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23800.0 | 2021-11-15 00:00:00 UTC | 2 High-Yield Dividend Stocks That Can Safeguard Your Portfolio Against a Market Crash | ABBV | https://www.nasdaq.com/articles/2-high-yield-dividend-stocks-that-can-safeguard-your-portfolio-against-a-market-crash-2021 | nan | nan | Stock market corrections are part and parcel of the investing process. As such, investors shouldn't get too worked about this inevitability. The current market, though, is starting to show ominous warning signs about a potential downturn. Valuations across the large cap space appear to be stretched in many instances, with 44 large cap equities trading at over 50 times forward-looking earnings right now -- 45 of which are valued at more than 100 times next year's earnings. Moreover, inflation hit a three-decade high in the U.S. last month. The Fed, in turn, may be forced to raise interest rates soon, which is potentially bad news for stocks, as rock-bottom interest rates have been one of the main drivers behind this record-breaking bull market.
What should investors do to prepare for a possible market correction in the coming months? Blue chip stocks that offer higher-than-average dividend yields could prove to be a viable safe haven for investors in the event of a marketwide downturn. Keeping with this theme, the healthcare giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) both sport handsome dividend yields, well-rounded product portfolios, and valuations that are downright bargains relative to their large-cap peers. Here's a brief rundown on the pros and cons of these two defensive-oriented high-yield dividend stocks.
Image source: Getty Images.
AbbVie: A Dividend Aristocrat trading at a deep discount
Illinois-based drugmaker AbbVie is a proven commodity as a passive income generator. The company's stock currently yields a handsome 4.82% on an annualized basis, it's a Dividend Aristocrat, and the drugmaker has boosted its dividend by a whopping 250% since becoming an independent entity in 2013. Topping it off, the drugmaker's shares are presently trading at less than nine times 2021 projected earnings, which is well below the industry average. There are a handful of important risk factors associated with this Dividend Aristocrat, however.
First, AbbVie's payout ratio stands at 122%, implying that its stellar yield might not be sustainable over the long term. Second, the company is facing biosimilar competition in the U.S. for its top-selling anti-inflammatory medication Humira starting in 2023. AbbVie has prepared for this eventuality by being hyperaggressive on the merger and acquisition scene. Moreover, the company has also successfully developed multiple new growth products, such as the immunology drugs Rinvoq and Skyrizi.
Unfortunately, Rinvoq might be relegated to second-tier status in the wake of a classwide restriction on JAK inhibitors by the Food and Drug Administration (FDA) earlier this year. This safety issue could turn out to be a big deal in regard to AbbVie's fortunes. Rinvoq, after all, was expected to generate upward of $8 billion in revenue for the company in 2025. Even though AbbVie still has big plans for Rinvoq from a label expansion standpoint, it's not altogether clear how this FDA restriction will ultimately impact the drug's commercial prospects.
Why is AbbVie still a safe bet in uncertain times? Forget all the noise surrounding Humira and Rinvoq. The fact of the matter is that AbbVie's management has been absolutely brilliant at navigating troubled waters pretty much since the company's inception. What's more, this all-star managerial team has placed a huge emphasis on growing the biopharma's dividend and top line over the last eight years. There's no reason to believe that AbbVie's C-suite will suddenly fail to deliver for shareholders, even in the face of these hurricane-force headwinds.
Gilead: An underappreciated high-yield dividend play
California-based Gilead Sciences has seen its shares gain a healthy 15.8% so far this year. Even so, the biotech's shares are still trading at less than 10 times forward-looking earnings. Gilead's stock has failed to earn a premium valuation over the past few years for a variety of reasons. The biggest reason, however, is the company's various missteps on the business development front.
Gilead has spent billions on questionable business development deals, such as its $12 billion buyout of the anti-cancer cell therapy company Kite Pharma, as well as its costly collaboration with Galapagos NV for the anti-inflammatory medicine filgotinib. In fact, if it weren't for Gilead's unexpected win in the COVID-19 space with Veklury, the biotech would have posted negative top-line growth this year.
Be that as it may, Gilead appears to be close to an inflection point from a growth perspective. Although the biotech's top line is expected to dip next year as demand for Veklury wanes, Gilead should be able to turn things around as soon as 2023 due to its emerging oncology portfolio.
For example, the biotech's newly acquired CD47 asset, magrolimab, could become a major new treatment option in both the solid and liquid tumor settings. Gilead's triple-negative breast cancer drug Trodelvy is also on track to haul in over $4 billion in peak sales within the current decade, and its anti-cancer cell therapy franchise -- via the Kite pharma acquisition -- is finally starting to gain momentum following the FDA approval of Tecartus for relapsed or refractory acute lymphoblastic leukemia.
On the dividend side of things, Gilead sports a juicy 4.21% yield on an annualized basis right now. Equally important, the biotech's payout ratio currently stands at 47.8%. Gilead thus has considerable room to continue to raise its already above-average dividend. So, if you're looking for a reliable income play in a turbulent market, this large-cap biotech stock should definitely be on your radar.
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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. | Keeping with this theme, the healthcare giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) both sport handsome dividend yields, well-rounded product portfolios, and valuations that are downright bargains relative to their large-cap peers. AbbVie: A Dividend Aristocrat trading at a deep discount Illinois-based drugmaker AbbVie is a proven commodity as a passive income generator. First, AbbVie's payout ratio stands at 122%, implying that its stellar yield might not be sustainable over the long term. | Keeping with this theme, the healthcare giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) both sport handsome dividend yields, well-rounded product portfolios, and valuations that are downright bargains relative to their large-cap peers. AbbVie: A Dividend Aristocrat trading at a deep discount Illinois-based drugmaker AbbVie is a proven commodity as a passive income generator. First, AbbVie's payout ratio stands at 122%, implying that its stellar yield might not be sustainable over the long term. | Keeping with this theme, the healthcare giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) both sport handsome dividend yields, well-rounded product portfolios, and valuations that are downright bargains relative to their large-cap peers. AbbVie: A Dividend Aristocrat trading at a deep discount Illinois-based drugmaker AbbVie is a proven commodity as a passive income generator. First, AbbVie's payout ratio stands at 122%, implying that its stellar yield might not be sustainable over the long term. | Keeping with this theme, the healthcare giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) both sport handsome dividend yields, well-rounded product portfolios, and valuations that are downright bargains relative to their large-cap peers. AbbVie: A Dividend Aristocrat trading at a deep discount Illinois-based drugmaker AbbVie is a proven commodity as a passive income generator. First, AbbVie's payout ratio stands at 122%, implying that its stellar yield might not be sustainable over the long term. |
23801.0 | 2021-11-15 00:00:00 UTC | 5 Long-Term Investments You'll Thank Yourself for Later | ABBV | https://www.nasdaq.com/articles/5-long-term-investments-youll-thank-yourself-for-later-2021-11-15 | nan | nan | Many of us are so busy with our day-to-day lives, making short-term decisions left and right, that we don't pay much attention to the long term -- to our futures. When we do think about it, we often put off doing things that we ought to do -- like saving and investing for our retirement years. That can be a costly error.
Here are five long-term investments that are well worth making -- ones you'll likely be very happy you made.
Image source: Getty Images.
1. Index funds
Let's start with index funds because for most of us, they're the best way to invest for our futures and the easiest way, too. Being an index-fund investor means you don't have to learn much about the stock market or investing. You don't have to spend a lot of time studying and keeping up with stocks. And you don't have to decide which stocks to buy, when to do so, and when to sell.
Instead, you just invest in one or a few low-cost index funds and keep doing so over time -- ideally, for decades. They'll deliver roughly the same return as the indexes they track -- so a broad-market index fund (such as one that tracks the S&P 500) will deliver roughly the overall market's performance.
Some index funds worth considering are the SPDR S&P 500 ETF, Vanguard Total Stock Market ETF, and Vanguard Total World Stock ETF, which will, respectively, spread your dollars across roughly 80% of the U.S. market, all of the U.S. market, or most of the world's stock market. There are index funds that track bonds and other segments of the market, too.
2. Dividend stocks
Next, consider adding some carefully chosen dividend-paying stocks to your portfolio, if you're willing to learn more about investing and to learn more about dividends.
Dividends are surprisingly powerful. Consider this: A 2013 J.P. Morgan Asset Management report that studied companies that regularly made (and increased) dividend payouts, along with companies that paid no dividends between 1972 and 2012, discovered a startling difference. The average annual return for the payers and increasers was 9.6%, versus only 1.6% for non-payers.
Here are some familiar companies and their recent yields:
STOCK
RECENT DIVIDEND YIELD
IBM
5.3%
Verizon Communications
4.9%
AbbVie
4.8%
Chevron
4.7%
Duke Energy
3.9%
Walgreens Boots Alliance
3.8%
Kellogg
3.7%
3M
3.3%
Pfizer
3.2%
Citigroup
3.1%
MetLife
3%
PepsiCo
2.6%
Source: Yahoo! Finance.
3. Growth stocks
Growth stocks -- those tied to companies increasing their revenue and earnings at a faster-than-average clip -- can really turbocharge your portfolio, but they'll require your learning more about investing, the business world, and the companies (and their industries). They can also be riskier propositions than dividend payers, and some can be overvalued, with no margin of safety.
So what should you do? Well, consider our investing philosophy at The Motley Fool, which is to buy 25 or more stocks, expecting to hold them for at least five years. That way, you'll have a better chance of ending up with some big winners in your portfolio (along with, inevitably, some losers) -- and you'll be giving the companies time to perform and grow into their future selves.
Image source: Getty Images.
4. Invest in yourself
Here's a kind of investing that doesn't have to cost much but can pay off handsomely: investing in yourself. There are lots of ways you might go about this:
Buy or check out good books on investing, to improve your results.
Take courses to earn a degree or professional certification that can help you advance in your career or switch into one that you'd like more.
Learn new skills that can help in your career or with a side gig. For example, mastering another language might make you a more valuable asset at work.
Get healthier. Exercising more and eating more nutritious meals can lengthen your life and even save you a lot in future healthcare expenses.
Invest in your personal relationships by spending more time with your loved ones, perhaps having some adventures and making great memories, too.
If you don't feel content or happy much of the time, consider investing in some self-care, such as by seeing a therapist. Simply exercising and volunteering have been shown to help lift one's spirits, too.
Spending a little money refreshing your work wardrobe may give you a boost.
5. Invest in your kids
Finally, if you have kids, invest in them, too. You should spend lots of time with them, of course -- to the degree that you can. But consider spending some of that time teaching your kids about money and investing. This can be a super powerful move because if they're money-savvy as they exit college, they can make lots of smart decisions from the get-go, such as not racking up credit card debt and saving for a down payment and retirement.
Since your kids might have 40 years or more in which to invest, their dollars can grow really powerfully. Consider that a single $1,000 investment that grows at, say, 8% annually can become close to $22,000 over 40 years. Just imagine what multiple thousands can do.
These are five kinds of long-term investments that can really pay off. See which one(s) make sense for you, then take some steps to act on them as soon as you can.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Selena Maranjian owns shares of AbbVie. The Motley Fool owns shares of and recommends Vanguard Total Stock Market ETF. The Motley Fool recommends 3M, Duke Energy, and Verizon Communications. 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. | 5.3% Verizon Communications 4.9% AbbVie 4.8% Chevron 4.7% Duke Energy 3.9% Walgreens Boots Alliance 3.8% Kellogg 3.7% Selena Maranjian owns shares of AbbVie. Many of us are so busy with our day-to-day lives, making short-term decisions left and right, that we don't pay much attention to the long term -- to our futures. | 5.3% Verizon Communications 4.9% AbbVie 4.8% Chevron 4.7% Duke Energy 3.9% Walgreens Boots Alliance 3.8% Kellogg 3.7% Selena Maranjian owns shares of AbbVie. Some index funds worth considering are the SPDR S&P 500 ETF, Vanguard Total Stock Market ETF, and Vanguard Total World Stock ETF, which will, respectively, spread your dollars across roughly 80% of the U.S. market, all of the U.S. market, or most of the world's stock market. | 5.3% Verizon Communications 4.9% AbbVie 4.8% Chevron 4.7% Duke Energy 3.9% Walgreens Boots Alliance 3.8% Kellogg 3.7% Selena Maranjian owns shares of AbbVie. Some index funds worth considering are the SPDR S&P 500 ETF, Vanguard Total Stock Market ETF, and Vanguard Total World Stock ETF, which will, respectively, spread your dollars across roughly 80% of the U.S. market, all of the U.S. market, or most of the world's stock market. | 5.3% Verizon Communications 4.9% AbbVie 4.8% Chevron 4.7% Duke Energy 3.9% Walgreens Boots Alliance 3.8% Kellogg 3.7% Selena Maranjian owns shares of AbbVie. Well, consider our investing philosophy at The Motley Fool, which is to buy 25 or more stocks, expecting to hold them for at least five years. |
23802.0 | 2021-11-14 00:00:00 UTC | 4 Fantastic Dividend Stocks to Buy With Yields of 4% or More | ABBV | https://www.nasdaq.com/articles/4-fantastic-dividend-stocks-to-buy-with-yields-of-4-or-more-2021-11-14 | nan | nan | Trade-offs can often be a necessary evil in investing. For example, you might have to take on more risk than you'd like to obtain a higher dividend payout.
However, you don't always have to make big trade-offs. Some companies have solid businesses and pay juicy dividends. Here are four fantastic dividend stocks to buy with yields of 4% or more.
Image source: Getty Images.
1. AbbVie
Income-seeking investors tend to especially like Dividend Aristocrats. These members of the S&P 500 boast at least 25 consecutive years of dividend increases. AbbVie (NYSE: ABBV) recently extended its streak of dividend hikes to 50 years. And the drugmaker's dividend yield currently tops 4.8%.
AbbVie's product lineup includes 11 blockbuster drugs. However, its top-selling drug Humira will face biosimilar competition in the U.S. in a little over a year. The company's revenue will take a hit as sales for the autoimmune disease drug decline.
The good news, though, is that AbbVie expects to quickly return to revenue growth after a temporary blip in 2023. AbbVie's acquisition of Allergan and newer products including psoriasis drug Skyrizi should help the company move past its Humira headwinds and keep the dividends coming.
2. Devon Energy
No S&P 500 company offers a higher dividend yield than Devon Energy (NYSE: DVN). That might seem surprising if you look at online sites that show Devon's yield is only around 1%. But there's more to the story.
The oil and gas producer's dividend includes two components. The fixed portion gives that 1% or so yield that you'll find on financial websites. However, Devon also has a variable component based on its excess free cash flow. With this variable part added in, the company's dividend yield is more than 10% -- seven times higher than the average company in the S&P 500.
But will the dividend soon fall off? It isn't likely. Devon Energy CFO Jeff Ritenour said in the company's recent third-quarter conference call, "We expect our dividend growth story to only strengthen in 2022. In fact, at today's pricing, we are on pace to nearly double our dividend next year."
3. Easterly Government Properties
If you really want a steady and dependable dividend, you'll definitely want to check out Easterly Government Properties (NYSE: DEA). The real estate investment trust (REIT) specializes in leasing properties to the U.S. government. There's no more reliable tenant than Uncle Sam.
Easterly currently owns 87 properties. Ninety-nine percent of them are leased, with almost all of its tenants U.S. federal agencies. The weighted average remaining lease term for the properties is 9.5 years.
The company's dividend yield stands at around 4.9%. Expect Easterly's dividend to grow by 3% to 4% annually as the company's funds from operations increase thanks to acquiring additional properties.
4. Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) co-CEO Randy Fowler said in the company's third-quarter conference call, "Our first priority is supporting and growing distributions to investors." Enterprise's track record shows that Fowler is right.
The midstream energy leader has increased its distribution for 22 consecutive years. That's a dividend hike every year since Enterprise went public. Its yield is now a little under 8%.
Sure, the energy sector can be volatile. However, many industry experts project strong demand will continue through 2022 as the global economy expands. This should translate to a booming business for Enterprise's pipelines and storage facilities -- and probably higher distributions for investors.
