving plenty of room for continued raises.
Moreover, the company remains well in the black with a net profit margin of 15.7% in the latest quarter, slightly above the pharmaceutical industry average of 14.1%. Earnings per share were $1.37, up 3% over the same period in 2020.
The case for AbbVie
Since splitting off from Abbott Laboratories in 2013, AbbVie has seen revenue increase steadily -- up 115% over the past five years -- and it has been up every year. This year is looking good too. Through the first nine months, the company reported revenue of $41.3 billion, putting it on track to easily surpass the $45.8 billion it posted last year.
AbbVie is best-known for the world's biggest-selling drug, Humira, an immunology medication with several uses. However, it goes off patent in 2023, and that has investors concerned. In the third quarter, Humira's worldwide sales were $4.5 billion, up 5% over the year-ago period, but its international sales were $812 million, down 14.6% year over year, due to biosimilar competition. The drug already went off patent in Europe in 2018.
However, AbbVie has other products poised to pick up the slack as Humira's revenue declines. The company's two new immunology drugs, Rinvoq and Skyrizi, posted revenue of $796 million and $453 million, respectively, in the third quarter. While those numbers pale in comparison to Humira's current sales, it's a start. Remember that in 2003, Humira's first full year on the market, it produced only $280 million in sales. And AbbVie expects to expand labeling for the two newer drugs, so those numbers will likely grow.
What's more, Humira's sales won't necessarily crater after it loses patent exclusivity in the U.S. A good comparison is Botox, which already has plenty of competition, yet it continues to produce strong numbers for AbbVie. Botox Therapeutic brought in $645 million in the quarter, up 23.4% year over year, and Botox Cosmetic brought in $545 million, up 38.5% over the same period in 2020.
Meanwhile, income-oriented investors should be pleased to know that AbbVie will raise its dividend 8.5% in 2022 to $1.41 a share, beginning with the first quarter. That gives it a current yield of 4.14%, comfortably higher than Johnson & Johnson's dividend. Counting its time as part of Abbott, AbbVie has raised its dividend for 50 consecutive years. And since becoming a separate company in 2013, AbbVie has raised its dividend 250% while still managing to keep its payout ratio at a conservative 41%.
The company also maintains strong profit margins, coming in at 22.2% in the latest quarter. And its price-to-earnings ratio of 29.9, while higher than J&J's 24.7, is still well below the pharmaceutical average of 34.5.
ABBV data by YCharts.
The choice is clear
There are plenty of reasons to like both healthcare stocks: healthy margins, deep revenue streams, and of course, dependable dividend raises. AbbVie has a huge stable of drugs; Johnson & Johnson has its own large pharmaceutical portfolio plus two other segments with consumer care and medical instruments -- at least, for now.
However, AbbVie seems to have more momentum. It has seen greater growth in its share price, revenue, and dividends over the past five years than has Johnson & Johnson -- and I expect that to continue. Given a choice between the two, I prefer AbbVie.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | What's more, Humira's sales won't necessarily crater after it loses patent exclusivity in the U.S. A good comparison is Botox, which already has plenty of competition, yet it continues to produce strong numbers for AbbVie. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) have plenty of similarities. The case for AbbVie Since splitting off from Abbott Laboratories in 2013, AbbVie has seen revenue increase steadily -- up 115% over the past five years -- and it has been up every year. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) have plenty of similarities. The case for AbbVie Since splitting off from Abbott Laboratories in 2013, AbbVie has seen revenue increase steadily -- up 115% over the past five years -- and it has been up every year. AbbVie is best-known for the world's biggest-selling drug, Humira, an immunology medication with several uses. | The case for AbbVie Since splitting off from Abbott Laboratories in 2013, AbbVie has seen revenue increase steadily -- up 115% over the past five years -- and it has been up every year. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) have plenty of similarities. AbbVie is best-known for the world's biggest-selling drug, Humira, an immunology medication with several uses. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) have plenty of similarities. The case for AbbVie Since splitting off from Abbott Laboratories in 2013, AbbVie has seen revenue increase steadily -- up 115% over the past five years -- and it has been up every year. AbbVie is best-known for the world's biggest-selling drug, Humira, an immunology medication with several uses. |
23753.0 | 2021-12-15 00:00:00 UTC | Noteworthy ETF Inflows: DLN, ABBV, MRK, KO | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-inflows%3A-dln-abbv-mrk-ko | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $334.7 million dollar inflow -- that's a 10.2% increase week over week in outstanding units (from 25,400,000 to 28,000,000). Among the largest underlying components of DLN, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Merck & Co Inc (Symbol: MRK) is up about 0.8%, and Coca-Cola Co (Symbol: KO) is higher by about 0.1%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average:
Looking at the chart above, DLN's low point in its 52 week range is $104.59 per share, with $129.641 as the 52 week high point — that compares with a last trade of $128.57. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of DLN, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Merck & Co Inc (Symbol: MRK) is up about 0.8%, and Coca-Cola Co (Symbol: KO) is higher by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $334.7 million dollar inflow -- that's a 10.2% increase week over week in outstanding units (from 25,400,000 to 28,000,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of DLN, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Merck & Co Inc (Symbol: MRK) is up about 0.8%, and Coca-Cola Co (Symbol: KO) is higher by about 0.1%. For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $104.59 per share, with $129.641 as the 52 week high point — that compares with a last trade of $128.57. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of DLN, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Merck & Co Inc (Symbol: MRK) is up about 0.8%, and Coca-Cola Co (Symbol: KO) is higher by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $334.7 million dollar inflow -- that's a 10.2% increase week over week in outstanding units (from 25,400,000 to 28,000,000). For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $104.59 per share, with $129.641 as the 52 week high point — that compares with a last trade of $128.57. | Among the largest underlying components of DLN, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Merck & Co Inc (Symbol: MRK) is up about 0.8%, and Coca-Cola Co (Symbol: KO) is higher by about 0.1%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the WisdomTree U.S. LargeCap Dividend Fund (Symbol: DLN) where we have detected an approximate $334.7 million dollar inflow -- that's a 10.2% increase week over week in outstanding units (from 25,400,000 to 28,000,000). For a complete list of holdings, visit the DLN Holdings page » The chart below shows the one year price performance of DLN, versus its 200 day moving average: Looking at the chart above, DLN's low point in its 52 week range is $104.59 per share, with $129.641 as the 52 week high point — that compares with a last trade of $128.57. |
23754.0 | 2021-12-15 00:00:00 UTC | 5 Top Healthcare Dividend Stocks To Watch Today | ABBV | https://www.nasdaq.com/articles/5-top-healthcare-dividend-stocks-to-watch-today | nan | nan | Check Out These Healthcare Dividend Stocks In The Stock Market Today
Inflation is becoming the hot new word when it comes to the stock market. Now, like it or not, it seems like inflation will be with us for a while. Sure, you could join the crowd and park your money in Apple (NASDAQ: AAPL). After all, Apple is deemed by many as a safe haven with its pricing power and strong balance sheet. That may work for some investors. But for others, dividend stocks with growth potential have a significant place in their portfolio.
To choose a sector to focus on, investors have to examine factors at play and how to take advantage of them. With a steadily aging population in the U.S. and globally, demand for health care services would likely continue rising. And that is where healthcare dividend stocks come into the picture.
What’s more, the downward trajectory of the stock market in recent weeks has also caused some investors to be more conservative. Therefore, the allure of investing in dividend stocks would be increasingly in focus. After all, companies that pay out regular dividends are often profitable and time-tested, which makes them perfectly suited to help you navigate short-term market downside. With all this in mind, do you have a list of healthcare dividend stocks to help you navigate the volatility in the stock market today?
Best Healthcare Dividend Stocks To Watch Right Now
AbbVie Inc. (NYSE: ABBV)
Medical Properties Trust Inc. (NYSE: MPW)
Royalty Pharma plc (NASDAQ: RPRX)
CVS Health Corp. (NYSE: CVS)
Amgen Inc. (NASDAQ: AMGN)
AbbVie
Pharmaceutical giant AbbVie is an attractive income play for many investors. The drugmaker currently pays out more than 4.1% dividend yield, making it one of the highest dividend stocks among its industry peers. More notably, the company has boosted its dividend yield by a whopping 225% since 2013. All of this is made possible with the company’s strong pipeline of treatments spanning numerous medical fields. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology.
On the financial front, the company’s business remains healthy with a total revenue of $14.34 billion in its latest quarter. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. Abbvie has radically transformed its product portfolio ahead of the patent expiration for the anti-inflammatory medicine Humira. That aside, the company still boasts a solid lineup of drugs that could continue to drive top and bottom line growth. With all that said, would you consider adding ABBV stock to your watchlist anytime soon?
Source: TD Ameritrade TOS
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Medical Properties Trust
Medical Properties Trust is a REIT that owns nearly 450 healthcare facilities around the U.S. and eight other countries. The company is also a triple-net lease REIT, which means its tenants are responsible for taxes, upkeep, and maintenance on the properties. That keeps the company’s costs of ownership low. As long as people continue to visit medical facilities for health care, this REIT should continue to generate cash flows for its investors. As of late, the company is paying a dividend yield of around 5.2%.
What’s more, the company has increased its dividend for eight consecutive years with a compound annual growth rate of 4.2%. For prospective investors, there isn’t much to worry about with Medical Properties’ dividend yield. Even though its yield is a little high, it doesn’t appear to be too good to be true. It has a defensible business model focusing on the healthcare industry. Its portfolio is diversified across 52 hospital operators. With these in mind, would you consider adding MPW stock as an alternative way to generate passive income?
Source: TD Ameritrade TOS
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Royalty Pharma
Royalty Pharma, as the name suggests, owns royalties on drugs from other pharmaceutical companies. It doesn’t develop drugs on its own. Instead, the company gives drug developers cash upfront in exchange for a long-term royalty. And that is usually a few percentage points of revenue. While it initially was a big hit with investors, the company’s shares however, have since reversed course this year. Investors who are bullish with the company’s business model can take advantage of the dip. Although its dividend yield of around 1.8% isn’t going to amount to much, it is without a doubt a source of reliable income.
While Warren Buffett may have slashed some of his health care holdings, the legendary investor initiated a new position in RPRX stock. What’s so attractive about the business model that attracted Buffett, you ask? Well, that’s because it largely eliminates the risk of investing in early stage drugmakers. And that simply means the company has a higher chance of success without having to deal with the setbacks posed by clinical trials. Considering all this, would RPRX stock make your list of best healthcare dividend stocks to buy now?
Source: TD Ameritrade TOS
CVS Health
CVS Health is a health care company that owns a retail pharmacy chain, a pharmacy benefits manager and also a health insurance provider. It does this through CVS Pharmacy, CVS Caremark, and Aetna respectively. In essence, it helps people to navigate through the health care system by improving access, lowering costs, and being a preferred partner for every aspect of their health care journey. At recent prices, CVS stock offers a 2.2% yield. And I won’t be surprised if the payout continues to rise over the next few years.
At its investors day earlier this month, CVS outlined its aim to reimagine its stores as health care destinations. The company wants customers to come to its stores for primary care, such as routine checkups. In addition, CVS also sees opportunities in mental health which include connecting people to therapists, according to CEO Karen Lynch. With the company’s vision to reinvent itself, would you consider investing in CVS stock?
Source: TD Ameritrade TOS
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Amgen
Last but not least, Amgen is another drugmaker with high dividend yields. Earlier this month, the company announced it will increase its dividend by a hefty 10%. With that increase, investors will now be earning a dividend yield of 3.3%. For the uninitiated, the company is one of the largest independent biotech companies in the world. It develops and manufactures innovative human therapeutics by using advanced human genetics to unravel the complexities of disease.
Last month, the company announced that the European Medicines Agency has adopted a positive opinion recommending conditional marketing authorization of LUMYKRAS, for the treatment of adults with advanced non-small-cell lung cancer with KRAS G12C mutation and who have progressed after at least one prior line of systemic therapy. If approved, this will be the first targeted therapy available in the European Union for this mutation. With this exciting piece of news, do you have AMGN stock on your watchlist today?
Source: TD Ameritrade TOS
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Healthcare Dividend Stocks To Watch Right Now AbbVie Inc. (NYSE: ABBV) Medical Properties Trust Inc. (NYSE: MPW) Royalty Pharma plc (NASDAQ: RPRX) CVS Health Corp. (NYSE: CVS) Amgen Inc. (NASDAQ: AMGN) AbbVie Pharmaceutical giant AbbVie is an attractive income play for many investors. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. | Best Healthcare Dividend Stocks To Watch Right Now AbbVie Inc. (NYSE: ABBV) Medical Properties Trust Inc. (NYSE: MPW) Royalty Pharma plc (NASDAQ: RPRX) CVS Health Corp. (NYSE: CVS) Amgen Inc. (NASDAQ: AMGN) AbbVie Pharmaceutical giant AbbVie is an attractive income play for many investors. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. | Best Healthcare Dividend Stocks To Watch Right Now AbbVie Inc. (NYSE: ABBV) Medical Properties Trust Inc. (NYSE: MPW) Royalty Pharma plc (NASDAQ: RPRX) CVS Health Corp. (NYSE: CVS) Amgen Inc. (NASDAQ: AMGN) AbbVie Pharmaceutical giant AbbVie is an attractive income play for many investors. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. | Best Healthcare Dividend Stocks To Watch Right Now AbbVie Inc. (NYSE: ABBV) Medical Properties Trust Inc. (NYSE: MPW) Royalty Pharma plc (NASDAQ: RPRX) CVS Health Corp. (NYSE: CVS) Amgen Inc. (NASDAQ: AMGN) AbbVie Pharmaceutical giant AbbVie is an attractive income play for many investors. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. |
23755.0 | 2021-12-14 00:00:00 UTC | FDA Approves AbbVie's RINVOQ To Treat Active Psoriatic Arthritis | ABBV | https://www.nasdaq.com/articles/fda-approves-abbvies-rinvoq-to-treat-active-psoriatic-arthritis | nan | nan | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration has approved RINVOQ (upadacitinib; 15 mg, once daily) for the treatment of adults with active psoriatic arthritis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers.
The FDA approval is supported by data from two phase 3 clinical studies where RINVOQ (15 mg, once daily) showed efficacy across multiple measures of disease activity in active psoriatic arthritis with a safety profile consistent with that seen in rheumatoid arthritis.
The company noted that RINVOQ helps to improve joint pain, swelling and stiffness, as well as fatigue, and prevent further joint damage for patients with active Psoriatic arthritis.
The milestone marks the second FDA-approved indication for RINVOQ following rheumatoid arthritis in 2019.
Psoriatic arthritis is a heterogeneous, systemic inflammatory disease with hallmark manifestations across multiple domains including joints and skin. In Psoriatic arthritis, the immune system causes inflammation that can lead to skin lesions associated with psoriasis, pain, fatigue and stiffness in the joints. Psoriatic arthritis affects about 30% of people with psoriasis.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration has approved RINVOQ (upadacitinib; 15 mg, once daily) for the treatment of adults with active psoriatic arthritis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. Psoriatic arthritis is a heterogeneous, systemic inflammatory disease with hallmark manifestations across multiple domains including joints and skin. In Psoriatic arthritis, the immune system causes inflammation that can lead to skin lesions associated with psoriasis, pain, fatigue and stiffness in the joints. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration has approved RINVOQ (upadacitinib; 15 mg, once daily) for the treatment of adults with active psoriatic arthritis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. The FDA approval is supported by data from two phase 3 clinical studies where RINVOQ (15 mg, once daily) showed efficacy across multiple measures of disease activity in active psoriatic arthritis with a safety profile consistent with that seen in rheumatoid arthritis. The company noted that RINVOQ helps to improve joint pain, swelling and stiffness, as well as fatigue, and prevent further joint damage for patients with active Psoriatic arthritis. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration has approved RINVOQ (upadacitinib; 15 mg, once daily) for the treatment of adults with active psoriatic arthritis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. The FDA approval is supported by data from two phase 3 clinical studies where RINVOQ (15 mg, once daily) showed efficacy across multiple measures of disease activity in active psoriatic arthritis with a safety profile consistent with that seen in rheumatoid arthritis. The company noted that RINVOQ helps to improve joint pain, swelling and stiffness, as well as fatigue, and prevent further joint damage for patients with active Psoriatic arthritis. | (RTTNews) - AbbVie (ABBV) said that the U.S. Food and Drug Administration has approved RINVOQ (upadacitinib; 15 mg, once daily) for the treatment of adults with active psoriatic arthritis who have had an inadequate response or intolerance to one or more tumor necrosis factor blockers. The FDA approval is supported by data from two phase 3 clinical studies where RINVOQ (15 mg, once daily) showed efficacy across multiple measures of disease activity in active psoriatic arthritis with a safety profile consistent with that seen in rheumatoid arthritis. In Psoriatic arthritis, the immune system causes inflammation that can lead to skin lesions associated with psoriasis, pain, fatigue and stiffness in the joints. |
23756.0 | 2021-12-14 00:00:00 UTC | 2 Warren Buffett Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/2-warren-buffett-dividend-stocks-to-buy-right-now | nan | nan | Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett is perhaps the best-known value investor of all time. Buffett's concept of value centers around the idea of a deep competitive moat, a sustainable business model, and strong free cash flows.
As a result, most of Berkshire's top holdings over the past several decades have been well-established companies that offer top-notch shareholder rewards (share repurchases and dividends). Dividends have been particularly important to Berkshire's and Buffett's outstanding gains over the years, as dividends can be used to generate compounding returns when they are reinvested.
Which Warren Buffett dividend stock picks are the most appealing buys right now? The healthcare stocks AbbVie (NYSE: ABBV) and Royalty Pharma (NASDAQ: RPRX) are two intriguing Berkshire holdings that each pay a respectable dividend. Although these two healthcare stocks are a tad riskier than the average Berkshire investment, there is a solid bull case for both AbbVie and Royalty Pharma right now. Read on to find out more about these two Warren Buffett dividend stock picks.
Image source: Getty Images.
AbbVie: A high-yield growth stock
Berkshire first bought AbbVie during the third quarter of 2020. Although Buffett's diversified holding company has since pared back its position in the Illinois-based drugmaker, AbbVie's shares are still a worthwhile buy for most income investors. AbbVie's stock is an appealing income play for three clear-cut reasons. First, the drugmaker pays out a handsome 4.5% dividend yield on an annualized basis. That's one of the highest yields among major drug manufacturers.
Second, AbbVie is a Dividend Aristocrat, meaning that it has a strong track record of raising its dividend on a regular basis. In fact, the company has boosted its yield by a whopping 225% since 2013.
Lastly, AbbVie has radically transformed its product portfolio ahead of the patent expiration for the flagship anti-inflammatory medicine Humira. The company now has two new high growth immunology assets with Skyrizi and Rinvoq, a strong and growing eye care franchise, several healthy avenues to explore for the commercial expansion of its Allergan aesthetics segment, an underappreciated migraine franchise, and two top-notch oncology drugs with Imbruvica and Venclexta.
The net result is that AbbVie's top line is forecast to rise by a respectable 6.6% in 2022, despite biosimilar competition for Humira.
Royalty Pharma: A dependable revenue stream
Royalty Pharma is a brand new addition to the Berkshire family of holdings. The diversified holding company jumped into this pharma stock in the third quarter of 2021 following a sharp pullback in its share price. The backstory is that Royalty went public in the middle of 2020 and initially became a big hit with investors. The company's shares, however, have since reversed course due to the raging political debate over prescription drug prices in the U.S., as well as the negative sentiment toward biopharma stocks in general this year.
RPRX data by YCharts
Why is Royalty's stock a bargain at these levels? Although Royalty pays out a less-than-stellar 1.78% annualized dividend yield, the company sports a rock-solid business model. Royalty Pharma makes money by funding late-stage clinical assets in exchange for a share of future revenues. The reason this business model is attractive is because it largely eliminates the risk of investing in either early stage drugmakers or biopharmas with aging portfolios. Royalty, in effect, can cherry-pick the best new growth assets to fund, without having to deal with early to mid-stage clinical setbacks or steep drop-offs in revenue from patent expirations.
Now, Royalty's dividend yield isn't going to make you rich, but it is a source of reliable income. And that high level of dependability is arguably worth the price of admission alone.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Although Buffett's diversified holding company has since pared back its position in the Illinois-based drugmaker, AbbVie's shares are still a worthwhile buy for most income investors. The healthcare stocks AbbVie (NYSE: ABBV) and Royalty Pharma (NASDAQ: RPRX) are two intriguing Berkshire holdings that each pay a respectable dividend. Although these two healthcare stocks are a tad riskier than the average Berkshire investment, there is a solid bull case for both AbbVie and Royalty Pharma right now. | The healthcare stocks AbbVie (NYSE: ABBV) and Royalty Pharma (NASDAQ: RPRX) are two intriguing Berkshire holdings that each pay a respectable dividend. Although these two healthcare stocks are a tad riskier than the average Berkshire investment, there is a solid bull case for both AbbVie and Royalty Pharma right now. AbbVie: A high-yield growth stock Berkshire first bought AbbVie during the third quarter of 2020. | The healthcare stocks AbbVie (NYSE: ABBV) and Royalty Pharma (NASDAQ: RPRX) are two intriguing Berkshire holdings that each pay a respectable dividend. Although these two healthcare stocks are a tad riskier than the average Berkshire investment, there is a solid bull case for both AbbVie and Royalty Pharma right now. AbbVie: A high-yield growth stock Berkshire first bought AbbVie during the third quarter of 2020. | The healthcare stocks AbbVie (NYSE: ABBV) and Royalty Pharma (NASDAQ: RPRX) are two intriguing Berkshire holdings that each pay a respectable dividend. Although these two healthcare stocks are a tad riskier than the average Berkshire investment, there is a solid bull case for both AbbVie and Royalty Pharma right now. AbbVie: A high-yield growth stock Berkshire first bought AbbVie during the third quarter of 2020. |
23757.0 | 2021-12-14 00:00:00 UTC | Why Soliton Popped While the Market Slid Today | ABBV | https://www.nasdaq.com/articles/why-soliton-popped-while-the-market-slid-today | nan | nan | What happened
On a gloomy day for the stock market, healthcare aesthetics specialist Soliton (NASDAQ: SOLY) was a luminous bright spot on Tuesday. The company's shares rocketed almost 12% higher, on news that its absorption into soon-to-be-parent AbbVie (NYSE: ABBV) is about to close.
So what
Soliton pointed out in a regulatory filing this morning that the waiting period mandated under law for deals like AbbVie's acquisition expired Monday night. With that out of the way, Soliton believes the acquisition will close "on or about" this Thursday, Dec. 16.
Image source: Getty Images.
The deal was first announced in mid-May. The two companies agreed that AbbVie's Allergan Aesthetics unit would acquire Soliton and its RESONIC device for $22.60 per share; all told, the enterprise value of the deal is around $550 million. The movement in Soliton's shares on Tuesday parked the price at just under that per-share amount, at $22.55.
RESONIC is a device that, in Soliton's description, "uses non-invasive rapid, high-frequency sound waves to disrupt targeted cellular structures and connective tissue, physically impacting the fibrous septae beneath the skin that contribute to the dimpled appearance of cellulite."
This is very appealing to AbbVie. Soliton quoted the big healthcare company's President of Global Allergan Aesthetics, Carrie Strom, as saying that RESONIC "offers a new, completely non-invasive approach with clinically proven results to reduce the appearance of cellulite with no patient downtime."
Now what
Soliton is about to end its life as a separate company. Once the AbbVie deal is completed, it will become a wholly owned subsidiary of the larger entity. While there is still a bit of room left for investors to squeeze a few pennies arbitraging the current price with that agreed sale price, the story of Soliton as a separate investment is over for now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company's shares rocketed almost 12% higher, on news that its absorption into soon-to-be-parent AbbVie (NYSE: ABBV) is about to close. So what Soliton pointed out in a regulatory filing this morning that the waiting period mandated under law for deals like AbbVie's acquisition expired Monday night. The two companies agreed that AbbVie's Allergan Aesthetics unit would acquire Soliton and its RESONIC device for $22.60 per share; all told, the enterprise value of the deal is around $550 million. | The two companies agreed that AbbVie's Allergan Aesthetics unit would acquire Soliton and its RESONIC device for $22.60 per share; all told, the enterprise value of the deal is around $550 million. The company's shares rocketed almost 12% higher, on news that its absorption into soon-to-be-parent AbbVie (NYSE: ABBV) is about to close. So what Soliton pointed out in a regulatory filing this morning that the waiting period mandated under law for deals like AbbVie's acquisition expired Monday night. | The two companies agreed that AbbVie's Allergan Aesthetics unit would acquire Soliton and its RESONIC device for $22.60 per share; all told, the enterprise value of the deal is around $550 million. The company's shares rocketed almost 12% higher, on news that its absorption into soon-to-be-parent AbbVie (NYSE: ABBV) is about to close. So what Soliton pointed out in a regulatory filing this morning that the waiting period mandated under law for deals like AbbVie's acquisition expired Monday night. | The company's shares rocketed almost 12% higher, on news that its absorption into soon-to-be-parent AbbVie (NYSE: ABBV) is about to close. So what Soliton pointed out in a regulatory filing this morning that the waiting period mandated under law for deals like AbbVie's acquisition expired Monday night. The two companies agreed that AbbVie's Allergan Aesthetics unit would acquire Soliton and its RESONIC device for $22.60 per share; all told, the enterprise value of the deal is around $550 million. |
23758.0 | 2021-12-14 00:00:00 UTC | Is It Too Late to Buy AbbVie Stock? | ABBV | https://www.nasdaq.com/articles/is-it-too-late-to-buy-abbvie-stock | nan | nan | Past performance isn't a guarantee of future success, and that's as true in life as it is in the stock market. But past performance isn't meaningless either; investing in a company capable of replicating a winning strategy is a pretty good bet. With that in mind, let's look at pharma giant AbbVie (NYSE: ABBV).
Unlike most of its peers in the pharmaceutical industry, this drugmaker has outperformed the broader market in the past nine years. The bears will point to declining sales of AbbVie's rheumatoid arthritis drug Humira in Europe as evidence that its growth days are well behind it.
Yet there is much more to the story than that. Let's consider whether it's still worth purchasing AbbVie's shares today.
ABBV data by YCharts
Results remain strong
On the financial front, AbbVie's business seems pretty healthy. In the third quarter, the company generated $14.3 billion in revenue -- 11.2% higher than the year-ago period -- and most business segments saw strong sales increases.
The company's immunology business, which is home to Humira and other key growth drivers, posted total sales of $6.8 billion, 15.3% higher than a year ago. Meanwhile, sales within AbbVie's oncology segment rose 8.4% year over year to $1.9 billion. On the bottom line, AbbVie's earnings soared 38% to $1.78 per share.
AbbVie also continues to generate loads of cash. In the third quarter, free cash flow totaled $21.7 billion, a 282% increase from last year. AbbVie boasts a price-to-free cash flow ratio of 10.3, which is on the low end of its historical range .
Image source: Getty Images.
AbbVie's growth days aren't over
Now, let's take a look at the business itself. One way pharmaceutical companies maintain their edge is through patents that protect their drugs from competition and grant them some degree of pricing power. But once these patents expire, cheaper versions from other companies -- known as biosimilars -- are bound to eat up a medicine's market share.
That's what's going on with Humira, which lost patent exclusivity in Europe in 2018. As a result, the drug's international sales dropped by 14.6% to $812 million in the third quarter and its total sales only grew by 5.6% to $5.4 billion. Humira's patent protection in the U.S. expires in 2023.
But AbbVie is replenishing its lineup. Products such as immunosuppressants Skyrizi and Rinvoq, cancer drug Venclexta, and skin treatment Botox (added to the lineup through AbbVie's $63 billion acquisition of Allergan) are all performing well. For example, Botox saw sales of $645 million in the third quarter, 23% higher than the year-ago period. And sales of Rinvoq more than doubled to $453 million.
It is worth noting that Rinvoq has been under regulatory scrutiny recently. It belongs to a group of drugs known as JAK inhibitors. After studies revealed that these drugs carry risks of cardiovascular events and cancer, the U.S. Food and Drug Administration announced in September that JAK inhibitors would now come with a label warning patients of these risks.
Still, management remains confident that Rinvoq can continue to perform well and, along with Skyrizi, team up to replace Humira. As CEO Rick Gonzalez said in the company's third-quarter earnings conference call:
Skyrizi and Rinvoq have established very strong launch trajectories. These two assets are either approved, under regulatory review, or in late-stage development across all of Humira's major indications, and we remain confident that they will both be significant contributors to AbbVie's long-term growth.
So far, things are going according to plan on that front, and that's excellent news for AbbVie's future.
Multiple reasons to get in on the action
So do AbbVie shares make a good investment? Well, the company still boasts a solid lineup of drugs that can drive top- and bottom-line growth, cash generation, and eventually fill in the gaping hole that Humira will leave once it starts facing biosimilar competition in the U.S. in 2023.
The drugmaker is also an excellent option for dividend-seeking investors, offering a yield of 4.14% -- far higher than the S&P 500's yield of 1.30%. AbbVie is also a Dividend Aristocrat, having raised its dividends 49 years in a row, and it will likely join the exclusive rank of Dividend Kings next year.
Finally, the shares are attractively priced, trading at a forward price-to-earnings ratio of 9.9 vs. a pharma industry average of 13.5. In a market where rich valuation metrics tend to be the norm, investors shouldn't ignore a company like AbbVie that trades at reasonable levels.