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Keith Speights owns shares of AbbVie, Devon Energy, and Enterprise Products Partners. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners. 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's acquisition of Allergan and newer products including psoriasis drug Skyrizi should help the company move past its Humira headwinds and keep the dividends coming. AbbVie Income-seeking investors tend to especially like Dividend Aristocrats. AbbVie (NYSE: ABBV) recently extended its streak of dividend hikes to 50 years. | AbbVie Income-seeking investors tend to especially like Dividend Aristocrats. AbbVie (NYSE: ABBV) recently extended its streak of dividend hikes to 50 years. AbbVie's product lineup includes 11 blockbuster drugs. | See the 10 stocks *Stock Advisor returns as of November 10, 2021 Keith Speights owns shares of AbbVie, Devon Energy, and Enterprise Products Partners. AbbVie Income-seeking investors tend to especially like Dividend Aristocrats. AbbVie (NYSE: ABBV) recently extended its streak of dividend hikes to 50 years. | AbbVie Income-seeking investors tend to especially like Dividend Aristocrats. AbbVie (NYSE: ABBV) recently extended its streak of dividend hikes to 50 years. AbbVie's product lineup includes 11 blockbuster drugs. |
23803.0 | 2021-11-13 00:00:00 UTC | Believe It or Not, These Stocks Pay You to Own Them | ABBV | https://www.nasdaq.com/articles/believe-it-or-not-these-stocks-pay-you-to-own-them-2021-11-13 | nan | nan | Most (or all) of us would love extra income, but few of us are eager to take on a second job in order to get it. Fortunately, there are other ways to get extra income -- including passive income.
Passive income is hard to beat because it requires little effort from you. Once you buy an annuity, for example, you can sit back and collect regular income from it. Using certain cash-back credit cards can deliver modest amounts of passive income, too. Dividends from stocks are one of the best kinds of passive income, with the stocks essentially paying you to own them.
Image source: Getty Images.
Dividends: Not just for your grandparents
It's an error to just assume that dividends are for retirees who need income to live off of. Dividends can be terrific for investors of all ages. Imagine, for example, having a portfolio of dividend-paying stocks with a total value of $400,000 and an overall average dividend yield of 3%. That will kick out $12,000 to you each year -- or $1,000 per month, on average. That kind of money would be very useful in retirement, but if you're far from retirement, it can be $12,000 per year that you invest in more stocks -- on top of your regular saving and investing.
But wait, there's more! Dividends from healthy and growing companies tend to be increased, often annually, and sometimes by a lot. Starbucks, for example, has hiked its payout by an annual average of 18% over the past five years. Semiconductor specialist Broadcom, meanwhile, has upped its dividend by a whopping average annual rate of 48% over the past five years.
Favoring stocks with steep dividend growth rates is an effective dividend investing strategy -- so don't just grab the biggest yields you can find, because they may not be growing quickly and can be eclipsed by yields from faster-growing companies. (Significantly steep dividend yields can also reflect companies in trouble -- because when a stock's price falls, its dividend yield will rise.)
Some dividend-paying candidates for your portfolio
Here are some dividend-paying companies you might consider for your portfolio. As with any company, you want to look at more than just the dividend; you want the company to be of high quality and growing -- and you want it to be attractively priced.
STOCK
RECENT DIVIDEND YIELD
5-YEAR AVG. ANNUAL DIVIDEND GROWTH RATE
AbbVie
4.8%
18%
Automatic Data Processing
1.6%
12%
Cisco Systems
2.6%
7%
Clorox
2.8%
8%
Coca-Cola
3%
4%
Corning
2.5%
12%
Lowe's
1.4%
14%
PepsiCo
2.6%
7%
Starbucks
1.7%
18%
Verizon Communications
4.9%
2%
Walgreens Boots Alliance
3.8%
5%
Waste Management
1.4%
7%
Data source: Yahoo! Finance and author calculations.
There are gobs of other compelling dividend payers that can help plump up your portfolio over many years. Consider adding some to your mix, so that they can start paying you to own them.
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Selena Maranjian owns shares of AbbVie and Starbucks. The Motley Fool owns shares of and recommends Starbucks. The Motley Fool recommends Broadcom Ltd, Corning, Lowes, Verizon Communications, and Waste Management and recommends the following options: short October 2021 $120 calls on Starbucks. 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 4.8% 18% Automatic Data Processing 1.6% 12% Cisco Systems 2.6% 7% Clorox 2.8% 8% Coca-Cola 3% 4% Corning 2.5% 12% Lowe's 1.4% 14% PepsiCo 2.6% 7% Starbucks 1.7% 18% Verizon Communications 4.9% 2% Walgreens Boots Alliance 3.8% 5% Waste Management 1.4% 7% Data source: Yahoo! See the 10 stocks *Stock Advisor returns as of October 20, 2021 Selena Maranjian owns shares of AbbVie and Starbucks. Semiconductor specialist Broadcom, meanwhile, has upped its dividend by a whopping average annual rate of 48% over the past five years. | AbbVie 4.8% 18% Automatic Data Processing 1.6% 12% Cisco Systems 2.6% 7% Clorox 2.8% 8% Coca-Cola 3% 4% Corning 2.5% 12% Lowe's 1.4% 14% PepsiCo 2.6% 7% Starbucks 1.7% 18% Verizon Communications 4.9% 2% Walgreens Boots Alliance 3.8% 5% Waste Management 1.4% 7% Data source: Yahoo! See the 10 stocks *Stock Advisor returns as of October 20, 2021 Selena Maranjian owns shares of AbbVie and Starbucks. The Motley Fool owns shares of and recommends Starbucks. | AbbVie 4.8% 18% Automatic Data Processing 1.6% 12% Cisco Systems 2.6% 7% Clorox 2.8% 8% Coca-Cola 3% 4% Corning 2.5% 12% Lowe's 1.4% 14% PepsiCo 2.6% 7% Starbucks 1.7% 18% Verizon Communications 4.9% 2% Walgreens Boots Alliance 3.8% 5% Waste Management 1.4% 7% Data source: Yahoo! See the 10 stocks *Stock Advisor returns as of October 20, 2021 Selena Maranjian owns shares of AbbVie and Starbucks. Dividends from stocks are one of the best kinds of passive income, with the stocks essentially paying you to own them. | AbbVie 4.8% 18% Automatic Data Processing 1.6% 12% Cisco Systems 2.6% 7% Clorox 2.8% 8% Coca-Cola 3% 4% Corning 2.5% 12% Lowe's 1.4% 14% PepsiCo 2.6% 7% Starbucks 1.7% 18% Verizon Communications 4.9% 2% Walgreens Boots Alliance 3.8% 5% Waste Management 1.4% 7% Data source: Yahoo! See the 10 stocks *Stock Advisor returns as of October 20, 2021 Selena Maranjian owns shares of AbbVie and Starbucks. Dividends from stocks are one of the best kinds of passive income, with the stocks essentially paying you to own them. |
23804.0 | 2021-11-11 00:00:00 UTC | LABU, ALXO, ABBV, ACAD: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/labu-alxo-abbv-acad%3A-large-outflows-detected-at-etf | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Daily S&P Biotech Bull 3X Shares (Symbol: LABU) where we have detected an approximate $95.7 million dollar outflow -- that's a 12.8% decrease week over week (from 13,711,600 to 11,961,600). Among the largest underlying components of LABU, in trading today ALX Oncology Holdings Inc (Symbol: ALXO) is up about 1.5%, AbbVie Inc (Symbol: ABBV) is trading flat, and Acadia Pharmaceuticals Inc (Symbol: ACAD) is higher by about 2.6%. For a complete list of holdings, visit the LABU Holdings page » The chart below shows the one year price performance of LABU, versus its 200 day moving average:
Looking at the chart above, LABU's low point in its 52 week range is $47.59 per share, with $185.61 as the 52 week high point — that compares with a last trade of $54.92. 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 experienced notable outflows »
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 LABU, in trading today ALX Oncology Holdings Inc (Symbol: ALXO) is up about 1.5%, AbbVie Inc (Symbol: ABBV) is trading flat, and Acadia Pharmaceuticals Inc (Symbol: ACAD) is higher by about 2.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Daily S&P Biotech Bull 3X Shares (Symbol: LABU) where we have detected an approximate $95.7 million dollar outflow -- that's a 12.8% decrease week over week (from 13,711,600 to 11,961,600). 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 LABU, in trading today ALX Oncology Holdings Inc (Symbol: ALXO) is up about 1.5%, AbbVie Inc (Symbol: ABBV) is trading flat, and Acadia Pharmaceuticals Inc (Symbol: ACAD) is higher by about 2.6%. For a complete list of holdings, visit the LABU Holdings page » The chart below shows the one year price performance of LABU, versus its 200 day moving average: Looking at the chart above, LABU's low point in its 52 week range is $47.59 per share, with $185.61 as the 52 week high point — that compares with a last trade of $54.92. 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). | Among the largest underlying components of LABU, in trading today ALX Oncology Holdings Inc (Symbol: ALXO) is up about 1.5%, AbbVie Inc (Symbol: ABBV) is trading flat, and Acadia Pharmaceuticals Inc (Symbol: ACAD) is higher by about 2.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Daily S&P Biotech Bull 3X Shares (Symbol: LABU) where we have detected an approximate $95.7 million dollar outflow -- that's a 12.8% decrease week over week (from 13,711,600 to 11,961,600). For a complete list of holdings, visit the LABU Holdings page » The chart below shows the one year price performance of LABU, versus its 200 day moving average: Looking at the chart above, LABU's low point in its 52 week range is $47.59 per share, with $185.61 as the 52 week high point — that compares with a last trade of $54.92. | Among the largest underlying components of LABU, in trading today ALX Oncology Holdings Inc (Symbol: ALXO) is up about 1.5%, AbbVie Inc (Symbol: ABBV) is trading flat, and Acadia Pharmaceuticals Inc (Symbol: ACAD) is higher by about 2.6%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Daily S&P Biotech Bull 3X Shares (Symbol: LABU) where we have detected an approximate $95.7 million dollar outflow -- that's a 12.8% decrease week over week (from 13,711,600 to 11,961,600). For a complete list of holdings, visit the LABU Holdings page » The chart below shows the one year price performance of LABU, versus its 200 day moving average: Looking at the chart above, LABU's low point in its 52 week range is $47.59 per share, with $185.61 as the 52 week high point — that compares with a last trade of $54.92. |
23805.0 | 2021-11-10 00:00:00 UTC | First Week of December 17th Options Trading For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/first-week-of-december-17th-options-trading-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available this week, for the December 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 17th contracts and identified one put and one call contract of particular interest.
The put contract at the $115.00 strike price has a current bid of $2.17. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $115.00, but will also collect the premium, putting the cost basis of the shares at $112.83 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $116.81/share today.
Because the $115.00 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 58%. 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 1.89% return on the cash commitment, or 18.61% 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 $115.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $120.00 strike price has a current bid of $1.68. If an investor was to purchase shares of ABBV stock at the current price level of $116.81/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $120.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.17% if the stock gets called away at the December 17th 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 $120.00 strike highlighted in red:
Considering the fact that the $120.00 strike represents an approximate 3% 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 67%. 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 1.44% boost of extra return to the investor, or 14.19% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 22%, while the implied volatility in the call contract example is 20%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $116.81) 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 3% 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 this week, for the December 17th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 3% 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 this week, for the December 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 17th 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 $115.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $120.00 strike price has a current bid of $1.68. Below is a chart showing ABBV's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 3% 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 this week, for the December 17th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 17th 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 3% 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 this week, for the December 17th expiration. |
23806.0 | 2021-11-09 00:00:00 UTC | First Week of May 2022 Options Trading For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/first-week-of-may-2022-options-trading-for-abbvie-abbv | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading this week, for the May 2022 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 192 days until expiration the newly trading contracts represent a potential 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 May 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $110.00 strike price has a current bid of $5.65. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $110.00, but will also collect the premium, putting the cost basis of the shares at $104.35 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $116.17/share today.
Because the $110.00 strike represents an approximate 5% 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 62%. 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 5.14% return on the cash commitment, or 9.77% 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 $110.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $120.00 strike price has a current bid of $5.00. If an investor was to purchase shares of ABBV stock at the current price level of $116.17/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $120.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.60% if the stock gets called away at the May 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 $120.00 strike highlighted in red:
Considering the fact that the $120.00 strike represents an approximate 3% 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 61%. 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 4.30% boost of extra return to the investor, or 8.18% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 27%, while the implied volatility in the call contract example is 21%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $116.17) 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 3% 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 this week, for the May 2022 expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 3% 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 this week, for the May 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 3% 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 this week, for the May 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 2022 contracts and identified one put and one call contract of particular interest. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 3% 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 this week, for the May 2022 expiration. |
23807.0 | 2021-11-08 00:00:00 UTC | Notable Monday Option Activity: JPM, NCLH, ABBV | ABBV | https://www.nasdaq.com/articles/notable-monday-option-activity%3A-jpm-nclh-abbv | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in JPMorgan Chase & Co (Symbol: JPM), where a total volume of 45,894 contracts has been traded thus far today, a contract volume which is representative of approximately 4.6 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44.2% of JPM's average daily trading volume over the past month, of 10.4 million shares. Particularly high volume was seen for the $172.50 strike call option expiring November 12, 2021, with 6,852 contracts trading so far today, representing approximately 685,200 underlying shares of JPM. Below is a chart showing JPM's trailing twelve month trading history, with the $172.50 strike highlighted in orange:
Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) saw options trading volume of 52,103 contracts, representing approximately 5.2 million underlying shares or approximately 43.3% of NCLH's average daily trading volume over the past month, of 12.0 million shares. Especially high volume was seen for the $28 strike put option expiring November 12, 2021, with 4,056 contracts trading so far today, representing approximately 405,600 underlying shares of NCLH. Below is a chart showing NCLH's trailing twelve month trading history, with the $28 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,585 contracts, representing approximately 2.6 million underlying shares or approximately 40.5% of ABBV'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 February 18, 2022, with 4,789 contracts trading so far today, representing approximately 478,900 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 JPM options, NCLH 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. | Particularly high volume was seen for the $120 strike call option expiring February 18, 2022, with 4,789 contracts trading so far today, representing approximately 478,900 underlying shares of ABBV. Below is a chart showing NCLH's trailing twelve month trading history, with the $28 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,585 contracts, representing approximately 2.6 million underlying shares or approximately 40.5% of ABBV's average daily trading volume over the past month, of 6.3 million shares. 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 JPM options, NCLH options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing NCLH's trailing twelve month trading history, with the $28 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,585 contracts, representing approximately 2.6 million underlying shares or approximately 40.5% of ABBV'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 February 18, 2022, with 4,789 contracts trading so far today, representing approximately 478,900 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 JPM options, NCLH options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing NCLH's trailing twelve month trading history, with the $28 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,585 contracts, representing approximately 2.6 million underlying shares or approximately 40.5% of ABBV'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 February 18, 2022, with 4,789 contracts trading so far today, representing approximately 478,900 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 JPM options, NCLH options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing NCLH's trailing twelve month trading history, with the $28 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 25,585 contracts, representing approximately 2.6 million underlying shares or approximately 40.5% of ABBV'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 February 18, 2022, with 4,789 contracts trading so far today, representing approximately 478,900 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 JPM options, NCLH options, or ABBV options, visit StockOptionsChannel.com. |
23808.0 | 2021-11-08 00:00:00 UTC | 3 Best Biotech Stocks to Buy in November | ABBV | https://www.nasdaq.com/articles/3-best-biotech-stocks-to-buy-in-november | nan | nan | For income investors, building a diversified portfolio of dividend stocks should be a top priority. That's because owning a wide array of stocks that span numerous industries reduces your risk profile. A payout cut for a stock that produces 1% of your total dividend income is far less painful than a cut for a stock that accounts for 10% of it.
If your portfolio needs more exposure to the healthcare industry, here are three high-quality biotech dividend stocks that you should think about buying in November.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) manufactures the top-selling prescription drug in the world: Humira, an immunosuppressive used to treat a number of conditions. The stock's dividend yield at current share prices is 4.8% -- several times higher than the S&P 500's 1.3% yield. And while that may lead investors to worry that AbbVie is a yield trap, shareholders should actually be able to sleep well at night.
First, the biopharmaceutical giant just raised its quarterly dividend by 8.5% at the end of October -- a telling sign that management has confidence in the company's future. Based on AbbVie's drug portfolio and year-to-date operating results, this optimistic outlook appears to be justified.
For instance, for the first three quarters of 2021, AbbVie's net revenue grew 29.2% year over year to $41.2 billion. Its neuroscience segment has contributed to 23.3% of year-to-date sales growth, which was driven by a rebound in Botox sales as elective procedures picked up again after 2020's pandemic-related declines, and increased sales for the anti-psychotic drug Vraylar.
Humira will lose patent protection in the U.S. in 2023, but AbbVie's next-generation drugs Skyrizi and Rinvoq have contributed 71% of AbbVie's immunology segment revenue growth year to date. Meanwhile, Humira chipped in the other 29%. Indeed, Skyrizi and Rinvoq more than doubled their combined revenue to $3.2 billion -- a signal that those two drugs will be able to promptly return AbbVie to growth in 2024 after what is expected to be a revenue slide in 2023. Skyrizi and Rinvoq appear capable of replacing most of the expected revenue losses from Humira, while other drugs like Vraylar can add meaningful revenue growth in their own right.
AbbVie's dividend payout ratio will be in the low-40% range for this year, which should leave it plenty of cushion to absorb a temporary revenue decline in 2023 without cutting the payout. And AbbVie is currently trading at a bargain-bin valuation of barely 9 times this year's anticipated non-GAAP earnings.
Image source: Getty Images.
2. AstraZeneca
AstraZeneca (NASDAQ: AZN) offers investors a market-beating 2.2% dividend yield, and that payout looks to be safe for the foreseeable future.
First, its dividend payout ratio should also land in the low-40% range for this year, giving it plenty of room to grow its payout, and certainly enough cushion to maintain it. And it has financial leeway to invest in impactful acquisitions such as its purchase of rare-disease drugmaker Alexion Pharmaceuticals for $39 billion, which closed a few months ago.
Alexion's revenue base grew 21.6% from 2019 to $6.1 billion last year, led by sales of Soliris, Ultomiris, and Strensiq. Its lineup will shore up AstraZeneca's existing rare diseases drug portfolio. Equally as important, the acquisition of Alexion added 30 research projects to an AstraZeneca pipeline that already included 160 projects. This wide portfolio of candidate drugs for a host of potential indications in areas such as oncology and immunology bodes well for AstraZeneca. And it's part of the reason why analysts are forecasting that it will grow earnings at an annualized rate of 20% annually over the next five years.
When you combine a sustainable payout ratio with tremendous earnings growth potential, it isn't hard to generate market-beating returns. And trading at a reasonable valuation of 19 times 2021's anticipated earnings, AstraZeneca seems well-positioned to beat the market in the years ahead.
Image source: Getty Images.
3. Merck
At current share prices, Merck (NYSE: MRK) pays a dividend that yields 2.9% -- more than twice the yield of the S&P 500. And similar to those of AbbVie and AstraZeneca, that payout appears to be safe. Merck's payout ratio based on its recent guidance will be around 46% this year. This strikes an appropriate balance between rewarding shareholders and investing in future growth.
Like AstraZeneca, Merck recently announced a big acquisition -- an $11.5 billion deal for Acceleron Pharma (NASDAQ: XLRN). Should the acquisition be approved by regulators, Merck would own the rights to royalty payments of 20% to 25% of net sales on Bristol Myers Squibb's (NYSE: BMY) anemia drug Reblozyl. That alone could amount to nearly $1 billion in annual revenue for Merck; Bristol Myers Squibb is forecasting peak annual sales of $4 billion for Reblozyl.
Merck would also gain ownership of a highly promising candidate in late-stage clinical trials -- pulmonary arterial hypertension drug sotatercept. Wall Street expects that, if approved, sotatercept will generate peak annual sales of $2.2 billion. This could go a long way toward helping the company make up for the revenue it will lose when its top-selling and fast-growing cancer drug Keytruda loses patent protection in 2028. Year to date, Keytruda has provided 35.8% of Merck's total revenue.
Early indications suggest that Merck's efforts to build its post-Keytruda future will be successful. In the meantime, analysts believe it will grow EPS by 13% annually over the next five years. Given Merck's healthy earnings growth potential and its P/E ratio under 16, the stock still appears to be a solid biotech pick, even though it's trading near its 52-week high.
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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 AbbVie (NYSE: ABBV) manufactures the top-selling prescription drug in the world: Humira, an immunosuppressive used to treat a number of conditions. And while that may lead investors to worry that AbbVie is a yield trap, shareholders should actually be able to sleep well at night. Based on AbbVie's drug portfolio and year-to-date operating results, this optimistic outlook appears to be justified. | Humira will lose patent protection in the U.S. in 2023, but AbbVie's next-generation drugs Skyrizi and Rinvoq have contributed 71% of AbbVie's immunology segment revenue growth year to date. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Kody Kester owns shares of AbbVie, Bristol Myers Squibb, and Merck & Co. AbbVie AbbVie (NYSE: ABBV) manufactures the top-selling prescription drug in the world: Humira, an immunosuppressive used to treat a number of conditions. | Humira will lose patent protection in the U.S. in 2023, but AbbVie's next-generation drugs Skyrizi and Rinvoq have contributed 71% of AbbVie's immunology segment revenue growth year to date. AbbVie's dividend payout ratio will be in the low-40% range for this year, which should leave it plenty of cushion to absorb a temporary revenue decline in 2023 without cutting the payout. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Kody Kester owns shares of AbbVie, Bristol Myers Squibb, and Merck & Co. | Humira will lose patent protection in the U.S. in 2023, but AbbVie's next-generation drugs Skyrizi and Rinvoq have contributed 71% of AbbVie's immunology segment revenue growth year to date. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Kody Kester owns shares of AbbVie, Bristol Myers Squibb, and Merck & Co. AbbVie AbbVie (NYSE: ABBV) manufactures the top-selling prescription drug in the world: Humira, an immunosuppressive used to treat a number of conditions. |
23809.0 | 2021-11-08 00:00:00 UTC | AbbVie Presents Data from Two Phase 3 Trials on Risankizumab | ABBV | https://www.nasdaq.com/articles/abbvie-presents-data-from-two-phase-3-trials-on-risankizumab | nan | nan | AbbVie (ABBV) has presented integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2. These studies are designed to evaluate the efficacy and safety of risankizumab (SKYRIZI) in adult patients with active psoriatic arthritis (PsA).
The data demonstrated by the biopharmaceutical company showed that 24-weeks of treatment with risankizumab resulted in substantial improvements in PsA signs and symptoms compared with placebo with no new safety signals, the company said.
(See Top Smart Score Stocks on TipRanks >>)
Notably, in the U.S. or the EU, the use of risankizumab in psoriatic arthritis is not approved, and its safety and efficacy are under review by the respective regulatory authorities.
Recently, the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) put forward a positive opinion recommending the approval of risankizumab for the treatment of active psoriatic arthritis.
The CSO of AbbVie, Thomas Hudson, said, "Psoriatic arthritis is a chronic, progressive and debilitating disease. These results support the potential of risankizumab to help improve joint and skin symptoms for people living with this disease and assist more people in their pursuit of reaching their treatment goals." (See AbbVie stock charts on TipRanks)
Wall Street’s Take
Recently, BMO Capital analyst Gary Nachman reiterated a Buy rating on the stock and lifted the price target to $134 (14.35% upside potential) from $133.
Nachman said, "3Q delivered solid results and showed benefits of improved diversification with good upside in Immunology, Aesthetics, and Neuro more-than-offsetting misses in Hem/Onc and Other, while lower spend helped drive better profitability and higher EPS guidance. ABBV expressed confidence in Rinvoq situation, and raising 2022 dividend 8.5% supports optimistic LT outlook. Pipeline execution has been strong with recent Qulipta/Vuity approvals, and positive Ph3 data for ABBV-951 and Vraylar MDD, which should help drive multiple expansion."
Consensus among analysts is a Strong Buy based on 8 Buys versus 1 Hold. The average AbbVie price target of $130.56 implies 11.42% upside potential from current levels. Shares have gained 23.2% 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. | Pipeline execution has been strong with recent Qulipta/Vuity approvals, and positive Ph3 data for ABBV-951 and Vraylar MDD, which should help drive multiple expansion." AbbVie (ABBV) has presented integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2. The CSO of AbbVie, Thomas Hudson, said, "Psoriatic arthritis is a chronic, progressive and debilitating disease. | The average AbbVie price target of $130.56 implies 11.42% upside potential from current levels. AbbVie (ABBV) has presented integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2. The CSO of AbbVie, Thomas Hudson, said, "Psoriatic arthritis is a chronic, progressive and debilitating disease. | (See AbbVie stock charts on TipRanks) Wall Street’s Take Recently, BMO Capital analyst Gary Nachman reiterated a Buy rating on the stock and lifted the price target to $134 (14.35% upside potential) from $133. AbbVie (ABBV) has presented integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2. The CSO of AbbVie, Thomas Hudson, said, "Psoriatic arthritis is a chronic, progressive and debilitating disease. | (See AbbVie stock charts on TipRanks) Wall Street’s Take Recently, BMO Capital analyst Gary Nachman reiterated a Buy rating on the stock and lifted the price target to $134 (14.35% upside potential) from $133. AbbVie (ABBV) has presented integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2. The CSO of AbbVie, Thomas Hudson, said, "Psoriatic arthritis is a chronic, progressive and debilitating disease. |
23810.0 | 2021-11-07 00:00:00 UTC | Trade Alert: The Independent Director Of AbbVie Inc. (NYSE:ABBV), Roxanne Austin, Has Sold Some Shares Recently | ABBV | https://www.nasdaq.com/articles/trade-alert%3A-the-independent-director-of-abbvie-inc.-nyse%3Aabbv-roxanne-austin-has-sold | nan | nan | Some AbbVie Inc. (NYSE:ABBV) shareholders may be a little concerned to see that the Independent Director, Roxanne Austin, recently sold a substantial US$8.4m worth of stock at a price of US$117 per share. That diminished their holding by a very significant 86%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At AbbVie
In fact, the recent sale by Roxanne Austin was the biggest sale of AbbVie shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$117. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NYSE:ABBV Insider Trading Volume November 7th 2021
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does AbbVie Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. AbbVie insiders own about US$202m worth of shares (which is 0.1% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The AbbVie Insider Transactions Indicate?
An insider hasn't bought AbbVie stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 5 warning signs for AbbVie (of which 1 is a bit unpleasant!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some AbbVie Inc. (NYSE:ABBV) shareholders may be a little concerned to see that the Independent Director, Roxanne Austin, recently sold a substantial US$8.4m worth of stock at a price of US$117 per share. The Last 12 Months Of Insider Transactions At AbbVie In fact, the recent sale by Roxanne Austin was the biggest sale of AbbVie shares made by an insider individual in the last twelve months, according to our records. NYSE:ABBV Insider Trading Volume November 7th 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. | Some AbbVie Inc. (NYSE:ABBV) shareholders may be a little concerned to see that the Independent Director, Roxanne Austin, recently sold a substantial US$8.4m worth of stock at a price of US$117 per share. The Last 12 Months Of Insider Transactions At AbbVie In fact, the recent sale by Roxanne Austin was the biggest sale of AbbVie shares made by an insider individual in the last twelve months, according to our records. NYSE:ABBV Insider Trading Volume November 7th 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. | The Last 12 Months Of Insider Transactions At AbbVie In fact, the recent sale by Roxanne Austin was the biggest sale of AbbVie shares made by an insider individual in the last twelve months, according to our records. NYSE:ABBV Insider Trading Volume November 7th 2021 For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. Some AbbVie Inc. (NYSE:ABBV) shareholders may be a little concerned to see that the Independent Director, Roxanne Austin, recently sold a substantial US$8.4m worth of stock at a price of US$117 per share. | Some AbbVie Inc. (NYSE:ABBV) shareholders may be a little concerned to see that the Independent Director, Roxanne Austin, recently sold a substantial US$8.4m worth of stock at a price of US$117 per share. So What Do The AbbVie Insider Transactions Indicate? An insider hasn't bought AbbVie stock in the last three months, but there was some selling. |
23811.0 | 2021-11-07 00:00:00 UTC | Investing $100,000 in These Dividend Stocks Could Give You Nearly $6,000 in Steady Annual Income | ABBV | https://www.nasdaq.com/articles/investing-%24100000-in-these-dividend-stocks-could-give-you-nearly-%246000-in-steady-annual | nan | nan | With apologies to the rock band Dire Straits, you're not going to get "money for nothing." However, you can definitely get money on a regular basis by buying the right stocks. I'm referring, of course, to buying solid dividend stocks.
Many dividend stocks don't have high enough yields to generate significant income. Others have high dividend yields but come with unacceptable levels of risk. But investing $100,000 in these three dividend stocks could give you nearly $6,000 in steady annual income.
Image source: Getty Images.
1. AbbVie
If you take one-third of your initial $100,000 and buy shares of AbbVie (NYSE: ABBV), you should be able to count on at least $1,600 in annual income. The big drugmaker's dividend currently yields 4.8%.
The good news, though, is that amount is highly likely to increase in the future. AbbVie ranks as a Dividend Aristocrat, members of the S&P 500 that have raised their dividends for at least 25 consecutive years. With the company's recently announced dividend hike, AbbVie's streak will extend to 50 years in a row of dividend increases.
Sure, the company's top-selling drug Humira faces U.S. biosimilar competition beginning in 2023. Newer autoimmune disease drug Rinvoq also faces some uncertainty with a pending label change from the U.S. Food and Drug Administration (FDA) that could negatively impact sales.
However, AbbVie should be in a solid position to keep the dividends flowing and growing. The company remains confident that it will quickly return to growth after a trough year in 2023. Don't expect any blips at all with the drugmaker's dividends.
2. Easterly Government Properties
Easterly Government Properties (NYSE: DEA) looks like a great place to park another third of your $100,000. With its dividend yield just under 5%, that investment should generate around $1,660 in additional yearly income.
I recently wrote that Easterly is one of the least scary stocks to buy right now. My confidence lies in the company's business model. Easterly is a real estate investment trust (REIT) that focuses on leasing properties to the U.S. government.
There is without a doubt no more stable tenant than Uncle Sam. Easterly board chairman Darrell Crate was right on target when he said in the company's Q3 conference call that properties leased to the federal government are the ultimate "sleep well at night real estate."
And Easterly continues to expand. So far this year, the company has acquired 10 properties either directly or through its joint venture with an unidentified global investor. It's on track to achieve the highest annual acquisition volume this year since becoming a public company.
3. Enterprise Products Partners
AbbVie and Easterly together should be able to give you $3,320 in annual income from dividends. Investing the remaining third of your $100,000 in Enterprise Products Partners (NYSE: EPD) should add close to $2,700 in yearly dividends with its yield of 8.1%, bringing the total to nearly $6,000.
Enterprise Products Partners ranks as one of the world's leading midstream energy companies. The ongoing economic recovery serves as a strong tailwind for Enterprise with increased demand for crude oil, natural gas liquids, and petrochemicals.
These dynamics are expected to continue throughout the next year. Over the long term, renewable energy sources will rise in importance. However, the demand for fossil fuels is also likely to increase as well -- albeit at slower rates than in the past.
Enterprise has increased its dividend distribution for 23 consecutive years. The company will probably announce yet another distribution hike in January.
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Keith Speights owns shares of AbbVie and Enterprise Products Partners. The Motley Fool recommends Easterly Government Properties and Enterprise Products Partners. 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 If you take one-third of your initial $100,000 and buy shares of AbbVie (NYSE: ABBV), you should be able to count on at least $1,600 in annual income. AbbVie ranks as a Dividend Aristocrat, members of the S&P 500 that have raised their dividends for at least 25 consecutive years. With the company's recently announced dividend hike, AbbVie's streak will extend to 50 years in a row of dividend increases. | With the company's recently announced dividend hike, AbbVie's streak will extend to 50 years in a row of dividend increases. AbbVie If you take one-third of your initial $100,000 and buy shares of AbbVie (NYSE: ABBV), you should be able to count on at least $1,600 in annual income. AbbVie ranks as a Dividend Aristocrat, members of the S&P 500 that have raised their dividends for at least 25 consecutive years. | With the company's recently announced dividend hike, AbbVie's streak will extend to 50 years in a row of dividend increases. Enterprise Products Partners AbbVie and Easterly together should be able to give you $3,320 in annual income from dividends. AbbVie If you take one-third of your initial $100,000 and buy shares of AbbVie (NYSE: ABBV), you should be able to count on at least $1,600 in annual income. | Enterprise Products Partners AbbVie and Easterly together should be able to give you $3,320 in annual income from dividends. AbbVie If you take one-third of your initial $100,000 and buy shares of AbbVie (NYSE: ABBV), you should be able to count on at least $1,600 in annual income. AbbVie ranks as a Dividend Aristocrat, members of the S&P 500 that have raised their dividends for at least 25 consecutive years. |
23812.0 | 2021-11-05 00:00:00 UTC | AbbVie Says Phase 3 Data On Risankizumab Shows Greater Improvements In Psoriatic Arthritis Signs | ABBV | https://www.nasdaq.com/articles/abbvie-says-phase-3-data-on-risankizumab-shows-greater-improvements-in-psoriatic-arthritis | nan | nan | (RTTNews) - AbbVie (ABBV) said that it will present integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2, which evaluated the efficacy and safety of risankizumab or SKYRIZI in adult patients with active psoriatic arthritis.
These results will be featured in an American College of Rheumatology Convergence 2021 plenary session on November 6.
According to the company, the data showed that 24-weeks of treatment with risankizumab resulted in greater improvements in psoriatic arthritis signs and symptoms compared with placebo with no new safety signals.
Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
Use of risankizumab in psoriatic arthritis is not approved in the U.S. or EU, and its safety and efficacy are currently under review by the respective regulatory authorities. Recently, the European Medicines Agency's Committee for Medicinal Products for Human Use adopted a positive opinion recommending the approval of risankizumab for the treatment of active psoriatic arthritis.