In short, no, it isn't too late to get in on this excellent pharma stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Products such as immunosuppressants Skyrizi and Rinvoq, cancer drug Venclexta, and skin treatment Botox (added to the lineup through AbbVie's $63 billion acquisition of Allergan) are all performing well. These two assets are either approved, under regulatory review, or in late-stage development across all of Humira's major indications, and we remain confident that they will both be significant contributors to AbbVie's long-term growth. With that in mind, let's look at pharma giant AbbVie (NYSE: ABBV). | ABBV data by YCharts Results remain strong On the financial front, AbbVie's business seems pretty healthy. With that in mind, let's look at pharma giant AbbVie (NYSE: ABBV). The bears will point to declining sales of AbbVie's rheumatoid arthritis drug Humira in Europe as evidence that its growth days are well behind it. | The bears will point to declining sales of AbbVie's rheumatoid arthritis drug Humira in Europe as evidence that its growth days are well behind it. Meanwhile, sales within AbbVie's oncology segment rose 8.4% year over year to $1.9 billion. Products such as immunosuppressants Skyrizi and Rinvoq, cancer drug Venclexta, and skin treatment Botox (added to the lineup through AbbVie's $63 billion acquisition of Allergan) are all performing well. | With that in mind, let's look at pharma giant AbbVie (NYSE: ABBV). The bears will point to declining sales of AbbVie's rheumatoid arthritis drug Humira in Europe as evidence that its growth days are well behind it. Let's consider whether it's still worth purchasing AbbVie's shares today. |
23759.0 | 2021-12-13 00:00:00 UTC | Noteworthy Monday Option Activity: ADBE, EXPE, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-adbe-expe-abbv | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Adobe Inc (Symbol: ADBE), where a total of 25,946 contracts have traded so far, representing approximately 2.6 million underlying shares. That amounts to about 96.7% of ADBE's average daily trading volume over the past month of 2.7 million shares. Especially high volume was seen for the $700 strike call option expiring December 17, 2021, with 1,703 contracts trading so far today, representing approximately 170,300 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $700 strike highlighted in orange:
Expedia Group Inc (Symbol: EXPE) saw options trading volume of 19,811 contracts, representing approximately 2.0 million underlying shares or approximately 75.5% of EXPE's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $170 strike call option expiring June 17, 2022, with 5,015 contracts trading so far today, representing approximately 501,500 underlying shares of EXPE. Below is a chart showing EXPE's trailing twelve month trading history, with the $170 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 41,900 contracts, representing approximately 4.2 million underlying shares or approximately 74.2% of ABBV's average daily trading volume over the past month, of 5.6 million shares. Especially high volume was seen for the $131 strike call option expiring December 17, 2021, with 7,659 contracts trading so far today, representing approximately 765,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $131 strike highlighted in orange:
For the various different available expirations for ADBE options, EXPE options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $131 strike call option expiring December 17, 2021, with 7,659 contracts trading so far today, representing approximately 765,900 underlying shares of ABBV. Below is a chart showing EXPE's trailing twelve month trading history, with the $170 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 41,900 contracts, representing approximately 4.2 million underlying shares or approximately 74.2% of ABBV's average daily trading volume over the past month, of 5.6 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $131 strike highlighted in orange: For the various different available expirations for ADBE options, EXPE options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing EXPE's trailing twelve month trading history, with the $170 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 41,900 contracts, representing approximately 4.2 million underlying shares or approximately 74.2% of ABBV's average daily trading volume over the past month, of 5.6 million shares. Especially high volume was seen for the $131 strike call option expiring December 17, 2021, with 7,659 contracts trading so far today, representing approximately 765,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $131 strike highlighted in orange: For the various different available expirations for ADBE options, EXPE options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing EXPE's trailing twelve month trading history, with the $170 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 41,900 contracts, representing approximately 4.2 million underlying shares or approximately 74.2% of ABBV's average daily trading volume over the past month, of 5.6 million shares. Especially high volume was seen for the $131 strike call option expiring December 17, 2021, with 7,659 contracts trading so far today, representing approximately 765,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $131 strike highlighted in orange: For the various different available expirations for ADBE options, EXPE options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing EXPE's trailing twelve month trading history, with the $170 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 41,900 contracts, representing approximately 4.2 million underlying shares or approximately 74.2% of ABBV's average daily trading volume over the past month, of 5.6 million shares. Especially high volume was seen for the $131 strike call option expiring December 17, 2021, with 7,659 contracts trading so far today, representing approximately 765,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $131 strike highlighted in orange: For the various different available expirations for ADBE options, EXPE options, or ABBV options, visit StockOptionsChannel.com. |
23760.0 | 2021-12-13 00:00:00 UTC | AstraZeneca Elated On Calquence Data, IMGN's IMGN632 Appears To Be Promising In AML, XRTX On Watch | ABBV | https://www.nasdaq.com/articles/astrazeneca-elated-on-calquence-data-imgns-imgn632-appears-to-be-promising-in-aml-xrtx-on | nan | nan | (RTTNews) - Today's Daily Dose brings you news about AstraZeneca's new long-term data related to cancer drug Calquence; superior efficacy of Novartis' Scemblix compared to Bosulif in chronic myeloid leukemia; and ImmunoGen's updated initial safety and efficacy findings from its phase 1b/2 study of IMGN632 in combination with Vidaza and Venclexta in patients with relapsed/refractory acute myeloid leukemia, to name a few.
Read on…
1. AstraZeneca's New Findings ELEVATE Calquence
AstraZeneca PLC (AZN) has reported impressive new long-term data related to its approved cancer drug Calquence from its ASCEND and ELEVATE-RR trials.
ASCEND is a phase III trial that evaluated the efficacy and safety of Calquence (100mg twice-daily until disease progression or unacceptable toxicity) versus chemotherapy drugs like Idelalisib (sold under the brand name Zydelig) Bendamustine (Treanda) relapsed or refractory chronic lymphocytic leukemia.
In the ASCEND trial, at three years, Calquence reduced the risk of disease progression or death by 71% compared to standard of care combinations in relapsed or refractory chronic lymphocytic leukemia patients.
The ELEVATE-RR trial is a phase III non-inferiority trial of Calquence versus AbbVie's approved drug Ibrutinib (Imbruvica) in patients with relapsed or refractory CLL after at least one prior therapy. In this study, overall, patients on Ibrutinib experienced a 37% higher burden of adverse events of any grade versus patients on Calquence.
Calquence was approved by the FDA for the treatment of mantle cell lymphoma in 2017 and for chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma in 2019. The drug generated global sales of $843 million in the first nine months of 2021, up 148% over the year-ago period.
AZN closed Friday's trading at $54.02, down 1.71%.
2. Novartis' Scemblix Demonstrates Superiority Over Pfizer's Bosulif
Novartis AG's (NVS) approved drug for chronic myeloid leukemia Scemblix continues to demonstrate superior efficacy and lower discontinuation rate due to adverse reactions compared to Pfizer's Bosulif in a phase III trial, dubbed ASCEMBL.
According to the trial data, the major molecular response (MMR) rate at 48 weeks was 29.3% for patients treated with Scemblix compared to 13.2% for patients in the *Bosulif arm, which is consistent with a doubling of the efficacy at 24 weeks. The proportion of patients treated with Scemblix who experienced adverse reactions leading to discontinuation was more than three times lower than those in the Bosulif arm (7.1% vs. 25%). Bosulif is Pfizer's approved drug for chronic myeloid leukemia.
Data support longer-term use of Scemblix in patients with chronic myeloid leukemia (CML) who have previously struggled with intolerance and resistance to at least two prior tyrosine kinase inhibitor treatments, the company noted.
NVS closed Friday's trading at $80.67, up 0.29%.
3. ImmunoGen Reports Promising Data On IMGN632 In AML
ImmunoGen Inc.'s (IMGN) updated initial safety and efficacy findings from its phase 1b/2 study of IMGN632 in combination with Vidaza and Venclexta in patients with relapsed/refractory acute myeloid leukemia have been found to be promising.
According to the results, IMGN632 in combination with Vidaza and Venclexta demonstrated an objective response rate (ORR) of 48%, with a composite complete remission (CCR) rate of 30%. IMGN632 continued to display a manageable safety profile in R/R AML patients.
Commenting on the data, Naval Daver, Associate Professor in the Department of Leukemia at The University of Texas MD Anderson Cancer Center, said, "Together, the observed anti-leukemia activity and tolerability of IMGN632 in the relapsed/refractory setting are compelling and support the continued evaluation of this triplet in AML patients. I look forward to the next steps for IMGN632 in combination with azacitidine and venetoclax, with preparations for Phase 2 expansion cohorts already underway in both the relapsed and frontline AML settings."
IMGN closed Friday's trading at $6.68, down 2.77%.
4. Xencor To Incorporate subcutaneous administration In Phase I Plamotamab Study
Xencor Inc's (XNCR) updated data from its Phase 1 dose-escalation study of intravenous administration of Plamotamab in patients with B-cell non-Hodgkin lymphomas has demonstrated encouraging clinical activity in heavily pretreated patients.
The efficacy analysis of 47 evaluable patients in the trial has revealed an objective response rate of 51% and complete response rate of 26%, according to the company.
The company plans to incorporate subcutaneous administration into its ongoing Phase 1 monotherapy study of Plamotamab next year.
XNCR closed Friday's trading at $33.79, down 1.11%.
5. COVID-19 Study Supports XORTX Therapeutics' Provisional Patent Filings
The results of a study conducted by XORTX Therapeutics Inc. (XRTX) in partnership with the Ichan School of Medicine have been published in a peer reviewed paper.
The study focused on the clinical outcomes of 834 patients with COVID-19 infection who were hospitalized at Mount Sinai Hospital in New York City, especially the potential predictive role of serum uric acid on clinical outcomes.
Richard Johnson, a Professor at the University of Colorado and an author on the study, said, "An elevated serum uric acid has been found to be a risk factor for acute kidney injury in other studies, such as following cardiovascular surgery. This, however, is the first paper to my knowledge that has shown that a high uric acid is common in subjects with COVID and predicts both the development of kidney damage and mortality."
Allen Davidoff, CEO of XORTX added, "The results of this study support the company's provisional patent filings in March 2020 and 2021 that contain claims to the use of any uric acid lowering agents to prevent and treat acute kidney, acute organ injury or sepsis associated with COVID-19 infection. Resulting from this study is a more fulsome understanding that measurement of uric acid at the time of hospitalization, rapid uric acid lowering in patients who show evidence of acute kidney injury plus hyperuricemia may improve outcomes in hospitalized patients."
XORTX Therapeutics is a pharmaceutical company developing drug-based therapies for serious progressive kidney diseases.
The company has 3 drug candidates in its pipeline - XRx-008; XRx-101; and XRx-225.
-- XRx-008 for Autosomal Dominant Polycystic Kidney Disease is preparing to enter phase III testing in 2022. -- XRx-101 is being developed for the treatment of acute kidney and lung injury accompanying coronavirus infection and specifically for the COVID-19 infection. -- XRx-225 for Type 2 Diabetic Nephropathy is under preclinical development.
XRTX closed Friday's trading at $2.20, down 6.38%.
6. New Highs/Lows
Centene Corporation (CNC) closed at a new high of $78.45, up 4.78%. CVS Health Corp. (CVS) closed at a 5-year high of $98.86, up 1.59%. AbbVie Inc. (ABBV) closed at a new high of $125.47, up 1.06%. Angion Biomedica Corp. (ANGN) closed at a new low of $2.61, down 25.21%. Vaccitech plc (VACC) closed at a new low of $9.76, down 18.12%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The ELEVATE-RR trial is a phase III non-inferiority trial of Calquence versus AbbVie's approved drug Ibrutinib (Imbruvica) in patients with relapsed or refractory CLL after at least one prior therapy. AbbVie Inc. (ABBV) closed at a new high of $125.47, up 1.06%. ASCEND is a phase III trial that evaluated the efficacy and safety of Calquence (100mg twice-daily until disease progression or unacceptable toxicity) versus chemotherapy drugs like Idelalisib (sold under the brand name Zydelig) Bendamustine (Treanda) relapsed or refractory chronic lymphocytic leukemia. | The ELEVATE-RR trial is a phase III non-inferiority trial of Calquence versus AbbVie's approved drug Ibrutinib (Imbruvica) in patients with relapsed or refractory CLL after at least one prior therapy. AbbVie Inc. (ABBV) closed at a new high of $125.47, up 1.06%. (RTTNews) - Today's Daily Dose brings you news about AstraZeneca's new long-term data related to cancer drug Calquence; superior efficacy of Novartis' Scemblix compared to Bosulif in chronic myeloid leukemia; and ImmunoGen's updated initial safety and efficacy findings from its phase 1b/2 study of IMGN632 in combination with Vidaza and Venclexta in patients with relapsed/refractory acute myeloid leukemia, to name a few. | The ELEVATE-RR trial is a phase III non-inferiority trial of Calquence versus AbbVie's approved drug Ibrutinib (Imbruvica) in patients with relapsed or refractory CLL after at least one prior therapy. AbbVie Inc. (ABBV) closed at a new high of $125.47, up 1.06%. (RTTNews) - Today's Daily Dose brings you news about AstraZeneca's new long-term data related to cancer drug Calquence; superior efficacy of Novartis' Scemblix compared to Bosulif in chronic myeloid leukemia; and ImmunoGen's updated initial safety and efficacy findings from its phase 1b/2 study of IMGN632 in combination with Vidaza and Venclexta in patients with relapsed/refractory acute myeloid leukemia, to name a few. | AbbVie Inc. (ABBV) closed at a new high of $125.47, up 1.06%. The ELEVATE-RR trial is a phase III non-inferiority trial of Calquence versus AbbVie's approved drug Ibrutinib (Imbruvica) in patients with relapsed or refractory CLL after at least one prior therapy. (RTTNews) - Today's Daily Dose brings you news about AstraZeneca's new long-term data related to cancer drug Calquence; superior efficacy of Novartis' Scemblix compared to Bosulif in chronic myeloid leukemia; and ImmunoGen's updated initial safety and efficacy findings from its phase 1b/2 study of IMGN632 in combination with Vidaza and Venclexta in patients with relapsed/refractory acute myeloid leukemia, to name a few. |
23761.0 | 2021-12-11 00:00:00 UTC | 3 Best Dividend Stocks That Wall Street Is Sleeping On | ABBV | https://www.nasdaq.com/articles/3-best-dividend-stocks-that-wall-street-is-sleeping-on | nan | nan | If you're an income-minded investor, you've been out of luck for a long while now. Not only have interest rates been unusually low since we recovered from the subprime crisis back in 2009, but it has also kept dividend yields similarly suppressed -- even as growth stocks have also dramatically outperformed.
That doesn't mean dividend-paying companies aren't doing what they're supposed to do. Many are actually doing more than well enough to keep funding their payouts with a little left over. Yet Wall Street isn't giving these names much respect. That could be a big mistake as we may well be on the cusp of a rotation out of growth stocks and into income-oriented ones.
Here's a rundown of three great dividend stocks not only positioned to keep making their payments, but primed to produce good capital gains as well.
Western Union
Dividend yield: 5.3%
Yes, The Western Union Company (NYSE: WU) is still around -- although its telegram days are in the distant past. It's strictly a money-transfer entity now. That's a crowded arena these days, to be sure, with popular peer-to-peer cash transfer companies like PayPal Holdings and its Venmo readily available.
Yet, don't dismiss the marketability of Western Union's wire-based money transfer service. Western Union's approach is seemingly more antiquated, but for consumers that don't have a traditional bank account to link to their PayPal account or don't have access to the internet, the company's cash-based service is a more convenient option. And, the company's got incredible geographic reach, with stations in every country in the world except Iran and North Korea.
Image source: Getty Images.
While it's not a high-growth business, it's a consistent and reliable one. Stripping out one-off losses booked in late 2016 and then again in late 2017, this company hasn't failed to turn a profit since the early 2000s. And it's managed to grow its per-share bottom line most of that time even if it's taken a lot of stock repurchases to drive much of that progress. Indeed, the fact that the company can support a share buyback program that's nearly cut its outstanding shares in half since 2007's peak is impressive in itself.
Better still, those earnings are more than adequate to cover those payouts. Western Union has provided a $0.94 dividend over each of the past four quarters, and the company anticipates earning no less than $1.80 per share for the current fiscal year set to end this month.
Perhaps best of all, investors have let this stock slip more than 30% to less than eight times next year's expected earnings.
AbbVie
Dividend yield: 4.6%
Shares of drugmaker AbbVie (NYSE: ABBV) haven't suffered the same losing performance this year that Western Union's stock has. In fact, they're up a reasonably healthy 13% since the end of 2020; yet they lag the broad market's bigger advance, suggesting the company is underestimated and leaving lots of room for more upside.
You may be more familiar with the drugmaker's flagship products than the organization itself. AbbVie is the name behind cancer-fighting therapies like Imbruvica, facial treatment Botox, and a slew of other products. Its biggest seller -- rheumatoid arthritis drug Humira -- accounted for 40% of last quarter's revenue.
That's seemingly a problem. Humira's patent protection is slowly withering away here and abroad with biosimilar versions of the drug scheduled to hit the market in 2023. That'll take a big bite out of AbbVie's total revenue. That's also why the stock has lagged the overall market for the better part of the past few years. Investors are anticipating this headwind.
What investors may not be seeing, however, is the potential of the company's drug-development pipeline. AbbVie estimates that its immunology drugs Skyrizi and Rinvoq will collectively generate more than $15 billion worth of annual revenue by 2025 -- up from only a little over $1 billion now -- and won't reach their peak sales until the 2030s. Meanwhile, annual sales of oncology drug Imbruvica could reach on the order of $10 billion well before then vs. last year's tally of $5.3 billion.
The point is, while there may never be another Humira, Abbvie is moving into position to maintain its revenue stream and healthy dividend payouts.
Citigroup
Dividend yield: 3.3%
Finally, add Citigroup (NYSE: C) to your list of dividend stocks to consider even if a bunch of other investors and most of Wall Street aren't especially interested.
There's a lot to like here. Granted, it's tough to pinpoint any of the big bank's leading qualities. On the surface it just looks like most of its banking peers, offering loans as well as ancillary services such as brokerage, wealth management, and investment banking. It's not as if Citibank is doing anything dramatically different than its competitors are.
But it's doing many of those things better. Last month, Global Finance magazine named Citi the world's best digital bank -- and though that accolade is an acknowledgement of the company's capacity to connect with consumers, Citigroup is just as impressive on the institutional front. In October, the bank launched a platform that allows its institutional customers to deliver and collect payments on invoices sent to Citi's consumer customers in real time. It's not only faster for both parties, but also easier.
Initiatives like these are a key part of the reason Citigroup is one of the more buffered megabanks. If nothing else, the company does a great job of keeping its customers around -- and monetizing them when the time and opportunity is right.
Case in point: While it's steering clear of helping investors outright speculate on cryptocurrency prices, Citi does see value in becoming more knowledgeable. Just a couple of weeks ago the company announced it would be adding 100 more employees to its crypto staff. Citigroup is seeking to be ever-ready for whatever lies ahead.
You can jump into the stock now at a price that's barely higher than what it was one year back -- and even four years ago. You'll also be getting it at a time when its 3.28% dividend yield stands head and shoulders above the payouts of its peers.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. James Brumley has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends PayPal Holdings. The Motley Fool recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Dividend yield: 4.6% Shares of drugmaker AbbVie (NYSE: ABBV) haven't suffered the same losing performance this year that Western Union's stock has. AbbVie is the name behind cancer-fighting therapies like Imbruvica, facial treatment Botox, and a slew of other products. That'll take a big bite out of AbbVie's total revenue. | AbbVie Dividend yield: 4.6% Shares of drugmaker AbbVie (NYSE: ABBV) haven't suffered the same losing performance this year that Western Union's stock has. AbbVie is the name behind cancer-fighting therapies like Imbruvica, facial treatment Botox, and a slew of other products. That'll take a big bite out of AbbVie's total revenue. | AbbVie Dividend yield: 4.6% Shares of drugmaker AbbVie (NYSE: ABBV) haven't suffered the same losing performance this year that Western Union's stock has. AbbVie is the name behind cancer-fighting therapies like Imbruvica, facial treatment Botox, and a slew of other products. That'll take a big bite out of AbbVie's total revenue. | AbbVie Dividend yield: 4.6% Shares of drugmaker AbbVie (NYSE: ABBV) haven't suffered the same losing performance this year that Western Union's stock has. AbbVie is the name behind cancer-fighting therapies like Imbruvica, facial treatment Botox, and a slew of other products. That'll take a big bite out of AbbVie's total revenue. |
23762.0 | 2021-12-10 00:00:00 UTC | Drugmakers aim big price hikes at U.S. patients -congressional report | ABBV | https://www.nasdaq.com/articles/drugmakers-aim-big-price-hikes-at-u.s.-patients-congressional-report | nan | nan | By Diane Bartz
WASHINGTON, Dec 10 (Reuters) - Drugmakers have targeted the U.S. market to earn outsized profits from old medicines, according to a report released on Friday by the House Oversight Committee that highlighted Eli Lilly and Co LLY.N, Novo Nordisk NOVOb.CO and Sanofi SASY.PA, which control the market for insulin.
The staff report also noted pricing and marketing tactics by Pfizer Inc PFE.N that helped it earn billions of dollars from its now off-patent pain drug Lyrica.
The report, put out following a nearly three-year probe, took issue with assertions by the pharmaceutical industry that high drug prices were needed to fund innovation and research and development programs.
"The Committee's investigation also found that companies dedicated a significant portion of their R&D expenditures to research that was intended to extend market monopolies, support the companies' marketing strategies, and suppress competition," the report said.
The report, which focused on 12 drugs made by 10 companies, said that Lilly, Novo Nordisk and Sanofi own some 90% of the market for life-sustaining insulin, which was invented in the 1920s.
Medicare, the U.S. government health insurance program for those age 65 and older and the disabled, could have saved more than $16.7 billion from 2011 to 2017 on insulin purchases had it been allowed to negotiate discounts with drug companies, the report found.
"Drug companies have raised prices relentlessly for decades while manipulating the patent system and other laws to delay competition from lower-priced generics," said Committee Chairwoman Carolyn Maloney in the report.
"These companies have specifically targeted the U.S. market for higher prices, even while cutting prices in other countries, because weaknesses in our healthcare system have allowed them to get away with outrageous prices," she added.
The high prices have had human costs. More than 40% of insulin-dependent patients surveyed said they rationed their medicine in the previous year, the Colorado attorney general's office found in a 2020 report.
President Joe Biden's Build Back Better plan, which passed the House and should come before the Senate this year, includes a provision allowing Medicare to negotiate with drugmakers, although only for a small number of drugs.
The report also found that some pharmaceutical companies engage in what it called "product hopping," making small tweaks to formulations to get a new patent and then switching patients to the newer, more expensive version. There are bills before Congress to ban product hopping.
Among big-selling insulin products, Eli Lilly raised the price of its Humalog 1,219% per vial since it launched, Novo Nordisk raised the price of NovoLog 627% since launch and Sanofi has raised the price of Lantus 715%, the report found.
The report also found that Pfizer targeted the U.S. market for higher prices for its blockbuster Lyrica, as well as using product hopping to prevent patients from shifting to cheaper, generic versions of the medicine.
Lyrica's price had gone up 420% since it was approved in 2004, the report said. It had sales of about $2 billion in 2019.
The report also found price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N.
Most of the drugs mentioned in the report are over a decade old.
(Reporting by Diane Bartz Editing by Bill Berkrot)
((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The report also found price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N. Medicare, the U.S. government health insurance program for those age 65 and older and the disabled, could have saved more than $16.7 billion from 2011 to 2017 on insulin purchases had it been allowed to negotiate discounts with drug companies, the report found. President Joe Biden's Build Back Better plan, which passed the House and should come before the Senate this year, includes a provision allowing Medicare to negotiate with drugmakers, although only for a small number of drugs. | The report also found price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N. By Diane Bartz WASHINGTON, Dec 10 (Reuters) - Drugmakers have targeted the U.S. market to earn outsized profits from old medicines, according to a report released on Friday by the House Oversight Committee that highlighted Eli Lilly and Co LLY.N, Novo Nordisk NOVOb.CO and Sanofi SASY.PA, which control the market for insulin. Among big-selling insulin products, Eli Lilly raised the price of its Humalog 1,219% per vial since it launched, Novo Nordisk raised the price of NovoLog 627% since launch and Sanofi has raised the price of Lantus 715%, the report found. | The report also found price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N. "These companies have specifically targeted the U.S. market for higher prices, even while cutting prices in other countries, because weaknesses in our healthcare system have allowed them to get away with outrageous prices," she added. Among big-selling insulin products, Eli Lilly raised the price of its Humalog 1,219% per vial since it launched, Novo Nordisk raised the price of NovoLog 627% since launch and Sanofi has raised the price of Lantus 715%, the report found. | The report also found price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N. Medicare, the U.S. government health insurance program for those age 65 and older and the disabled, could have saved more than $16.7 billion from 2011 to 2017 on insulin purchases had it been allowed to negotiate discounts with drug companies, the report found. "Drug companies have raised prices relentlessly for decades while manipulating the patent system and other laws to delay competition from lower-priced generics," said Committee Chairwoman Carolyn Maloney in the report. |
23763.0 | 2021-12-10 00:00:00 UTC | Drugmakers aim big price hikes at U.S. patients, congressional report finds | ABBV | https://www.nasdaq.com/articles/drugmakers-aim-big-price-hikes-at-u.s.-patients-congressional-report-finds | nan | nan | By Diane Bartz
WASHINGTON, Dec 10 (Reuters) - Drugmakers have targeted the U.S. market to earn outsized profits from old medicines, according to a report released on Friday by the House Oversight Committee that highlighted Eli Lilly and Co LLY.N, Novo Nordisk NOVOb.CO and Sanofi SASY.PA, which dominate the market for insulin.
The staff report also noted pricing and marketing tactics by Pfizer Inc PFE.N that helped it earn billions of dollars from its now off-patent pain drug Lyrica.
The report, put out following a nearly three-year probe, took issue with assertions by the pharmaceutical industry that high drug prices were needed to fund innovation and research and development programs.
"The Committee's investigation also found that companies dedicated a significant portion of their R&D expenditures to research that was intended to extend market monopolies, support the companies' marketing strategies, and suppress competition," the report said.
The report, which focused on 12 drugs made by 10 companies, said that Lilly, Novo Nordisk and Sanofi own some 90% of the market for life-sustaining insulin, which was invented in the 1920s.
A Lilly spokesperson said the company offers discounts to make its insulin affordable. A Sanofi spokesperson said the price of its insulin product Lantus had declined almost 45% since 2012. Novo Nordisk did not have an immediate comment.
Medicare, the U.S. government health insurance program for those age 65 and older and the disabled, could have saved more than $16.7 billion from 2011 to 2017 on insulin purchases had it been allowed to negotiate discounts with drug companies, the report found.
"We found that drug companies target American patients for price increases, in large part because Medicare is prohibited from negotiating for lower prices. At the same time, the drug companies maintained or cut prices for the rest of the world," Committee Chairwoman Carolyn Maloney said at a news conference on Friday.
The high prices have had human costs. More than 40% of insulin-dependent patients surveyed said they rationed their medicine in the previous year, the Colorado attorney general's office found in a 2020 report.
PRODUCT HOPPING
President Joe Biden's Build Back Better plan, which passed the House and should come before the Senate this year, includes a provision allowing Medicare to negotiate with drugmakers, although only for a small number of medicines.
The report also found that some pharmaceutical companies engage in what it called "product hopping," a practice of making small tweaks to formulations to get a new patent and then switching patients to the newer, more expensive version. There are bills before Congress to ban product hopping.
Among big-selling insulin products, Eli Lilly raised the price of its Humalog 1,219% per vial since it launched, Novo Nordisk raised the price of NovoLog 627% since launch and Sanofi has raised the price of Lantus 715%, the report found.
The report also found that Pfizer targeted the U.S. market for higher prices for its blockbuster Lyrica, as well as using product hopping to prevent patients from shifting to cheaper, generic versions of the medicine.
Lyrica's price had gone up 420% since it was approved in 2004, the report said. It had sales of about $2 billion in 2019.
Pfizer did not have an immediate comment.
The report also listed price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades-old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N.
Most of the drugs mentioned in the report are over a decade old.
Novartis said it invested over 18% of its global revenue into R&D. Mallinckrodt and Bristol Myers did not have an immediate comment. Amgen, AbbVie, and Teva did not respond to requests for comment.
(Reporting by Diane Bartz; Additional Reporting by Ahmed Aboulenein in Washington; Editing by Bill Berkrot)
((ahmed.aboulenein@tr.com; +1 202-519-3051; Reuters Messaging: ahmed.aboulenein.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The report also listed price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades-old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N. Amgen, AbbVie, and Teva did not respond to requests for comment. Medicare, the U.S. government health insurance program for those age 65 and older and the disabled, could have saved more than $16.7 billion from 2011 to 2017 on insulin purchases had it been allowed to negotiate discounts with drug companies, the report found. | The report also listed price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades-old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N. Amgen, AbbVie, and Teva did not respond to requests for comment. By Diane Bartz WASHINGTON, Dec 10 (Reuters) - Drugmakers have targeted the U.S. market to earn outsized profits from old medicines, according to a report released on Friday by the House Oversight Committee that highlighted Eli Lilly and Co LLY.N, Novo Nordisk NOVOb.CO and Sanofi SASY.PA, which dominate the market for insulin. | The report also listed price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades-old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N. Amgen, AbbVie, and Teva did not respond to requests for comment. By Diane Bartz WASHINGTON, Dec 10 (Reuters) - Drugmakers have targeted the U.S. market to earn outsized profits from old medicines, according to a report released on Friday by the House Oversight Committee that highlighted Eli Lilly and Co LLY.N, Novo Nordisk NOVOb.CO and Sanofi SASY.PA, which dominate the market for insulin. | The report also listed price hikes of 825% for Teva Pharmaceutical Industries' TEVA.TA Copaxone, 486% for Amgen's AMGN.O Enbrel, 395% for Novartis' NOVN.S decades-old Gleevec, more than 100,000% for Mallinckrodt's Acthar, 471% for AbbVie's ABBV.N Humira and 82% for its Imbruvica, and 255% for Celgene's Revlimid, now owned by Bristol Myers Squibb BMY.N. Amgen, AbbVie, and Teva did not respond to requests for comment. By Diane Bartz WASHINGTON, Dec 10 (Reuters) - Drugmakers have targeted the U.S. market to earn outsized profits from old medicines, according to a report released on Friday by the House Oversight Committee that highlighted Eli Lilly and Co LLY.N, Novo Nordisk NOVOb.CO and Sanofi SASY.PA, which dominate the market for insulin. |
23764.0 | 2021-12-10 00:00:00 UTC | 4 Stocks That Could Be Worth $1 Trillion by 2035 | ABBV | https://www.nasdaq.com/articles/4-stocks-that-could-be-worth-%241-trillion-by-2035 | nan | nan | How do you know that a stock has truly made it? I would argue that reaching the $1 trillion market capitalization milestone is the telltale sign that a stock has achieved something very special. At present, there are just six such companies, but no doubt others will begin to reach those lofty heights in the years to come.