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 it will present integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2, which evaluated the efficacy and safety of risankizumab or SKYRIZI in adult patients with active psoriatic arthritis. Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. These results will be featured in an American College of Rheumatology Convergence 2021 plenary session on November 6. | (RTTNews) - AbbVie (ABBV) said that it will present integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2, which evaluated the efficacy and safety of risankizumab or SKYRIZI in adult patients with active psoriatic arthritis. Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. Use of risankizumab in psoriatic arthritis is not approved in the U.S. or EU, and its safety and efficacy are currently under review by the respective regulatory authorities. | (RTTNews) - AbbVie (ABBV) said that it will present integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2, which evaluated the efficacy and safety of risankizumab or SKYRIZI in adult patients with active psoriatic arthritis. Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. According to the company, the data showed that 24-weeks of treatment with risankizumab resulted in greater improvements in psoriatic arthritis signs and symptoms compared with placebo with no new safety signals. | (RTTNews) - AbbVie (ABBV) said that it will present integrated data from two Phase 3 clinical trials, KEEPsAKE 1 and KEEPsAKE 2, which evaluated the efficacy and safety of risankizumab or SKYRIZI in adult patients with active psoriatic arthritis. Risankizumab is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. These results will be featured in an American College of Rheumatology Convergence 2021 plenary session on November 6. |
23813.0 | 2021-11-05 00:00:00 UTC | What's Next For Merck Stock After An Upbeat Q3? | ABBV | https://www.nasdaq.com/articles/whats-next-for-merck-stock-after-an-upbeat-q3-2021-11-05 | nan | nan | [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 2016.
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. | 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. 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. | [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. | 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. 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. (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. | The company reported sales of around $13.2 billion (up 20% y-o-y), compared to our estimate of $12.2 billion. 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. (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. |
23814.0 | 2021-11-03 00:00:00 UTC | Best Stocks To Buy Today? 4 Dividend Stocks To Check Out | ABBV | https://www.nasdaq.com/articles/best-stocks-to-buy-today-4-dividend-stocks-to-check-out-2021-11-03 | nan | nan | 4 Top Dividend Stocks In Focus For November 2021
With a booming stock market and the Federal Reserve potentially easing its economic aid, we could arguably see some volatility. Accordingly, in times of uncertainty in the market, dividend stocks would be in focus. Sure, there would be some wondering what are meme stocks now as well, given the potentially explosive gains to be had. However, dividend-paying stocks would be a go-to for those looking to make more defensive plays amidst the current market conditions. With all that said, could dividend stocks be a good play now?
Well, for one thing, most of the top dividend stocks are established presences in their respective fields. This is apparent whether it is consumer staples such as Hormel Foods (NYSE: HRL), health care titans like Abbott (NYSE: ABT), or industrial players like Nucor (NYSE: NUE). Not to mention, despite being known as dividend stocks, these firms continue to grow aggressively. For instance, Abbott recently raised its annual earnings outlook on strong Covid-19 test kit sales figures. If that wasn’t enough, Nucor posted a record quarterly earnings in its latest fiscal quarter report last month. With these dividend-paying titans gaining momentum, could one of these dividend stocks be worth watching in the stock market today?
Best Dividend Stocks To Buy [Or Sell] This Week
Walmart Inc. (NYSE: WMT)
Home Depot Inc. (NYSE: HD)
Pfizer Inc. (NYSE: PFE)
AbbVie Inc. (NYSE: ABBV)
Walmart Inc.
First up, we have Walmart, a multinational retail corporation with its chain of grocery stores, hypermarkets, and discount department stores. Accordingly, the company says that 220 million customers and members visit its approximately 10,500 stores and clubs in over 20 countries. It also boasts a fiscal year 2021 revenue of $559 billion. WMT stock currently trades at $149.31 as of 12:24 p.m. ET. The company’s latest quarterly dividend was at $0.55 a share.
In its latest second-quarter financials, the company reported a total revenue of $141 billion. It also grew its market share in the grocery segment in the U.S. Walmart’s U.S. e-commerce sales grew by 6% and 103% on a two-year stack. Walmart says that it is on track to reach $75 billion by the end of the year. Also, it says that it saw strong growth in its advertising businesses globally, including nearly doubling sales in Walmart U.S. compared to a year ago. Given this piece of news, will you consider buying WMT stock?
Source: TD Ameritrade TOS
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The Home Depot Inc.
Following that, we have The Home Depot, one of the largest home improvement retailers in the world. The company supplies tools, construction products, and services to both DIY customers and professionals. With over 2,000 retail stores in all 50 states, the company also has over 500,000 associates. HD stock currently trades at $365.64 as of 12:24 p.m. ET and is up by over 30% in the past year alone. The company declared a second-quarter dividend of $1.65 in August.
Late last month, the company unveiled its 2022 industry report to outline key elements and trends of its extensive consumer research. As a powerhouse in the textiles industry, The Company Stores’ long heritage, impeccable quality, and product expertise has positioned itself as a leader in the industry.
“The Company Store has been a go-to for generations of fans who rely on the quality of our products and look to our innovative designs to personalize their homes with comfort,” said Corinne Bentzen, CEO of The Company Store. “Our Comfort Report highlights where we see this industry going in the foreseeable future and how we’re creating products to meet those trends.” Given this piece of news, will you add HD stock to your portfolio?
Source: TD Ameritrade TOS
Pfizer Inc.
Pfizer is a dividend company that focuses on its pharmaceutical and biotechnology portfolio. Notably, it developed one of the world’s first coronavirus vaccine in record time with BioNTech (NASDAQ: BNTX). To cope with the demand, the company expanded its manufacturing facilities that were responsible for designing a process to produce its vaccine at industrial scale. PFE stock currently trades at $45.02 a piece as of 12:29 p.m. ET and has year-to-date gains of over 20%.
On November 2, 2021, the company reported its third-quarter financials. Revenue for the quarter was $24.1 billion, reflecting a 130% operational growth. The company also posted a diluted earnings per share of $1.42 for the quarter. On top of that, Pfizer raised its full-year guidance for revenues to a range of $81 to $82 billion. This comes as it anticipates $36 billion in revenues for its coronavirus vaccine, Comirnaty, reflecting 2.3 billion doses that are expected to be delivered in Fiscal 2021. Given the excitement surrounding Pfizer, will you buy PFE stock?
Source: TD Ameritrade TOS
AbbVie Inc.
Last but not least, we will be taking a look at AbbVie. For dividend investors, the pharmaceutical giant would be another go-to in the current market. After all, the company’s portfolio consists of numerous U.S FDA-approved drug and treatment candidates. In detail, the company’s developmental pipeline spans a vast array of illnesses. This includes immunology, oncology, eye care, neuroscience, virology, and women’s health among others. Seeing as ABBV stock is now trading at $117.11 a share as of 12:29 p.m., could it be worth jumping on at this point?
Well, for one thing, the company has and continues to pay its dividends consistently for almost 50 years now. Just last week, AbbVie announced its 2022 dividend with an increase of 8.5%. For the most part, this could be thanks to the company’s exceptional quarterly earnings. In essence, AbbVie posted an earnings per share of $3.33 on revenue of $14.34 billion for the quarter. On top of all this, AbbVie remains hard at work advancing its portfolio on the rheumatic diseases front. Earlier this week, the company presented 38 studies regarding its work in this field at the American College of Rheumatology’s annual meeting. With all this in mind, would ABBV stock be a top buy for you?
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. | Best Dividend Stocks To Buy [Or Sell] This Week Walmart Inc. (NYSE: WMT) Home Depot Inc. (NYSE: HD) Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) Walmart Inc. First up, we have Walmart, a multinational retail corporation with its chain of grocery stores, hypermarkets, and discount department stores. Source: TD Ameritrade TOS AbbVie Inc. Last but not least, we will be taking a look at AbbVie. Seeing as ABBV stock is now trading at $117.11 a share as of 12:29 p.m., could it be worth jumping on at this point? | Best Dividend Stocks To Buy [Or Sell] This Week Walmart Inc. (NYSE: WMT) Home Depot Inc. (NYSE: HD) Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) Walmart Inc. First up, we have Walmart, a multinational retail corporation with its chain of grocery stores, hypermarkets, and discount department stores. Source: TD Ameritrade TOS AbbVie Inc. Last but not least, we will be taking a look at AbbVie. Seeing as ABBV stock is now trading at $117.11 a share as of 12:29 p.m., could it be worth jumping on at this point? | Best Dividend Stocks To Buy [Or Sell] This Week Walmart Inc. (NYSE: WMT) Home Depot Inc. (NYSE: HD) Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) Walmart Inc. First up, we have Walmart, a multinational retail corporation with its chain of grocery stores, hypermarkets, and discount department stores. Source: TD Ameritrade TOS AbbVie Inc. Last but not least, we will be taking a look at AbbVie. Seeing as ABBV stock is now trading at $117.11 a share as of 12:29 p.m., could it be worth jumping on at this point? | Best Dividend Stocks To Buy [Or Sell] This Week Walmart Inc. (NYSE: WMT) Home Depot Inc. (NYSE: HD) Pfizer Inc. (NYSE: PFE) AbbVie Inc. (NYSE: ABBV) Walmart Inc. First up, we have Walmart, a multinational retail corporation with its chain of grocery stores, hypermarkets, and discount department stores. Source: TD Ameritrade TOS AbbVie Inc. Last but not least, we will be taking a look at AbbVie. Seeing as ABBV stock is now trading at $117.11 a share as of 12:29 p.m., could it be worth jumping on at this point? |
23815.0 | 2021-11-03 00:00:00 UTC | 7 Dividend Aristocrat Stocks That Should Grace Your Portfolio | ABBV | https://www.nasdaq.com/articles/7-dividend-aristocrat-stocks-that-should-grace-your-portfolio-2021-11-03 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It’s pretty easy to continue to buy growth in this market. Third-quarter earnings for big tech companies are crushing it. The economy is climbing the wall of worry that supply chain issues are promising. So why buy dividend aristocrat stocks?
Well, first of all, these aren’t just dividend stocks. You need to think of these as total return stocks. That means they offer both solid growth and rock solid dividends.
These aren’t flashy 5% or 8% dividends. These are stocks that have made the elite list of dividend aristocrats. In other words, these are stocks that have not only sustained an uncut dividend for more than 25 years but have risen their dividend every year for at least 25 years.
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Some still don’t have mouth-watering dividend yields, but the fact is, they are about as shareholder-friendly as stocks get. Dividend aristocrat stocks are also reliable long-term stocks that offer a foundation of sleep-at-night growth and income. Each of the seven I’m going to explore also have an “A” rating in my Dividend Grader.
AbbVie (NYSE:ABBV)
AFLAC (NYSE:AFL)
General Dynamics (NYSE:GD)
Lowe’s (NYSE:LOW)
Nucor (NYSE:NUE)
Target (NYSE:TGT)
T Rowe Price (NASDAQ:TROW)
Dividend Aristocrat Stocks: AbbVie (ABBV)
ABBV) website and logo on mobile phone" width="300" height="169">
Source: Piotr Swat / Shutterstock.com
As we’ll soon see, not all dividend aristocrat stocks seem to fit the bill according to the classic definition. ABBV stock is one of those oddballs. It seems like kind of a paradox on the list. After all, ABBV officially started trading in 2013, so how did it make the dividend aristocrat criteria?
Because it was a spinoff from Abbott Laboratories (NYSE:ABT). And the history of ABT starts all the way back in 1888. That means ABBV gets to include that dividend legacy for its stock.
But also remember that ABBV developed Humira, one of the most successful drugs in the past decade. Last year alone, Humira grossed nearly $20 billion in revenue. And ABBV has a handful of other drugs that are also strong performers with a very healthy pipeline.
ABBV stock is up 11% year-to-date, but it has a big 4.7% dividend. It’s current price-to-earnings ratio is also in the sub-30x area. Oh and don’t forget that it has climbed 33% over the past 12 months.
In this market it’s hard to match those numbers.
AFLAC (AFL)
AFL) logo on an office building" width="300" height="169">
Source: Ken Wolter / Shutterstock.com
For 35 years AFL has raised its dividend. You have likely seen its duck mascot on its commercials over the decades. But it’s still not a very recognizable company in the U.S.
Domestically, it offers supplemental insurance to people that already have primary policies.
In Japan, it has a broader mission, offering life insurance, death benefits and cash surrender values. And in Japan it has been very popular for decades.
What’s more, its business is similar to an insurance business, which means it has a lot of cash sitting around in near-cash equivalents like U.S. Treasury bonds. Rising rates will certainly help add to its earnings.
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AFL stock is trading at a current P/E of just below 7x, yet the stock is up 28% YTD. And it has reliable 2.4% dividend.
Dividend Aristocrat Stocks: General Dynamics (GD)
GD) website, representing dividend stocks" width="300" height="169">
Source: Casimiro PT / Shutterstock.com
There’s a growing Cold War with China. Space Race 2.0 is underway. Russia is becoming more aggressive. And non-state actors are growing bolder again.
If there was ever a time for defense stocks, it’s now. And GD is one of the best. Plus, it has raised its dividend every year for the past 30 years.
That’s exactly what you want from a defense stock: reliability. The U.S. has relied on GD at every level of the defense infrastructure, from Gulfstream jets and F-16s, to its naval shipyards, to its U.S. and NATO land systems, to its IT efforts. GD remains a well-diversified and proven defense leader.
GD has gained 37% YTD, yet it trades at a P/E of just 17x. And it still has a respectable 2.5% dividend.
Lowe’s (LOW)
Source: Helen89 / Shutterstock.com
This home improvement and lumber store is the classic dividend aristocrat stock. It has a 1.4% dividend that it has raised for 47 years and it has gained 45% YTD. If that’s not a total return gem, I’m not sure what is.
Low interest rates and record housing prices mean homeowners looking for home equity lines of credit for renovations and upgrades are keeping LOW busy. And new homeowners working on their new homes and yards are also helping business.
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This trend will continue to help move LOW stock higher. And the dividend kicker is a good thing to have for the long term. Oh, and even with this impressive performance, the stock has a current P/E of just 24x.
Dividend Aristocrat Stocks: Nucor (NUE)
Source: Shutterstock
This steel maker started in 1905 when Ransom Olds (of Oldsmobile fame) started the REO Motor Car Company (and made the REO Speed Wagon). The company had many iterations after that, including a reverse merger by the Nuclear Corporation of America in the mid-‘50s.
Eventually it renamed itself Nucor and focused on the steel making business. Today, it’s the largest steel maker in the U.S.
With two multi-trillion dollar infrastructure bills pending, and U.S.-first buying a priority, NUE should be well positioned to get in on this. And this money will be distributed out for at least a decade.
NUE stock is up 107% YTD, yet its current P/E is just 6x. And its 1.5% dividend has been strong as steel for 48 years.
Target (TGT)
Source: Robert Gregory Griffeth / Shutterstock.com
Launched in 1902, this retailer is getting close to its 120th year in operation. That’s a significant accomplishment for any company, especially a retailer. It takes smart management and a keen understanding of consumers to last and grow like TGT has.
Its transition to e-commerce was bumpy to say the least, but it recovered and is now firing on all cylinders again. Its transition to e-commerce was a big deal and its move into groceries has also kept it in the thick of things in recent years. During the pandemic in-store pick-up was a big boost to sales and a smart distribution strategy, indicative of TGT leadership.
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The stock is moving like a tech stock, gaining 46% YTD. But this is truly a dividend aristocrat stock. Its 1.4% dividend has been raised 49 years in a row.
Dividend Aristocrat Stocks: T Rowe Price (TROW)
Source: Pavel Kapysh / Shutterstock.com
Founded by Thomas Rowe Price in 1937 in Baltimore, Maryland, this financial services company best known for its solid mutual fund families and pension funds, remains a Baltimore institution. And it’s also one of the best run financial service companies around.
It continues to take pride in the fact that it isn’t based in New York City like much of its competition. The company has always felt that it was an advantage to outside the echo chamber of Wall Street when making investment decisions. And it has paid off.
TROW stock now sports a market cap of $46 billion with $1.6 trillion assets under management. What’s more, the stock has risen 46% YTD, with a P/E of just 17x. And its 2% dividend has been an enduring feature for 35 years.