Here are four dividend-paying stocks that aren't quite there yet, but their dominance in rapidly growing industries almost guarantees that they will be by 2035.
Image source: Getty Images.
Johnson & Johnson: Market cap of $380 billion (est.)
As the largest pharma stock by market cap, Johnson & Johnson (NYSE: JNJ) probably needs no introduction. While best-known for such consumer brands as Tylenol and Motrin, J&J actually has an even larger pharmaceutical segment, accounting for nearly 55% of the company's $69 billion in net sales year to date. Key products in that group include immunology blockbusters Stelara and Tremfya as well as cancer drugs Darzalex and Imbruvica (co-owned with AbbVie).
In fact, J&J will be separating its consumer health segment into a new, publicly traded company. This is a lower-margin, lower-growth business -- accounting for just 16% of J&J's overall revenue -- leaving the faster-growing pharma business. It's anticipated that total medication spending around the world will grow from $1.27 trillion last year to $1.60 trillion by 2025.
Given J&J's strength in the pharma industry, it is well-positioned to ride this wave of growth. That's why I anticipate the stock's non-GAAP earnings per share (EPS) will grow at over 8% annually over the next five years (adjusted for the consumer-business spinoff).
If we discount J&J's current market cap of $430 billion by $50 billion (to roughly adjust for the upcoming spinoff), that leaves us with a $380 billion valuation for the remaining business. J&J would need to grow its share price about 8% annually over the next 13 years -- a reasonable goal -- to reach a $1 trillion market cap.
UnitedHealth: Market cap of $438 billion
The second stock that could be worth $1 trillion by 2035 is mega-cap health insurer UnitedHealth Group (NYSE: UNH).
Because healthcare is becoming more costly with each passing year, market research firm Allied Market Research forecasts that more consumers around the world will purchase health insurance as a hedge against these costs. The firm believes this will result in the global health insurance market growing 9.7% annually from $1.98 trillion last year to $4.15 trillion by 2028.
As the largest health insurer in the world, UnitedHealth is as well-positioned as any company to benefit from this trend. This may explain why analysts predict the company's non-GAAP EPS will grow more than 14% annually over the next five years. While this would be a sharp drop from the 23% annual clip of the past five years, it would be more than enough to push UnitedHealth beyond a $1 trillion market cap by 2035.
That's because to reach a $1 trillion market cap, UnitedHealth's stock price only needs to rise just under 7% annually over the next 13 years. Meanwhile, investors can collect a market-matching 1.3% yield from the stock as they wait for its growth to play out.
Mastercard: Market cap of $333 billion
The third stock that could reach a market cap of $1 trillion by 2035 is Mastercard (NYSE: MA) the second-largest payments processor in the world behind Visa (NYSE: V).
It's no secret that cash transactions have been on the decline for decades. And yet, the card payments market is only worth about $45 trillion in a global payments market valued around $185 trillion. This means Mastercard still has plenty of runway ahead, especially in the business-to-business payments category.
That is precisely why analysts are expecting non-GAAP EPS growth to accelerate from 22% annually in the past five years to 26% annually over the next five years. Of course, Mastercard can't grow this fast forever. But it doesn't need to in order to attain a $1 trillion market cap by 2035.
In fact, the stock only needs to appreciate about 9% annually over the next 13 years to join the trillionaire club. Until then, investors can park their capital in this wonderful business and collect a 0.6% dividend. While this is the smallest yield among the four stocks I'm covering, it still beats basically any rate you can collect in a savings account, and the potential for upside in the company is huge.
Broadcom: Market cap of $243 billion
The fourth and final stock that I believe is capable of achieving a $1 trillion market cap by 2035 is the semiconductor maker Broadcom (NASDAQ: AVGO). Like the other three stocks I have examined, Broadcom is among the largest in its field, ranking fifth among computer-chip stocks in the world by market capitalization.
While that still leaves plenty of other major players, there should be more than enough business to go around. This is because semiconductor companies will be pivotal in meeting the growing demand for consumer electronics devices around the world, according to market research firm Fortune Business Insights. As a result, the firm expects that the global semiconductor industry will compound at an 8.6% growth rate annually, from $452 billion this year to $803 billion by 2028.
Given the tremendous growth potential of the semiconductor industry, analysts are projecting that Broadcom will deliver 15% annual non-GAAP EPS growth over the next five years. But the stock only needs to appreciate about 12% annually over the next 13 years, putting $1 trillion well within reach.
Plus, some good news for income lovers. The company just raised its dividend by 13.9% to $4.10 per quarter, giving investors a nice 2.8% dividend yield to pocket as they wait.
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Kody Kester owns shares of AbbVie, Broadcom Ltd, Johnson & Johnson, UnitedHealth Group, and Visa. The Motley Fool owns shares of and recommends Mastercard and Visa. The Motley Fool recommends Broadcom Ltd, Johnson & Johnson, and UnitedHealth Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Key products in that group include immunology blockbusters Stelara and Tremfya as well as cancer drugs Darzalex and Imbruvica (co-owned with AbbVie). See the 10 stocks *Stock Advisor returns as of November 10, 2021 Kody Kester owns shares of AbbVie, Broadcom Ltd, Johnson & Johnson, UnitedHealth Group, and Visa. While best-known for such consumer brands as Tylenol and Motrin, J&J actually has an even larger pharmaceutical segment, accounting for nearly 55% of the company's $69 billion in net sales year to date. | Key products in that group include immunology blockbusters Stelara and Tremfya as well as cancer drugs Darzalex and Imbruvica (co-owned with AbbVie). See the 10 stocks *Stock Advisor returns as of November 10, 2021 Kody Kester owns shares of AbbVie, Broadcom Ltd, Johnson & Johnson, UnitedHealth Group, and Visa. As the largest pharma stock by market cap, Johnson & Johnson (NYSE: JNJ) probably needs no introduction. | Key products in that group include immunology blockbusters Stelara and Tremfya as well as cancer drugs Darzalex and Imbruvica (co-owned with AbbVie). See the 10 stocks *Stock Advisor returns as of November 10, 2021 Kody Kester owns shares of AbbVie, Broadcom Ltd, Johnson & Johnson, UnitedHealth Group, and Visa. That's because to reach a $1 trillion market cap, UnitedHealth's stock price only needs to rise just under 7% annually over the next 13 years. | Key products in that group include immunology blockbusters Stelara and Tremfya as well as cancer drugs Darzalex and Imbruvica (co-owned with AbbVie). See the 10 stocks *Stock Advisor returns as of November 10, 2021 Kody Kester owns shares of AbbVie, Broadcom Ltd, Johnson & Johnson, UnitedHealth Group, and Visa. The firm believes this will result in the global health insurance market growing 9.7% annually from $1.98 trillion last year to $4.15 trillion by 2028. |
23765.0 | 2021-12-09 00:00:00 UTC | Allergan Announces Availability Of FDA-Approved Eye Drop VUITY - Quick Facts | ABBV | https://www.nasdaq.com/articles/allergan-announces-availability-of-fda-approved-eye-drop-vuity-quick-facts | nan | nan | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Thursday that VUITY (pilocarpine HCl ophthalmic solution) 1.25%, the first and only eye drop approved by the U.S. Food and Drug Administration (FDA) to treat presbyopia, is now available by prescription in pharmacies across the U.S.
The FDA approval of VUITY in October 2021 was based on data from two pivotal phase 3 clinical studies, GEMINI 1 and GEMINI 2, which evaluated the efficacy, safety and tolerability of VUITY for the treatment of presbyopia.
Presbyopia, or age-related blurry near vision, can be diagnosed through a basic eye exam by an eye doctor (optometrist or ophthalmologist) and is a common and progressive eye condition that affects 128 million Americans, or nearly half of the U.S. adult population, which typically begins around age 40.
VUITY is an optimized formulation of pilocarpine, an established eye care therapeutic, specifically designed to treat age-related blurry near vision. It is delivered with proprietary pHast technology, which allows VUITY to rapidly adjust to the physiologic pH of the tear film. This was studied in simulated tear film, and the clinical significance is unknown.
VUITY uses the eye's own ability to reduce pupil size, improving near and intermediate vision while maintaining distance vision.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Thursday that VUITY (pilocarpine HCl ophthalmic solution) 1.25%, the first and only eye drop approved by the U.S. Food and Drug Administration (FDA) to treat presbyopia, is now available by prescription in pharmacies across the U.S. VUITY is an optimized formulation of pilocarpine, an established eye care therapeutic, specifically designed to treat age-related blurry near vision. It is delivered with proprietary pHast technology, which allows VUITY to rapidly adjust to the physiologic pH of the tear film. | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Thursday that VUITY (pilocarpine HCl ophthalmic solution) 1.25%, the first and only eye drop approved by the U.S. Food and Drug Administration (FDA) to treat presbyopia, is now available by prescription in pharmacies across the U.S. The FDA approval of VUITY in October 2021 was based on data from two pivotal phase 3 clinical studies, GEMINI 1 and GEMINI 2, which evaluated the efficacy, safety and tolerability of VUITY for the treatment of presbyopia. Presbyopia, or age-related blurry near vision, can be diagnosed through a basic eye exam by an eye doctor (optometrist or ophthalmologist) and is a common and progressive eye condition that affects 128 million Americans, or nearly half of the U.S. adult population, which typically begins around age 40. | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Thursday that VUITY (pilocarpine HCl ophthalmic solution) 1.25%, the first and only eye drop approved by the U.S. Food and Drug Administration (FDA) to treat presbyopia, is now available by prescription in pharmacies across the U.S. The FDA approval of VUITY in October 2021 was based on data from two pivotal phase 3 clinical studies, GEMINI 1 and GEMINI 2, which evaluated the efficacy, safety and tolerability of VUITY for the treatment of presbyopia. Presbyopia, or age-related blurry near vision, can be diagnosed through a basic eye exam by an eye doctor (optometrist or ophthalmologist) and is a common and progressive eye condition that affects 128 million Americans, or nearly half of the U.S. adult population, which typically begins around age 40. | (RTTNews) - Allergan, an AbbVie (ABBV) company, announced Thursday that VUITY (pilocarpine HCl ophthalmic solution) 1.25%, the first and only eye drop approved by the U.S. Food and Drug Administration (FDA) to treat presbyopia, is now available by prescription in pharmacies across the U.S. Presbyopia, or age-related blurry near vision, can be diagnosed through a basic eye exam by an eye doctor (optometrist or ophthalmologist) and is a common and progressive eye condition that affects 128 million Americans, or nearly half of the U.S. adult population, which typically begins around age 40. This was studied in simulated tear film, and the clinical significance is unknown. |
23766.0 | 2021-12-09 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABBV | https://www.nasdaq.com/articles/5-dividend-growth-stocks-with-upside-to-analyst-targets-2 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention — and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
STOCK RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Cardinal Health, Inc. (Symbol: CAH) $48.25 $58.78 21.82%
General Dynamics Corp (Symbol: GD) $200.88 $234.44 16.71%
Cincinnati Financial Corp. (Symbol: CINF) $117.21 $135.00 15.18%
AbbVie Inc (Symbol: ABBV) $121.87 $133.08 9.20%
J.M. Smucker Co. (Symbol: SJM) $129.88 $137.44 5.82%
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period — so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
STOCK DIVIDEND YIELD % UPSIDE TO ANALYST TARGET IMPLIED TOTAL RETURN POTENTIAL
Cardinal Health, Inc. (Symbol: CAH) 4.07% 21.82% 25.89%
General Dynamics Corp (Symbol: GD) 2.37% 16.71% 19.08%
Cincinnati Financial Corp. (Symbol: CINF) 2.15% 15.18% 17.33%
AbbVie Inc (Symbol: ABBV) 4.63% 9.20% 13.83%
J.M. Smucker Co. (Symbol: SJM) 3.05% 5.82% 8.87%
Another consideration with dividend growth stocks is just how much the dividend is growing. We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
STOCK PRIOR TTM DIVIDEND TTM DIVIDEND % GROWTH
Cardinal Health, Inc. (Symbol: CAH) $1.934 $1.954 1.03%
General Dynamics Corp (Symbol: GD) $4.32 $4.67 8.10%
Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51%
AbbVie Inc (Symbol: ABBV) $4.72 $5.2 10.17%
J.M. Smucker Co. (Symbol: SJM) $3.56 $3.78 6.18%
These five stocks are part of our full Dividend Aristocrats List. The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Get the latest Zacks research report on ABBV — FREE Get the latest Zacks research report on SJM — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Cardinal Health, Inc. (Symbol: CAH) $48.25 $58.78 21.82% General Dynamics Corp (Symbol: GD) $200.88 $234.44 16.71% Cincinnati Financial Corp. (Symbol: CINF) $117.21 $135.00 15.18% AbbVie Inc (Symbol: ABBV) $121.87 $133.08 9.20% J.M. Cardinal Health, Inc. (Symbol: CAH) 4.07% 21.82% 25.89% General Dynamics Corp (Symbol: GD) 2.37% 16.71% 19.08% Cincinnati Financial Corp. (Symbol: CINF) 2.15% 15.18% 17.33% AbbVie Inc (Symbol: ABBV) 4.63% 9.20% 13.83% J.M. | Cardinal Health, Inc. (Symbol: CAH) $48.25 $58.78 21.82% General Dynamics Corp (Symbol: GD) $200.88 $234.44 16.71% Cincinnati Financial Corp. (Symbol: CINF) $117.21 $135.00 15.18% AbbVie Inc (Symbol: ABBV) $121.87 $133.08 9.20% J.M. Cardinal Health, Inc. (Symbol: CAH) 4.07% 21.82% 25.89% General Dynamics Corp (Symbol: GD) 2.37% 16.71% 19.08% Cincinnati Financial Corp. (Symbol: CINF) 2.15% 15.18% 17.33% AbbVie Inc (Symbol: ABBV) 4.63% 9.20% 13.83% J.M. Cardinal Health, Inc. (Symbol: CAH) $1.934 $1.954 1.03% General Dynamics Corp (Symbol: GD) $4.32 $4.67 8.10% Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51% AbbVie Inc (Symbol: ABBV) $4.72 $5.2 10.17% J.M. | Cardinal Health, Inc. (Symbol: CAH) $48.25 $58.78 21.82% General Dynamics Corp (Symbol: GD) $200.88 $234.44 16.71% Cincinnati Financial Corp. (Symbol: CINF) $117.21 $135.00 15.18% AbbVie Inc (Symbol: ABBV) $121.87 $133.08 9.20% J.M. Cardinal Health, Inc. (Symbol: CAH) 4.07% 21.82% 25.89% General Dynamics Corp (Symbol: GD) 2.37% 16.71% 19.08% Cincinnati Financial Corp. (Symbol: CINF) 2.15% 15.18% 17.33% AbbVie Inc (Symbol: ABBV) 4.63% 9.20% 13.83% J.M. Cardinal Health, Inc. (Symbol: CAH) $1.934 $1.954 1.03% General Dynamics Corp (Symbol: GD) $4.32 $4.67 8.10% Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51% AbbVie Inc (Symbol: ABBV) $4.72 $5.2 10.17% J.M. | Cardinal Health, Inc. (Symbol: CAH) $48.25 $58.78 21.82% General Dynamics Corp (Symbol: GD) $200.88 $234.44 16.71% Cincinnati Financial Corp. (Symbol: CINF) $117.21 $135.00 15.18% AbbVie Inc (Symbol: ABBV) $121.87 $133.08 9.20% J.M. Cardinal Health, Inc. (Symbol: CAH) 4.07% 21.82% 25.89% General Dynamics Corp (Symbol: GD) 2.37% 16.71% 19.08% Cincinnati Financial Corp. (Symbol: CINF) 2.15% 15.18% 17.33% AbbVie Inc (Symbol: ABBV) 4.63% 9.20% 13.83% J.M. Cardinal Health, Inc. (Symbol: CAH) $1.934 $1.954 1.03% General Dynamics Corp (Symbol: GD) $4.32 $4.67 8.10% Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51% AbbVie Inc (Symbol: ABBV) $4.72 $5.2 10.17% J.M. |
23767.0 | 2021-12-08 00:00:00 UTC | AbbVie settles New York opioid case for $200 mln as trial winds down | ABBV | https://www.nasdaq.com/articles/abbvie-settles-new-york-opioid-case-for-%24200-mln-as-trial-winds-down | nan | nan | By Brendan Pierson
Dec 8 (Reuters) - Drugmaker AbbVie Inc ABBV.N agreed to pay $200 million to settle claims by New York that it helped fuel an epidemic of opioid addiction in the state, on the day jurors were expected to hear closing arguments at the end of a five-month trial.
New York Attorney General Letitia James announced the deal on Wednesday, saying more than $150 million would be used to remedy harms cause opioid addiction. Teva Pharmaceutical Industries Ltd TEVA.TA remains a defendant in the case, with closing arguments are expected to proceed later in the day.
James, along with New York's Nassau and Suffolk Counties, had been seeking to hold Teva and AbbVie responsible for the cost of dealing with opioid addiction.
Israel-based Teva has said it complied with federal regulations and that changing standards of care were behind surging opioid prescriptions.
The case is one of more than 3,300 filed by state, local and tribal governments across the country accusing drugmakers of minimizing the addictiveness of opioid pain medications, and distributors and pharmacies of ignoring red flags that they were being diverted into illegal channels.
On Tuesday, jurors saw the last evidence in the case, including two parody videos made in 2006 for a sales meeting at Cephalon, which sold potent opioids meant for cancer pain. The company was later acquired by Teva.
One video showed the character Dr. Evil from the "Austin Powers" films as a Cephalon employee complaining about child-resistant packaging on the company's opioid drug Fentora. The other spoofed a courtroom scene in "A Few Good Men" and featured a Cephalon employee telling a lawyer that he "can't handle the truth" about how sales representatives meet quotas.
More than 100,000 people died from drug overdoses during the 12-month period ending April 2021, the U.S. Centers for Disease Control and Prevention said in a report in November, a record driven largely by opioids.
The three largest U.S. drug distributors and drugmaker Johnson & Johnson JNJ.N in July agreed to pay up to $26 billion to resolve the lawsuits against them.
A bankruptcy judge in September approved a settlement by OxyContin maker Purdue Pharma LP, including about $4.5 billion from its wealthy Sackler family owners.
(Reporting By Brendan Pierson in New York, Editing by Alexia Garamfalvi, Aurora Ellis and Bill Berkrot)
((Brendan.Pierson@thomsonreuters.com; 646-223-6017 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Brendan Pierson Dec 8 (Reuters) - Drugmaker AbbVie Inc ABBV.N agreed to pay $200 million to settle claims by New York that it helped fuel an epidemic of opioid addiction in the state, on the day jurors were expected to hear closing arguments at the end of a five-month trial. James, along with New York's Nassau and Suffolk Counties, had been seeking to hold Teva and AbbVie responsible for the cost of dealing with opioid addiction. The case is one of more than 3,300 filed by state, local and tribal governments across the country accusing drugmakers of minimizing the addictiveness of opioid pain medications, and distributors and pharmacies of ignoring red flags that they were being diverted into illegal channels. | By Brendan Pierson Dec 8 (Reuters) - Drugmaker AbbVie Inc ABBV.N agreed to pay $200 million to settle claims by New York that it helped fuel an epidemic of opioid addiction in the state, on the day jurors were expected to hear closing arguments at the end of a five-month trial. James, along with New York's Nassau and Suffolk Counties, had been seeking to hold Teva and AbbVie responsible for the cost of dealing with opioid addiction. Evil from the "Austin Powers" films as a Cephalon employee complaining about child-resistant packaging on the company's opioid drug Fentora. | By Brendan Pierson Dec 8 (Reuters) - Drugmaker AbbVie Inc ABBV.N agreed to pay $200 million to settle claims by New York that it helped fuel an epidemic of opioid addiction in the state, on the day jurors were expected to hear closing arguments at the end of a five-month trial. James, along with New York's Nassau and Suffolk Counties, had been seeking to hold Teva and AbbVie responsible for the cost of dealing with opioid addiction. The case is one of more than 3,300 filed by state, local and tribal governments across the country accusing drugmakers of minimizing the addictiveness of opioid pain medications, and distributors and pharmacies of ignoring red flags that they were being diverted into illegal channels. | By Brendan Pierson Dec 8 (Reuters) - Drugmaker AbbVie Inc ABBV.N agreed to pay $200 million to settle claims by New York that it helped fuel an epidemic of opioid addiction in the state, on the day jurors were expected to hear closing arguments at the end of a five-month trial. James, along with New York's Nassau and Suffolk Counties, had been seeking to hold Teva and AbbVie responsible for the cost of dealing with opioid addiction. New York Attorney General Letitia James announced the deal on Wednesday, saying more than $150 million would be used to remedy harms cause opioid addiction. |
23768.0 | 2021-12-08 00:00:00 UTC | AbbVie Stock: Strong Dividend Growth and Reasonably Valued | ABBV | https://www.nasdaq.com/articles/abbvie-stock%3A-strong-dividend-growth-and-reasonably-valued | nan | nan | AbbVie (ABBV) is an international, research-driven biopharmaceutical company specializing in developing and marketing comprehensive therapies that aim to remedy some of the world's most complicated and severe diseases.
Following AbbVie's acquisition of Allergan plc last year, the company has formed a diversified biopharmaceutical product portfolio. It is positioned in key therapeutic areas such as immunology, hematologic oncology, aesthetics, neuroscience, eye care, and women's health.
In fact, the combination of AbbVie's original product portfolio and its enhanced pipeline following acquiring Allergan's assets should benefit the merged company's commercial strength and international infrastructure substantially, in my view.
AbbVie's shares have significantly rallied over the past year, hovering near all-time high levels. However, the stock's valuation remains rather attractive, while its 4.65% yield makes for a strong capital return component. For this reason, I am bullish on the stock. (See Analysts' Top Stocks on TipRanks)
Q3 Results: Another Steady Quarter
AbbVie's Q3 results came in quite strong, with the company generating revenues of $14.3 billion during the period, an 11.3% increase year-over-year. Growth was driven by higher sales in several of its drugs, including Skyrizi and Rinvoq. Amid scaling economics, Abvvie's EPS came in at $3.33, 17.7% higher compared to Q3 2020.
Following a stronger-than-expected quarter, management hiked its Fiscal Year 2021 guidance. The company now anticipates delivering EPS between $12.63 - $12.67, suggesting a considerable improvement compared to last year.
Back in October, the company also declared a dividend hike by 8.5%, raising the quarterly dividend per share (DPS) to $1.41 per share. In my view, this suggests robust confidence from management when it comes to AbbVie's short and medium-term profitability growth prospects.
The Dividend and Valuation
Combined with its dividend increases from before its spin-off from Abbot Laboratories, AbbVie has "unofficially" grown its dividend annually for 49 consecutive years.
Despite such a prolonged track record implying a very mature business, AbbVie's five-year DPS CAGR stands at an impressive 17.9%. Following equally strong EPS growth during this period, the payout ratio is quite comfortable as well. Based on this year's expected EPS, the payout ratio should remain just under 45%.
Regarding future profitability growth, note that AbbVie's management believes that despite Humira's revenues weakening in the mid-2020s amid the patent's expiry, company-wide revenues in 2025 will be higher than last year. This displays AbbVie's robust performance and strong diversification prospects going forward, in my view.
Despite its above-average yield of 4.65%, which is quite substantial in the current environment of ultra-low yields, AbbVie's shares are very reasonably valued.
At the midpoint of management's guidance, the stock is trading at a P/E of 9.6x. Hence, investors should be enjoying a relatively broad margin of safety at the stock's current levels, hardly facing any risk of a potential valuation multiple compression, in my view. If anything, a valuation expansion towards a more reasonable multiple in the low teens is likely to add on total returns.
Wall Street's Take
Turning to Wall Street, AbbVie has a Strong Buy consensus rating, based on ten Buys and two Holds assigned in the past three months. At $131.91, the average AbbVie price target implies 8.7% upside potential.
Disclosure: At the time of publication, Nikolaos Sismanis did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates Read full disclaimer >
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) is an international, research-driven biopharmaceutical company specializing in developing and marketing comprehensive therapies that aim to remedy some of the world's most complicated and severe diseases. In fact, the combination of AbbVie's original product portfolio and its enhanced pipeline following acquiring Allergan's assets should benefit the merged company's commercial strength and international infrastructure substantially, in my view. Following AbbVie's acquisition of Allergan plc last year, the company has formed a diversified biopharmaceutical product portfolio. | (See Analysts' Top Stocks on TipRanks) Q3 Results: Another Steady Quarter AbbVie's Q3 results came in quite strong, with the company generating revenues of $14.3 billion during the period, an 11.3% increase year-over-year. Wall Street's Take Turning to Wall Street, AbbVie has a Strong Buy consensus rating, based on ten Buys and two Holds assigned in the past three months. AbbVie (ABBV) is an international, research-driven biopharmaceutical company specializing in developing and marketing comprehensive therapies that aim to remedy some of the world's most complicated and severe diseases. | (See Analysts' Top Stocks on TipRanks) Q3 Results: Another Steady Quarter AbbVie's Q3 results came in quite strong, with the company generating revenues of $14.3 billion during the period, an 11.3% increase year-over-year. Regarding future profitability growth, note that AbbVie's management believes that despite Humira's revenues weakening in the mid-2020s amid the patent's expiry, company-wide revenues in 2025 will be higher than last year. AbbVie (ABBV) is an international, research-driven biopharmaceutical company specializing in developing and marketing comprehensive therapies that aim to remedy some of the world's most complicated and severe diseases. | Following AbbVie's acquisition of Allergan plc last year, the company has formed a diversified biopharmaceutical product portfolio. AbbVie (ABBV) is an international, research-driven biopharmaceutical company specializing in developing and marketing comprehensive therapies that aim to remedy some of the world's most complicated and severe diseases. In fact, the combination of AbbVie's original product portfolio and its enhanced pipeline following acquiring Allergan's assets should benefit the merged company's commercial strength and international infrastructure substantially, in my view. |
23769.0 | 2021-12-08 00:00:00 UTC | Jury to hear final arguments in N.Y. opioid case against drugmakers | ABBV | https://www.nasdaq.com/articles/jury-to-hear-final-arguments-in-n.y.-opioid-case-against-drugmakers | nan | nan | By Brendan Pierson
Dec 8 (Reuters) - Jurors in a New York state court are expected to hear closing arguments Wednesday over whether drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA fueled an opioid epidemic in the state, concluding a trial that has lasted more than five months.
New York's Attorney General and Nassau and Suffolk Counties are seeking to hold the two companies responsible for the cost of dealing with opioid addiction. The companies have said they complied with federal regulations and that changing standards of care were behind surging opioid prescriptions.
The case is one of more than 3,300 filed by state, local and tribal governments across the country accusing drugmakers of minimizing opioid drugs' addictiveness and distributors and pharmacies of ignoring red flags that they were being diverted into illegal channels.
On Tuesday, jurors saw the last evidence in the case, including two parody videos made in 2006 for a sales meeting at Cephalon Inc, later bought by Teva.
One video showed the character Dr. Evil from the film "Austin Powers" as a Cephalon employee complaining about child-resistant packaging on the company's opioid drug Fentora. The other spoofed a courtroom scene in "A Few Good Men" and featured a Cephalon employee telling a lawyer that he "can't handle the truth" about how sales representatives meet quotas.
More than 100,000 people died from drug overdoses during the 12-month period ending April 2021, the U.S. Centers for Disease Control and Prevention said in a report in November, a record driven largely by opioids.
The three largest U.S. drug distributors and Johnson & Johnson JNJ.N in July agreed to pay up to $26 billion to resolve the lawsuits against them.
A bankruptcy judge in September approved a settlement by OxyContin maker Purdue Pharma LP, including about $4.5 billion from its wealthy Sackler family owners.
(Reporting By Brendan Pierson in New York, Editing by Alexia Garamfalvi and Aurora Ellis)
((Brendan.Pierson@thomsonreuters.com; 646-223-6017 (desk); 646-306-0235 (cell);))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Brendan Pierson Dec 8 (Reuters) - Jurors in a New York state court are expected to hear closing arguments Wednesday over whether drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA fueled an opioid epidemic in the state, concluding a trial that has lasted more than five months. The case is one of more than 3,300 filed by state, local and tribal governments across the country accusing drugmakers of minimizing opioid drugs' addictiveness and distributors and pharmacies of ignoring red flags that they were being diverted into illegal channels. The other spoofed a courtroom scene in "A Few Good Men" and featured a Cephalon employee telling a lawyer that he "can't handle the truth" about how sales representatives meet quotas. | By Brendan Pierson Dec 8 (Reuters) - Jurors in a New York state court are expected to hear closing arguments Wednesday over whether drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA fueled an opioid epidemic in the state, concluding a trial that has lasted more than five months. The case is one of more than 3,300 filed by state, local and tribal governments across the country accusing drugmakers of minimizing opioid drugs' addictiveness and distributors and pharmacies of ignoring red flags that they were being diverted into illegal channels. Evil from the film "Austin Powers" as a Cephalon employee complaining about child-resistant packaging on the company's opioid drug Fentora. | By Brendan Pierson Dec 8 (Reuters) - Jurors in a New York state court are expected to hear closing arguments Wednesday over whether drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA fueled an opioid epidemic in the state, concluding a trial that has lasted more than five months. The case is one of more than 3,300 filed by state, local and tribal governments across the country accusing drugmakers of minimizing opioid drugs' addictiveness and distributors and pharmacies of ignoring red flags that they were being diverted into illegal channels. Evil from the film "Austin Powers" as a Cephalon employee complaining about child-resistant packaging on the company's opioid drug Fentora. | By Brendan Pierson Dec 8 (Reuters) - Jurors in a New York state court are expected to hear closing arguments Wednesday over whether drugmakers AbbVie Inc ABBV.N and Teva Pharmaceutical Industries Ltd TEVA.TA fueled an opioid epidemic in the state, concluding a trial that has lasted more than five months. New York's Attorney General and Nassau and Suffolk Counties are seeking to hold the two companies responsible for the cost of dealing with opioid addiction. On Tuesday, jurors saw the last evidence in the case, including two parody videos made in 2006 for a sales meeting at Cephalon Inc, later bought by Teva. |
23770.0 | 2021-12-07 00:00:00 UTC | What This Label Expansion Means for Pfizer | ABBV | https://www.nasdaq.com/articles/what-this-label-expansion-means-for-pfizer | nan | nan | Last month, Pfizer (NYSE: PFE) announced that the European Commission (E.C.) had authorized the company's Xeljanz immunology drug to treat adult ankylosing spondylitis -- a kind of arthritis affecting the spine and large joints -- if patients had failed at least one other therapy.
Why did the E.C. approve Xeljanz for its fifth indication in the European Union (E.U.)? And what is the sales potential of the label expansion for the pharma stock? Let's dive into these questions.
Image source: Getty Images.
Combating a potentially debilitating condition
Paraphrasing the Mayo Clinic, ankylosing spondylitis is an inflammatory disease that can gradually cause bones in the spine to fuse together. This can result in stiffness and pain in the lower back and hips as well as increased risk of a compression fracture in the spine and even heart issues.
As with most medical conditions, prompt and regular treatment by a doctor could improve a patient's quality of life and prevent further deterioration in the condition. This is especially true as more drugs come to market. Based on results in phase 3 clinical trials last year -- and the E.C.'s recent approval -- Xeljanz could be a critical treatment for many ankylosing spondylitis patients in the E.U.
Let's take a closer look at the phase 3 study. It included 269 adult patients who failed previous therapies, such as nonsteroidal anti-inflammatory drugs (NSAIDs). Participants were randomly selected to receive 5 milligrams of Xeljanz or a placebo on a twice-daily schedule over 16 weeks. The outcome: Xeljanz proved significantly more effective than the placebo. In sum, 40.6% of patients taking it experienced a meaningful reduction in back pain, physical function, and inflammation -- more than triple the 12.5% rate of the placebo.
A boost to the immunology segment
So Xeljanz appears to be a solid treatment option for patients who don't respond to NSAIDs. But what level of sales will that translate into for the ankylosing spondylitis label in the E.U.? Well, there are more than one million patients in the E.U. living with ankylosing spondylitis, according to Pfizer. Given that 20% to 30% of them fail NSAIDs, this translates into an addressable market of 200,000 to 300,000 patients. Let's conservatively assume 200,000.
Another factor to consider is competition. Xeljanz's 40.6% rate of pain reduction was a bit below the 45% rate for AbbVie's (NYSE: ABBV) Rinvoq. However, while the two drugs are both in the Janus kinase (JAK) inhibitor class, they are different types. Xeljanz inhibits the JAK 3 gene while Rinvoq inhibits the JAK 1 gene. So I believe Xeljanz can seize a modest 12% of this market. This would equate to 24,000 patients.
Then there's the price. I estimate that the current annual list price for Xeljanz in the U.S. is around $60,000. But most patients end up paying nowhere near this much out of pocket. That's because 99% of commercially insured patients in the U.S. are covered for rheumatoid arthritis, and insurance companies can negotiate lower prices with Pfizer. So I will assume an annual net price of $35,000 per patient in the U.S.
Given that drug prices in the E.U. are approximately half that of the U.S., I will use an annual net price of $17,000 per patient. This works out to more than $400 million in annual revenue potential -- or approximately half a percent of Pfizer's estimated $81.5 billion in revenue for this year. However, it represents a more meaningful 10% contribution to Pfizer's immunology segment.
A dividend increase could be around the corner
While Xeljanz's potential contribution to Pfizer's revenue from this new indication may not be huge, it's important to remember that even incremental successes can help a company at the margin.
At the same time, Pfizer offers investors a well-covered 3% dividend yield -- more than double the S&P 500's 1.3% yield -- and Motley Fool's David Jagielski believes the company's strong fundamentals could set it up for a double-digit dividend increase later this month. On top of that, the shares are trading at a forward P/E ratio of just under 13, which is cheap considering that analysts are expecting 13.6% annual earnings growth over the next five years. So all in all, Pfizer looks to be a buy at this time.
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Kody Kester owns shares of AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Xeljanz's 40.6% rate of pain reduction was a bit below the 45% rate for AbbVie's (NYSE: ABBV) Rinvoq. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Kody Kester owns shares of AbbVie and Pfizer. had authorized the company's Xeljanz immunology drug to treat adult ankylosing spondylitis -- a kind of arthritis affecting the spine and large joints -- if patients had failed at least one other therapy. | Xeljanz's 40.6% rate of pain reduction was a bit below the 45% rate for AbbVie's (NYSE: ABBV) Rinvoq. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Kody Kester owns shares of AbbVie and Pfizer. had authorized the company's Xeljanz immunology drug to treat adult ankylosing spondylitis -- a kind of arthritis affecting the spine and large joints -- if patients had failed at least one other therapy. | Xeljanz's 40.6% rate of pain reduction was a bit below the 45% rate for AbbVie's (NYSE: ABBV) Rinvoq. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Kody Kester owns shares of AbbVie and Pfizer. had authorized the company's Xeljanz immunology drug to treat adult ankylosing spondylitis -- a kind of arthritis affecting the spine and large joints -- if patients had failed at least one other therapy. | Xeljanz's 40.6% rate of pain reduction was a bit below the 45% rate for AbbVie's (NYSE: ABBV) Rinvoq. See the 10 stocks *Stock Advisor returns as of November 10, 2021 Kody Kester owns shares of AbbVie and Pfizer. 's recent approval -- Xeljanz could be a critical treatment for many ankylosing spondylitis patients in the E.U. |
23771.0 | 2021-12-07 00:00:00 UTC | iShares Russell 1000 ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-russell-1000-etf-experiences-big-inflow | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $255.9 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 119,900,000 to 120,900,000). Among the largest underlying components of IWB, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.2%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average:
Looking at the chart above, IWB's low point in its 52 week range is $205.38 per share, with $265.43 as the 52 week high point — that compares with a last trade of $261.12. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of IWB, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.2%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $205.38 per share, with $265.43 as the 52 week high point — that compares with a last trade of $261.12. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IWB, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.2%. For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $205.38 per share, with $265.43 as the 52 week high point — that compares with a last trade of $261.12. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ». | Among the largest underlying components of IWB, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $255.9 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 119,900,000 to 120,900,000). For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $205.38 per share, with $265.43 as the 52 week high point — that compares with a last trade of $261.12. | Among the largest underlying components of IWB, in trading today Coca-Cola Co (Symbol: KO) is up about 0.6%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Merck & Co Inc (Symbol: MRK) is lower by about 1.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 ETF (Symbol: IWB) where we have detected an approximate $255.9 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 119,900,000 to 120,900,000). For a complete list of holdings, visit the IWB Holdings page » The chart below shows the one year price performance of IWB, versus its 200 day moving average: Looking at the chart above, IWB's low point in its 52 week range is $205.38 per share, with $265.43 as the 52 week high point — that compares with a last trade of $261.12. |
23772.0 | 2021-12-06 00:00:00 UTC | 5 Biotech Stocks To Watch In The Stock Market Today | ABBV | https://www.nasdaq.com/articles/5-biotech-stocks-to-watch-in-the-stock-market-today | nan | nan | Are These Top Biotech Stocks On Your December 2021 Watchlist?
With the start of the new trading week, investors are likely tuning in to the latest updates on the Omicron Covid variant. Accordingly, said investors could also be eyeing the top biotech stocks in thestock market todaystrong> as well. After all, the industry is home to key players in the fight against the virus. This includes but is not limited to vaccine companies like Novavax (NASDAQ: NVAX) and Covid treatment developers like Vir Biotechnology (NASDAQ: VIR). Because of the current resurgence in Covid news, some would even argue that the biotech industry as a whole is receiving more attention now.
For one thing, biotech firms outside the Covid space are also hard at work developing groundbreaking drugs as well. Take Adicet Bio (NASDAQ: ACET) for instance. Earlier today, the company posted positive interim data from a Phase 1 study of ADI-001. To explain, it is the company’s candidate for the treatment of B-cell Non-Hodgkin’s Lymphoma, a cancer of the lymphatic system. As a result, investors appear to be flocking towards ACET stock now. Overall, with more eyes possibly on the sector now, biotech stocks could be worth watching. On that note, could one of these five be top picks in the stock market now?
Top Biotech Stocks To Watch Right Now
Pfizer Inc. (NYSE: PFE)
Moderna Inc. (NASDAQ: MRNA)
Regeneron Pharmaceuticals Inc. (NASDAQ: REGN)
AbbVie Inc. (NYSE: ABBV)
AstraZeneca (NASDAQ: AZN)
Pfizer Inc.
Pfizer is a biopharmaceutical company that has improved the lives of millions all over the world. It develops and manufactures many health care products that include innovative medicines and vaccines. The company is also behind many blockbuster drugs, drugs that have brought in a revenue of over $1 billion. Most notably, its Covid vaccine was developed together with BioNTech (NASDAQ: BNTX) is on track to deliver over 2 billion doses by the end of the year. Pfizer is also digitizing drug discovery and development to make its work faster and easier. This would also enhance health outcomes and patient experiences in the long run.
Last week, the company announced a partnership with Amazon (NASDAQ: AMZN) Web Services. The two companies will be working to create innovative, cloud-based solutions with the potential to improve how medicines are developed, manufactured, and distributed for testing in clinical trials.
They will be exploring these advances through their newly created Pfizer Amazon Collaboration Team (PACT) initiative. The initiative will apply AWS capabilities in analytics and machine learning with Pfizer’s laboratory, clinical manufacturing, and clinical supply chain efforts. All things considered, is PFE stock worth adding to your portfolio?
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Moderna Inc.
Following that, we have Moderna, a company that has been at the forefront of messenger RNA (mRNA) development. It has a diverse clinical portfolio of vaccines and therapeutics across six modalities.
The company is also focusing on testing three existing Covid vaccine booster candidates against the Omicron variant. This comes in a time where the new variant of concern has mutations that are believed to increase transmissibility and mutations.
On December 1, 2021, the company announced a revised supply agreement with the U.K. government for up to 60 million doses of Moderna’s Covid vaccine, which may include authorized booster vaccine candidates. It expects to deliver up to 29 million doses in 2022 and up to 31 million doses in 2023. With this piece of information, is MRNA stock a top biotech stock to consider adding to your watchlist?
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Regeneron Pharmaceuticals Inc.
Regeneron Pharmaceuticals is a leading biotechnology company that creates life-transforming medicines for people with serious diseases. With over 30 years of experience, the company has nine FDA-approved treatments and numerous product candidates in development.
In detail, its medicines and pipeline help patients with eye diseases, allergic and inflammatory diseases, cancer, cardiovascular and metabolic diseases, pain, hematologic conditions, infectious diseases, and rare diseases.
Last month, the company announced that the European Commission has approved the casirivimab and imdevimab antibody cocktail, known as REGEN-COV in the U.S. and Ronapreve in the EU and other countries. The company says that for non-hospitalized infected individuals, its antibody cocktail is shown to reduce the risk of hospitalization or death by 70%. It is also able to reduce the risk of symptomatic infections by 82%. For this reason, is REGN stock worth watching right now?
AbbVie Inc.
Following that, we will be taking a look at AbbVie. By and large, it is a major player in the global biotech industry now. The company’s developmental pipeline and portfolio consist of a growing array of treatments spanning numerous medical fields. Among the core areas of AbbVie’s focus are immunology, neuroscience, eye care, oncology, and gastroenterology. For a sense of scale, the company raked in a total revenue of $14.34 billion in its latest quarter.
Despite its massive operations, AbbVie does not seem to be slowing down anytime soon. As of earlier today, the company seems to be making headway on the gastroenterological front.
Namely, AbbVie revealed that its Crohn’s disease drug candidate, Upadacitinib, met its primary and key secondary endpoints in a Phase 3 induction study. According to AbbVie, the drug is also noticeably effective in the difficult-to-treat refractory patient population. With all that said, would you consider adding ABBV stock to your watchlist anytime soon?
[Read More] Best Monthly Dividend Stocks To Buy? 4 For Your December 2021 Watchlist
AstraZeneca
Last but not least, is AstraZeneca. For the most part, the company is among the top names in the fight against Covid now. This would be thanks to its groundbreaking work on a Covid vaccine. The likes of which are currently being used across the globe. While this may be how most hear of AstraZeneca now, the vast collection of treatments should not be overlooked as well. Through said treatments, AstraZeneca treats millions of patients worldwide via its operations in over 100 countries.
All in all, with the Omicron variant being in focus now, investors could be considering AZN stock. While AstraZeneca is still hard at work testing its vaccine against the variant, its other divisions are not slowing down. As of last week, the company provided an update on its metastatic breast cancer treatment, Enhertu.
According to AstraZeneca, the treatment demonstrates “superior progression-free survival” in patients with HER2-positive breast cancer, compared to conventional drugs. With that said, will you be keeping an eye on AZN stock?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Namely, AbbVie revealed that its Crohn’s disease drug candidate, Upadacitinib, met its primary and key secondary endpoints in a Phase 3 induction study. Top Biotech Stocks To Watch Right Now Pfizer Inc. (NYSE: PFE) Moderna Inc. (NASDAQ: MRNA) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) AbbVie Inc. (NYSE: ABBV) AstraZeneca (NASDAQ: AZN) Pfizer Inc. Pfizer is a biopharmaceutical company that has improved the lives of millions all over the world. AbbVie Inc. | Top Biotech Stocks To Watch Right Now Pfizer Inc. (NYSE: PFE) Moderna Inc. (NASDAQ: MRNA) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) AbbVie Inc. (NYSE: ABBV) AstraZeneca (NASDAQ: AZN) Pfizer Inc. Pfizer is a biopharmaceutical company that has improved the lives of millions all over the world. AbbVie Inc. Following that, we will be taking a look at AbbVie. | Top Biotech Stocks To Watch Right Now Pfizer Inc. (NYSE: PFE) Moderna Inc. (NASDAQ: MRNA) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) AbbVie Inc. (NYSE: ABBV) AstraZeneca (NASDAQ: AZN) Pfizer Inc. Pfizer is a biopharmaceutical company that has improved the lives of millions all over the world. AbbVie Inc. Following that, we will be taking a look at AbbVie. | Top Biotech Stocks To Watch Right Now Pfizer Inc. (NYSE: PFE) Moderna Inc. (NASDAQ: MRNA) Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) AbbVie Inc. (NYSE: ABBV) AstraZeneca (NASDAQ: AZN) Pfizer Inc. Pfizer is a biopharmaceutical company that has improved the lives of millions all over the world. AbbVie Inc. Following that, we will be taking a look at AbbVie. |
23773.0 | 2021-12-06 00:00:00 UTC | Biohaven's migraine therapy shows rapid pain relief in late-stage study | ABBV | https://www.nasdaq.com/articles/biohavens-migraine-therapy-shows-rapid-pain-relief-in-late-stage-study | nan | nan | Dec 6 (Reuters) - Biohaven Pharmaceutical BHVN.N said on Monday its intranasal spray for migraine met the main goals in the drugmaker's late-stage study, showing rapid pain relief.
The study, involving 1,405 adults, demonstrated that the drug, zavegepant, was superior to placebo in relieving pain and most other "bothersome" symptoms including nausea or sensitivity to light or sound, the company said.
A single intranasal dose of the drug helped relieve pain as early as 15 minutes, lasting for 48 hours after the treatment, Biohaven said.
Around one billion people worldwide suffer from migraine, according to the Migraine Research Foundation.
Biohaven's Nurtec ODT, has already been approved for the treatment and prevention of migraine in the United States. Other drugs for treatment include AbbVie's ABBV.N Ubrelvy and Impel NeuroPharma's IMPL.O recently approved intranasal spray, Trudhesa.
Pfizer Inc PFE.N would acquire overseas marketing rights to zavegepant and rimegepant, branded as Nurtec ODT, from Biohaven, the companies said last month.
Biohaven said it plans to file a marketing application for zavegepant with the U.S. Food and Drug Administration in the first quarter of next year.
(Reporting by Amruta Khandekar)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other drugs for treatment include AbbVie's ABBV.N Ubrelvy and Impel NeuroPharma's IMPL.O recently approved intranasal spray, Trudhesa. Dec 6 (Reuters) - Biohaven Pharmaceutical BHVN.N said on Monday its intranasal spray for migraine met the main goals in the drugmaker's late-stage study, showing rapid pain relief. The study, involving 1,405 adults, demonstrated that the drug, zavegepant, was superior to placebo in relieving pain and most other "bothersome" symptoms including nausea or sensitivity to light or sound, the company said. | Other drugs for treatment include AbbVie's ABBV.N Ubrelvy and Impel NeuroPharma's IMPL.O recently approved intranasal spray, Trudhesa. Biohaven's Nurtec ODT, has already been approved for the treatment and prevention of migraine in the United States. Pfizer Inc PFE.N would acquire overseas marketing rights to zavegepant and rimegepant, branded as Nurtec ODT, from Biohaven, the companies said last month. | Other drugs for treatment include AbbVie's ABBV.N Ubrelvy and Impel NeuroPharma's IMPL.O recently approved intranasal spray, Trudhesa. Dec 6 (Reuters) - Biohaven Pharmaceutical BHVN.N said on Monday its intranasal spray for migraine met the main goals in the drugmaker's late-stage study, showing rapid pain relief. The study, involving 1,405 adults, demonstrated that the drug, zavegepant, was superior to placebo in relieving pain and most other "bothersome" symptoms including nausea or sensitivity to light or sound, the company said. | Other drugs for treatment include AbbVie's ABBV.N Ubrelvy and Impel NeuroPharma's IMPL.O recently approved intranasal spray, Trudhesa. Dec 6 (Reuters) - Biohaven Pharmaceutical BHVN.N said on Monday its intranasal spray for migraine met the main goals in the drugmaker's late-stage study, showing rapid pain relief. Biohaven's Nurtec ODT, has already been approved for the treatment and prevention of migraine in the United States. |
23774.0 | 2021-12-06 00:00:00 UTC | Biohaven's migraine therapy shows rapid pain relief in late-stage study | ABBV | https://www.nasdaq.com/articles/biohavens-migraine-therapy-shows-rapid-pain-relief-in-late-stage-study-0 | nan | nan | Adds analyst comment, background
Dec 6 (Reuters) - Drugmaker Biohaven Pharmaceutical BHVN.N said on Monday its intranasal spray to treat migraine showed rapid pain relief and met the main goals in a late-stage study.
In the study involving 1,405 adults, a single intranasal dose of the drug, zavegepant, helped relieve pain as early as 15 minutes and lasted for 48 hours after the treatment, Biohaven said.
"Although this is not a gamechanging product, we believe it will help maintain and potentially grow Biohaven's overall (migraine) franchise leadership," said Cowen analyst Ken Cacciatore in a research note, adding that the results should be sufficient for approval.
Biohaven's oral drug Nurtec ODT has already been approved for the treatment and prevention of migraine in the United States. It competes in a crowded migraine therapy market, which includes drugs like AbbVie's ABBV.N orally administered Ubrelvy, and Impel NeuroPharma's IMPL.O recently approved nasal spray, Trudhesa.
Biohaven said on Monday zavegepant was superior to placebo in relieving pain and most other "bothersome" symptoms, including nausea or sensitivity to light or sound, at two hours.
A mid-to-late stage trial of the drug, evaluating the same main goals, had shown similar results earlier.
About 39 million Americans and one billion people worldwide suffer from migraine, according to the Migraine Research Foundation.
Pfizer Inc PFE.N will acquire overseas marketing rights to zavegepant and rimegepant, branded as Nurtec ODT, from Biohaven, the companies said last month.
Biohaven said it plans to file a marketing application for zavegepant with the U.S. Food and Drug Administration in the first quarter of next year.
(Reporting by Amruta Khandekar; Editing by Vinay Dwivedi and Amy Caren Daniel)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It competes in a crowded migraine therapy market, which includes drugs like AbbVie's ABBV.N orally administered Ubrelvy, and Impel NeuroPharma's IMPL.O recently approved nasal spray, Trudhesa. Adds analyst comment, background Dec 6 (Reuters) - Drugmaker Biohaven Pharmaceutical BHVN.N said on Monday its intranasal spray to treat migraine showed rapid pain relief and met the main goals in a late-stage study. "Although this is not a gamechanging product, we believe it will help maintain and potentially grow Biohaven's overall (migraine) franchise leadership," said Cowen analyst Ken Cacciatore in a research note, adding that the results should be sufficient for approval. | It competes in a crowded migraine therapy market, which includes drugs like AbbVie's ABBV.N orally administered Ubrelvy, and Impel NeuroPharma's IMPL.O recently approved nasal spray, Trudhesa. In the study involving 1,405 adults, a single intranasal dose of the drug, zavegepant, helped relieve pain as early as 15 minutes and lasted for 48 hours after the treatment, Biohaven said. Biohaven's oral drug Nurtec ODT has already been approved for the treatment and prevention of migraine in the United States. | It competes in a crowded migraine therapy market, which includes drugs like AbbVie's ABBV.N orally administered Ubrelvy, and Impel NeuroPharma's IMPL.O recently approved nasal spray, Trudhesa. Adds analyst comment, background Dec 6 (Reuters) - Drugmaker Biohaven Pharmaceutical BHVN.N said on Monday its intranasal spray to treat migraine showed rapid pain relief and met the main goals in a late-stage study. In the study involving 1,405 adults, a single intranasal dose of the drug, zavegepant, helped relieve pain as early as 15 minutes and lasted for 48 hours after the treatment, Biohaven said. | It competes in a crowded migraine therapy market, which includes drugs like AbbVie's ABBV.N orally administered Ubrelvy, and Impel NeuroPharma's IMPL.O recently approved nasal spray, Trudhesa. In the study involving 1,405 adults, a single intranasal dose of the drug, zavegepant, helped relieve pain as early as 15 minutes and lasted for 48 hours after the treatment, Biohaven said. "Although this is not a gamechanging product, we believe it will help maintain and potentially grow Biohaven's overall (migraine) franchise leadership," said Cowen analyst Ken Cacciatore in a research note, adding that the results should be sufficient for approval. |
23775.0 | 2021-12-06 00:00:00 UTC | AbbVie's Upadacitinib Achieves Primary & Secondary Endpoints In Phase 3 Study On Crohn's Disease | ABBV | https://www.nasdaq.com/articles/abbvies-upadacitinib-achieves-primary-secondary-endpoints-in-phase-3-study-on-crohns | nan | nan | (RTTNews) - AbbVie (ABBV) announced positive results from U-EXCEED, a Phase 3 induction study, showing upadacitinib (45 mg once daily) achieved both primary endpoints of clinical remission and endoscopic responsec at week 12.
The study showed that a significantly higher proportion of upadacitinib-treated patients achieved steroid-free clinical remission at week 12 compared to placebo.
The safety results in the study were consistent with the known profile of upadacitinib, with no new safety risks observed.
Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases.
Crohn's disease is a chronic, systemic disease that manifests as inflammation within the gastrointestinal (or digestive) tract, causing persistent diarrhea and abdominal pain.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced positive results from U-EXCEED, a Phase 3 induction study, showing upadacitinib (45 mg once daily) achieved both primary endpoints of clinical remission and endoscopic responsec at week 12. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases. The study showed that a significantly higher proportion of upadacitinib-treated patients achieved steroid-free clinical remission at week 12 compared to placebo. | (RTTNews) - AbbVie (ABBV) announced positive results from U-EXCEED, a Phase 3 induction study, showing upadacitinib (45 mg once daily) achieved both primary endpoints of clinical remission and endoscopic responsec at week 12. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases. The study showed that a significantly higher proportion of upadacitinib-treated patients achieved steroid-free clinical remission at week 12 compared to placebo. | (RTTNews) - AbbVie (ABBV) announced positive results from U-EXCEED, a Phase 3 induction study, showing upadacitinib (45 mg once daily) achieved both primary endpoints of clinical remission and endoscopic responsec at week 12. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced positive results from U-EXCEED, a Phase 3 induction study, showing upadacitinib (45 mg once daily) achieved both primary endpoints of clinical remission and endoscopic responsec at week 12. Upadacitinib, a selective and reversible JAK inhibitor discovered and developed by AbbVie, is being studied as an oral therapy for moderate to severe Crohn's disease and several other immune-mediated inflammatory diseases. The study showed that a significantly higher proportion of upadacitinib-treated patients achieved steroid-free clinical remission at week 12 compared to placebo. |
23776.0 | 2021-12-06 00:00:00 UTC | AbbVie Updates RINVOQ Indications for the Treatment of RA in the U.S. | ABBV | https://www.nasdaq.com/articles/abbvie-updates-rinvoq-indications-for-the-treatment-of-ra-in-the-u.s. | nan | nan | Biopharmaceutical company AbbVie (ABBV) updated the U.S. Prescribing Information and Medication Guide for RINVOQ (upadacitinib), a selective JAK inhibitor designed to treat adults with moderate to severe rheumatoid arthritis (RA).
Reason for Update
On September 1, 2021, a Drug Safety Communication (DSC) was issued by the U.S. Food and Drug Administration (FDA) after a final review of the post-marketing study, ORAL Surveillance. The study evaluated XELJANZ (tofacitinib) in patients with RA. Results of the study showed that XELJANZ (a JAK inhibitor) was more prone to major adverse cardiac events (MACE), malignancy, mortality, and thrombosis than TNF blockers.
Therefore, the DSC and the label update apply to the class of systemically administered FDA-approved JAKs designed for the treatment of RA and other inflammatory diseases.
Following the FDA’s update, RINVOQ will now reflect some additional information in the U.S. label related to its risks. This will include malignancy and thrombosis, as well as mortality and MACE (including cardiovascular death, myocardial infarction, and stroke) risks. Furthermore, the updated indication will stand as; “RINVOQ is indicated for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to one or more TNF blockers.” (See AbbVie stock charts on TipRanks)
Official Comments
President of AbbVie, Michael Severino, said, "RINVOQ is an important treatment option for people living with rheumatoid arthritis, especially those who have not been able to achieve remission or low disease activity. We remain committed to continue generating evidence that support its benefit-risk profile across many inflammatory conditions.”
Notably, review of supplemental New Drug Applications (NDAs) for upadacitinib (RINVOQ) in atopic dermatitis, psoriatic arthritis, ankylosing spondylitis, and ulcerative colitis are ongoing with the FDA.
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Wall Street’s Take
On November 29, UBS analyst Navin Jacob reiterated a Buy rating on the stock and lifted the price target to $129 (8.54% upside potential) from $126.