On the date of publication, Louis Navellier has positions in ABBV, LOW, NUE and TGT in this article. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article. The InvestorPlace Research Staff member primarily responsible for this article did not hold (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.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
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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 (NYSE:ABBV) General Dynamics (NYSE:GD) Lowe’s (NYSE:LOW) Nucor (NYSE:NUE) Target (NYSE:TGT) T Rowe Price (NASDAQ:TROW) Dividend Aristocrat Stocks: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com As we’ll soon see, not all dividend aristocrat stocks seem to fit the bill according to the classic definition. ABBV stock is one of those oddballs. | General Dynamics (NYSE:GD) Lowe’s (NYSE:LOW) Nucor (NYSE:NUE) Target (NYSE:TGT) T Rowe Price (NASDAQ:TROW) Dividend Aristocrat Stocks: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com As we’ll soon see, not all dividend aristocrat stocks seem to fit the bill according to the classic definition. AbbVie (NYSE:ABBV) ABBV stock is one of those oddballs. | General Dynamics (NYSE:GD) Lowe’s (NYSE:LOW) Nucor (NYSE:NUE) Target (NYSE:TGT) T Rowe Price (NASDAQ:TROW) Dividend Aristocrat Stocks: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com As we’ll soon see, not all dividend aristocrat stocks seem to fit the bill according to the classic definition. AbbVie (NYSE:ABBV) ABBV stock is one of those oddballs. | General Dynamics (NYSE:GD) Lowe’s (NYSE:LOW) Nucor (NYSE:NUE) Target (NYSE:TGT) T Rowe Price (NASDAQ:TROW) Dividend Aristocrat Stocks: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com As we’ll soon see, not all dividend aristocrat stocks seem to fit the bill according to the classic definition. AbbVie (NYSE:ABBV) ABBV stock is one of those oddballs. |
23816.0 | 2021-11-03 00:00:00 UTC | 3 Explosive Biotech Stocks -- Could They Shoot Even Higher? | ABBV | https://www.nasdaq.com/articles/3-explosive-biotech-stocks-could-they-shoot-even-higher-2021-11-03 | nan | nan | Investors hungry for stocks that can make big moves in a short amount of time know the biotech industry is the best place to look. A new drug approval, or simply clinical trial results that suggest success can push small-cap stocks through the roof.
Recently, Cara Therapeutics (NASDAQ: CARA), Enanta Pharmaceuticals (NASDAQ: ENTA), Ocugen (NASDAQ: OCGN) made big moves in the right direction. Here's a look at the reasons they climbed higher to see if they can put up larger gains down the road.
Image source: Getty Images.
1. Cara Therapeutics
Shares of Cara Therapeutics have been up and down since the company earned approval for its first drug this August. The stock began surging again recently, rising around 33% during the last week of October even though there wasn't any news from the company.
Cara Therapeutics lead drug, Korsuva is an interesting new opioid that earned FDA approval earlier this year to reduce itching associated with hemodialysis treatment. It's too early to predict profits because Cara Therapeutics and its dialysis clinic partners don't intend to launch Korsuva until next year.
The FDA only approved an intravenously injected version of Korsuva and this isn't a viable drug delivery method for relatively healthy eczema patients. Sales to the hemodialysis crowd are expected to be somewhat limited so investors have their sights set on a much larger population of people with atopic dermatitis, or eczema.
Cara Therapeutics stock crashed in April when an oral version of Korsuva failed to significantly reduce itching for eczema patients in a phase 2 trial after 12 weeks of treatment. The company is pressing on because a sub-group analysis suggests oral Korsuva could work for a more narrowly defined population of mild-to-moderate eczema patients who want to control itching.
Image source: Getty Images.
2. Enanta Pharmaceuticals
This biotech stock gained more than 50% in October and its long-term shareholders are doing better still. Enanta Pharmaceutics shares have more than doubled since the beginning of 2021.
Enanta Pharmaceuticals discovers and develops antiviral drugs. Its lead revenue stream comes from AbbVie. The big pharma pays royalties on sales of its treatments for hepatitis C virus (HCV). Unfortunately, royalty revenue for HCV drugs isn't nearly enough to make ends meet and Enanta lost $54 million during the first nine months of 2021.
Investors have been driving Enanta Pharmaceuticals stock higher in anticipation of a new oral antiviral treatment the company is developing for COVID-19 patients. On Oct. 19, 2021, the company presented encouraging data for EDP-235, that drove the stock higher.
Sadly, Enanta Pharmaceuticals only has encouraging pre-clinical data for EDP-235. Trials with people aren't expected to begin until early next year. In the meantime, molnupiravir from Ridgeback Biotherapeutics and its big pharma partner Merck will probably become a well-known oral antiviral treatment for COVID-19. The partners already presented successful results from a phase 3 study and Pfizer isn't far behind with an oral antiviral COVID-19 treatment of its own.
Image source: Getty Images.
3. Ocugen
Shares of this biotech stock surged around 65% higher in October. Over the past year, hope for a COVID-19 vaccine from Ocugen's overseas partner has pushed the stock more than 4,000% higher.
Ocugen is a clinical-stage biotech without any new drug candidates in late-stage human trials. The company's only important asset at the moment is a co-commercialization deal for Covaxin. This is a COVID-19 vaccine developed by Bharat Biotech of India that probably won't ever generate a significant profit for Ocugen.
Another protein-based vaccine from Novavax already generated successful pivotal trial results. A long-delayed emergency use authorization request from Novavax is expected to reach the FDA by the end of the year.
Ocugen began the process for running clinical trials in the U.S. by submitting an investigational new drug (IND) application to the FDA, on Oct. 27, 2021. A planned phase 3 trial in the U.S. can't get started until that IND gets a green light, which could take months.
There's no telling when U.S. regulators here will begin to review an emergency use request from Ocugen. The FDA could simply use data from a successful pivotal trial Bharat Biotech completed in India. This seems highly unlikely because the agency doesn't need to bend over backward to speed up new vaccine development.
Johnson & Johnson, Moderna, and Pfizer have already provided the United States and Canada with more vaccine doses than they can handle. Since these are the only two territories included in Ocugen's agreement with Bharat Biotech, those commercialization rights probably aren't worth the paper they're printed on. It's probably best to watch this company's story play out from a safe distance.
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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. | Its lead revenue stream comes from AbbVie. Cara Therapeutics lead drug, Korsuva is an interesting new opioid that earned FDA approval earlier this year to reduce itching associated with hemodialysis treatment. Cara Therapeutics stock crashed in April when an oral version of Korsuva failed to significantly reduce itching for eczema patients in a phase 2 trial after 12 weeks of treatment. | Its lead revenue stream comes from AbbVie. A new drug approval, or simply clinical trial results that suggest success can push small-cap stocks through the roof. Recently, Cara Therapeutics (NASDAQ: CARA), Enanta Pharmaceuticals (NASDAQ: ENTA), Ocugen (NASDAQ: OCGN) made big moves in the right direction. | Its lead revenue stream comes from AbbVie. Cara Therapeutics stock crashed in April when an oral version of Korsuva failed to significantly reduce itching for eczema patients in a phase 2 trial after 12 weeks of treatment. Investors have been driving Enanta Pharmaceuticals stock higher in anticipation of a new oral antiviral treatment the company is developing for COVID-19 patients. | Its lead revenue stream comes from AbbVie. Recently, Cara Therapeutics (NASDAQ: CARA), Enanta Pharmaceuticals (NASDAQ: ENTA), Ocugen (NASDAQ: OCGN) made big moves in the right direction. Ocugen Shares of this biotech stock surged around 65% higher in October. |
23817.0 | 2021-11-02 00:00:00 UTC | Why Teva Pharmaceutical Stock Is Jumping Today | ABBV | https://www.nasdaq.com/articles/why-teva-pharmaceutical-stock-is-jumping-today-2021-11-02 | nan | nan | What happened
Shares of Teva Pharmaceutical Industries (NYSE: TEVA) were jumping 7.1% as of 11:10 a.m. EDT on Tuesday. The solid gain came following a California court ruling yesterday in favor of Teva and three other drugmakers in opioid-related litigation filed by Orange, Los Angeles, and Santa Clara counties, and the City of Oakland.
So what
The three California counties and Oakland had alleged that Teva, AbbVie (NYSE: ABBV), Endo International (NASDAQ: ENDP), and Johnson & Johnson (NYSE: JNJ) caused a public nuisance and made false or misleading statements related to marketing opioid drugs in California. But Superior Court Judge Peter Wilson ruled that the companies weren't liable in the case.
Image source: Getty Images.
Wilson didn't actually find that the companies didn't make any false or misleading statements with their marketing of opioids. However, he determined that the plaintiffs couldn't hold the drugmakers liable for "any downstream consequences flowing from medically appropriate prescriptions."
This decision helps Teva and the other companies avoid paying $50 billion to the plaintiffs. It was also the first win for any drugmaker embroiled in opioid litigation out of more than 3,300 cases in the U.S.
Unsurprisingly, Teva and Endo enjoyed the biggest gains among the impacted pharmaceutical stocks. Both companies have more at stake with opioid litigation than AbbVie and J&J do.
Now what
Teva said in a public statement that it was pleased with the court ruling. But the company added that it "continues to pursue a national settlement framework." Until that goal is achieved, opioid litigation will likely remain a dark cloud hovering above the drugmaker.
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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. | So what The three California counties and Oakland had alleged that Teva, AbbVie (NYSE: ABBV), Endo International (NASDAQ: ENDP), and Johnson & Johnson (NYSE: JNJ) caused a public nuisance and made false or misleading statements related to marketing opioid drugs in California. Both companies have more at stake with opioid litigation than AbbVie and J&J do. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Keith Speights owns shares of AbbVie. | So what The three California counties and Oakland had alleged that Teva, AbbVie (NYSE: ABBV), Endo International (NASDAQ: ENDP), and Johnson & Johnson (NYSE: JNJ) caused a public nuisance and made false or misleading statements related to marketing opioid drugs in California. Both companies have more at stake with opioid litigation than AbbVie and J&J do. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Keith Speights owns shares of AbbVie. | So what The three California counties and Oakland had alleged that Teva, AbbVie (NYSE: ABBV), Endo International (NASDAQ: ENDP), and Johnson & Johnson (NYSE: JNJ) caused a public nuisance and made false or misleading statements related to marketing opioid drugs in California. Both companies have more at stake with opioid litigation than AbbVie and J&J do. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Keith Speights owns shares of AbbVie. | So what The three California counties and Oakland had alleged that Teva, AbbVie (NYSE: ABBV), Endo International (NASDAQ: ENDP), and Johnson & Johnson (NYSE: JNJ) caused a public nuisance and made false or misleading statements related to marketing opioid drugs in California. Both companies have more at stake with opioid litigation than AbbVie and J&J do. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Keith Speights owns shares of AbbVie. |
23818.0 | 2021-11-02 00:00:00 UTC | Bristol Myers Squibb Just Got Some Great Regulatory News | ABBV | https://www.nasdaq.com/articles/bristol-myers-squibb-just-got-some-great-regulatory-news-2021-11-02 | nan | nan | It's no secret that Bristol Myers Squibb (NYSE: BMY) will need to innovate to grow as its three top drugs -- Revlimid, Eliquis, and Opdivo -- face patent expirations during the next decade. Fortunately, Bristol Myers Squibb got great news from a major European regulatory agency earlier this month.
The Committee for Medicinal Products for Human Use (CHMP) recommended that Bristol Myers Squibb's Zeposia be approved to treat adults with moderately to severely active ulcerative colitis who didn't respond to at least one other conventional therapy or biologic agent.
Let's dig into Zeposia's efficacy in treating patients with ulcerative colitis and why I believe this indication, which would be effective throughout the European Union if formally approved, could be a boon for Bristol Myers Squibb.
Image source: Getty Images.
An effective treatment option
According to the Crohn's and Colitis Foundation of America, ulcerative colitis is an inflammatory bowel disease that causes damage to the gastrointestinal (GI) tract. Unlike Crohn's Disease, which can affect any part of the GI tract, ulcerative colitis is limited to the large intestine and the rectum. Because ulcerative colitis impairs the ability of the GI tract to function, patients often experience abdominal pain, weight loss, and fatigue. The symptoms of ulcerative colitis can range from mild to severe, with some patients experiencing blood loss and anemia, which can require regular blood transfusions.
The disease often progresses, and preventing that requires monitoring and medication administered with the oversight of a gastroenterologist.
Bristol Myers Squibb's Zeposia, a once-daily pill, could soon become part of the treatment regimen in the EU. The medication already has been approved as a multiple sclerosis (MS) therapy in the U.S. and the EU. Patients with moderate to severe ulcerative colitis taking 1 milligram of Zeposia each day achieved clinical remission of their disease at a much higher rate than those receiving a placebo.
In fact, Phase 3 clinical trials revealed that 37% of patients on Zeposia achieved and maintained remission at the 52-week mark of treatment compared to just 18.5% of patients on a placebo. No new safety concerns were observed in Phase 3 trials of the drug, which means that it remains relatively safe compared to its benefit profile.
Zeposia could soon gain access to a massive market
So, with Zeposia likely months away from being approved for its second indication in the EU, what could that mean for pharma stock Bristol Myers Squibb?
First, Zeposia would gain access to a market of an estimated 1.5 million ulcerative colitis patients in the EU. And with 22% of ulcerative colitis patients suffering from moderate to severe cases of the condition in any given year, a regulatory approval in the E.U. would open up a market of approximately 330,000 patients.
There are a number of drugs already on the market for moderate to severe ulcerative colitis, such as AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara. Zeposia won't displace them, but I believe it is reasonable to expect it to seize 8% of the market, or about 26,000 patients.
Zeposia's list price for a year's supply is $89,000 in the U.S. Since drugs in the EU are a third to half the cost of drugs in the U.S., I will assume that the list price is $30,000 in the EU. Further reducing this figure to $15,000 annually for insurance adjustments would result in $400 million in annual revenue for the drug. This would represent a slight boost in Bristol Myers Squibb's revenue base given that analysts are forecasting $46.4 billion in revenue for this year.
For context, Zeposia generated $46 million in sales during the first half of this year. That's because the drug only recently received approval from the U.S. Food and Drug Administration (FDA) for an ulcerative colitis indication in May. And its approvals in the U.S. and EU for MS came in the early months of COVID last year, when many patients without life-threatening conditions weren't going to hospitals. That slowed the rollout of the drug.
Now that more patients returning to the health-care system, and with the European ulcerative colitis indication likely coming in a few months, Zeposia has plenty of potential to boost sales for Bristol Myers Squibb.
A quality dividend stock
Bristol Myers Squibb has worked very hard to both develop and acquire its next generation of drugs over the past few years. One piece of this was Bristol Myers Squibb's $13.1 billion acquisition of MyoKardia last year. MyoKardia is a late-stage biopharma company that is focused on treating serious heart diseases. Its most prominent drug is mavacamten, which analysts anticipate will reach peak sales of $2 billion annually if approved by the FDA. With a decision expected from the FDA by the end of next January, mavacamten could be on the market by early next year. Bristol Myers Squibb also has more than 50 compounds in development, which include two earlier stage compounds that were acquired in the deal for MyoKardia.
This is among the reasons analysts are forecasting that Bristol Myers Squibb's earnings per share will rise at an annual clip of 7% during the next five years. And since Bristol Myers Squibb's dividend payout ratio will be in the mid-20% range this year, there is plenty of room for the company to raise its dividend, just as it has done for the past 12 years straight.
Bristol Myers Squibb shares carry a 3.4% dividend yield, and the stock trades at less than eight times the company's non-GAAP earnings per share forecast for this year. Thus, Bristol Myers Squibb should be a buy for both value and dividend-oriented investors.
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Kody Kester owns shares of AbbVie, Bristol Myers Squibb, and Johnson & Johnson. The Motley Fool owns shares of and recommends Bristol Myers Squibb. 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. | There are a number of drugs already on the market for moderate to severe ulcerative colitis, such as AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Kody Kester owns shares of AbbVie, Bristol Myers Squibb, and Johnson & Johnson. It's no secret that Bristol Myers Squibb (NYSE: BMY) will need to innovate to grow as its three top drugs -- Revlimid, Eliquis, and Opdivo -- face patent expirations during the next decade. | See the 10 stocks *Stock Advisor returns as of October 20, 2021 Kody Kester owns shares of AbbVie, Bristol Myers Squibb, and Johnson & Johnson. There are a number of drugs already on the market for moderate to severe ulcerative colitis, such as AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara. The Committee for Medicinal Products for Human Use (CHMP) recommended that Bristol Myers Squibb's Zeposia be approved to treat adults with moderately to severely active ulcerative colitis who didn't respond to at least one other conventional therapy or biologic agent. | There are a number of drugs already on the market for moderate to severe ulcerative colitis, such as AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Kody Kester owns shares of AbbVie, Bristol Myers Squibb, and Johnson & Johnson. Let's dig into Zeposia's efficacy in treating patients with ulcerative colitis and why I believe this indication, which would be effective throughout the European Union if formally approved, could be a boon for Bristol Myers Squibb. | There are a number of drugs already on the market for moderate to severe ulcerative colitis, such as AbbVie's (NYSE: ABBV) Humira and Johnson & Johnson's (NYSE: JNJ) Stelara. See the 10 stocks *Stock Advisor returns as of October 20, 2021 Kody Kester owns shares of AbbVie, Bristol Myers Squibb, and Johnson & Johnson. Zeposia could soon gain access to a massive market So, with Zeposia likely months away from being approved for its second indication in the EU, what could that mean for pharma stock Bristol Myers Squibb? |
23819.0 | 2021-11-01 00:00:00 UTC | California judge rules for drugmakers in major opioid lawsuit | ABBV | https://www.nasdaq.com/articles/california-judge-rules-for-drugmakers-in-major-opioid-lawsuit-2021-11-02-0 | nan | nan | By Nate Raymond
Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties that accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case.
Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance.
Wilson said he was aware of the toll the deadly opioid epidemic had inflicted on society and that hospitalizations as a result of drug abuse and opioid-related overdose deaths "starkly demonsonstrate the enormity of the ongoing problem."
But he said that even if any of the drugmakers' marketing contained false or misleading statements about opioids' risks and benefits, the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland could not hold them liable.
That's because "any adverse downstream consequences flowing from medically appropriate prescriptions cannot constitute an actionable public nuisance," the federal and state government had already weighed in on the social utility of the drugs.
J&J in a statement said the decision showed that its "actions relating to the marketing and promotion of its important prescription pain medications were appropriate and responsible, and did not cause any public nuisance."
John Hueston, Endo's lawyer, said the ruling showed the drugmaker's "lawful conduct did not cause the widespread public nuisance at issue in Plaintiffs' complaint." The other drugmakers did not immediately respond to requests for comment.
The counties did not immediately respond to requests for comment.
(Reporting by Nate Raymond in Boston Editing by Shri Navaratnam and Sandra Maler)
((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. | Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance. By Nate Raymond Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties that accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case. Wilson said he was aware of the toll the deadly opioid epidemic had inflicted on society and that hospitalizations as a result of drug abuse and opioid-related overdose deaths "starkly demonsonstrate the enormity of the ongoing problem." | Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance. That's because "any adverse downstream consequences flowing from medically appropriate prescriptions cannot constitute an actionable public nuisance," the federal and state government had already weighed in on the social utility of the drugs. The other drugmakers did not immediately respond to requests for comment. | Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance. By Nate Raymond Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties that accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case. But he said that even if any of the drugmakers' marketing contained false or misleading statements about opioids' risks and benefits, the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland could not hold them liable. | Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance. By Nate Raymond Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties that accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case. Wilson said he was aware of the toll the deadly opioid epidemic had inflicted on society and that hospitalizations as a result of drug abuse and opioid-related overdose deaths "starkly demonsonstrate the enormity of the ongoing problem." |
23820.0 | 2021-11-01 00:00:00 UTC | California judge rules for drugmakers in major opioid lawsuit | ABBV | https://www.nasdaq.com/articles/california-judge-rules-for-drugmakers-in-major-opioid-lawsuit-2021-11-02 | nan | nan | Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties who accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case.
Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance.
(Reporting by Nate Raymond in Boston Editing by Shri Navaratnam)
((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. | Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance. Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties who accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case. (Reporting by Nate Raymond in Boston Editing by Shri Navaratnam) ((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. | Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance. Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties who accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case. (Reporting by Nate Raymond in Boston Editing by Shri Navaratnam) ((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. | Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance. Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties who accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case. (Reporting by Nate Raymond in Boston Editing by Shri Navaratnam) ((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. | Orange County Superior Court Judge Peter Wilson issued a tentative ruling finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit not liable for creating a public nuisance. Nov 1 (Reuters) - A California judge on Monday said he would rule against several large counties who accused four drugmakers of fueling an opioid epidemic, saying they had failed at trial to prove their $50 billion case. (Reporting by Nate Raymond in Boston Editing by Shri Navaratnam) ((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. |
23821.0 | 2021-10-31 00:00:00 UTC | Best Stocks To Buy This Week? 3 Biotech Names To Know | ABBV | https://www.nasdaq.com/articles/best-stocks-to-buy-this-week-3-biotech-names-to-know-2021-10-31 | nan | nan | 3 Biotech Stocks To Check Out This Week
The broader stock market appears to be taking a breather after a mostly hot week fueled by earnings. Despite all this, some would argue that biotech stocks remain relevant plays in the current market. Now the slowdown in stocks is likely due to earnings letdowns from tech names such as Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN). Despite both firms being part of the tech-heavy Nasdaq composite, the S&P 500 is on the decline as well.
Now, how might all this relate to biotech stocks might you ask? Well, for one thing, the industry is a necessity in good times and bad. This is evident from the creation of cutting-edge treatments to vaccines among other things enabled by biotech companies. For instance, we could take a look at the likes of Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV). Firstly, Gilead reported an earnings per share of $2.65 on revenue of $7.4 billion for the quarter. The company handily beat Wall Street’s projections of $1.71 and $6.18 billion respectively. As a result of its current momentum, Gilead is raising its revenue guidance for the fiscal year as well.
At the same time, the likes of biopharmaceutical giant AbbVie continue to break new ground on the research front. Just this week, the company announced notable updates regarding its major depressive disorder and Parkinson’s disease treatments. In essence, both candidates yielded significantly positive results in their respective Phase 3 studies. Accordingly, AbbVie lifted its profit forecasts for the fiscal year and also raised its quarterly dividend payout. Having read all that, you might be interested in biotech stocks yourself. Should that be the case, here are three to know in the stock market today.
Top Biotech Stocks To Buy [Or Sell] Ahead Of November 2021
Ocugen Inc. (NASDAQ: OCGN)
Argenx SE (NASDAQ: ARGX)
AstraZeneca Plc (NASDAQ: AZN)
Ocugen Inc.
Ocugen is a biopharmaceutical company that is focused on discovering and commercializing gene therapies to cure a wide number of diseases. Investors have and continue to watch Ocugen closely thanks to its ongoing Covid vaccine manufacturing deal. By using its breakthrough modifier gene therapy platform, it is able to treat multiple retinal diseases with one drug. Furthermore, its novel biologic product candidate is able to offer better therapy to patients with underserved diseases like wet age-related macular degeneration and diabetic macular edema. OCGN stock has experienced year-to-date gains of over 250%.
Last week, the company announced that it has submitted an Investigational New Drug application (IND) with the U.S. Food and Drug Administration (FDA) to evaluate its coronavirus vaccine candidate, Covaxin. Covaxin is a whole-virion inactivated investigational vaccine candidate that uses the same vero cell manufacturing platform that has been used in the production of polio vaccines for decades. In theory, the Phase 3 trial in the IND will serve to establish whether the immune response experienced by participants in a completed Phase 3 efficacy trial in India is similar to that observed in a demographically representative adult population in the U.S.
This comes after the company’s vaccine was given emergency use approval for children ages 2 to 18 by India’s Subject Expert Committee. Ocugen is currently partnering up with India’s Bharat Biotech to commercialize Covaxin in Canada and the U.S. Also, the two companies are now waiting on word from the World Health Organization on the vaccine’s emergency use application. Given this piece of news, will you consider buying OCGN stock?
Source: TD Ameritrade TOS
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Argenx SE
Argenx is a global immunology company that develops treatments for people suffering from severe autoimmune diseases and cancer. The company is now working with leading academic researchers through its Immunology Innovation Program (IIP) and strives to translate immunology breakthroughs into a world-class portfolio of novel antibody-base medicines.
Last week, the company reported its third-quarter financials and provided a business update. The company currently has three parallel regulatory reviews in its key territories of the U.S., Japan, and the EU. Furthermore, the company seems well-positioned for the planned global launch of efgartigimod for the treatment of generalized myasthenia gravis. Argenx says that, in order to optimize its strategy to make efgartigimod available to patients across the world, it is pursuing innovative partnerships across the world.
This would include signing an exclusive partnership agreement with Medison to commercialize efgartigimod for gMG in Israel. Under the agreement, MEdison will be responsible for seeking requisite regulatory approvals as well. CEO Tim Van Hauwermeiren had this to say, “As part of our commitment to becoming a fully-integrated, global immunology company, we are expanding our efgartigimod development plan to be in at least 15 indications by 2025 while also advancing a series of additional high-potential programs emerging from our Immunology Innovation Program.” With that being said, is ARGX stock worth buying right now?
Source: TD Ameritrade TOS
[Read More] Top Reddit Stocks To Buy Right Now? 5 For Your Late 2021 Watchlist
AstraZeneca Plc
Last but not least, we have AstraZeneca, a biopharmaceutical business whose innovative medicines are used by millions of patients worldwide. It focuses on key therapeutic areas like Oncology, Cardiovascular, and Immunology among others. With its headquarter in the U.K., the company is one of the world’s largest pharmaceutical companies and has operations in over 100 countries.
Notably, there is no shortage of updates on the developmental front when it comes to AstraZeneca now. Just last week, the company’s Imfinzi drug candidate produced groundbreaking results in the company’s TOPAZ-1 Phase 3 clinical trials. In detail, the study aims to determine the viability of the drug as a treatment for patients with advanced biliary tract cancer (ABTC). According to AstraZeneca, it is possibly the “first immunotherapy combination to demonstrate superior clinical outcomes” in ABTC patients.
By and large, this would mark the second positive Imfinzi trial this month in relation to the drug being a treatment for gastrointestinal cancers. The earlier case was its HIMALAYA trial in liver cancer. If anything, this would go to show AstraZeneca’s expertise in the biotech field now. All things considered, will you be adding AZN stock to your portfolio anytime soon?
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. | For instance, we could take a look at the likes of Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV). At the same time, the likes of biopharmaceutical giant AbbVie continue to break new ground on the research front. Accordingly, AbbVie lifted its profit forecasts for the fiscal year and also raised its quarterly dividend payout. | For instance, we could take a look at the likes of Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV). At the same time, the likes of biopharmaceutical giant AbbVie continue to break new ground on the research front. Accordingly, AbbVie lifted its profit forecasts for the fiscal year and also raised its quarterly dividend payout. | For instance, we could take a look at the likes of Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV). At the same time, the likes of biopharmaceutical giant AbbVie continue to break new ground on the research front. Accordingly, AbbVie lifted its profit forecasts for the fiscal year and also raised its quarterly dividend payout. | For instance, we could take a look at the likes of Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV). At the same time, the likes of biopharmaceutical giant AbbVie continue to break new ground on the research front. Accordingly, AbbVie lifted its profit forecasts for the fiscal year and also raised its quarterly dividend payout. |
23822.0 | 2021-10-30 00:00:00 UTC | FDA Approves Allergan's VUITY As First Eye Drop To Treat Presbyopia | ABBV | https://www.nasdaq.com/articles/fda-approves-allergans-vuity-as-first-eye-drop-to-treat-presbyopia-2021-10-30 | nan | nan | (RTTNews) - The FDA has approved Allergan's, an AbbVie (ABBV) company, VUITY (pilocarpine HCl ophthalmic solution) 1.25% for the treatment of presbyopia, commonly known as age-related blurry near vision, in adults.
VUITY is the first and only FDA-approved eye drop to treat this common and progressive eye condition that affects 128 million Americans, the company specified.
VUITY is a daily, prescription eye drop that works in as early as 15 minutes and lasts up to 6 hours, as measured on day 30, to improve near and intermediate vision without impacting distance vision.
""We are proud to offer Vuity as a first-of-its-kind once-daily eye drop that we believe will change the way people and their eye doctors approach presbyopia," Michael Severino, MD, Abbvie vice chairman and president said.
The FDA approval of VUITY is 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.
Both studies saw statistical significance in improvement of at least three lines in near vision in low light conditions without losing more than one line of distance vision on day 30 at hour 3.
There were no serious adverse events observed in these trials and the most common adverse events occurring at a frequency of >5% were headache and eye redness, the company noted.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - The FDA has approved Allergan's, an AbbVie (ABBV) company, VUITY (pilocarpine HCl ophthalmic solution) 1.25% for the treatment of presbyopia, commonly known as age-related blurry near vision, in adults. ""We are proud to offer Vuity as a first-of-its-kind once-daily eye drop that we believe will change the way people and their eye doctors approach presbyopia," Michael Severino, MD, Abbvie vice chairman and president said. The FDA approval of VUITY is 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. | (RTTNews) - The FDA has approved Allergan's, an AbbVie (ABBV) company, VUITY (pilocarpine HCl ophthalmic solution) 1.25% for the treatment of presbyopia, commonly known as age-related blurry near vision, in adults. ""We are proud to offer Vuity as a first-of-its-kind once-daily eye drop that we believe will change the way people and their eye doctors approach presbyopia," Michael Severino, MD, Abbvie vice chairman and president said. Both studies saw statistical significance in improvement of at least three lines in near vision in low light conditions without losing more than one line of distance vision on day 30 at hour 3. | ""We are proud to offer Vuity as a first-of-its-kind once-daily eye drop that we believe will change the way people and their eye doctors approach presbyopia," Michael Severino, MD, Abbvie vice chairman and president said. (RTTNews) - The FDA has approved Allergan's, an AbbVie (ABBV) company, VUITY (pilocarpine HCl ophthalmic solution) 1.25% for the treatment of presbyopia, commonly known as age-related blurry near vision, in adults. VUITY is the first and only FDA-approved eye drop to treat this common and progressive eye condition that affects 128 million Americans, the company specified. | (RTTNews) - The FDA has approved Allergan's, an AbbVie (ABBV) company, VUITY (pilocarpine HCl ophthalmic solution) 1.25% for the treatment of presbyopia, commonly known as age-related blurry near vision, in adults. ""We are proud to offer Vuity as a first-of-its-kind once-daily eye drop that we believe will change the way people and their eye doctors approach presbyopia," Michael Severino, MD, Abbvie vice chairman and president said. VUITY is the first and only FDA-approved eye drop to treat this common and progressive eye condition that affects 128 million Americans, the company specified. |
23823.0 | 2021-10-29 00:00:00 UTC | iShares Russell 1000 Growth ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/ishares-russell-1000-growth-etf-experiences-big-inflow-2021-10-29 | 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 Growth ETF (Symbol: IWF) where we have detected an approximate $118.6 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 259,400,000 to 259,800,000). Among the largest underlying components of IWF, in trading today Nike (Symbol: NKE) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 3.5%, and Eli Lilly (Symbol: LLY) is higher by about 0.3%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $207.63 per share, with $296.52 as the 52 week high point — that compares with a last trade of $295.21. 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 IWF, in trading today Nike (Symbol: NKE) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 3.5%, and Eli Lilly (Symbol: LLY) is higher by about 0.3%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $207.63 per share, with $296.52 as the 52 week high point — that compares with a last trade of $295.21. 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 IWF, in trading today Nike (Symbol: NKE) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 3.5%, and Eli Lilly (Symbol: LLY) is higher by about 0.3%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $207.63 per share, with $296.52 as the 52 week high point — that compares with a last trade of $295.21. 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 IWF, in trading today Nike (Symbol: NKE) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 3.5%, and Eli Lilly (Symbol: LLY) is higher by about 0.3%. 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 Growth ETF (Symbol: IWF) where we have detected an approximate $118.6 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 259,400,000 to 259,800,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $207.63 per share, with $296.52 as the 52 week high point — that compares with a last trade of $295.21. | Among the largest underlying components of IWF, in trading today Nike (Symbol: NKE) is up about 0.3%, AbbVie Inc (Symbol: ABBV) is up about 3.5%, and Eli Lilly (Symbol: LLY) is higher by about 0.3%. 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 Growth ETF (Symbol: IWF) where we have detected an approximate $118.6 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 259,400,000 to 259,800,000). For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average: Looking at the chart above, IWF's low point in its 52 week range is $207.63 per share, with $296.52 as the 52 week high point — that compares with a last trade of $295.21. |
23824.0 | 2021-10-29 00:00:00 UTC | Daily Dividend Report: ITW,HUM,AAPL,ROK,ABBV | ABBV | https://www.nasdaq.com/articles/daily-dividend-report%3A-itwhumaaplrokabbv-2021-10-29 | nan | nan | The Board of Directors of Illinois Tool Works declared a dividend on the company's common stock of $1.22 per share for the fourth quarter of 2021. The dividend equates to $4.88 per share on a full-year basis. The dividend will be paid on January 14, 2022 to shareholders of record as of December 31, 2021.
Humana announced today that its Board of Directors has declared a cash dividend to stockholders of $0.70 per share payable on January 28, 2022 to stockholders of record as of the close of business on December 31, 2021.
Apple's board of directors has declared a cash dividend of $0.22 per share of the Company's common stock. The dividend is payable on November 11, 2021 to shareholders of record as of the close of business on November 8, 2021.
The Board of Directors of Rockwell Automation, following its regular review, today declared a quarterly dividend of $1.12 per share on its outstanding common stock, payable December 10, 2021 to shareowners of record at the close of business on November 15, 2021. This increase of 5% from last quarter's dividend of $1.07 reflects continued strong cash generation and reinforces the company's commitment to returning cash to shareowners.
AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.30 per share to $1.41 per share beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. This reflects an increase of approximately 8.5 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by more than 250 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
VIDEO: Daily Dividend Report: ITW,HUM,AAPL,ROK,ABBV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | This reflects an increase of approximately 8.5 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.30 per share to $1.41 per share beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by more than 250 percent. | AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.30 per share to $1.41 per share beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. This reflects an increase of approximately 8.5 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by more than 250 percent. | AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.30 per share to $1.41 per share beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. This reflects an increase of approximately 8.5 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by more than 250 percent. | AbbVie is announcing today that its board of directors declared an increase in the company's quarterly cash dividend from $1.30 per share to $1.41 per share beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. Since the company's inception in 2013, AbbVie has increased its quarterly dividend by more than 250 percent. This reflects an increase of approximately 8.5 percent, continuing AbbVie's strong commitment to returning cash to shareholders through a growing dividend. |
23825.0 | 2021-10-29 00:00:00 UTC | US STOCKS-Wall Street recovers from early lows on Microsoft boost | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-street-recovers-from-early-lows-on-microsoft-boost-2021-10-29 | nan | nan | By Chuck Mikolajczak
NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and the S&P 500 and Nasdaq inched to fresh intraday highs on Friday as gains in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker.
Microsoft's shares touched a record high and neared a market capitalization of $2.5 trillion, surpassing Apple Inc's AAPL.O market cap of roughly $2.46 trillion.
Apple dropped 2.2% after it warned the impact of supply-chain disruptions will be even worse during the current holiday sales quarter, while Amazon.com Inc AMZN.O lost 2.8% as it forecast downbeat holiday-quarter sales amid labor shortages.
"The market hasn’t overly rewarded companies that have beat expectations that have come in screamingly positive, but it has punished misses," said Liz Young, head of investment strategy at SoFi.
"That tells me we are sort of shifting into this period where we have fundamentals starting to run the show again and that is a healthy place to be."
The Dow Jones Industrial Average .DJI fell 7.78 points, or 0.02%, to 35,722.7, the S&P 500 .SPX lost 3.15 points, or 0.07%, to 4,593.27 and the Nasdaq Composite .IXIC dropped 8.24 points, or 0.05%, to 15,439.88.
The S&P 500 had fallen as much as 0.65% earlier in the day.
Apple had risen about 2.5% while Amazon gained 1.6% in Thursday's session, helping to send the S&P 500 and Nasdaq to closing record highs.
With 279 companies in the S&P 500 having reported results through Friday morning, 82.1% have topped earnings expectations, according to Refinitiv data. The current year-over-year earnings growth rate for the third quarter is 39.2%.
Market participants have been closely attuned to the ability of companies to maneuver through labor shortages, rising price pressures and clogs in the supply chain, and a solid earnings season has helped investors overlook a mixed macroeconomic picture with a Federal Reserve that is poised to begin to trim its massive bond purchases soon.
The central bank's next policy announcement is on Nov. 3.
Data showed U.S. consumer spending increased solidly in September, while inflation pressures are broadening.
The data indicated the jury is still out on whether the Fed's "transitory" view on inflation will hold true.
AbbVie Inc ABBV.N gained 4.2% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year.
Starbucks Corp SBUX.O tumbled 7.4% after the coffee chain said it expects fiscal 2022 operating margin to be below its long-term target due to inflation and investments.
Declining issues outnumbered advancing ones on the NYSE by a 1.52-to-1 ratio; on Nasdaq, a 1.14-to-1 ratio favored decliners.
The S&P 500 posted 46 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 107 new highs and 65 new lows.
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
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.N gained 4.2% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. "The market hasn’t overly rewarded companies that have beat expectations that have come in screamingly positive, but it has punished misses," said Liz Young, head of investment strategy at SoFi. Market participants have been closely attuned to the ability of companies to maneuver through labor shortages, rising price pressures and clogs in the supply chain, and a solid earnings season has helped investors overlook a mixed macroeconomic picture with a Federal Reserve that is poised to begin to trim its massive bond purchases soon. | AbbVie Inc ABBV.N gained 4.2% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and the S&P 500 and Nasdaq inched to fresh intraday highs on Friday as gains in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. Apple dropped 2.2% after it warned the impact of supply-chain disruptions will be even worse during the current holiday sales quarter, while Amazon.com Inc AMZN.O lost 2.8% as it forecast downbeat holiday-quarter sales amid labor shortages. | AbbVie Inc ABBV.N gained 4.2% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and the S&P 500 and Nasdaq inched to fresh intraday highs on Friday as gains in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. Apple had risen about 2.5% while Amazon gained 1.6% in Thursday's session, helping to send the S&P 500 and Nasdaq to closing record highs. | AbbVie Inc ABBV.N gained 4.2% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and the S&P 500 and Nasdaq inched to fresh intraday highs on Friday as gains in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. Apple had risen about 2.5% while Amazon gained 1.6% in Thursday's session, helping to send the S&P 500 and Nasdaq to closing record highs. |
23826.0 | 2021-10-29 00:00:00 UTC | AbbVie gets a shot in the arm from newer drug sales, lifts profit view | ABBV | https://www.nasdaq.com/articles/abbvie-gets-a-shot-in-the-arm-from-newer-drug-sales-lifts-profit-view-2021-10-29 | nan | nan | Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly revenue.
The company has been focusing on gaining expanded approvals and driving growth for Skyrizi and Rinvoq, launched in 2019, as it prepares for competition for its blockbuster rheumatoid arthritis drug, Humira.
Humira is the world's highest selling medicine, accounting for nearly 40% of AbbVie's total sales. The company's newer drugs, Skyrizi and Rinvoq, are approved to treat the same conditions as Humira.
Humira sales, which rose 5.6% to $5.43 billion in the third quarter, are expected to be squeezed when generic rivals enter the U.S. market in 2023.
Rinvoq sales could take a near-term hit, analysts have said, after the U.S. drug regulator asked the company and others to present information about the risks of death and serious conditions from the use of their drugs that belong to a class of treatments known as JAK inhibitors.
Meanwhile, Rinvoq sales more than doubled to $453 million in the quarter ended Sept. 30, beating the average analyst estimate of $436.8 million, according to Refinitiv IBES estimates.
Sales of Skyrizi jumped 83.3% to $796 million, also above estimates of $765 million.
Revenue from Botox, used as an anti-wrinkle injection and for other cosmetic purposes, also beat estimates.
Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion.
AbbVie now expects full-year adjusted profit of $12.63 to $12.67 per share, compared with prior expectation of $12.52 to $12.62.
(Reporting by Manas Mishra and Oishee Majumdar in Bengaluru; Editing by Shinjini Ganguli)
((oishee.majumdar@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. | Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly revenue. Humira is the world's highest selling medicine, accounting for nearly 40% of AbbVie's total sales. Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion. | Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly revenue. Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion. Humira is the world's highest selling medicine, accounting for nearly 40% of AbbVie's total sales. | Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly revenue. Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion. Humira is the world's highest selling medicine, accounting for nearly 40% of AbbVie's total sales. | Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion. AbbVie now expects full-year adjusted profit of $12.63 to $12.67 per share, compared with prior expectation of $12.52 to $12.62. Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly revenue. |
23827.0 | 2021-10-29 00:00:00 UTC | US STOCKS-Wall Street shakes off Amazon, Apple weakness to end modestly higher | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-street-shakes-off-amazon-apple-weakness-to-end-modestly-higher-2021-10-29 | nan | nan | By Chuck Mikolajczak
NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and closed out the last trading day of the month with modest gains as a rise in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker.
Microsoft's shares touched a record high and neared a market capitalization of $2.5 trillion, surpassing Apple Inc's AAPL.O market cap of roughly $2.46 trillion.
Apple dropped after it warned the impact of supply-chain disruptions will be even worse during the current holiday sales quarter, while Amazon.com Inc AMZN.O lost ground as it forecast downbeat holiday-quarter sales amid labor shortages.
"The takeaway from today is the resilience to the overall index despite 10% of market cap in two companies disappointing and yet the market is flat. It’s the resilience of the marketplace, it suggests to me the trend is still intact,"
said David Joy, chief market strategist at Ameriprise Financial in Boston.
"Maybe the numbers were a surprise to the analyst community but not the reasons for the disappointment so there is still a general view that this is not business lost but business postponed and the trend in the economy and in the market continues to be to the upside."
According to preliminary data, the S&P 500 .SPX gained 8.48 points, or 0.18%, to end at 4,604.90 points, while the Nasdaq Composite .IXIC gained 48.66 points, or 0.32%, to 15,496.78. The Dow Jones Industrial Average .DJI rose 88.36 points, or 0.25%, to 35,818.84.
The S&P 500 had fallen as much as 0.65% earlier in the day. The benchmark index advanced for a fourth straight week, its longest weekly streak of gains since April.
Apple had risen about 2.5% while Amazon gained 1.6% in Thursday's session, helping to send the S&P 500 and Nasdaq to closing record highs.
With 279 companies in the S&P 500 having reported results through Friday morning, 82.1% have topped earnings expectations, according to Refinitiv data. The current year-over-year earnings growth rate for the third quarter is 39.2%.
Market participants have been closely attuned to the ability of companies to maneuver through labor shortages, rising price pressures and clogs in the supply chain, and a solid earnings season has helped investors overlook a mixed macroeconomic picture with a Federal Reserve that is poised to begin to trim its massive bond purchases soon.
The central bank's next policy announcement is on Nov. 3.
Data showed U.S. consumer spending increased solidly in September, while inflation pressures are broadening.
The data indicated the jury is still out on whether the Fed's "transitory" view on inflation will hold true.
AbbVie Inc ABBV.N advanced as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year.
Starbucks Corp SBUX.O tumbled after the coffee chain said it expects fiscal 2022 operating margin to be below its long-term target due to inflation and investments.
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
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.N advanced as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. It’s the resilience of the marketplace, it suggests to me the trend is still intact," said David Joy, chief market strategist at Ameriprise Financial in Boston. Market participants have been closely attuned to the ability of companies to maneuver through labor shortages, rising price pressures and clogs in the supply chain, and a solid earnings season has helped investors overlook a mixed macroeconomic picture with a Federal Reserve that is poised to begin to trim its massive bond purchases soon. | AbbVie Inc ABBV.N advanced as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and closed out the last trading day of the month with modest gains as a rise in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. Microsoft's shares touched a record high and neared a market capitalization of $2.5 trillion, surpassing Apple Inc's AAPL.O market cap of roughly $2.46 trillion. | AbbVie Inc ABBV.N advanced as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and closed out the last trading day of the month with modest gains as a rise in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. According to preliminary data, the S&P 500 .SPX gained 8.48 points, or 0.18%, to end at 4,604.90 points, while the Nasdaq Composite .IXIC gained 48.66 points, or 0.32%, to 15,496.78. | AbbVie Inc ABBV.N advanced as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. "The takeaway from today is the resilience to the overall index despite 10% of market cap in two companies disappointing and yet the market is flat. According to preliminary data, the S&P 500 .SPX gained 8.48 points, or 0.18%, to end at 4,604.90 points, while the Nasdaq Composite .IXIC gained 48.66 points, or 0.32%, to 15,496.78. |
23828.0 | 2021-10-29 00:00:00 UTC | US STOCKS-Wall Street shakes off Amazon, Apple weakness to end modestly higher | ABBV | https://www.nasdaq.com/articles/us-stocks-wall-street-shakes-off-amazon-apple-weakness-to-end-modestly-higher-2021-10-29-0 | nan | nan | By Chuck Mikolajczak
NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and closed out the last trading day of the month with modest gains on Friday as a rise in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker.
Microsoft Corp's MSFT.O shares closed at a record high of $331.62 and ended the session with a market capitalization of $2.49 trillion, surpassing Apple Inc's AAPL.O market cap of roughly $2.48 trillion.
Apple lost 1.81% after it warned the impact of supply-chain disruptions will be even worse during the current holiday sales quarter, while Amazon.com Inc AMZN.O declined 2.15% as it forecast downbeat holiday-quarter sales amid labor shortages.
"The takeaway from today is the resilience to the overall index despite 10% of market cap in two companies disappointing and yet the market is flat. It’s the resilience of the marketplace, it suggests to me the trend is still intact,"
said David Joy, chief market strategist at Ameriprise Financial in Boston.
"Maybe the numbers were a surprise to the analyst community but not the reasons for the disappointment so there is still a general view that this is not business lost but business postponed and the trend in the economy and in the market continues to be to the upside."
The Dow Jones Industrial Average .DJI rose 89.08 points, or 0.25%, to 35,819.56, the S&P 500 .SPX gained 8.96 points, or 0.19%, to 4,605.38 and the Nasdaq Composite .IXIC added 50.27 points, or 0.33%, to 15,498.39.
The S&P 500 had fallen as much as 0.65% earlier in the day. The benchmark index advanced 1.3% for the week, its fourth straight weekly climb, marking its longest weekly streak of gains since April. For the month, the S&P rose 6.9%, its biggest monthly rise since November 2020.
The Dow rose 0.4% for the week while the Nasdaq gained 2.7%, also marking four straight weekly gains for each. The Dow climbed 5.8% for October, its best monthly performance since March, while the Nasdaq jumped 7.3% for its biggest monthly percentage gain since November 2020.
Apple had risen about 2.5% while Amazon gained 1.6% in Thursday's session, helping to send the S&P 500 and Nasdaq to closing record highs.
With 279 companies in the S&P 500 having reported results through Friday morning, 82.1% have topped earnings expectations, according to Refinitiv data. The current year-over-year earnings growth rate for the third quarter is 39.2%.
Market participants have been closely attuned to the ability of companies to maneuver through labor shortages, rising price pressures and clogs in the supply chain, and a solid earnings season has helped investors overlook a mixed macroeconomic picture with a Federal Reserve that is poised to begin to trim its massive bond purchases soon.
The central bank's next policy announcement is on Nov. 3.
Data showed U.S. consumer spending increased solidly in September, while inflation pressures are broadening.
The data indicated the jury is still out on whether the Fed's "transitory" view on inflation will hold true.
AbbVie Inc ABBV.N advanced 4.56% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year.
Starbucks Corp SBUX.O tumbled 6.30% after the coffee chain said it expects fiscal 2022 operating margin to be below its long-term target due to inflation and investments.
Declining issues outnumbered advancing ones on the NYSE by a 1.14-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favored advancers.
The S&P 500 posted 50 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 127 new highs and 78 new lows.
Volume on U.S. exchanges was 11.12 billion shares, compared with the 10.35 billion average for the full session over the last 20 trading days.
(Reporting by Chuck Mikolajczak in New York Editing by Matthew Lewis)
((charles.mikolajczak@tr.com; @ChuckMik;))
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.N advanced 4.56% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. It’s the resilience of the marketplace, it suggests to me the trend is still intact," said David Joy, chief market strategist at Ameriprise Financial in Boston. Market participants have been closely attuned to the ability of companies to maneuver through labor shortages, rising price pressures and clogs in the supply chain, and a solid earnings season has helped investors overlook a mixed macroeconomic picture with a Federal Reserve that is poised to begin to trim its massive bond purchases soon. | AbbVie Inc ABBV.N advanced 4.56% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and closed out the last trading day of the month with modest gains on Friday as a rise in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. The benchmark index advanced 1.3% for the week, its fourth straight weekly climb, marking its longest weekly streak of gains since April. | AbbVie Inc ABBV.N advanced 4.56% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and closed out the last trading day of the month with modest gains on Friday as a rise in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. Microsoft Corp's MSFT.O shares closed at a record high of $331.62 and ended the session with a market capitalization of $2.49 trillion, surpassing Apple Inc's AAPL.O market cap of roughly $2.48 trillion. | AbbVie Inc ABBV.N advanced 4.56% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Chuck Mikolajczak NEW YORK, Oct 29 (Reuters) - U.S. stocks shook off early declines and closed out the last trading day of the month with modest gains on Friday as a rise in Microsoft helped offset declines in Amazon and Apple after disappointing quarterly earnings from the online retailer and iPhone maker. "The takeaway from today is the resilience to the overall index despite 10% of market cap in two companies disappointing and yet the market is flat. |
23829.0 | 2021-10-29 00:00:00 UTC | AbbVie Breaks Above 200-Day Moving Average - Bullish for ABBV | ABBV | https://www.nasdaq.com/articles/abbvie-breaks-above-200-day-moving-average-bullish-for-abbv-2021-10-29 | nan | nan | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.26, changing hands as high as $114.47 per share. AbbVie Inc shares are currently trading up about 4.3% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $83 per share, with $121.53 as the 52 week high point — that compares with a last trade of $114.51. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.26, changing hands as high as $114.47 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $83 per share, with $121.53 as the 52 week high point — that compares with a last trade of $114.51. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.26, changing hands as high as $114.47 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $83 per share, with $121.53 as the 52 week high point — that compares with a last trade of $114.51. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.26, changing hands as high as $114.47 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $83 per share, with $121.53 as the 52 week high point — that compares with a last trade of $114.51. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Friday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.26, changing hands as high as $114.47 per share. AbbVie Inc shares are currently trading up about 4.3% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $83 per share, with $121.53 as the 52 week high point — that compares with a last trade of $114.51. |
23830.0 | 2021-10-29 00:00:00 UTC | AbbVie (ABBV) Q3 2021 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q3-2021-earnings-call-transcript-2021-10-29 | nan | nan | Image source: The Motley Fool.