Consensus among analysts is a Strong Buy based on 10 Buys versus 2 Holds. The average AbbVie price target of $132.17 implies 11.21% upside potential from current levels. Shares have gained 12.3% over the past year.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 100% Bullish on AbbVie, compared to a sector average of 69%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Biopharmaceutical company AbbVie (ABBV) updated the U.S. Prescribing Information and Medication Guide for RINVOQ (upadacitinib), a selective JAK inhibitor designed to treat adults with moderate to severe rheumatoid arthritis (RA). Furthermore, the updated indication will stand as; “RINVOQ is indicated for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to one or more TNF blockers.” (See AbbVie stock charts on TipRanks) Official Comments President of AbbVie, Michael Severino, said, "RINVOQ is an important treatment option for people living with rheumatoid arthritis, especially those who have not been able to achieve remission or low disease activity. The average AbbVie price target of $132.17 implies 11.21% upside potential from current levels. | Biopharmaceutical company AbbVie (ABBV) updated the U.S. Prescribing Information and Medication Guide for RINVOQ (upadacitinib), a selective JAK inhibitor designed to treat adults with moderate to severe rheumatoid arthritis (RA). Furthermore, the updated indication will stand as; “RINVOQ is indicated for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to one or more TNF blockers.” (See AbbVie stock charts on TipRanks) Official Comments President of AbbVie, Michael Severino, said, "RINVOQ is an important treatment option for people living with rheumatoid arthritis, especially those who have not been able to achieve remission or low disease activity. The average AbbVie price target of $132.17 implies 11.21% upside potential from current levels. | Biopharmaceutical company AbbVie (ABBV) updated the U.S. Prescribing Information and Medication Guide for RINVOQ (upadacitinib), a selective JAK inhibitor designed to treat adults with moderate to severe rheumatoid arthritis (RA). Furthermore, the updated indication will stand as; “RINVOQ is indicated for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to one or more TNF blockers.” (See AbbVie stock charts on TipRanks) Official Comments President of AbbVie, Michael Severino, said, "RINVOQ is an important treatment option for people living with rheumatoid arthritis, especially those who have not been able to achieve remission or low disease activity. The average AbbVie price target of $132.17 implies 11.21% upside potential from current levels. | Biopharmaceutical company AbbVie (ABBV) updated the U.S. Prescribing Information and Medication Guide for RINVOQ (upadacitinib), a selective JAK inhibitor designed to treat adults with moderate to severe rheumatoid arthritis (RA). Furthermore, the updated indication will stand as; “RINVOQ is indicated for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to one or more TNF blockers.” (See AbbVie stock charts on TipRanks) Official Comments President of AbbVie, Michael Severino, said, "RINVOQ is an important treatment option for people living with rheumatoid arthritis, especially those who have not been able to achieve remission or low disease activity. The average AbbVie price target of $132.17 implies 11.21% upside potential from current levels. |
23777.0 | 2021-12-03 00:00:00 UTC | Noteworthy Friday Option Activity: ABBV, FCX, EXAS | ABBV | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-abbv-fcx-exas | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 24,189 contracts has been traded thus far today, a contract volume which is representative of approximately 2.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 48.9% of ABBV's average daily trading volume over the past month, of 4.9 million shares. Especially high volume was seen for the $120 strike call option expiring December 03, 2021, with 2,485 contracts trading so far today, representing approximately 248,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange:
Freeport-McMoran Copper & Gold (Symbol: FCX) saw options trading volume of 95,131 contracts, representing approximately 9.5 million underlying shares or approximately 48.5% of FCX's average daily trading volume over the past month, of 19.6 million shares. Especially high volume was seen for the $33 strike put option expiring January 21, 2022, with 12,773 contracts trading so far today, representing approximately 1.3 million underlying shares of FCX. Below is a chart showing FCX's trailing twelve month trading history, with the $33 strike highlighted in orange:
And EXACT Sciences Corp. (Symbol: EXAS) options are showing a volume of 8,585 contracts thus far today. That number of contracts represents approximately 858,500 underlying shares, working out to a sizeable 48.3% of EXAS's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $80 strike put option expiring December 10, 2021, with 3,537 contracts trading so far today, representing approximately 353,700 underlying shares of EXAS. Below is a chart showing EXAS's trailing twelve month trading history, with the $80 strike highlighted in orange:
For the various different available expirations for ABBV options, FCX options, or EXAS options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $120 strike call option expiring December 03, 2021, with 2,485 contracts trading so far today, representing approximately 248,500 underlying shares of ABBV. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 24,189 contracts has been traded thus far today, a contract volume which is representative of approximately 2.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 48.9% of ABBV's average daily trading volume over the past month, of 4.9 million shares. | Especially high volume was seen for the $120 strike call option expiring December 03, 2021, with 2,485 contracts trading so far today, representing approximately 248,500 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: Freeport-McMoran Copper & Gold (Symbol: FCX) saw options trading volume of 95,131 contracts, representing approximately 9.5 million underlying shares or approximately 48.5% of FCX's average daily trading volume over the past month, of 19.6 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 24,189 contracts has been traded thus far today, a contract volume which is representative of approximately 2.4 million underlying shares (given that every 1 contract represents 100 underlying shares). | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 24,189 contracts has been traded thus far today, a contract volume which is representative of approximately 2.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: Freeport-McMoran Copper & Gold (Symbol: FCX) saw options trading volume of 95,131 contracts, representing approximately 9.5 million underlying shares or approximately 48.5% of FCX's average daily trading volume over the past month, of 19.6 million shares. That number works out to 48.9% of ABBV's average daily trading volume over the past month, of 4.9 million shares. | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 24,189 contracts has been traded thus far today, a contract volume which is representative of approximately 2.4 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: Freeport-McMoran Copper & Gold (Symbol: FCX) saw options trading volume of 95,131 contracts, representing approximately 9.5 million underlying shares or approximately 48.5% of FCX's average daily trading volume over the past month, of 19.6 million shares. Below is a chart showing EXAS's trailing twelve month trading history, with the $80 strike highlighted in orange: For the various different available expirations for ABBV options, FCX options, or EXAS options, visit StockOptionsChannel.com. |
23778.0 | 2021-12-02 00:00:00 UTC | January 2022 Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/january-2022-options-now-available-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $114.00 strike price has a current bid of $2.56. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $114.00, but will also collect the premium, putting the cost basis of the shares at $111.44 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $117.09/share today.
Because the $114.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 64%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.25% return on the cash commitment, or 19.06% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $114.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $119.00 strike price has a current bid of $2.16. If an investor was to purchase shares of ABBV stock at the current price level of $117.09/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $119.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.48% if the stock gets called away at the January 2022 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $119.00 strike highlighted in red:
Considering the fact that the $119.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 60%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.84% boost of extra return to the investor, or 15.66% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 33%, while the implied volatility in the call contract example is 27%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $117.09) to be 20%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of S.A.F.E. Dividend Stocks »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Of course, a lot of upside could potentially be left on the table if ABBV shares really soar, which is why looking at the trailing twelve month trading history for AbbVie Inc, as well as studying the business fundamentals becomes important. Below is a chart showing ABBV's trailing twelve month trading history, with the $119.00 strike highlighted in red: Considering the fact that the $119.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the January 2022 expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $119.00 strike highlighted in red: Considering the fact that the $119.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2022 contracts and identified one put and one call contract of particular interest. | Below is a chart showing the trailing twelve month trading history for AbbVie Inc, and highlighting in green where the $114.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $119.00 strike price has a current bid of $2.16. Below is a chart showing ABBV's trailing twelve month trading history, with the $119.00 strike highlighted in red: Considering the fact that the $119.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the January 2022 expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2022 contracts and identified one put and one call contract of particular interest. Below is a chart showing ABBV's trailing twelve month trading history, with the $119.00 strike highlighted in red: Considering the fact that the $119.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the January 2022 expiration. |
23779.0 | 2021-12-02 00:00:00 UTC | AbbVie To Present At The Evercore ISI Conference; Webcast At 12:10 PM ET | ABBV | https://www.nasdaq.com/articles/abbvie-to-present-at-the-evercore-isi-conference-webcast-at-12%3A10-pm-et | nan | nan | (RTTNews) - AbbVie (ABBV) will participate in the 4th Annual Evercore ISI Virtual HealthCONx Conference.
The event is scheduled to begin at 12:10 PM ET on Dec. 2, 2021.
To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) will participate in the 4th Annual Evercore ISI Virtual HealthCONx Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 12:10 PM ET on Dec. 2, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the 4th Annual Evercore ISI Virtual HealthCONx Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 12:10 PM ET on Dec. 2, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the 4th Annual Evercore ISI Virtual HealthCONx Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 12:10 PM ET on Dec. 2, 2021. | (RTTNews) - AbbVie (ABBV) will participate in the 4th Annual Evercore ISI Virtual HealthCONx Conference. To access the live webcast, log on to https://investors.abbvie.com/events-and-presentations/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The event is scheduled to begin at 12:10 PM ET on Dec. 2, 2021. |
23780.0 | 2021-12-02 00:00:00 UTC | What's Next For Merck Stock After FDA Advisors Back Its Covid-19 Pill? | ABBV | https://www.nasdaq.com/articles/whats-next-for-merck-stock-after-fda-advisors-back-its-covid-19-pill | nan | nan | [Updated: Dec 1, 2021] Merck Covid-19 Pill Update
Just a few days back we discussed that the stock price of Merck (NYSE: MRK) is being weighed down due to concerns around its Covid-19 antiviral pill – Molnupiravir – which has an efficacy of 30% against hospitalization and death in high-risk patients. Yesterday, a panel of advisors to the U.S. FDA voted in favor of Molnupiravir to be granted authorization. Assuming the FDA approves Molnupiravir following the panel’s decision, the antiviral pill may be available in the market later this month. The U.S. government has already placed a $2.2 billion order for Molnupiravir, and the drug’s sales are likely to be higher next year.
Unlike Covid-19 vaccines which target the spike protein in the virus, Merck’s Covid-19 antiviral pill Molnupiravir works by targeting the genetic code of the virus so that it doesn’t replicate. With the new Omicron variant having dozens of mutations to the spike protein, there are growing concerns that it may be able to evade vaccines or treatment options that target spike protein. However, Molnupiravir may have better chances of dealing with Omicron – something Merck plans to study.
Now, looking at the stock move, MRK is down a large 15% in a month. While it may not sound like a very large number to some, it is an extremely rare event, which has occurred just three times in the last ten years. And in each of those three instances, MRK stock saw positive returns over the subsequent month. Our dashboard on Merck Stock Chances of Rise has more details.
Other than the developments around Molnupiravir, concerns around Omicron has spooked the markets at large. If there is another large spike in Covid-19 cases from the new variant, it will disrupt economic recovery and impact sales as well as earnings growth of several companies. That said, the decline in MRK stock, in particular, appears to be overdone. MRK stock has fallen back to levels of around $75 seen in late September before the company announced positive data for Molnupiravir, which resulted in a rally in its stock to levels of over $90 in early November. Going by our Merck’s Valuation of $100 per share, based on $6.02 expected adjusted EPS and a 17x P/E multiple for 2021, there is an upside potential of over 30% from its current levels of $75. Also, with the recent backing by a panel to authorize Molnupiravir, MRK stock is likely to see some respite in the near term.
[Updated: Nov 29, 2021] Merck Covid-19 Pill Update
The stock price of Merck (NYSE: MRK) has seen an 8% fall in a month, while it was down nearly 4% on Friday, Nov 26. This can largely be attributed to the company’s recently shared data for its Covid-19 antiviral pill – Molnupiravir – which shows lower efficacy of 30% against hospitalization and death in high-risk patients. This data did not sit well with the investors, and all eyes will now be on the FDA’s emergency use authorization (EUA) decision on Molnupiravir. The FDA is slated to review the emergency use authorization for Molnupiravir tomorrow, Nov 30. Overall, the markets were looking forward to Molnupiravir, with peak sales estimate of over $7 billion in 2022, but now, there are looming concerns of its potential, given the lower efficacy rate.
But now that MRK stock has fallen 8% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of a rise in MRK stock over the next month. Out of 78 instances in the last ten years that MRK stock saw a twenty-one day fall of 8.5% or more, 45 of them resulted in MRK stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 45 out of 78, or about a 58% chance of a rise in MRK stock over the coming month. See our analysis on Merck Stock Chances of Rise for more details. So, if this follows historical pattern, MRK stock is likely to see higher levels. That said, the move in MRK stock will also depend on the EUA decision by the U.S. FDA tomorrow.
Wondering how Merck’s peers stack up? Check out Merck Stock Comparison With Peers to see how MRK stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data
After moving -1.9% or more over a five-day period, the stock rose in the next five days on 57% of the occasions.
After moving -5.8% or more over a ten-day period, the stock rose in the next ten days on 60% of the occasions
After moving -8.5% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 58% of the occasions.
Merck (MRK) Stock Return (Recent) Comparison With Peers
Five-Day Return: PFE highest at 6.3%; JNJ lowest at -2.3%
Ten-Day Return: PFE highest at 8.6%; BMY lowest at -4.9%
Twenty-One Days Return: PFE highest at 25.1%; MRK lowest at -8.5%
[Updated: Nov 3, 2021] MRK Stock Update
Merck (NYSE: MRK) recently reported its Q3 results, which were better than our estimates. The company reported sales of around $13.2 billion (up 20% y-o-y), compared to our estimate of $12.2 billion. While the Keytruda sales saw a 22% rise to $4.5 billion, Gardasil sales surged 68% to $2.0 billion. The company’s Animal Health business also saw a 16% growth in sales. Our dashboard on Merck Revenues offers more details on the company’s segments.
Looking at the bottom-line, the company reported adjusted earnings of $1.75 per share, up 28% y-o-y, driven by both an increase in revenue as well as margin expansion. The earnings were comfortably above our forecast of $1.48 per share and the $1.54 per share consensus estimate. The company managed to leverage sales growth, along with increased sales of high-margin products, which led to margin expansion. Lower R&D expenses also aided the margins.
Following a solid performance in Q3, Merck raised its full year outlook for sales to be in the range of $47.4 billion and $47.9 billion, compared to its earlier estimate of $46.4 billion to $47.4 billion. Looking at the bottom line, the company now expects its adjusted EPS to be in the range of $5.65 and $5.70, compared to its earlier guidance of $5.47 and $5.57. The company’s full-year outlook appears to be conservative, in our view.
Now, one important detail shared by the company’s management is around its Covid-19 treatment – Molnupiravir. Merck now expects Molnupiravir sales to be around $7 billion through 2022, including $0.5 billion to $1.0 billion sales in Q4 of this year. The sales estimate for Molnupiravir as well as an upbeat quarter cheered investors, and MRK stock is now up over 7% in a week (five trading days).
We have also updated our model following the Q3 release. We have revised the sales forecast to be around $51.8 billion, well above the company’s guidance, considering a strong sales growth for Keytruda, Gardasil, Animal Health, and a meaningful contribution from Molnupiravir in Q4. As such, we also expect adjusted EPS to be higher at $6.02, compared to our earlier estimate of $5.94. Given these changes to our revenues and earnings forecast, we have revised our Merck’s Valuation to $98 per share, based on $6.02 expected adjusted EPS and maintaining a 16x P/E multiple for 2021, implying an 11% upside from its current levels of $88.
[Updated: Oct 25, 2021] MRK Q3 Earnings Preview
Merck (NYSE: MRK) is scheduled to report its Q3 2021 results on Thursday, October 28. We expect the company to likely post revenue and earnings below the consensus estimates, as the spread of Covid-19 delta variant likely impacted the company’s overall vaccine sales growth, including that for Gardasil. That said, the opening up of economies and continued demand for animal health business, likely aided the overall sales growth for Merck. While we expect the revenue and earnings to fall below the consensus estimates, our forecast indicates that Merck’s valuation is $91 per share, which is 12% above the current market price of around $81, implying that MRK stock still has some room for growth. Our interactive dashboard analysis on Merck’s Pre-Earnings has additional details.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Merck’s Q3 2021 revenues to be around $12.2 billion, compared to the $12.3 billion consensus estimate. With over half of the U.S. population fully vaccinated, and on the international front the vaccination rate is rising gradually, total procedure volume and hospital visits is on a rise and this should augur well for pharmaceutical companies, including Merck. Q3 also marked a quarter with a rise in Covid-19 cases in the U.S. due to the spread of the delta variant, and it may have impacted the vaccine sales for Merck. Gardasil sales were down in low double-digits (y-o-y) to $1.2 billion in Q3 2020, due to the impact of the pandemic. Gardasil sales stood at $0.9 billion in Q1, and $1.2 billion in Q2 of this year.
That said, Merck’s top-selling drug – Keytruda – continued to expand with 21% y-o-y growth to $8.1 billion in the first half of this year. Over the last year or so, Keytruda has continued to gain market share, and garner more regulatory approvals for expansion of its usage. The company’s animal health business has also been doing well with 25% y-o-y gains in H1, and the growth is likely to continue in the near term, given the rise in pet ownership in the U.S. to record highs of 70% of the U.S. households. Our dashboard on Merck Revenues offers more details on the company’s segments.
2) EPS likely to be slightly below the consensus estimates
Merck’s Q2 2021 adjusted earnings per share (EPS) is expected to be $1.48 per Trefis analysis, slightly above the consensus estimate of $1.54. Merck’s adjusted net income of $3.3 billion in Q2 2021 reflected a 28% rise from its $2.6 billion figure in the prior-year quarter led by higher revenues. For the full year 2021, we expect the adjusted EPS to be lower at $5.65 compared to $5.94 in 2020. Note that earnings will be lower in 2021, given the spin-off of Merck’s women’s health, biosimilars, and established brands businesses. Also, there can be near term margin pressure due to inflationary headwinds and supply chain constraints.
(3) Stock price estimate above the current market price
Going by our Merck’s Valuation, with an EPS estimate of $5.65 and a P/E multiple of 16x in 2021, this translates into a price of $91, which is nearly 12% above the current market price of around $81. The 16x figure compares with levels of over 17x seen in 2018 and 2019, and a 14x figure seen as recently as late 2020.
Earlier this month, Merck announced that its Molnupiravir pill reduces the risk of hospitalization and death by 50% for patients with mild to moderate Covid-19. The company is seeking regulatory approval for the oral pill, and once approved, it will aid the overall revenue growth for Merck in the quarters to come.
Note: P/E Multiples are based on Share Price at the end of the year and reported (or expected) Adjusted Earnings for the full year.
While MRK stock is undervalued, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Johnson & Johnson vs. Regeneron Pharmaceuticals.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Nov 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
MRK Return -3% -3% 34%
S&P 500 Return 1% 22% 105%
Trefis MS Portfolio Return -3% 46% 297%
[1] Month-to-date and year-to-date as of 11/29/2021
[2] Cumulative total returns since 2017
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This can largely be attributed to the company’s recently shared data for its Covid-19 antiviral pill – Molnupiravir – which shows lower efficacy of 30% against hospitalization and death in high-risk patients. Given these changes to our revenues and earnings forecast, we have revised our Merck’s Valuation to $98 per share, based on $6.02 expected adjusted EPS and maintaining a 16x P/E multiple for 2021, implying an 11% upside from its current levels of $88. While we expect the revenue and earnings to fall below the consensus estimates, our forecast indicates that Merck’s valuation is $91 per share, which is 12% above the current market price of around $81, implying that MRK stock still has some room for growth. | Merck (MRK) Stock Return (Recent) Comparison With Peers Five-Day Return: PFE highest at 6.3%; JNJ lowest at -2.3% Ten-Day Return: PFE highest at 8.6%; BMY lowest at -4.9% Twenty-One Days Return: PFE highest at 25.1%; MRK lowest at -8.5% [Updated: Nov 3, 2021] MRK Stock Update Merck (NYSE: MRK) recently reported its Q3 results, which were better than our estimates. Given these changes to our revenues and earnings forecast, we have revised our Merck’s Valuation to $98 per share, based on $6.02 expected adjusted EPS and maintaining a 16x P/E multiple for 2021, implying an 11% upside from its current levels of $88. 2) EPS likely to be slightly below the consensus estimates Merck’s Q2 2021 adjusted earnings per share (EPS) is expected to be $1.48 per Trefis analysis, slightly above the consensus estimate of $1.54. | [Updated: Dec 1, 2021] Merck Covid-19 Pill Update Just a few days back we discussed that the stock price of Merck (NYSE: MRK) is being weighed down due to concerns around its Covid-19 antiviral pill – Molnupiravir – which has an efficacy of 30% against hospitalization and death in high-risk patients. Merck (MRK) Stock Return (Recent) Comparison With Peers Five-Day Return: PFE highest at 6.3%; JNJ lowest at -2.3% Ten-Day Return: PFE highest at 8.6%; BMY lowest at -4.9% Twenty-One Days Return: PFE highest at 25.1%; MRK lowest at -8.5% [Updated: Nov 3, 2021] MRK Stock Update Merck (NYSE: MRK) recently reported its Q3 results, which were better than our estimates. Merck now expects Molnupiravir sales to be around $7 billion through 2022, including $0.5 billion to $1.0 billion sales in Q4 of this year. | Assuming the FDA approves Molnupiravir following the panel’s decision, the antiviral pill may be available in the market later this month. Now, looking at the stock move, MRK is down a large 15% in a month. We expect the company to likely post revenue and earnings below the consensus estimates, as the spread of Covid-19 delta variant likely impacted the company’s overall vaccine sales growth, including that for Gardasil. |
23781.0 | 2021-12-01 00:00:00 UTC | 2 Ridiculously Cheap Dividend Stocks To Buy for 2022 | ABBV | https://www.nasdaq.com/articles/2-ridiculously-cheap-dividend-stocks-to-buy-for-2022 | nan | nan | The S&P 500 had its worst day of the year on Friday, falling 900 points on the news that there could be a new obstacle in the economy's recovery: omicron, the latest COVID-19 variant.
For investors looking to get away from this volatility and find more safety, holding dividend stocks in your portfolio can be an excellent decision. They can ensure that you're collecting a recurring stream of income you can use to help offset losses in your portfolio. And at best, they can boost your returns. Two dividend stocks that pay an above-average yield and are incredibly cheap right now are AbbVie (NYSE: ABBV) and ViacomCBS (NASDAQ: VIAC).
Image source: Getty Images.
1. AbbVie
AbbVie makes for an ideal buy-and-forget investment. The healthcare stock yields an impressive 4.8% right now -- well above the S&P 500 average of just 1.4%. And the dividend is well supported; in the past 12 months, the company has generated free cash flow of $21.7 billion, more than double the $9 billion in dividends it paid out during that time.
When the company released its latest quarterly earnings results on Oct. 29, it reported sales of $14.3 billion, 11% higher than the year-ago period. The company also raised its guidance for a third time in 2021, anticipating that its adjusted diluted earnings per share will come in between $12.63 and $12.67 for the full year. That's well above the $5.64 in dividends that the company is paying out annually per share. The Dividend Aristocrat also raised its dividend by 8.5% in a hike that will come into effect next year.
While investors may be worried about the company's expiring patent on rheumatoid arthritis drug Humira, AbbVie's management anticipates that newer drugs like Skyrizi and Rinvoq will generate long-term growth and make up for the inevitable decline in Humira's sales. Both drugs still have a long way to go. In just the latest quarter, they achieved combined sales of $1.2 billion in sales while Humira brought in more than $5.4 billion.
CEO Richard Gonzalez said, "What we're basically trying to accomplish with the company is build a set of assets that could ultimately significantly replace Humira in the marketplace and be superior to Humira."
Even if there's a dip in profitability, AbbVie has plenty of room to support its dividend. And with other pharma stocks like Pfizer, Merck, and Amgen trading at forward price-to-earnings (P/E) multiples of more than 12, AbbVie's multiple of nine makes the stock look like a bargain buy.
2. ViacomCBS
Media and entertainment company ViacomCBS pays a dividend that currently yields right around 3% per year. While it's not as high as AbbVie's payout, the stock could more than make up for that with some possibly stronger gains. Viacom currently trades at a forward P/E of less than nine, which is dirt cheap as streaming stocks Walt Disney and Netflix trade at multiples of 35 and 62, respectively.
One of the reasons investors aren't as bullish on ViacomCBS is that it still isn't a big rival to those streaming giants. At 47 million global streaming subscribers across its services (including Paramount+), ViacomCBS is nowhere near Netflix's tally of 214 million and has a long way to go in catching up to Disney at over 118 million.
Plus, ViacomCBS's streaming service isn't even the biggest part of its business. In the latest quarter, its advertising, affiliate, and licensing segments together contributed the vast majority of the company's revenue -- about $5.5 billion in all. However, this latest quarter marked the first time that its global streaming revenue surpassed $1 billion. And with revenue growth of 72% over the year-ago period, streaming is by far the company's fastest-growing segment.
Although it may not be as popular as its bigger-name rivals, ViacomCBS is posting some strong results of late and it could be an attractive contrarian bet to take. Plus, its dividend makes it an even better buy.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two dividend stocks that pay an above-average yield and are incredibly cheap right now are AbbVie (NYSE: ABBV) and ViacomCBS (NASDAQ: VIAC). AbbVie AbbVie makes for an ideal buy-and-forget investment. While investors may be worried about the company's expiring patent on rheumatoid arthritis drug Humira, AbbVie's management anticipates that newer drugs like Skyrizi and Rinvoq will generate long-term growth and make up for the inevitable decline in Humira's sales. | Two dividend stocks that pay an above-average yield and are incredibly cheap right now are AbbVie (NYSE: ABBV) and ViacomCBS (NASDAQ: VIAC). AbbVie AbbVie makes for an ideal buy-and-forget investment. While investors may be worried about the company's expiring patent on rheumatoid arthritis drug Humira, AbbVie's management anticipates that newer drugs like Skyrizi and Rinvoq will generate long-term growth and make up for the inevitable decline in Humira's sales. | Two dividend stocks that pay an above-average yield and are incredibly cheap right now are AbbVie (NYSE: ABBV) and ViacomCBS (NASDAQ: VIAC). And with other pharma stocks like Pfizer, Merck, and Amgen trading at forward price-to-earnings (P/E) multiples of more than 12, AbbVie's multiple of nine makes the stock look like a bargain buy. AbbVie AbbVie makes for an ideal buy-and-forget investment. | And with other pharma stocks like Pfizer, Merck, and Amgen trading at forward price-to-earnings (P/E) multiples of more than 12, AbbVie's multiple of nine makes the stock look like a bargain buy. * They just revealed what they believe are the ten best stocks for investors to buy right now... and AbbVie wasn't one of them! Two dividend stocks that pay an above-average yield and are incredibly cheap right now are AbbVie (NYSE: ABBV) and ViacomCBS (NASDAQ: VIAC). |
23782.0 | 2021-12-01 00:00:00 UTC | 3 Reasons Pfizer Stock Will Crush the Broader Market in 2022 | ABBV | https://www.nasdaq.com/articles/3-reasons-pfizer-stock-will-crush-the-broader-market-in-2022 | nan | nan | Pfizer (NYSE: PFE) has been the second-best-performing big pharma stock for the whole of 2021. As of the close of November, the shares were up by an astonishing 45.8% year to date, which is only slightly lower than Eli Lilly's industry-leading 47% gain in 2021.
Pfizer's shares have soared this year due to its dominance in the COVID-19 vaccine market, as well as its late-stage trial success with the oral antiviral pill Paxlovid. In fact, the Pfizer and BioNTech COVID-19 vaccine Comirnaty will likely end 2021 as the best-selling pharmaceutical product of all time from a single-year standpoint.
Despite this sizable jump in 2021, Pfizer seems primed to crush the broader market yet again in 2022. Here are three reasons this top pharmaceutical stock should deliver market-beating returns next year.
Image source: Getty Images.
1. COVID product sales will be off the charts in 2022
Comirnaty is slated to haul in no less than $36 billion in sales in 2021. To put this eye-popping revenue figure into perspective, AbbVie's Humira, which was the best-selling pharma product last year, generated $20.4 billion in sales in 2020.
During Pfizer's third-quarter earnings presentation, management said that Comirnaty is already on track to rake in $29 billion in sales in 2022. This mid-October sales forecast, however, was before the omicron variant made an appearance on the global stage.
With demand for COVID vaccines likely to remain at fever pitch next year and Pfizer/BioNtech already hard at work designing an omicron-specific formulation, this dynamic duo might post another year of record-breaking vaccine sales in 2022. At a minimum, though, Comirnaty (or an iteration for the omicron variant) ought to easily break $30 billion in sales next year.
While its vaccine sales should continue to be stellar in 2022, the company will almost certainly get another major boost from its oral coronavirus pill Paxlovid. Pfizer, in fact, ought to end up dominating this segment of the coronavirus pharma market as well.
If true, the drugmaker could very well book upward of $24 billion in Paxlovid sales in 2022. That's an astonishing revenue forecast from a historical perspective.
2. Pfizer will execute multiple business development deals
Last August, Pfizer hired Aamir Malik from McKinsey & Company to fill the role of chief business innovation officer. Malik has played a key role in numerous healthcare mergers and acquisitions over the past two decades.
And since onboarding Malik, Pfizer's brain trust has openly admitted that it is on the hunt for intriguing phase 2 and phase 3 assets to keep the growth train rolling in the second half of the decade. So, with nearly $30 billion already in the bank and more on the way, shareholders can probably expect the company to pursue a handful of in-licensing deals, multiple bolt-on acquisitions, and maybe even a megamerger.
While the company hasn't seemed inclined to go the megamerger route since its failed pursuit of Allergan a few years back, there are some good reasons to believe that one may be close at hand. Most importantly, Pfizer's COVID franchise will leave a huge hole to fill once the pandemic ends. And the only clear way to make up for this future shortfall is through a major acquisition. Matter of fact, the cessation of the pandemic would leave a Gilead Sciences-sized hole in its revenue stream.
All told, Pfizer is poised to tack on several additional pipeline assets and quite possibly a few revenue-enerating products to its portfolio next year. These upcoming business development deals should help shore up the drugmaker's long-term outlook.
3. Pfizer's top shareholder reward program will get even stronger
Pfizer's stock presently comes with a 3% annualized dividend yield, which is slightly above average for its peer group. However, the drugmaker's trailing-12-month payout ratio of 45% and rapidly growing top line seem to indicate that a major boost to its dividend is on the way.
On top of its strong dividend program, the company also has over $5 billion remaining under its current share repurchase program. Although the drugmaker didn't tap this program in 2021, it can definitely afford to do so in 2022, thanks to its market-leading coronavirus franchise.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | To put this eye-popping revenue figure into perspective, AbbVie's Humira, which was the best-selling pharma product last year, generated $20.4 billion in sales in 2020. Pfizer's shares have soared this year due to its dominance in the COVID-19 vaccine market, as well as its late-stage trial success with the oral antiviral pill Paxlovid. While the company hasn't seemed inclined to go the megamerger route since its failed pursuit of Allergan a few years back, there are some good reasons to believe that one may be close at hand. | To put this eye-popping revenue figure into perspective, AbbVie's Humira, which was the best-selling pharma product last year, generated $20.4 billion in sales in 2020. While its vaccine sales should continue to be stellar in 2022, the company will almost certainly get another major boost from its oral coronavirus pill Paxlovid. Pfizer will execute multiple business development deals Last August, Pfizer hired Aamir Malik from McKinsey & Company to fill the role of chief business innovation officer. | To put this eye-popping revenue figure into perspective, AbbVie's Humira, which was the best-selling pharma product last year, generated $20.4 billion in sales in 2020. Pfizer's shares have soared this year due to its dominance in the COVID-19 vaccine market, as well as its late-stage trial success with the oral antiviral pill Paxlovid. Pfizer will execute multiple business development deals Last August, Pfizer hired Aamir Malik from McKinsey & Company to fill the role of chief business innovation officer. | To put this eye-popping revenue figure into perspective, AbbVie's Humira, which was the best-selling pharma product last year, generated $20.4 billion in sales in 2020. COVID product sales will be off the charts in 2022 Comirnaty is slated to haul in no less than $36 billion in sales in 2021. Pfizer, in fact, ought to end up dominating this segment of the coronavirus pharma market as well. |
23783.0 | 2021-12-01 00:00:00 UTC | Is A Rise Imminent For Merck Stock After An 8% Fall In A Month? | ABBV | https://www.nasdaq.com/articles/is-a-rise-imminent-for-merck-stock-after-an-8-fall-in-a-month | nan | nan | [Updated: Nov 29, 2021] Merck Covid-19 Pill Update
The stock price of Merck (NYSE: MRK) has seen an 8% fall in a month, while it was down nearly 4% on Friday, Nov 26. This can largely be attributed to the company’s recently shared data for its Covid-19 antiviral pill – Molnupiravir – which shows lower efficacy of 30% against hospitalization and death in high-risk patients. This data did not sit well with the investors, and all eyes will now be on the FDA’s emergency use authorization (EUA) decision on Molnupiravir. The FDA is slated to review the emergency use authorization for Molnupiravir tomorrow, Nov 30. Overall, the markets were looking forward to Molnupiravir, with peak sales estimate of over $7 billion in 2022, but now, there are looming concerns of its potential, given the lower efficacy rate.
But now that MRK stock has fallen 8% in a month, will it continue its downward trajectory, or is a rise imminent? Going by historical performance, there is a higher chance of a rise in MRK stock over the next month. Out of 78 instances in the last ten years that MRK stock saw a twenty-one day fall of 8.5% or more, 45 of them resulted in MRK stock rising over the subsequent one-month period (twenty-one trading days). This historical pattern reflects 45 out of 78, or about a 58% chance of a rise in MRK stock over the coming month. See our analysis on Merck Stock Chances of Rise for more details. So, if this follows historical pattern, MRK stock is likely to see higher levels. That said, the move in MRK stock will also depend on the EUA decision by the U.S. FDA tomorrow.
Wondering how Merck’s peers stack up? Check out Merck Stock Comparison With Peers to see how MRK stock compares against peers on metrics that matter. You can find more such useful comparisons on Peer Comparisons.
Calculation of ‘Event Probability‘ and ‘Chance of Rise‘ using last ten years data
After moving -1.9% or more over a five-day period, the stock rose in the next five days on 57% of the occasions.
After moving -5.8% or more over a ten-day period, the stock rose in the next ten days on 60% of the occasions
After moving -8.5% or more over a twenty-one-day period, the stock rose in the next twenty-one days on 58% of the occasions.
Merck (MRK) Stock Return (Recent) Comparison With Peers
Five-Day Return: PFE highest at 6.3%; JNJ lowest at -2.3%
Ten-Day Return: PFE highest at 8.6%; BMY lowest at -4.9%
Twenty-One Days Return: PFE highest at 25.1%; MRK lowest at -8.5%
[Updated: Nov 3, 2021] MRK Stock Update
Merck (NYSE: MRK) recently reported its Q3 results, which were better than our estimates. The company reported sales of around $13.2 billion (up 20% y-o-y), compared to our estimate of $12.2 billion. While the Keytruda sales saw a 22% rise to $4.5 billion, Gardasil sales surged 68% to $2.0 billion. The company’s Animal Health business also saw a 16% growth in sales. Our dashboard on Merck Revenues offers more details on the company’s segments.
Looking at the bottom-line, the company reported adjusted earnings of $1.75 per share, up 28% y-o-y, driven by both an increase in revenue as well as margin expansion. The earnings were comfortably above our forecast of $1.48 per share and the $1.54 per share consensus estimate. The company managed to leverage sales growth, along with increased sales of high-margin products, which led to margin expansion. Lower R&D expenses also aided the margins.
Following a solid performance in Q3, Merck raised its full year outlook for sales to be in the range of $47.4 billion and $47.9 billion, compared to its earlier estimate of $46.4 billion to $47.4 billion. Looking at the bottom line, the company now expects its adjusted EPS to be in the range of $5.65 and $5.70, compared to its earlier guidance of $5.47 and $5.57. The company’s full-year outlook appears to be conservative, in our view.
Now, one important detail shared by the company’s management is around its Covid-19 treatment – Molnupiravir. Merck now expects Molnupiravir sales to be around $7 billion through 2022, including $0.5 billion to $1.0 billion sales in Q4 of this year. The sales estimate for Molnupiravir as well as an upbeat quarter cheered investors, and MRK stock is now up over 7% in a week (five trading days).
We have also updated our model following the Q3 release. We have revised the sales forecast to be around $51.8 billion, well above the company’s guidance, considering a strong sales growth for Keytruda, Gardasil, Animal Health, and a meaningful contribution from Molnupiravir in Q4. As such, we also expect adjusted EPS to be higher at $6.02, compared to our earlier estimate of $5.94. Given these changes to our revenues and earnings forecast, we have revised our Merck’s Valuation to $98 per share, based on $6.02 expected adjusted EPS and maintaining a 16x P/E multiple for 2021, implying an 11% upside from its current levels of $88.
[Updated: Oct 25, 2021] MRK Q3 Earnings Preview
Merck (NYSE: MRK) is scheduled to report its Q3 2021 results on Thursday, October 28. We expect the company to likely post revenue and earnings below the consensus estimates, as the spread of Covid-19 delta variant likely impacted the company’s overall vaccine sales growth, including that for Gardasil. That said, the opening up of economies and continued demand for animal health business, likely aided the overall sales growth for Merck. While we expect the revenue and earnings to fall below the consensus estimates, our forecast indicates that Merck’s valuation is $91 per share, which is 12% above the current market price of around $81, implying that MRK stock still has some room for growth. Our interactive dashboard analysis on Merck’s Pre-Earnings has additional details.
(1) Revenues expected to be below the consensus estimates
Trefis estimates Merck’s Q3 2021 revenues to be around $12.2 billion, compared to the $12.3 billion consensus estimate. With over half of the U.S. population fully vaccinated, and on the international front the vaccination rate is rising gradually, total procedure volume and hospital visits is on a rise and this should augur well for pharmaceutical companies, including Merck. Q3 also marked a quarter with a rise in Covid-19 cases in the U.S. due to the spread of the delta variant, and it may have impacted the vaccine sales for Merck. Gardasil sales were down in low double-digits (y-o-y) to $1.2 billion in Q3 2020, due to the impact of the pandemic. Gardasil sales stood at $0.9 billion in Q1, and $1.2 billion in Q2 of this year.
That said, Merck’s top-selling drug – Keytruda – continued to expand with 21% y-o-y growth to $8.1 billion in the first half of this year. Over the last year or so, Keytruda has continued to gain market share, and garner more regulatory approvals for expansion of its usage. The company’s animal health business has also been doing well with 25% y-o-y gains in H1, and the growth is likely to continue in the near term, given the rise in pet ownership in the U.S. to record highs of 70% of the U.S. households. Our dashboard on Merck Revenues offers more details on the company’s segments.
2) EPS likely to be slightly below the consensus estimates
Merck’s Q2 2021 adjusted earnings per share (EPS) is expected to be $1.48 per Trefis analysis, slightly above the consensus estimate of $1.54. Merck’s adjusted net income of $3.3 billion in Q2 2021 reflected a 28% rise from its $2.6 billion figure in the prior-year quarter led by higher revenues. For the full year 2021, we expect the adjusted EPS to be lower at $5.65 compared to $5.94 in 2020. Note that earnings will be lower in 2021, given the spin-off of Merck’s women’s health, biosimilars, and established brands businesses. Also, there can be near term margin pressure due to inflationary headwinds and supply chain constraints.
(3) Stock price estimate above the current market price
Going by our Merck’s Valuation, with an EPS estimate of $5.65 and a P/E multiple of 16x in 2021, this translates into a price of $91, which is nearly 12% above the current market price of around $81. The 16x figure compares with levels of over 17x seen in 2018 and 2019, and a 14x figure seen as recently as late 2020.
Earlier this month, Merck announced that its Molnupiravir pill reduces the risk of hospitalization and death by 50% for patients with mild to moderate Covid-19. The company is seeking regulatory approval for the oral pill, and once approved, it will aid the overall revenue growth for Merck in the quarters to come.
Note: P/E Multiples are based on Share Price at the end of the year and reported (or expected) Adjusted Earnings for the full year.
While MRK stock is undervalued, 2020 has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Johnson & Johnson vs Regeneron Pharmaceuticals.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
Returns Nov 2021
MTD [1] 2021
YTD [1] 2017-21
Total [2]
MRK Return -3% -3% 34%
S&P 500 Return 1% 22% 105%
Trefis MS Portfolio Return -3% 46% 297%
[1] Month-to-date and year-to-date as of 11/29/2021
[2] Cumulative total returns since 2017
Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This can largely be attributed to the company’s recently shared data for its Covid-19 antiviral pill – Molnupiravir – which shows lower efficacy of 30% against hospitalization and death in high-risk patients. Given these changes to our revenues and earnings forecast, we have revised our Merck’s Valuation to $98 per share, based on $6.02 expected adjusted EPS and maintaining a 16x P/E multiple for 2021, implying an 11% upside from its current levels of $88. While we expect the revenue and earnings to fall below the consensus estimates, our forecast indicates that Merck’s valuation is $91 per share, which is 12% above the current market price of around $81, implying that MRK stock still has some room for growth. | Merck (MRK) Stock Return (Recent) Comparison With Peers Five-Day Return: PFE highest at 6.3%; JNJ lowest at -2.3% Ten-Day Return: PFE highest at 8.6%; BMY lowest at -4.9% Twenty-One Days Return: PFE highest at 25.1%; MRK lowest at -8.5% [Updated: Nov 3, 2021] MRK Stock Update Merck (NYSE: MRK) recently reported its Q3 results, which were better than our estimates. We expect the company to likely post revenue and earnings below the consensus estimates, as the spread of Covid-19 delta variant likely impacted the company’s overall vaccine sales growth, including that for Gardasil. 2) EPS likely to be slightly below the consensus estimates Merck’s Q2 2021 adjusted earnings per share (EPS) is expected to be $1.48 per Trefis analysis, slightly above the consensus estimate of $1.54. | Merck (MRK) Stock Return (Recent) Comparison With Peers Five-Day Return: PFE highest at 6.3%; JNJ lowest at -2.3% Ten-Day Return: PFE highest at 8.6%; BMY lowest at -4.9% Twenty-One Days Return: PFE highest at 25.1%; MRK lowest at -8.5% [Updated: Nov 3, 2021] MRK Stock Update Merck (NYSE: MRK) recently reported its Q3 results, which were better than our estimates. Following a solid performance in Q3, Merck raised its full year outlook for sales to be in the range of $47.4 billion and $47.9 billion, compared to its earlier estimate of $46.4 billion to $47.4 billion. (1) Revenues expected to be below the consensus estimates Trefis estimates Merck’s Q3 2021 revenues to be around $12.2 billion, compared to the $12.3 billion consensus estimate. | [Updated: Nov 29, 2021] Merck Covid-19 Pill Update The stock price of Merck (NYSE: MRK) has seen an 8% fall in a month, while it was down nearly 4% on Friday, Nov 26. Out of 78 instances in the last ten years that MRK stock saw a twenty-one day fall of 8.5% or more, 45 of them resulted in MRK stock rising over the subsequent one-month period (twenty-one trading days). We expect the company to likely post revenue and earnings below the consensus estimates, as the spread of Covid-19 delta variant likely impacted the company’s overall vaccine sales growth, including that for Gardasil. |
23784.0 | 2021-11-23 00:00:00 UTC | U.S. jury says CVS, other pharmacy chains helped fuel opioid epidemic | ABBV | https://www.nasdaq.com/articles/u.s.-jury-says-cvs-other-pharmacy-chains-helped-fuel-opioid-epidemic | nan | nan | By Nate Raymond
Nov 23 (Reuters) - A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis.
Jurors in Cleveland federal court after six days of deliberationsconcluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market.
The verdict, which lawyers for the counties confirmed, has the potential to give state and local governments new leverage in their efforts to negotiate settlements that would resolve the thousands of other cases against the pharmacy operators.
"The judgment today against Walmart, Walgreens and CVS represents the overdue reckoning for their complicity in creating a public nuisance," the plaintiffs' lawyers said in a joint statement.
Jurors only assessed liability. It is up to U.S. District Judge Dan Polster to decide how much the companies owe to abate, or address, the public nuisance in Ohio's Lake and Trumbull counties.
He has tentatively scheduled a trial on that question for May 9. The counties' lawyers have said the costs are potentially $1 billion for each county.
CVS in a statement said it strongly disagreed with the verdict and planed to appeal, arguing that the court misapplied public nuisance law, which other courts in similar opioid cases have recently declined to apply to drug manufacturers.
"As plaintiffs’ own experts testified, many factors have contributed to the opioid abuse issue, and solving this problem will require involvement from all stakeholders in our healthcare system and all members of our community," CVS said.
Representatives for Walgreens and Walmart did not immediately respond to requests for comment.
The trial was the first that any pharmacies had faced over an epidemic that U.S. health officials say had by 2019 resulted in nearly 500,000 opioid overdose deaths over the course of two decades.
Over 100,000 people died from drug overdoses during the 12-month period ending April 2021, the U.S. Centers for Disease Control and Prevention said in a report last week, a record driven in large part by deaths from opioids like fentanyl.
At trial, lawyers for Lake and Trumbull counties argued that the pharmacies failed to ensure opioid prescriptions were valid and allowed excessive quantities of addictive pain pills to flood their communities.
The pharmacy operators, among the largest in the United States, denied the allegations. They said they took steps to guard against the diversion of pills and blamed others, including doctors, regulators and drug traffickers, for the epidemic.
The verdict in the Ohio trial followed recent setbacks for plaintiffs pursuing some of the other 3,300 opioid cases filed against drug manufacturers, distributors and pharmacies nationally.
Oklahoma's top court on Nov. 9 overturned a $465 million judgment against drugmaker Johnson & Johnson JNJ.N, and a California judge this month ruled in favor of four drugmakers in a case brought by several large counties.
Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors.
(Reporting by Nate Raymond in Boston; Additional reporting by Grant Segall in Cleveland; Editing by Bill Berkrot)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors. By Nate Raymond Nov 23 (Reuters) - A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis. Jurors in Cleveland federal court after six days of deliberationsconcluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market. | Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors. By Nate Raymond Nov 23 (Reuters) - A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis. Jurors in Cleveland federal court after six days of deliberationsconcluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market. | Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors. By Nate Raymond Nov 23 (Reuters) - A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis. Jurors in Cleveland federal court after six days of deliberationsconcluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market. | Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors. Jurors in Cleveland federal court after six days of deliberationsconcluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market. The trial was the first that any pharmacies had faced over an epidemic that U.S. health officials say had by 2019 resulted in nearly 500,000 opioid overdose deaths over the course of two decades. |
23785.0 | 2021-11-23 00:00:00 UTC | CVS, other pharmacy chains found liable in their first trial over U.S. opioid epidemic | ABBV | https://www.nasdaq.com/articles/cvs-other-pharmacy-chains-found-liable-in-their-first-trial-over-u.s.-opioid-epidemic | nan | nan | By Nate Raymond
Nov 23 (Reuters) - A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis.
Jurors in Cleveland federal court concluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market.
The verdict was confirmed by lawyers for the plaintiffs. The jury only assessed liability. It is up to U.S. District Judge Dan Polster to decide how much the companies should owe to abate, or address, the public nuisance in Ohio's Lake and Trumbull counties.
He has tentatively scheduled a trial on that question for May 9. The counties' lawyers have said the costs are potentially $1 billion for each county.
The trial was the first that any pharmacies had faced over an epidemic that U.S. health officials say had by 2019 resulted in nearly 500,000 opioid overdose deaths over the course of two decades.
Over 100,000 people died from drug overdoses during the 12-month period ending April 2021, the U.S. Centers for Disease Control and Prevention on Wednesday said, a record high driven in large part by deaths from opioids like fentanyl.L1N2S81LI
At trial, lawyers for Lake and Trumbull counties argued that the pharmacies failed to ensure opioid prescriptions were valid and allowed excessive quantities of addictive pain pills to flood their communities.
The pharmacy operators, among the largest in the United States, denied the allegations. They said they took steps to guard against the diversion of pills and blamed others, including doctors, regulators and drug traffickers, for the epidemic.
The verdict in the Ohio trial followed recent setbacks for plaintiffs pursuing some of the other 3,300 opioid cases filed against drug manufacturers, distributors and pharmacies nationally.
Oklahoma's top court on Nov. 9 overturned a $465 million judgment against drugmaker Johnson & Johnson JNJ.N, and a California judge this month ruled in favor of four drugmakers in a case brought by several large counties.
Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors.
(Reporting by Nate Raymond in Boston Editing by Bill Berkrot)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors. By Nate Raymond Nov 23 (Reuters) - A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis. Jurors in Cleveland federal court concluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market. | Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors. By Nate Raymond Nov 23 (Reuters) - A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis. It is up to U.S. District Judge Dan Polster to decide how much the companies should owe to abate, or address, the public nuisance in Ohio's Lake and Trumbull counties. | Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors. By Nate Raymond Nov 23 (Reuters) - A federal jury on Tuesday found that pharmacy chain operators CVS Health Corp CVS.N, Walgreens Boots Alliance Inc WBA.O and Walmart Inc WMT.N helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis. Over 100,000 people died from drug overdoses during the 12-month period ending April 2021, the U.S. Centers for Disease Control and Prevention on Wednesday said, a record high driven in large part by deaths from opioids like fentanyl.L1N2S81LI At trial, lawyers for Lake and Trumbull counties argued that the pharmacies failed to ensure opioid prescriptions were valid and allowed excessive quantities of addictive pain pills to flood their communities. | Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd TEVA.TA and AbbVie Inc ABBV.N, and in Washington state with the three largest U.S. drug distributors. Jurors in Cleveland federal court concluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market. The verdict was confirmed by lawyers for the plaintiffs. |
23786.0 | 2021-11-21 00:00:00 UTC | Should You Buy This Blue Chip Biotech Stock? | ABBV | https://www.nasdaq.com/articles/should-you-buy-this-blue-chip-biotech-stock-2021-11-21 | nan | nan | This is arguably the most difficult time to be an income investor in decades. For one, the S&P 500 is yielding less than 1.3%, which is very close to its all-time low of 1.1% set back in 2000. Along with this, last month's annual inflation rate of 6.2% set a 31-year high. Anyone sitting on cash and waiting for a market correction is like watching your money go down the drain as your capital loses purchasing power. So, what is an income investor to do?
Fortunately, there are still viable high-yield options for income investors to consider. Let's take a look at three reasons why pharma stock AbbVie (NYSE: ABBV) could be one of those options.
Image source: Getty Images.
AbbVie consistently beats expectations
When AbbVie reported its third-quarter earnings on Oct. 29, the company managed to top both analysts' revenue and non-GAAP (adjusted) earnings per share (EPS) estimates for the 11th straight quarter. The company recorded $14.34 billion in revenue during the third quarter, which equates to an 11.3% growth rate compared to the year-ago period. This is what led AbbVie to surpass analysts' forecasts of $14.3 billion in revenue by 0.3% in the third quarter.
AbbVie's largest segment, the immunology segment led by Humira, followed by Skyrizi and Rinvoq, contributed to 60.5% of its total revenue growth in the third quarter. Humira's revenue edged 5.6% higher year over year to $5.43 billion in the third quarter, which contributed to nearly one-third (32.2%) of AbbVie's third-quarter immunology segment revenue growth.
The most encouraging takeaway of AbbVie's third-quarter undoubtedly was that its next-gen immunology drugs Skyrizi and Rinvoq saw their combined revenue surge 92.2% to $1.25 billion. This made up the remaining 67.8% of growth within the immunology segment. And ahead of Humira's 2023 U.S. patent expiration, Skyrizi and Rinvoq's overall share of the immunology segment's revenue grew from 11.2% to 18.7% in the third quarter.
Overall, AbbVie looks positioned to sharply rebound from Humira's pending U.S. loss of exclusivity via Skyrizi, Rinvoq, and other drugs such as anti-psychotic Vraylar, which grew its third-quarter revenue 29% year over year to $461 million. That's why analysts are forecasting AbbVie will deliver 4.5% annual adjusted EPS growth over the next five years despite Humira's patent cliff. AbbVie reported $3.33 in adjusted EPS during the third quarter, which represents a 17.7% growth rate over the year-ago period. This also beat the analyst consensus of $3.22 in adjusted EPS for the third quarter by 3.4%.
AbbVie's strong performance in the third quarter and year to date prompted the company to slightly raise its adjusted EPS midpoint guidance for this year from $12.57 to $12.65. The updated midpoint guidance for this year would work out to a 19.8% year-over-year growth rate in adjusted EPS compared to the $10.56 reported last year. This encouraging outlook helps to explain why the company's board of directors announced a robust 8.5% increase in its quarterly dividend beginning with the dividend paid next February.
A fair and improving balance sheet
AbbVie is a growing business, which is important for dividend growth investors. But does the company have a healthy enough balance sheet to afford its dividend during a temporary decline in profitability? Let's turn to the interest coverage ratio to address this question, which measures how easily a company can meet its interest expense obligation with its earnings before interest and taxes (EBIT).
Its interest coverage ratio soared from four in the first nine months of last year ($6.57 billion in EBIT/$1.66 billion in interest costs) to 5.8 through the first nine months of this year ($10.53 billion in EBIT/$1.81 billion in interest expenses). This demonstrates that the company is continuing to head in the right direction with incorporating Allergan's assets into its business following the completion of the acquisition in May 2020.
An attractively priced blue chip
Even though AbbVie's fundamentals appear solid, the stock is being heavily discounted by the market. Primarily driven by concerns over Humira's U.S. patent cliff that I believe are overblown based on Skyrizi and Rinvoq's tremendous growth trajectories.
In fact, AbbVie's forward P/E ratio of 8.4 at its current price of $116 a share is well below the general drug manufacturer average forward P/E ratio of 11.3. This gives income investors a chance to scoop up shares of AbbVie and its well-covered 4.5% yield before the market warms up to the stock and awards it a higher valuation multiple.
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Kody Kester owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The most encouraging takeaway of AbbVie's third-quarter undoubtedly was that its next-gen immunology drugs Skyrizi and Rinvoq saw their combined revenue surge 92.2% to $1.25 billion. This gives income investors a chance to scoop up shares of AbbVie and its well-covered 4.5% yield before the market warms up to the stock and awards it a higher valuation multiple. Let's take a look at three reasons why pharma stock AbbVie (NYSE: ABBV) could be one of those options. | AbbVie's largest segment, the immunology segment led by Humira, followed by Skyrizi and Rinvoq, contributed to 60.5% of its total revenue growth in the third quarter. Humira's revenue edged 5.6% higher year over year to $5.43 billion in the third quarter, which contributed to nearly one-third (32.2%) of AbbVie's third-quarter immunology segment revenue growth. Let's take a look at three reasons why pharma stock AbbVie (NYSE: ABBV) could be one of those options. | AbbVie consistently beats expectations When AbbVie reported its third-quarter earnings on Oct. 29, the company managed to top both analysts' revenue and non-GAAP (adjusted) earnings per share (EPS) estimates for the 11th straight quarter. AbbVie's largest segment, the immunology segment led by Humira, followed by Skyrizi and Rinvoq, contributed to 60.5% of its total revenue growth in the third quarter. Humira's revenue edged 5.6% higher year over year to $5.43 billion in the third quarter, which contributed to nearly one-third (32.2%) of AbbVie's third-quarter immunology segment revenue growth. | Humira's revenue edged 5.6% higher year over year to $5.43 billion in the third quarter, which contributed to nearly one-third (32.2%) of AbbVie's third-quarter immunology segment revenue growth. That's why analysts are forecasting AbbVie will deliver 4.5% annual adjusted EPS growth over the next five years despite Humira's patent cliff. Let's take a look at three reasons why pharma stock AbbVie (NYSE: ABBV) could be one of those options. |
23787.0 | 2021-11-21 00:00:00 UTC | 4 Top Dividend Stocks I'd Buy If I Were About to Retire | ABBV | https://www.nasdaq.com/articles/4-top-dividend-stocks-id-buy-if-i-were-about-to-retire-2021-11-21 | nan | nan | There's a different mindset for investing when you're near the point of leaving the workplace. Your focus shifts a lot more toward steady income and less to generating tremendous growth. That means dividend stocks move to the forefront.
My retirement remains years away -- in large part because I enjoy what I do too much. But I do think about retirement some. If I were about to retire, here are the four top dividend stocks I'd buy.
Image source: Getty Images.
1. Easterly Government Properties
I put Easterly Government Properties (NYSE: DEA) at the top of the list for two main reasons. First and foremost, its dividend is about safe as they come. Second, Easterly offers a juicy dividend yield of just under 5%.
The company's name provides a great hint as to why its dividend is so safe. Easterly focuses on leasing properties to U.S. government agencies. As chairman of the board Darrell Crate said in the company's third-quarter conference call, Easterly's properties are "the ultimate and sleep well at night real estate."
As an added bonus, Easterly should deliver solid growth going forward. The company has a strong acquisitions pipeline. It's likely that federal agencies will continue to prefer leasing rather than owning their own buildings.
2. Brookfield Renewable
Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) ranks as my second pick for similar reasons. The demand for renewable energy isn't going away. Brookfield Renewable's dividend yield of more than 3% is also quite attractive.
My Motley Fool colleague Jason Hall recently went with Brookfield Renewable as the strongest renewable energy stock you can own. I agree completely. The company currently has around 6,000 renewable power facilities that generate roughly 21 gigawatts of energy. But its development pipeline should add more than 31 gigawatts of capacity, with much of it coming from solar and wind.
No company is guaranteed to be around 30 or 40 years from now. However, with the ongoing shift away from fossil fuels, I think that Brookfield Renewable has a better chance than most to still be thriving for decades to come.
3. Devon Energy
You might think I'm contradicting myself by including Devon Energy (NYSE: DVN) on the list. I just stated that there's a shift away from fossil fuels, yet I've chosen an oil and gas producer as a top stock I'd buy if I were nearing retirement.
But I couldn't resist going with Devon for one simple reason: It offers the highest dividend yield among S&P 500 companies by far. That might surprise you if you look at online financial sites that show Devon's yield is currently around 1%. What the sites don't reveal, though, is that the variable portion of the company's distribution pushes its yield to in the ballpark of 10%.
Will Devon's dividend yield remain so high forever? Probably not. However, an expanding global economy should enable the company to continue growing -- albeit at modest rates -- for many more years.
4. AbbVie
My fourth pick boasts the most impressive dividend track record of the group. AbbVie (NYSE: ABBV) is a Dividend Aristocrat, an exclusive club of S&P 500 members with dividend increases for at least 25 consecutive years. Its dividend currently yields more than 4.8%.
It's important to note that AbbVie does face a challenge in the near future. The company's top-selling drug, Humira, faces biosimilars in the U.S. market beginning in 2023. Sales for the drug will inevitably decline significantly.
However, AbbVie has plenty of other strong products in its lineup, including autoimmune disease drug Skyrizi and the blockbuster Botox franchise picked up with its acquisition of Allergan. While the company's total revenue is likely to slip in 2023, AbbVie expects to quickly return to growth that will extend at least through the end of the decade.
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Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. The Motley Fool owns shares of and recommends Brookfield Renewable Corporation Inc. The Motley Fool recommends Easterly Government Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, AbbVie has plenty of other strong products in its lineup, including autoimmune disease drug Skyrizi and the blockbuster Botox franchise picked up with its acquisition of Allergan. AbbVie My fourth pick boasts the most impressive dividend track record of the group. AbbVie (NYSE: ABBV) is a Dividend Aristocrat, an exclusive club of S&P 500 members with dividend increases for at least 25 consecutive years. | See the 10 stocks *Stock Advisor returns as of November 10, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie My fourth pick boasts the most impressive dividend track record of the group. AbbVie (NYSE: ABBV) is a Dividend Aristocrat, an exclusive club of S&P 500 members with dividend increases for at least 25 consecutive years. | See the 10 stocks *Stock Advisor returns as of November 10, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie My fourth pick boasts the most impressive dividend track record of the group. AbbVie (NYSE: ABBV) is a Dividend Aristocrat, an exclusive club of S&P 500 members with dividend increases for at least 25 consecutive years. | See the 10 stocks *Stock Advisor returns as of November 10, 2021 Keith Speights owns shares of AbbVie, Brookfield Renewable Corporation Inc., Brookfield Renewable Partners L.P., and Devon Energy. AbbVie My fourth pick boasts the most impressive dividend track record of the group. AbbVie (NYSE: ABBV) is a Dividend Aristocrat, an exclusive club of S&P 500 members with dividend increases for at least 25 consecutive years. |
23788.0 | 2021-11-19 00:00:00 UTC | 7 Dividend Stocks to Buy for 2022 and Hold Forever | ABBV | https://www.nasdaq.com/articles/7-dividend-stocks-to-buy-for-2022-and-hold-forever-2021-11-19 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Editor’s Note: “7 Dividend Stocks to Buy for 2022 and Hold Forever” was originally published in October 2021. It has been updated to include the latest available information.
The allure of dividend stocks should be increasing right now. The Fed has signaled that it will soon begin tapering the market stimulus it provided during the pandemic. Following the news in late September, there hasn’t been any immediate shock.
In general, broader markets including the S&P 500 index traded down after Labor Day. But with markets flagging and volatility likely to rise, it does make sense to look toward the less risky areas of the stock market.
That’s precisely why dividend stocks make sense now: They are designed to carry low price volatility with upside provided in reliable dividend income.
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As an example, AbbVie (NYSE:ABBV) carries a beta, which measures volatility, of 0.80. In other words, it is 20% less volatile than the market overall.
Meanwhile, the SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) is up 27% year to date, trending right along with the broader SPDR S&P 500 ETF Trust (NYSEARCA:SPY).
So, there’s a short-term catalyst for dividend stocks in general, but these are also equities to buy and hold forever. I’m not sure how long an investor can define “forever” as being, but I’d say at least a decade.
I believe the stocks below have the ability to remain attractive for at least that long. They’ll grow with the market and provide investable dividend income as well.
Chevron (NYSE:CVX)
Exxon Mobil (NYSE:XOM)
Lockheed Martin (NYSE:LMT)
Johnson & Johnson (NYSE:JNJ)
McDonald’s (NYSE:MCD)
Apple (NASDAQ:AAPL)
PepsiCo (NYSE:PEP)
Dividend Stocks: Chevron (CVX)
CVX) gas station" width="300" height="169">
Source: Trong Nguyen / Shutterstock.com
Chevron might seem a curious choice to lead off this list. The energy landscape is certainly changing and oil is the most at risk.
There are lots of prognosticators who suggest that an oil demand peak has already occurred, and the dinosaur, made from dead dinosaurs, is dying.
Well, OPEC doesn’t believe that at all. I’ll be the first to admit they’re likely biased but they have allowed for declines in past projections. A recent about-face bodes well for Chevron.
According to the alliance of oil-exporting nations: “World oil demand will plateau in the late 2030s and could by then have begun to decline, OPEC said on Thursday, in a major shift for the producer group that reflects the lasting impact of the coronavirus crisis on the economy and consumer habits.”
Chevron makes sense right now as a rebound play as we approach the tail end of the pandemic. It trades at $114 and consensus estimates suggest it is moving toward $129. So, there’s a clear upside in the form of price appreciation.
Then investors get a dividend yielding 4.89%. The company hasn’t reduced that dividend since 1984. In fact, Chevron raised it recently by a nickel in May. That increase bumped it up to $1.34, where it remains.
OPEC projections and current oil demand make it difficult to ignore CVX stock despite an overarching green revolution.
Exxon Mobil (XOM)
Source: Jonathan Weiss / Shutterstock.com
The narrative that surrounds Chevron is similar to that which surrounds Exxon Mobil: Its best days are behind it. Again, for the same reasons I outlined above I also think XOM stock is worthwhile.
At $63.60 currently, ExxonMobil is approaching consensus estimates of $60. So, there’s a bit of upside inherent in that projection. On the other hand, oil prices aren’t going to pull back soon even as they approach $80 per barrel.
A recent Reuters article points out that the supply deficit is forecast to continue for months. Oil Majors including Exxon Mobil stand to benefit. So, a purchase of XOM shares could act as something of a hedge against the rising prices you pay at the pump.
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Broader indicators like that OPEC report mentioned above indicate Exxon Mobil is favorable over the longer term as well. According to Yahoo Finance, investors should expect the company to report somewhere in the neighborhood of $287.7 billion in revenue this year. That should rise to $296.75 billion in 2022.
That ought to result in relatively stable prices which will be bolstered by the firm’s dividend yielding 5.55%. It has remained at 87 cents since May of 2019 but hasn’t been reduced since 2002.
Dividend Stocks: Lockheed Martin (LMT)
LMT) Space Systems sign in Sunnyvale, California." width="300" height="169">
Source: Ken Wolter / Shutterstock.com
Lockheed Martin hasn’t had what many would call an outstanding year. Investors could just as easily avoid LMT stock altogether in favor of growth opportunities, but that would be missing the point of Lockheed Martin.
The company has long-term growth potential and durable competitive advantages. Each of the company’s four business segments reported growth recently, with overall revenue increasing 5% year-on-year. That’s a significant number for a firm of Lockheed Martin’s scope and scale.
The upside underpinning LMT stock exists in the average target stock price of $378 a modest increase from today’s price of around $342. Further, 2022 should be a strong year for the firm with revenues projected to increase by 26%. Those revenues could reach as high as $29.7 billion, but a $27.84 billion consensus has emerged.
Johnson & Johnson (JNJ)
JNJ) sign hangs inside in Moscow, Russia." width="300" height="169">
Source: Alexander Tolstykh / Shutterstock.com
Johnson & Johnson routinely pops up in dividend stock lists. That’s with good reason: It hasn’t reduced its dividend since 1982, and that dividend, though yielding a modest 2.64%, is as reliable as they come.
The company’s 0.62 payout ratio is very sustainable. Every $1 of net income requires 62 cents out of Johnson & Johnson’s net income. Contrast that with some oil companies and it quickly becomes obvious which of the two could falter first.
For the most part, JNJ stock has performed like a dividend aristocrat should, even in 2021. There’s not really been any price volatility worth noting in its shares this year. It last faltered, along with absolutely everyone else, in March of 2020 when the pandemic began.
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Johnson & Johnson also has a significant catalyst in the fact that its vaccine has received FDA approval as a booster shot. The shot is sold at a not-for-profit price, so the catalyst isn’t a financial one. Rather, it’s more in the form of brand equity over the longer term.
As well, it’s looking like the company’s efforts to isolate its talc suit liabilities from other assets, a likely first step toward placing tens of thousands of tort claims in chapter 11, The Wall Street Journal reported on Tuesday.
Dividend Stocks: McDonald’s (MCD)
Source: 8th.creator / Shutterstock.com
McDonald’s was on many dividend investment lists earlier in 2021 when it was priced around $215. Many predicted that it would rise under the idea that people would soon be returning to work as vaccine rollouts were then in full force.
People did get vaccinated, to a degree, and MCD stock did rise. The narrative then, has become less appealing now that share prices have risen above $250.
But the truth is MCD stock has plenty of gas left even though it is at three-year highs. That’s true based on analysts’ average stock prices of $267.60. That implies a bit more than 7% upside still.
Take the dividend, recently raised to $1.38 from $1.29, and reinvest it into MCD shares and returns increase even more.
Over the longer term it’s difficult to see why McDonald’s should fall off to any discernible degree. It remains an iconic brand worldwide. Global sales are up 40.5% in 2021. That’s primarily a consequence of the pandemic, but the company also increased sales by 6.9% in 2021 relative to 2019. It isn’t slowing down, and it’s going to remain a strong dividend choice for a long time.
Apple (AAPL)
Source: Bloomicon / Shutterstock.com
I’d venture to guess that most investors don’t even think about Apple when considering dividend stocks. It’s probably fair to assume many don’t know that AAPL stock even has a dividend.
But it does. And although that dividend has a modest forward yield of 0.59%, it is increasing. Over the past five years, Apple has increased its dividend at a rate of 10.4% annually.
So, on the one hand, when you hear that Apple’s dividend is 22 cents it might not seem particularly attractive. But consider that when Apple raised the dividend to 22 cents in May, from 20.5 cents, that it represented a 7.32% increase.
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That probably isn’t going to change either. Apple committed to yearly dividend increases in early 2021. When it did so that raised chatter around the idea that it might seek to join the vaunted dividend aristocrat club in the future. If that does happen, it would occur in 2038.
With how well Apple has performed in 2021 there’s already so much to like about it. But if it redirects record profits towards an increasing dividend it could look even better in a decade.
Dividend Stocks: PepsiCo (PEP)
Source: suriyachan / Shutterstock.com
PepsiCo is pretty boring as investments go, and that’s a good thing. Since we’re talking about dividend stocks to hold forever, it’s worth noting. If you take a look at its price chart moving back beyond 10 years you notice how steady it is.
Back in October of 2011, PEP stock traded at $62; now it trades at approximately $163. Thanks are due, in large part to former CEO Indra Noy. Yet even under new leadership, basically, if you play the long game with it, or most other dividend stocks, you’re going to win.
PepsiCo has paid an uninterrupted, increasing dividend dating back to 1973. So investors got that as well. In the last year that quarterly dividend has equated to an additional $4.20 of return from a share of PEP stock.
Investors today should anticipate that Pepsi will continue its trajectory of slow, steady growth. Consensus estimates are that the company will record $81.57 billion in revenue next year, up 4% from the $78.39 billion expected in 2021.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
The post 7 Dividend Stocks to Buy for 2022 and Hold Forever appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 6 Mega-Cap Stocks That Make Great Stocking Stuffers As an example, AbbVie (NYSE:ABBV) carries a beta, which measures volatility, of 0.80. According to the alliance of oil-exporting nations: “World oil demand will plateau in the late 2030s and could by then have begun to decline, OPEC said on Thursday, in a major shift for the producer group that reflects the lasting impact of the coronavirus crisis on the economy and consumer habits.” Chevron makes sense right now as a rebound play as we approach the tail end of the pandemic. As well, it’s looking like the company’s efforts to isolate its talc suit liabilities from other assets, a likely first step toward placing tens of thousands of tort claims in chapter 11, The Wall Street Journal reported on Tuesday. | 6 Mega-Cap Stocks That Make Great Stocking Stuffers As an example, AbbVie (NYSE:ABBV) carries a beta, which measures volatility, of 0.80. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s Note: “7 Dividend Stocks to Buy for 2022 and Hold Forever” was originally published in October 2021. That’s precisely why dividend stocks make sense now: They are designed to carry low price volatility with upside provided in reliable dividend income. | 6 Mega-Cap Stocks That Make Great Stocking Stuffers As an example, AbbVie (NYSE:ABBV) carries a beta, which measures volatility, of 0.80. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Editor’s Note: “7 Dividend Stocks to Buy for 2022 and Hold Forever” was originally published in October 2021. That’s precisely why dividend stocks make sense now: They are designed to carry low price volatility with upside provided in reliable dividend income. | 6 Mega-Cap Stocks That Make Great Stocking Stuffers As an example, AbbVie (NYSE:ABBV) carries a beta, which measures volatility, of 0.80. The company hasn’t reduced that dividend since 1984. The upside underpinning LMT stock exists in the average target stock price of $378 a modest increase from today’s price of around $342. |
23789.0 | 2021-11-18 00:00:00 UTC | 5 Biotech Stocks To Check Out In The Stock Market Now | ABBV | https://www.nasdaq.com/articles/5-biotech-stocks-to-check-out-in-the-stock-market-now | nan | nan | 5 Top Biotech Stocks For Your November 2021 Watchlist
While investors digest the latest round of earnings and data concerning retail spending, the biotech industry remains hard at work. Accordingly, biotech stocks could also be in focus in the stock market because of this. Ever since the onslaught of the coronavirus pandemic, the industry as a whole has been put under the microscope. As such, positive updates and notable developments in the research processes of companies could draw more attention from investors now. This continues to ring true, especially for biotech stocks developing treatments for the coronavirus.
For example, GlaxoSmithKline (NYSE: GSK) and Vir Biotechnology (NASDAQ: VIR) are among such names today. Notably, the duo reportedly signed a $1 billion contract with the U.S. government for their coronavirus treatment, sotrovimab. According to GSK CEO Hal Barron, the growing number of breakthrough cases would warrant the need for the company’s treatment. Given its purpose as an early antibody-based treatment for the virus, this would serve to bolster the country’s anti-pandemic efforts.
At the same time, biotechs such as Progenity (NASDAQ: PROG), a genetic testing firm, continue to cater to consumer markets as well. For the most part, there seems to be no shortage of exciting news to consider in the biotech space today. On that note, could one of these biotech stocks be top picks in the stock market today?
Best Biotech Stocks To Watch Right Now
Pfizer Inc. (NYSE: PFE)
Novavax Inc. (NASDAQ: NVAX)
Inovio Pharmaceuticals Inc. (NASDAQ: INO)
AbbVie Inc. (NYSE: ABBV)
Sanofi SA (NASDAQ: SNY)
Pfizer Inc.
First up, we have Pfizer, a biopharmaceutical company that has developed many life-changing drugs and therapies for millions all over the world. Notably, its coronavirus vaccine is well on track to have over 2 billion doses delivered by the end of the year. PFE stock currently trades at $51.14 as of 2:44 p.m. ET and is up by over 38% year-to-date. On November 16, 2021, the company announced that it will be seeking emergency use authorization (EUA) for its novel coronavirus oral antiviral candidate.
If approved, PAXLOVID will be the first oral antiviral of its kind, a 3CL protease inhibitor specifically designed to combat the virus. The EUA submission includes clinical data from an interim analysis of its Phase 2/3 EPIC-HR study, which demonstrated an impressive 89% reduction in risk of coronavirus-related hospitalization or death when compared to placebo in adults with the virus.
It also has rolling submissions in several countries like the U.K., Australia, New Zealand, and South Korea and also has planned submissions to other regulatory agencies around the world. Today, the company also announced that it has completed the acquisition of Trillium Therapeutics. For these reasons, is PFE stock worth adding to your portfolio right now?
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Novavax Inc.
Novavax is a biotech company that develops and commercializes innovative vaccines to prevent serious infectious diseases. Through its proprietary recombinant technology platform, it combines the power and speed of genetic engineering to efficiently produce highly immunogenic nanoparticles designed to address urgent global health needs. NVAX stock currently trades at $190.89 as of 2:44 p.m. ET and is up by over 68% year-to-date.
Today, the company announced together with Serum Institute India, that the Philippine Food and Drug Administration has granted EUA for Novavax’s coronavirus vaccine. The vaccine will be manufactured and marketed in the Philippines by Serum Institute under the brand name COVOVAX.
“With less than a third of the Philippine population fully immunized, we expect the option for a protein vaccine, built on a well-understood technology platform, to contribute substantially to increased vaccination rates,” said Stanley C. Erck, President, and Chief Executive Officer, Novavax. Following this development, will you be adding NVAX stock to your watchlist?
Inovio Pharmaceuticals Inc.
Inovio Pharmaceuticals is a biotechnology company that focuses on bringing precisely designed DNA medicines to treat and protect people from infectious diseases, cancer, and diseases associated with HPV. In fact, it is the first company to have clinically demonstrated that a DNA vaccine candidate can be delivered directly into cells in the body. It does this through a proprietary smart device to produce a robust and tolerable immune response. INO stock currently trades at $7.19 as of 2:46 p.m. ET.
On Tuesday, the company announced a collaboration with GuardRX and Geneva University Hospitals for a heterologous booster clinical trial for its Ebola DNA vaccine candidate. The trial will assess whether INO-4201 can be used as a booster in healthy volunteers previously vaccinated with rVSV-ZEBOV, an FDA- and EMA-approved viral-based vector Ebola vaccine.
It follows the company’s pre-clinical and Phase 1 trials which suggested to investigators that INO-4201 was well-tolerated and resulted in 100% seroconversion after two doses. With that in mind, should you consider adding INO stock to your watchlist?
AbbVie Inc.
Following that, we will be taking a look at AbbVie. As a prominent name in the global biopharmaceutical industry, ABBV stock could be a go-to for biotech investors now. For one thing, the company’s developmental pipeline spans a vast array of therapeutic areas. This includes but is not limited to the fields of immunology, oncology, virology, and eye care. As it stands, ABBV stock currently trades at $117.00 a share as of 2:47 p.m. ET.
Even after gaining by over 8% in the past month, AbbVie does not seem to be slowing down anytime soon. This week, the company revealed its latest regulatory win in the E.U.
Namely, the European Commission approved SKYRIZI, AbbVie’s treatment for adults with Active Psoriatic Arthritis. According to AbbVie, this provides Marketing Authorization for the drug in the E.U., Iceland, and Norway. Considering all this, will ABBV stock make your list of top biotech stocks to buy?
[Read More] 5 Metaverse Stocks To Watch In November 2021
Sanofi SA
Last but not least is Sanofi, a French multinational pharmaceutical firm. By the company’s estimates, it is among the largest players in the global pharmaceuticals industry in terms of prescription sales. From its general vaccine offerings to its innovative treatments for pain-related illnesses, Sanofi brings plenty to the table. For a sense of scale, Sanofi currently boasts a global workforce of over 100,000 people with operations across 100 countries.
Now, while SNY stock trades at $50.30 as of 2:48 p.m. ET, could it be worth investing in? If anything, the company does not appear to be slowing down anytime soon on the operational front.
Last week, Sanofi finalized its acquisition of Kadmon Holdings, a fully integrated biopharma firm. Through the $1.9 billion deal, Sanofi hopes to facilitate the growth and expansion of its General Medicines portfolio. Based on all this information, will SNY stock be on your biotech stock watchlist moving forward?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Best Biotech Stocks To Watch Right Now Pfizer Inc. (NYSE: PFE) Novavax Inc. (NASDAQ: NVAX) Inovio Pharmaceuticals Inc. (NASDAQ: INO) AbbVie Inc. (NYSE: ABBV) Sanofi SA (NASDAQ: SNY) Pfizer Inc. First up, we have Pfizer, a biopharmaceutical company that has developed many life-changing drugs and therapies for millions all over the world. AbbVie Inc. Following that, we will be taking a look at AbbVie. | Best Biotech Stocks To Watch Right Now Pfizer Inc. (NYSE: PFE) Novavax Inc. (NASDAQ: NVAX) Inovio Pharmaceuticals Inc. (NASDAQ: INO) AbbVie Inc. (NYSE: ABBV) Sanofi SA (NASDAQ: SNY) Pfizer Inc. First up, we have Pfizer, a biopharmaceutical company that has developed many life-changing drugs and therapies for millions all over the world. AbbVie Inc. Following that, we will be taking a look at AbbVie. | Best Biotech Stocks To Watch Right Now Pfizer Inc. (NYSE: PFE) Novavax Inc. (NASDAQ: NVAX) Inovio Pharmaceuticals Inc. (NASDAQ: INO) AbbVie Inc. (NYSE: ABBV) Sanofi SA (NASDAQ: SNY) Pfizer Inc. First up, we have Pfizer, a biopharmaceutical company that has developed many life-changing drugs and therapies for millions all over the world. AbbVie Inc. Following that, we will be taking a look at AbbVie. | Best Biotech Stocks To Watch Right Now Pfizer Inc. (NYSE: PFE) Novavax Inc. (NASDAQ: NVAX) Inovio Pharmaceuticals Inc. (NASDAQ: INO) AbbVie Inc. (NYSE: ABBV) Sanofi SA (NASDAQ: SNY) Pfizer Inc. First up, we have Pfizer, a biopharmaceutical company that has developed many life-changing drugs and therapies for millions all over the world. AbbVie Inc. Following that, we will be taking a look at AbbVie. |
23790.0 | 2021-11-18 00:00:00 UTC | AbbVie Brings VENCLEXTA Plus Obinutuzumab To Chronic Lymphocytic Leukemia Patients In Quebec | ABBV | https://www.nasdaq.com/articles/abbvie-brings-venclexta-plus-obinutuzumab-to-chronic-lymphocytic-leukemia-patients-in | nan | nan | (RTTNews) - AbbVie (ABBV) has reached an agreement with the pan-Canadian Pharmaceutical Alliance for VENCLEXTA in combination with obinutuzumab for the treatment of adult patients with previously untreated chronic lymphocytic leukemia. Following the agreement, Quebec is the first province to reimburse the combination treatment.
VENCLEXTA, in combination with obinutuzumab, is the third indication for VENCLEXTA for the treatment of chronic lymphocytic leukemia, a first-in-class B-cell lymphoma-2 inhibitor.
VENCLEXTA is jointly commercialized by AbbVie and Genentech in the U.S. and by AbbVie outside of the U.S.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) has reached an agreement with the pan-Canadian Pharmaceutical Alliance for VENCLEXTA in combination with obinutuzumab for the treatment of adult patients with previously untreated chronic lymphocytic leukemia. VENCLEXTA is jointly commercialized by AbbVie and Genentech in the U.S. and by AbbVie outside of the U.S. Following the agreement, Quebec is the first province to reimburse the combination treatment. | (RTTNews) - AbbVie (ABBV) has reached an agreement with the pan-Canadian Pharmaceutical Alliance for VENCLEXTA in combination with obinutuzumab for the treatment of adult patients with previously untreated chronic lymphocytic leukemia. VENCLEXTA is jointly commercialized by AbbVie and Genentech in the U.S. and by AbbVie outside of the U.S. Following the agreement, Quebec is the first province to reimburse the combination treatment. | (RTTNews) - AbbVie (ABBV) has reached an agreement with the pan-Canadian Pharmaceutical Alliance for VENCLEXTA in combination with obinutuzumab for the treatment of adult patients with previously untreated chronic lymphocytic leukemia. VENCLEXTA is jointly commercialized by AbbVie and Genentech in the U.S. and by AbbVie outside of the U.S. VENCLEXTA, in combination with obinutuzumab, is the third indication for VENCLEXTA for the treatment of chronic lymphocytic leukemia, a first-in-class B-cell lymphoma-2 inhibitor. | (RTTNews) - AbbVie (ABBV) has reached an agreement with the pan-Canadian Pharmaceutical Alliance for VENCLEXTA in combination with obinutuzumab for the treatment of adult patients with previously untreated chronic lymphocytic leukemia. VENCLEXTA is jointly commercialized by AbbVie and Genentech in the U.S. and by AbbVie outside of the U.S. Following the agreement, Quebec is the first province to reimburse the combination treatment. |
23791.0 | 2021-11-18 00:00:00 UTC | AbbVie’s Gets EC Approval for SKYRIZI | ABBV | https://www.nasdaq.com/articles/abbvies-gets-ec-approval-for-skyrizi | nan | nan | AbbVie (ABBV) has received the European Commission’s (EC) approval for interleukin-23 (IL-23) inhibitor SKYRIZI (risankizumab) to be used separately or with methotrexate (MTX) for the treatment of active psoriatic arthritis in adults. These patients include individuals who have had an inadequate response or have been intolerant to one or more disease-modifying anti-rheumatic drugs (DMARDs).
The marketing authorization for SKYRIZI will be valid in all member states of the European Union, along with Iceland, Liechtenstein, Norway and Northern Ireland.
The regulator’s approval followed the data from two Phase 3 clinical studies, KEEPsAKE-1 and KEEPsAKE-2. The data demonstrated that SKYRIZI met the primary endpoint of ACR20 response at week 24 versus placebo.
Markedly, the safety profile of SKYRIZI in psoriatic arthritis was consistent with the safety profile of SKYRIZI in plaque psoriasis, with no new safety risks.
See Top Smart Score Stocks on TipRanks >>
Official Comments
The VC of AbbVie, Michael Severino, said, "People living with psoriatic arthritis struggle with psoriatic lesions and joint inflammation that causes swelling and pain. Reducing these symptoms may give people the ability to resume their daily activities and improve their quality of life. We are excited by the EC approval of SKYRIZI for the treatment of adults with active psoriatic arthritis." (See AbbVie stock charts on TipRanks)
Wall Street’s Take
On November 17, Truist Financial analyst Robyn Karnauskas reiterated a Buy rating on the stock with a price target of $118.
Consensus among analysts is a Strong Buy based on 9 Buys versus 1 Hold. The average AbbVie price target of $129.30 implies 10.2% upside potential from current levels. Shares have gained 18.9% over the past year.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 100% Bullish on AbbVie, compared to the sector average of 69%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) has received the European Commission’s (EC) approval for interleukin-23 (IL-23) inhibitor SKYRIZI (risankizumab) to be used separately or with methotrexate (MTX) for the treatment of active psoriatic arthritis in adults. See Top Smart Score Stocks on TipRanks >> Official Comments The VC of AbbVie, Michael Severino, said, "People living with psoriatic arthritis struggle with psoriatic lesions and joint inflammation that causes swelling and pain. (See AbbVie stock charts on TipRanks) Wall Street’s Take On November 17, Truist Financial analyst Robyn Karnauskas reiterated a Buy rating on the stock with a price target of $118. | AbbVie (ABBV) has received the European Commission’s (EC) approval for interleukin-23 (IL-23) inhibitor SKYRIZI (risankizumab) to be used separately or with methotrexate (MTX) for the treatment of active psoriatic arthritis in adults. The average AbbVie price target of $129.30 implies 10.2% upside potential from current levels. See Top Smart Score Stocks on TipRanks >> Official Comments The VC of AbbVie, Michael Severino, said, "People living with psoriatic arthritis struggle with psoriatic lesions and joint inflammation that causes swelling and pain. | AbbVie (ABBV) has received the European Commission’s (EC) approval for interleukin-23 (IL-23) inhibitor SKYRIZI (risankizumab) to be used separately or with methotrexate (MTX) for the treatment of active psoriatic arthritis in adults. See Top Smart Score Stocks on TipRanks >> Official Comments The VC of AbbVie, Michael Severino, said, "People living with psoriatic arthritis struggle with psoriatic lesions and joint inflammation that causes swelling and pain. (See AbbVie stock charts on TipRanks) Wall Street’s Take On November 17, Truist Financial analyst Robyn Karnauskas reiterated a Buy rating on the stock with a price target of $118. | (See AbbVie stock charts on TipRanks) Wall Street’s Take On November 17, Truist Financial analyst Robyn Karnauskas reiterated a Buy rating on the stock with a price target of $118. AbbVie (ABBV) has received the European Commission’s (EC) approval for interleukin-23 (IL-23) inhibitor SKYRIZI (risankizumab) to be used separately or with methotrexate (MTX) for the treatment of active psoriatic arthritis in adults. See Top Smart Score Stocks on TipRanks >> Official Comments The VC of AbbVie, Michael Severino, said, "People living with psoriatic arthritis struggle with psoriatic lesions and joint inflammation that causes swelling and pain. |
23792.0 | 2021-11-17 00:00:00 UTC | AbbVie: SKYRIZI Gets EU Approval To Treat Adults With Active Psoriatic Arthritis | ABBV | https://www.nasdaq.com/articles/abbvie%3A-skyrizi-gets-eu-approval-to-treat-adults-with-active-psoriatic-arthritis-0 | nan | nan | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis.
Psoriatic arthritis is a systemic inflammatory disease that impacts the skin and joints, affecting approximately 30 percent of patients with psoriasis.
The EC approval was based on data from two Phase 3 studies evaluating SKYRIZI in psoriatic arthritis patients, KEEPsAKE-1 and KEEPsAKE-2. In these studies, SKYRIZI met the primary endpoint of ACR20 response at week 24 versus placebo.
The approval is for SKYRIZI (risankizumab, 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter) alone or in combination with methotrexate or MTX, for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs or DMARDs.
The company noted that it is the second indication for SKYRIZI, and the Marketing Authorization will be valid in all member states of the European Union, as well as Iceland, Liechtenstein, Norway and Northern Ireland.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis. Psoriatic arthritis is a systemic inflammatory disease that impacts the skin and joints, affecting approximately 30 percent of patients with psoriasis. The EC approval was based on data from two Phase 3 studies evaluating SKYRIZI in psoriatic arthritis patients, KEEPsAKE-1 and KEEPsAKE-2. | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis. The EC approval was based on data from two Phase 3 studies evaluating SKYRIZI in psoriatic arthritis patients, KEEPsAKE-1 and KEEPsAKE-2. The approval is for SKYRIZI (risankizumab, 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter) alone or in combination with methotrexate or MTX, for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs or DMARDs. | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis. The EC approval was based on data from two Phase 3 studies evaluating SKYRIZI in psoriatic arthritis patients, KEEPsAKE-1 and KEEPsAKE-2. The approval is for SKYRIZI (risankizumab, 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter) alone or in combination with methotrexate or MTX, for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs or DMARDs. | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis. Psoriatic arthritis is a systemic inflammatory disease that impacts the skin and joints, affecting approximately 30 percent of patients with psoriasis. The approval is for SKYRIZI (risankizumab, 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter) alone or in combination with methotrexate or MTX, for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs or DMARDs. |
23793.0 | 2021-11-17 00:00:00 UTC | 1 Dividend Stock to Help You Fight Inflation | ABBV | https://www.nasdaq.com/articles/1-dividend-stock-to-help-you-fight-inflation | nan | nan | Inflation is a problem in the U.S. The Consumer Price Index, a measure of the change in prices for some common goods and services, rose by 6.2% in the 12-month period ending Oct. 31. That's well above the U.S. Federal Reserve's long-term inflation target of 2%. Inflation chips away at our purchasing power, and that's why focusing solely on holding cash is not the best strategy. Investing in solid dividend-paying stocks can help counter the effects of inflation.
While partaking in the stock market has historically been one of the best ways to grow the average person's capital, dividend stocks take this to a whole new level. Here's one way of seeing this: In the past 10 years, the S&P 500 rose by 270.5%. The index's total return, which assumes that dividends are reinvested, was 352.9% over the same period. There are plenty of excellent dividend stocks on the market; one great option to consider is pharma giant AbbVie (NYSE: ABBV). Let's see why this drugmaker could be an excellent addition to your portfolio.
ABBV data by YCharts.
Looking at AbbVie's dividend record
AbbVie made its debut on the stock market in January 2013 when it split from its former parent company, Abbott Laboratories. Considering the time it spent under the wing of Abbott, AbbVie is a Dividend Aristocrat, having seen its payouts rise annually for 49 years in a row. Since 2013, the company's dividends have increased by 252.5%. That's an excellent record. The company currently offers a yield of 4.5%, much higher than the S&P 500's yield of 1.3%.
Furthermore, the company's current cash payout ratio of 41.7% is pretty conservative. AbbVie seems to have the means to sustain more dividend increases. The drugmaker will likely join the exclusive group of Dividend Kings next year, companies in the S&P 500 that have raised their payouts each year for 50 consecutive years. That makes it a solid option for income-oriented investors, provided, of course, it can continue posting solid financial results.
A strong business
AbbVie's shares significantly outperformed the broader market between 2013 and 2018, but things have been very different since. One of the reasons behind the drugmaker's lackluster showing in the past few years has been the loss of patent exclusivity of Humira in Europe in 2018. Sales of this rheumatoid arthritis medicine have been declining in international markets for the better part of the last three years. Also, given that the company expects biosimilar competition for Humira to enter the U.S. market in 2023, things don't look great on this front.
Image source: Getty Images.
Fortunately, AbbVie has the means to continue performing well for many years to come despite this problem. Several of the company's other drugs are performing exceptionally well. For instance, sales of the cancer medicine Venclexta came in at $492 million during the third quarter (ending Sept. 30), 40.1% higher than the year-ago period.
Revenue from Skyrizi, an immunosuppressant, was $796 million, an 83.3% year-over-year increase; sales of Rinvoq, another immunosuppressant, more than doubled year over year to $453 million. It is worth noting that Rinvoq could encounter some headwinds. It is part of a class of drugs known as JAK inhibitors, which have recently attracted the attention of health industry regulators.
In September, the Food and Drug Administration started requiring JAK inhibitors to come with a warning of an increased risk of cancer and cardiovascular events. The agency made that decision after a post-marketing study found that Xeljanz, a JAK inhibitor marketed by Pfizer, carried these risks. Despite this major caveat, AbbVie management expects Rinvoq to be a key growth driver for the company.
Then there was the company's decision to acquire Allergan back in May of 2020, in a cash and stock transaction valued at $63 billion. Thanks to this deal, the company got its hands on several exciting products, most notably Allergan's Botox franchise. In the third quarter, sales of Botox Cosmetics grew by 38.5% year over year to $545 million, while sales of Botox Therapeutics jumped by 23.4% year over year to $645 million. AbbVie's total revenue for the quarter was $14.3 billion, an 11.2% year-over-year increase.
One of the reasons AbbVie decided to acquire Allergan and its Botox franchise is that the company believes it would be extremely difficult to create a biosimilar version of Botox. This product will continue to contribute meaningfully to the company's performance. And given AbbVie's rich pipeline -- with 21 phase 3 studies and many more early-stage clinical trials -- the company is well-positioned to add more products to replace Humira.
AbbVie is here to stay
An excellent dividend track record, coupled with a deep lineup and solid pipeline, makes the company an outstanding dividend-paying stock to help you smooth out the harmful effects of inflation. And there's one more reason to pull the trigger right now. With a forward price-to-earnings (P/E) ratio of just 9.2 (compared to the pharma industry's overall forward P/E of 13.9 as of Nov. 10), AbbVie is attractively valued. At current levels, this pharma giant looks like a screaming buy.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | And given AbbVie's rich pipeline -- with 21 phase 3 studies and many more early-stage clinical trials -- the company is well-positioned to add more products to replace Humira. AbbVie is here to stay An excellent dividend track record, coupled with a deep lineup and solid pipeline, makes the company an outstanding dividend-paying stock to help you smooth out the harmful effects of inflation. There are plenty of excellent dividend stocks on the market; one great option to consider is pharma giant AbbVie (NYSE: ABBV). | There are plenty of excellent dividend stocks on the market; one great option to consider is pharma giant AbbVie (NYSE: ABBV). ABBV data by YCharts. Looking at AbbVie's dividend record AbbVie made its debut on the stock market in January 2013 when it split from its former parent company, Abbott Laboratories. | Looking at AbbVie's dividend record AbbVie made its debut on the stock market in January 2013 when it split from its former parent company, Abbott Laboratories. AbbVie is here to stay An excellent dividend track record, coupled with a deep lineup and solid pipeline, makes the company an outstanding dividend-paying stock to help you smooth out the harmful effects of inflation. There are plenty of excellent dividend stocks on the market; one great option to consider is pharma giant AbbVie (NYSE: ABBV). | There are plenty of excellent dividend stocks on the market; one great option to consider is pharma giant AbbVie (NYSE: ABBV). ABBV data by YCharts. Looking at AbbVie's dividend record AbbVie made its debut on the stock market in January 2013 when it split from its former parent company, Abbott Laboratories. |
23794.0 | 2021-11-17 00:00:00 UTC | Noteworthy Wednesday Option Activity: ABBV, NVAX, ADBE | ABBV | https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-abbv-nvax-adbe | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 44,333 contracts have traded so far, representing approximately 4.4 million underlying shares. That amounts to about 77.8% of ABBV's average daily trading volume over the past month of 5.7 million shares. Particularly high volume was seen for the $120 strike call option expiring December 17, 2021, with 11,115 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange:
Novavax, Inc. (Symbol: NVAX) saw options trading volume of 48,489 contracts, representing approximately 4.8 million underlying shares or approximately 76.5% of NVAX's average daily trading volume over the past month, of 6.3 million shares. Particularly high volume was seen for the $180 strike call option expiring November 19, 2021, with 3,401 contracts trading so far today, representing approximately 340,100 underlying shares of NVAX. Below is a chart showing NVAX's trailing twelve month trading history, with the $180 strike highlighted in orange:
And Adobe Inc (Symbol: ADBE) options are showing a volume of 13,173 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 75.4% of ADBE's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $670 strike call option expiring November 19, 2021, with 495 contracts trading so far today, representing approximately 49,500 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $670 strike highlighted in orange:
For the various different available expirations for ABBV options, NVAX options, or ADBE options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $120 strike call option expiring December 17, 2021, with 11,115 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 44,333 contracts have traded so far, representing approximately 4.4 million underlying shares. That amounts to about 77.8% of ABBV's average daily trading volume over the past month of 5.7 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: Novavax, Inc. (Symbol: NVAX) saw options trading volume of 48,489 contracts, representing approximately 4.8 million underlying shares or approximately 76.5% of NVAX's average daily trading volume over the past month, of 6.3 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 44,333 contracts have traded so far, representing approximately 4.4 million underlying shares. That amounts to about 77.8% of ABBV's average daily trading volume over the past month of 5.7 million shares. | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 44,333 contracts have traded so far, representing approximately 4.4 million underlying shares. Particularly high volume was seen for the $120 strike call option expiring December 17, 2021, with 11,115 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: Novavax, Inc. (Symbol: NVAX) saw options trading volume of 48,489 contracts, representing approximately 4.8 million underlying shares or approximately 76.5% of NVAX's average daily trading volume over the past month, of 6.3 million shares. | Particularly high volume was seen for the $120 strike call option expiring December 17, 2021, with 11,115 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: Novavax, Inc. (Symbol: NVAX) saw options trading volume of 48,489 contracts, representing approximately 4.8 million underlying shares or approximately 76.5% of NVAX's average daily trading volume over the past month, of 6.3 million shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 44,333 contracts have traded so far, representing approximately 4.4 million underlying shares. |
23795.0 | 2021-11-17 00:00:00 UTC | AbbVie: SKYRIZI Gets EU Approval To Treat Adults With Active Psoriatic Arthritis | ABBV | https://www.nasdaq.com/articles/abbvie%3A-skyrizi-gets-eu-approval-to-treat-adults-with-active-psoriatic-arthritis | nan | nan | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis.
Psoriatic arthritis is a systemic inflammatory disease that impacts the skin and joints, affecting approximately 30 percent of patients with psoriasis.
The EC approval was based on data from two Phase 3 studies evaluating SKYRIZI in psoriatic arthritis patients, KEEPsAKE-1 and KEEPsAKE-2. In these studies, SKYRIZI met the primary endpoint of ACR20 response at week 24 versus placebo.
The approval is for SKYRIZI (risankizumab, 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter) alone or in combination with methotrexate or MTX, for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs or DMARDs.
The company noted that it is the second indication for SKYRIZI, and the Marketing Authorization will be valid in all member states of the European Union, as well as Iceland, Liechtenstein, Norway and Northern Ireland.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis. Psoriatic arthritis is a systemic inflammatory disease that impacts the skin and joints, affecting approximately 30 percent of patients with psoriasis. The EC approval was based on data from two Phase 3 studies evaluating SKYRIZI in psoriatic arthritis patients, KEEPsAKE-1 and KEEPsAKE-2. | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis. The EC approval was based on data from two Phase 3 studies evaluating SKYRIZI in psoriatic arthritis patients, KEEPsAKE-1 and KEEPsAKE-2. The approval is for SKYRIZI (risankizumab, 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter) alone or in combination with methotrexate or MTX, for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs or DMARDs. | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis. The EC approval was based on data from two Phase 3 studies evaluating SKYRIZI in psoriatic arthritis patients, KEEPsAKE-1 and KEEPsAKE-2. The approval is for SKYRIZI (risankizumab, 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter) alone or in combination with methotrexate or MTX, for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs or DMARDs. | (RTTNews) - AbbVie (ABBV) announced that the European Union's European Commission has approved SKYRIZI (risankizumab) for the treatment of adults with active psoriatic arthritis. Psoriatic arthritis is a systemic inflammatory disease that impacts the skin and joints, affecting approximately 30 percent of patients with psoriasis. The approval is for SKYRIZI (risankizumab, 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter) alone or in combination with methotrexate or MTX, for the treatment of active psoriatic arthritis in adults who have had an inadequate response or who have been intolerant to one or more disease-modifying anti-rheumatic drugs or DMARDs. |
23796.0 | 2021-11-17 00:00:00 UTC | Will Investors Win With Johnson & Johnson's Planned Spinoff? Here's What History Shows | ABBV | https://www.nasdaq.com/articles/will-investors-win-with-johnson-johnsons-planned-spinoff-heres-what-history-shows | nan | nan | The biggest healthcare company in the world is preparing to shrink. Johnson & Johnson (NYSE: JNJ) announced last week that it plans to spin off its consumer healthcare business into a separate publicly traded entity.
J&J said that this move will unlock shareholder value and accelerate growth. But will investors really win with the planned spinoff? Here's what history shows.
Image source: Getty Images.
Three other spinoffs
Pfizer (NYSE: PFE) and GlaxoSmithKline established a joint venture for their consumer health units. However, the business won't spin off until next year so we don't know how the move will impact the companies. We can look at how a couple of Pfizer's other spinoffs have fared, though.
In February 2013, Pfizer spun off its animal health business, creating Zoetis (NYSE: ZTS). That transaction turned out to be tremendously successful for Pfizer shareholders who held onto their Zoetis stock. The animal health company went on to trounce the S&P 500. On the other hand, Pfizer lagged well behind the index.
ZTS data by YCharts
Zoetis was already delivering strong growth, though. J&J's consumer health unit isn't such a great growth driver. Perhaps a better comparison is Pfizer's spinoff and merger in November of last year of its biosimilars and generics business with Mylan to form Viatris (NASDAQ: VTRS). How has that deal rewarded investors? It's a much different story than the Zoetis spinoff.
PFE data by YCharts
In this case, the slower-growth Viatris has languished. Meanwhile, Pfizer has been on a tear thanks to success for its COVID-19 vaccine and tremendous potential for its experimental COVID-19 pill.
A third recent spinoff could also be instructive. Merck (NYSE: MRK) completed the divestiture of its women's health business in June, creating Organon (NYSE: OGN). Neither of the stocks has kept pace with the S&P 500 since.
MRK data by YCharts
The gold standard
We can't leave out what arguably deserves to be called the gold standard of spinoffs. In 2013, Abbott (NYSE: ABT) created AbbVie (NYSE: ABBV). Abbott retained the established pharmaceuticals, diagnostics, medical devices, and nutrition businesses. AbbVie took the innovative pharmaceuticals business, with autoimmune disease drug Humira as its primary star.
Shareholders were huge winners from this transaction. Both Abbott and AbbVie went on to achieve solid success, performing much better than Abbott had in the previous years.
ABT data by YCharts
Going into the spinoff of AbbVie, Abbott was already a member of the Dividend Aristocrats -- an exclusive group of S&P 500 members with consecutive dividend increases for at least 25 years. Importantly, both Abbott and AbbVie have kept their streaks of dividend hikes going. Income investors who held onto their shares of both stocks have done very well.
Lessons from the past
Can we really learn anything from history about how Johnson & Johnson shareholders might fare with the spinoff of the consumer healthcare business? I think so.
Perhaps most importantly, a faster-growing business is likely to experience accelerated momentum after the spinoff of a slower-growing business. That's what happened with Zoetis, with Pfizer after the Viatris transaction, and to a lesser extent with Merck after spinning off Organon.
However, we can also see from the past that things don't always turn out as expected. For example, Some might have predicted that AbbVie would be the stronger performer after the separation. But Abbott's innovation has paid off in a huge way with products including FreeStyle Libre continuous glucose monitoring system and its BinaxNOW COVID-19 tests serving as key growth drivers.
In addition, companies that prioritized their dividends before a spinoff continued to do so afterward. Abbott and AbbVie are great examples of this. So is Pfizer. The big drugmaker still has an attractive dividend even after spinning off Zoetis and Viatris.
Of course, there are limits to how much we can extrapolate from past spinoffs and apply to Johnson & Johnson. The healthcare giant's deal won't be exactly like any of the transactions made by other companies in previous years.
But my prediction is that Johnson & Johnson shareholders will enjoy stronger growth once the consumer unit is a stand-alone entity. I also think that investors who have come to depend on J&J's dividend won't have any worries. This is definitely a surprising move by Johnson & Johnson, but it's one that I expect will pay off over the long term.
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Keith Speights owns shares of AbbVie, Pfizer, and Viatris. The Motley Fool owns shares of and recommends Zoetis. The Motley Fool recommends GlaxoSmithKline, Johnson & Johnson, and Viatris. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In 2013, Abbott (NYSE: ABT) created AbbVie (NYSE: ABBV). AbbVie took the innovative pharmaceuticals business, with autoimmune disease drug Humira as its primary star. Both Abbott and AbbVie went on to achieve solid success, performing much better than Abbott had in the previous years. | In 2013, Abbott (NYSE: ABT) created AbbVie (NYSE: ABBV). AbbVie took the innovative pharmaceuticals business, with autoimmune disease drug Humira as its primary star. Both Abbott and AbbVie went on to achieve solid success, performing much better than Abbott had in the previous years. | In 2013, Abbott (NYSE: ABT) created AbbVie (NYSE: ABBV). AbbVie took the innovative pharmaceuticals business, with autoimmune disease drug Humira as its primary star. Both Abbott and AbbVie went on to achieve solid success, performing much better than Abbott had in the previous years. | In 2013, Abbott (NYSE: ABT) created AbbVie (NYSE: ABBV). AbbVie took the innovative pharmaceuticals business, with autoimmune disease drug Humira as its primary star. Both Abbott and AbbVie went on to achieve solid success, performing much better than Abbott had in the previous years. |
23797.0 | 2021-11-16 00:00:00 UTC | Report says drugmakers impose unjustified U.S. price increases; spending on AbbVie drug rises $1.4 billion | ABBV | https://www.nasdaq.com/articles/report-says-drugmakers-impose-unjustified-u.s.-price-increases-spending-on-abbvie-drug | nan | nan | By Ahmed Aboulenein
WASHINGTON, Nov 16 (Reuters) - Drugmakers hiked U.S. prices on seven of the 10 costliest prescription drugs in 2020 without justification, increasing drug spending by $1.67 billion, a U.S. group that reviews the value of medicines said on Tuesday.
AbbVie Inc's ABBV.N widely used Humira rheumatoid arthritis drug accounted for the majority of the spending increase, with a net price increase of 9.6% leading to an almost $1.4 billion increase in U.S. spending.
The Boston-based Institute for Clinical and Economic Review (ICER) said in a report that after reviewing published studies and input from drug manufacturers it found no evidence of new clinical benefits to justify the price hikes.
"Several of these treatments have been on the market for many years, with scant evidence that they are any more effective than we understood them to be years ago when they cost far less," said ICER Chief Medical Officer David Rind.
"The most extreme of these is Humira, with an ever-escalating U.S. price that contrasts starkly to its falling price in every country where Humira currently faces biosimilar competition," he said in a statement. Humira received U.S. regulatory approval in 2002.
AbbVie said in a response to ICER that the report lacked context because ICER does not perform full value assessments and excludes evidence from smaller patient populations.
The findings come as President Joe Biden and Democrats in Congress attempt to push through legislation that would lower drug prices by allowing the federal government to negotiate drug payments by Medicare, which covers Americans aged 65 and older.
The United States spends more than twice as much per person on drugs as other wealthy economies, about $1,500, for a total of around $350 billion in 2019.
Novartis NOVN.S drug Promacta, which is used to treat the rare blood disorder severe aplastic anemia (SAA), saw the highest increase in net price at 14.1%, leading to a $100 million increase in U.S. spending.
Novartis said it takes a value-based pricing approach and that it provided ICER with significant new clinical and health economic data that the group did not take into account.
(Reporting by Ahmed Aboulenein; Editing by Cynthia Osterman)
((ahmed.aboulenein@tr.com; +1 202-519-3051; Reuters Messaging: ahmed.aboulenein.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie Inc's ABBV.N widely used Humira rheumatoid arthritis drug accounted for the majority of the spending increase, with a net price increase of 9.6% leading to an almost $1.4 billion increase in U.S. spending. AbbVie said in a response to ICER that the report lacked context because ICER does not perform full value assessments and excludes evidence from smaller patient populations. The Boston-based Institute for Clinical and Economic Review (ICER) said in a report that after reviewing published studies and input from drug manufacturers it found no evidence of new clinical benefits to justify the price hikes. | AbbVie Inc's ABBV.N widely used Humira rheumatoid arthritis drug accounted for the majority of the spending increase, with a net price increase of 9.6% leading to an almost $1.4 billion increase in U.S. spending. AbbVie said in a response to ICER that the report lacked context because ICER does not perform full value assessments and excludes evidence from smaller patient populations. By Ahmed Aboulenein WASHINGTON, Nov 16 (Reuters) - Drugmakers hiked U.S. prices on seven of the 10 costliest prescription drugs in 2020 without justification, increasing drug spending by $1.67 billion, a U.S. group that reviews the value of medicines said on Tuesday. | AbbVie Inc's ABBV.N widely used Humira rheumatoid arthritis drug accounted for the majority of the spending increase, with a net price increase of 9.6% leading to an almost $1.4 billion increase in U.S. spending. AbbVie said in a response to ICER that the report lacked context because ICER does not perform full value assessments and excludes evidence from smaller patient populations. By Ahmed Aboulenein WASHINGTON, Nov 16 (Reuters) - Drugmakers hiked U.S. prices on seven of the 10 costliest prescription drugs in 2020 without justification, increasing drug spending by $1.67 billion, a U.S. group that reviews the value of medicines said on Tuesday. | AbbVie Inc's ABBV.N widely used Humira rheumatoid arthritis drug accounted for the majority of the spending increase, with a net price increase of 9.6% leading to an almost $1.4 billion increase in U.S. spending. AbbVie said in a response to ICER that the report lacked context because ICER does not perform full value assessments and excludes evidence from smaller patient populations. By Ahmed Aboulenein WASHINGTON, Nov 16 (Reuters) - Drugmakers hiked U.S. prices on seven of the 10 costliest prescription drugs in 2020 without justification, increasing drug spending by $1.67 billion, a U.S. group that reviews the value of medicines said on Tuesday. |
23798.0 | 2021-11-16 00:00:00 UTC | Merck Is a Dividend Play Ready to Get Back in Gear | ABBV | https://www.nasdaq.com/articles/merck-is-a-dividend-play-ready-to-get-back-in-gear | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Before the COVID-19 pandemic, Merck (NYSE:MRK) stock was a good one to own. The performance of Merck stock matched that of the S&P 500, and it paid a steadily rising dividend.
MRK) logo outside of corporate building" width="300" height="169">
Source: Atmosphere1 / Shutterstock.com
Since then, the obsession with growth and vaccines has told a different story. Over the last two years the average S&P stock is up nearly 49%, Merck just 3.7%.
Recently, however, the charts for Merck have turned more bullish. It has a drug to treat Covid-19 that could be distributed worldwide. The third quarter results were upbeat.
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The Good News
Merck’s molnupiravir, an antiviral pill for people with mild Covid-19 at risk for more serious illness, was approved recently by U.K. regulators. It’s now expected to win emergency use authorization in the U.S. by December. That would open $2.2 billion in orders from the Food and Drug Administration, with options for more. Merck expects to produce 20 million courses of the drug next year.
Merck is also closing in on the $11.5 billion acquisition of Acceleron Pharma (NASDAQ:XLRN), which has new drugs for anemia and hypertension. There had been concern the deal would not go through, but European regulators are now signing off.
Then there’s the possibility Merck could spin off its animal health division, a move that has proven profitable for other companies.
Merck or Pfizer?
There are two reasons to hold off on buying Merck.
One is its sheer size. With a market cap of $212 billion and annual sales of over $50 billion, Merck’s value is tough to shift. The FDA orders for molnupiravir will increase sales by just 4% next year.
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The other problem is Pfizer (NYSE:PFE), which has been running rings around Merck since agreeing to produce its Covid-19 vaccine created by BioNTech (NASDAQ:BNTX) last year. This has made Pfizer by far the better investment, up 35% so far in 2021. Even the big molnupiravir gains may be at risk from a competing Pfizer compound.
Before Covid-19, Merck was the first vaccine company most consumers heard about. Its human papilloma virus (HPV) vaccine, Gardasil, represented one-fifth of its revenue last year.
The Better News
If the world is getting back to normal, however, attention may turn back to Merck’s real blockbuster, Keytruda.
Keytruda, which gained fame for treating former President Jimmy Carter, continues to gain new indications and markets. It should become the world’s best-selling drug next year, as Abbvie (NYSE:ABBV) gets set to lose U.S. exclusivity for its Humira in 2023. Through the first three quarters of 2021, Keytruda represented one-third of Merck’s revenue.
Keytruda continues to win new indications, especially in metastatic cancers that have spread to other organs. Merck is very aggressive in pricing this life-saving medicine, charging as much as $174,000 per year in the U.S. Hard bargaining outside the U.S. should push that price down, but it will still be substantial.
The Bottom Line on MRK Stock
For conservative investors, MRK stock looks like a coiled spring.
If it can duplicate its third quarter results, net income of $4.57 billion, $1.80 per share, its price-earnings ratio could drop to as low as 16 by early next year. There’s also the dividend, about 65 cents per quarter and yielding over 3%. Even the lowest price target at Tipranks is above its current price.
There are risks. If Medicare were allowed to bargain on drug prices, and U.S. insurance companies were allowed to follow, it would hit all drug company stocks.
But there remain growth catalysts for MRK stock. If it can just catch up with the industry pack, it should show you a good profit.
On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. Just in time for the holidays he has a collection of COVID-19 stories at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or tweet him at @danablankenhorn. He writes a Substack newsletter, Facing the Future, which covers technology, markets, and politics.
The post Merck Is a Dividend Play Ready to Get Back in Gear appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It should become the world’s best-selling drug next year, as Abbvie (NYSE:ABBV) gets set to lose U.S. exclusivity for its Humira in 2023. The Good News Merck’s molnupiravir, an antiviral pill for people with mild Covid-19 at risk for more serious illness, was approved recently by U.K. regulators. 7 Semiconductor Stocks to Buy for the Holiday Tech Rush The other problem is Pfizer (NYSE:PFE), which has been running rings around Merck since agreeing to produce its Covid-19 vaccine created by BioNTech (NASDAQ:BNTX) last year. | It should become the world’s best-selling drug next year, as Abbvie (NYSE:ABBV) gets set to lose U.S. exclusivity for its Humira in 2023. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Before the COVID-19 pandemic, Merck (NYSE:MRK) stock was a good one to own. The Good News Merck’s molnupiravir, an antiviral pill for people with mild Covid-19 at risk for more serious illness, was approved recently by U.K. regulators. | It should become the world’s best-selling drug next year, as Abbvie (NYSE:ABBV) gets set to lose U.S. exclusivity for its Humira in 2023. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Before the COVID-19 pandemic, Merck (NYSE:MRK) stock was a good one to own. 7 Semiconductor Stocks to Buy for the Holiday Tech Rush The other problem is Pfizer (NYSE:PFE), which has been running rings around Merck since agreeing to produce its Covid-19 vaccine created by BioNTech (NASDAQ:BNTX) last year. | It should become the world’s best-selling drug next year, as Abbvie (NYSE:ABBV) gets set to lose U.S. exclusivity for its Humira in 2023. The Good News Merck’s molnupiravir, an antiviral pill for people with mild Covid-19 at risk for more serious illness, was approved recently by U.K. regulators. Even the big molnupiravir gains may be at risk from a competing Pfizer compound. |
23799.0 | 2021-11-15 00:00:00 UTC | Buffett's Berkshire cuts U.S. drugmaker stakes, invests in drug royalty company | ABBV | https://www.nasdaq.com/articles/buffetts-berkshire-cuts-u.s.-drugmaker-stakes-invests-in-drug-royalty-company-2021-11-15 | nan | nan | By Jonathan Stempel
Nov 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it eliminated its investment in Merck & Co MRK.N and reduced its stakes in AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N, as it pared its overall stock market investments.
Berkshire also eliminated its small stakes in Organon & Co OGN.N, a Merck spinoff specializing in contraception and other women's health products, and telecommunications company Liberty Global Plc LBTYA.O.
It disclosed new investments of $475 million in Royalty Pharma Plc RPRX.O, which buys drug royalties, and $99 million in flooring retailer Floor & Decor Holdings Inc FND.N.
The changes were disclosed in a regulatory filing detailing Berkshire's U.S.-listed holdings as of Sept. 30.
Shares of Royalty Pharma rose more than 5% after the market close, a common occurrence after Berkshire reveals new stakes. Royalty Pharma did not immediately respond to requests for comment.
Investors monitor Berkshire's investments closely to see where Buffett and his investment managers Todd Combs and Ted Weschler see value. The filings do not say who bought and sold what, though Buffett generally handles larger investments.
While Berkshire ended September with $310.7 billion of equity holdings, it sold $2 billion more stocks than it bought in the third quarter, and has been a net seller for all of 2021.
About 41% of Berkshire's stock investments are in Apple AAPL.O, with another 29% in Bank of America Corp BAC.N, American Express Co AXP.N and Coca-Cola Co KO.N.
The sales and Buffett's nearly six-year drought in buying large whole companies have contributed to Berkshire's boosting its cash holdings to a record $149.2 billion, despite at least $21.9 billion of stock buybacks this year.
They have also disappointed investors who have seen Berkshire's stock price significantly lag the Standard & Poor's 500 .SPX since the end of 2018.
Berkshire's respective share stakes in AbbVie and Bristol-Myers fell 30% and 16% in the quarter.
Royalty Pharma helps fund late-stage clinical trials and product launches in exchange for future royalty streams, and sometimes buys royalties from drug developers.
Its larger revenue streams come from Vertex Pharmaceuticals Inc VRTX.O treatments for cystic fibrosis, Biogen Inc's BIIB.O Tysabri for multiple sclerosis, and AbbVie's Imbruvica for various cancers.
The company's share price has recently traded about 50% above its initial public offering price in June 2020, but below where it closed on its first trading day.
Berkshire is based in Omaha, Nebraska. It also owns dozens of businesses including the BNSF railroad, Geico auto insurance and Dairy Queen ice cream.
(Reporting by Jonathan Stempel in New York; Editing by Chris Reese and Stephen Coates)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters Messaging: jon.stempel.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Its larger revenue streams come from Vertex Pharmaceuticals Inc VRTX.O treatments for cystic fibrosis, Biogen Inc's BIIB.O Tysabri for multiple sclerosis, and AbbVie's Imbruvica for various cancers. By Jonathan Stempel Nov 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it eliminated its investment in Merck & Co MRK.N and reduced its stakes in AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N, as it pared its overall stock market investments. Berkshire's respective share stakes in AbbVie and Bristol-Myers fell 30% and 16% in the quarter. | By Jonathan Stempel Nov 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it eliminated its investment in Merck & Co MRK.N and reduced its stakes in AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N, as it pared its overall stock market investments. Berkshire's respective share stakes in AbbVie and Bristol-Myers fell 30% and 16% in the quarter. Its larger revenue streams come from Vertex Pharmaceuticals Inc VRTX.O treatments for cystic fibrosis, Biogen Inc's BIIB.O Tysabri for multiple sclerosis, and AbbVie's Imbruvica for various cancers. | By Jonathan Stempel Nov 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it eliminated its investment in Merck & Co MRK.N and reduced its stakes in AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N, as it pared its overall stock market investments. Berkshire's respective share stakes in AbbVie and Bristol-Myers fell 30% and 16% in the quarter. Its larger revenue streams come from Vertex Pharmaceuticals Inc VRTX.O treatments for cystic fibrosis, Biogen Inc's BIIB.O Tysabri for multiple sclerosis, and AbbVie's Imbruvica for various cancers. | By Jonathan Stempel Nov 15 (Reuters) - Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday it eliminated its investment in Merck & Co MRK.N and reduced its stakes in AbbVie Inc ABBV.N and Bristol-Myers Squibb Co BMY.N, as it pared its overall stock market investments. Berkshire's respective share stakes in AbbVie and Bristol-Myers fell 30% and 16% in the quarter. Its larger revenue streams come from Vertex Pharmaceuticals Inc VRTX.O treatments for cystic fibrosis, Biogen Inc's BIIB.O Tysabri for multiple sclerosis, and AbbVie's Imbruvica for various cancers. |
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