AbbVie (NYSE: ABBV)
Q3 2021 Earnings Call
Oct 29, 2021, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Thank you for standing by. Welcome to the AbbVie third quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations.
Ma'am, you may proceed.
Liz Shea -- Vice President, Investor Relations
Good morning, and thanks for joining us. Also on the call with me, today are Rick Gonzalez, chairman of the board and chief executive officer; Michael Severino, vice chairman, and president; Rob Michael, executive vice president and chief financial officer; and Jeff Stewart, executive vice president, commercial operations. Before we get started, some statements we make today may be considered forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements.
Additional information about these risks and uncertainties is included in our SEC filings. AbbVie undertakes no obligation to update these forward-looking statements, except as required by law. On today's conference call, non-GAAP financial measures will be used to help investors understand AbbVie's business performance. These non-GAAP financial measures are reconciled with comparable GAAP financial measures in our earnings release and regulatory filings from today, which can be found on our website.
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Unless otherwise noted, our commentary on sales growth is on a comparable basis which includes full current year and historical results for Allergan. For this comparison of underlying performance, all historically reported Allergan revenues have been recast to conform to AbbVie's revenue recognition accounting policies and exclude the divestitures of ZENPEP and Biocase. References to operational growth further exclude the impact of exchange. Following our prepared remarks, we'll take your questions.
So with that, I'll now turn the call over to Rick.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Thank you, Liz. Good morning, everyone, and thank you for joining us today. I'll discuss our third quarter performance and outlook, and then Jeff, Mike, and Rob will review our business highlights, pipeline progress, and financial results in more detail. AbbVie continues to perform very well.
We once again delivered an outstanding quarter with adjusted earnings per share of $3.33, exceeding the midpoint of our guidance by $0.13. Total adjusted net revenues of more than $14.3 billion was up 10.8% on an operational basis, with balanced growth across each of the major growth platforms. We continue to see double-digit revenue growth in immunology, where 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.
Aesthetics is also demonstrating impressive double-digit operational sales growth. Our dedicated global Aesthetics structure and increased investment are driving accelerated category growth across both toxins and pillars, where there is substantial room for additional market penetration. Our strategic investments and targeted field force expansions have improved overall customer retention rates and significantly increased the number of first-time patients to our leading brands. We are once again raising our full year guidance for Aesthetics this quarter, and we view this portfolio as an extremely attractive growth opportunity over the long term with high single-digit compounded annual growth rates expected through the end of the decade.
Our Neuroscience business drove robust double-digit revenue performance again this quarter and we added a compelling new product to our migraine portfolio with the approval of Qulipta, a once-daily oral medication for the preventative treatment of episodic migraine. Our hematological oncology portfolio delivered operational sales growth of approximately 8% this quarter despite a protracted market recovery in CLL, which remains below pre-COVID levels. Beyond the significant contributions of Imbruvica and Venclexta, we have an exciting oncology pipeline with several promising programs in development for blood cancers and solid tumors, to support sustainable long-term growth. These include navitoclax for myelofibrosis, eculizumab for B-cell malignancies, ABBV-383 for multiple myeloma, lemzoparlimab for AML and MDS as well as Ubrelvy for non-squamous non-small cell lung cancer.
Lastly, we continue to make excellent progress with the integration of Allergan. Our financial results show that we have created a stronger and much more diverse company with numerous products across our newly combined portfolio, delivering robust growth. Overall, I'm extremely pleased with our momentum, and we are once again raising our full year 2021 EPS guidance. We now expect adjusted earnings per share of $12.63 to $12.67 reflecting growth of nearly 20% at the midpoint.
Additionally, as noted in our news release, today, we're announcing an 8.5% increase in our quarterly cash dividend from $1.30 per share to $1.41 per share, beginning with the dividend payable in February 2022. Since our inception, we've grown our quarterly dividend by more than 250%. In summary, we're demonstrating strong execution across our portfolio. We've assembled an impressive set of diversified assets with significant growth potential, giving us a high degree of confidence in the long-term outlook for our business.
With that, I'll turn the call over to Jeff. Jeff?
Jeff Stewart -- Executive Vice President, Commercial Operations
Thank you, Rick. We continue to demonstrate strong and balanced growth across our therapeutic portfolio. I'll start with immunology, where we remain well-positioned for sustained leadership with a portfolio of best-in-class medicines. Total immunology revenues were approximately $6.7 billion, up 14.9% on an operational basis.
Global Humira sales were more than $5.4 billion, up 5.2% on an operational basis with 10.1% revenue growth in the U.S., offset by biosimilar competition across the international markets, where revenues were down 16.7% on an operational basis. Skyrizi is performing extremely well. Global sales of nearly $800 million were up 18.1% on a sequential basis, reflecting continued market share gains. In the U.S., Skyrizi's leading in-play psoriasis patient share, which includes both new and switching patients, is now roughly 36%, more than double the share capture of the next nearest biologic competitor.
Skyrizi's total prescription share in the U.S. psoriasis biologic market is now nearly 20%, second only to Humira. Internationally, Skyrizi continues to ramp nicely, having also achieved in-play patient share leadership in more than a dozen key markets. This compelling share performance will be further supported by two important near-term enhancements: the availability of more simple delivery forms for Skyrizi as well as the potential indication expansion in psoriatic arthritis.
First, we recently launched the new and convenient Skyrizi single-dose 150-milligram self-injectable pen and syringe in major territories around the world. The market response has been very favorable, and the approval now makes Skyrizi the only quarterly dose brand that is available in a single self-injectable pen for patients. Second, we are preparing for the global launch of Skyrizi in psoriatic arthritis as we near approval decisions in both the U.S. and Europe.
We received a CHMP positive opinion earlier this month with anticipated approval in Europe by year-end, and we continue to expect FDA approval early next year. The addition of this indication, once approved, will round out Skyrizi's dermatology label and give patients with PSA access to a new compelling therapeutic option. We are also making excellent progress with Skyrizi's development in Crohn's disease, which was recently submitted for U.S. regulatory review with commercialization expected next year.
Rinvoq also continues to demonstrate robust growth. Global sales of more than $450 million were up nearly 20% on a sequential basis. Total in-play RA share remains strong and now reflects approximately 17% patient share in the U.S. as well as leadership in a half a dozen key countries around the world.
Internationally, Rinvoq's share continues to ramp in RA and we are making excellent progress with the recent commercial launches of PSA, AS, and atopic dermatitis where we have secured strong labels for each of these indications. As many of you are aware, the FDA issued a safety communication regarding new and updated warnings for JAK inhibitors, including Rinvoq in early September. While we do not yet have an updated label, we are closely monitoring prescription trends and feedback from the field and we have not observed a significant impact to Rinvoq's utilization at this time. That said, should the updated label restrict use to TNF inadequate responders, we would certainly expect a near-term impact to new patient starts in RA.
Based on the robust data we have generated across our development program against multiple biologics and later lines of RA therapy. We do expect that Rinvoq will ultimately obtain higher share growth in the second line plus setting as most patients ultimately fail TNF therapies over time. Overall, we continue to feel very good about the performance and profile of Rinvoq and remain confident this asset will be a major contributor to AbbVie's long-term growth. In hematologic oncology, global revenues were nearly $1.9 billion, up 8.1% on an operational basis.
Imbruvica and Venclexta have a strong position across multiple heme indications, including CLL, where AbbVie's combined portfolio remains the clear market share leader across all lines of therapy. Global Imbruvica revenues were approximately $1.4 billion, up 0.3%. In the U.S., performance continues to be primarily impacted by a slower-than-expected market recovery in CLL and as well as some modest share erosion from newer therapies, including Venclexta and other BTK inhibitors. New patient starts in CLL remain below pre-COVID levels.
and it is difficult to predict when this dynamic may fully recover. Venclexta sales were up 38.7% on an operational basis with increasing momentum across all indications, including a strong AML launch trajectory in the international markets. In neuroscience, revenues were nearly $1.6 billion, up 25% on an operational basis. I'm particularly pleased with the results and outlook for our emerging migraine portfolio, where we are now the only company to have a portfolio of distinctive therapies to address the spectrum of this common complex and debilitating disease, including Botox Therapeutic, a unique foundational treatment for the prevention of chronic migraine, which is performing very well.
Total sales of $645 million for all the therapeutic Botox uses were up 22.5% on an operational basis. Ubrelvy, our leading oral CGRP treatment for acute migraine is also demonstrating rapid growth. Total sales of $162 million were up nearly 30% on a sequential basis. Based on Ubrelvy's competitive profile, continued strong new patient starts, and a rapidly expanding market, we remain confident that Ubrelvy represents a $1 billion-plus peak sales opportunity.
And now we are just launching Qulipta, the only oral CGRP specifically developed for the preventative treatment of migraine, which is already off to an excellent start. Early feedback from our physicians has been very positive, given Qulipta's strong efficacy, safety, and convenient dosing profile relative to the current standards of care. The Qulipta launch is being supported by our existing migraine sales force with commercial access expected to ramp strongly through the first half of 2022. Qulipta also represents a $1 billion-plus peak sales opportunity.
Now we believe having three distinct and competitively positioned therapies across the spectrum of migraine conditions with Botox therapeutic, Ubrelvy, and Qulipta which each have been optimized for a specific migraine indication, enables physicians to tailor treatment for the broadest range of patients. Our portfolio of migraine therapy puts us in a very strong position that capture growth in this dynamic market. Turning to psychiatry. We also see robust performance with Vraylar, which remains the fastest-growing atypical antipsychotic.
Total revenues of $461 million were up 29% on an operational basis with continued strong demand across schizophrenia, bipolar one disorder, and bipolar depression. Lastly, in our other key therapeutic areas, we saw a significant contribution from Eye Care, which had revenues of $871 million, up 2.9% on an operational basis. Mavyret sales were $426 million, up 2.9% on an operational basis as treated patient volumes still remain suppressed compared to pre-COVID levels. And we saw double-digit growth operationally for both Creon and Lupron.
So overall, I'm pleased with our continued execution across the therapeutic portfolio, which is demonstrating strong revenue growth. And with that, I'll turn the call over to Mike for additional comments on our R&D programs. Mike?
Mike Severino -- Vice Chairman and President
Thank you, Jeff. I'll start with immunology, where we had several regulatory updates and data readouts for both Rinvoq and Skyrizi across therapeutic areas. Following successful completion of the registrational programs for Rinvoq in ulcerative colitis and Skyrizi in Crohn's disease, we submitted our regulatory applications for each asset in their respective indications. We saw very strong data for both Rinvoq and Skyrizi as induction and maintenance treatments in UC and Crohn's, respectively.
And based on these results, we believe both drugs have the potential to become a highly effective, differentiated therapies in these indications. We anticipate approval decisions for both in 2022. Earlier this month, we announced positive top-line results from our phase 3 Select-AXIS two program for Rinvoq and axial SpA, which included data from two stand-alone studies. One for ankylosing spondylitis patients who had an inadequate response to biologics and another for patients with non-radiographic axial SpA.
In the ankylosing spondylitis biorefractory study, Rinvoq performed very well, demonstrating significantly greater improvements in signs and symptoms as well as physical function and imaging endpoints compared to Placebo. We saw levels of efficacy in this difficult-to-treat refractory population similar to those more typically observed in bio-naive patients. These results will be added to our submission package for Rinvoq and AS, which is currently under review by the FDA. In the non-radiographic axial SpA study, Rinvoq also performed very well, meeting the primary and key secondary endpoints.
We plan to submit our regulatory applications in this indication later this quarter as well. Rinvoq's safety profile in these axial SpA trials was consistent with previous studies, and there was no evidence for increased risk of DVT, PE, MACE events, or malignancies in either study. Based on the data generated in the Select Access program, we believe Rinvoq has the potential to improve care for patients suffering from axial spondyloarthritis by providing sustained disease control and rapid, and durable pain reduction as well as improving function. As you're likely aware, in September, the FDA communicated that they will require new warnings for JAK inhibitors, including Rinvoq and their use will be limited to certain patients who have not responded to or cannot tolerate anti-TNFs.
We continue to work with the FDA regarding updated labeling language for the RA indication while simultaneously engaging with the agency on our files for atopic dermatitis, psoriatic arthritis, and ankylosing spondylitis. We remain confident in our submission packages for these three new indications and continue to expect approvals following completion of the RA label update. In the area of oncology, we continue to make good progress advancing all stages of our pipeline. We're nearing completion of several indication expansion programs for Venclexta.
In our study in previously untreated higher-risk MDS patients, which recently received a breakthrough therapy designation, we expect to make a data cut early next year to include six-month follow-up data for duration of response. Based on this data cut, we plan to submit our regulatory application to the FDA in the first half of 2022. And for an accelerated approval. We continue to make good progress with Venclexta in the CANOVA trial, which is evaluating Venclexta in relapsed/refractory multiple myeloma patients with a T114 mutation.
Venclexta has shown strong anti-myeloma activity in this biomarker-defined population and, if successful, has an opportunity to play an important role in the treatment paradigm for multiple myeloma. We expect the data readout from this event-driven trial next year. In our early to mid-stage Hemon pipeline, we continue to expand the cohorts in the epcoritamab phase one/two studies in diffuse large B-cell lymphoma and follicular lymphoma. And we're evaluating epcoritamab as both a monotherapy and in combinations.
We expect to see data from both the monotherapy and combo studies next year, and we will discuss the monotherapy data with regulators regarding a file for accelerated approval. We also recently began the dose-escalation stage of the Phase one-b studies for lemzoparlimab in AML, MDS, and multiple myeloma. And ABBV-383, our BCMA CD3 bispecific antibody is currently in the expansion stage of its phase one study in multiple myeloma patients. and we expect to begin registrational phase three studies next year.
Moving to neuroscience, where we had several notable pipeline events since our lastearnings call In September, we received FDA approval for Qulipta, the only oral CGRP specifically designed as a preventative treatment for migraine. We're very pleased with the label, which reflects Qulipta's strong benefit-risk profile and is supported by a robust clinical development program. In our registrational program, which evaluated Qulipta in nearly 2,000 patients suffering from episodic migraine, treatment with Qulipta resulted in a significant reduction in mean monthly migraine days compared to Placebo.
And approximately 60% of patients achieved at least a 50% reduction in migraine days. We think these data compare favorably to other preventative migraine treatments on the market and believe our new oral treatment option will be competitively positioned in the prevention market. Our migraine portfolio now includes Ubrelvy for acute treatment of migraine, Qulipta for preventative treatment of episodic migraine, and Botox for preventative treatment of chronic migraine. With this distinct portfolio, AbbVie is uniquely positioned to address the full spectrum of this complex and debilitating disease.
This morning, we announced top-line results from two phases three studies evaluating Vraylar as an adjunctive treatment in major depressive disorder. In the 301 study, the 1.5-milligram Vraylar dose met the primary endpoint, demonstrating a clinically meaningful improvement in total MADRS score compared to Placebo at week six with a highly statistically significant p-value of 0.005. In this study, the three-milligram Vraylar dose did not reach statistical significance, but it did show a clear trend toward improvement with a nominal P value of approximately 0.073 at week six. In the second phase three trial, the 302 study, neither Vraylar dose met the primary endpoint of changing total moderate score at week six, but both the 1.5 and three-milligram doses demonstrated clear trends toward a clinically meaningful benefit at weeks two and four, with nominal p-values less than 0.05 for a number of comparisons.
Additionally, as a reminder, we had 1 prior positive registrational phase two-b study, where Vraylar demonstrated efficacy in MDD when added to ongoing antidepressant treats. Based on precedent in the field and the totality of the data, we believe we have a viable regulatory pathway for Vraylar as an adjunctive treatment in major depressive disorder. We plan to engage with regulatory agencies to discuss these results and expect to submit our regulatory application to the FDA in the first half of next year. We also recently announced positive top-line results from a phase three study comparing our novel subcutaneous levodopa, carbidopa delivery system, ABBV-951 to oral levodopa-carbidopa in patients with advanced Parkinson's disease.
In this pivotal study, treatment with 951 resulted in clinically meaningful improvement in on-time without troublesome dyskinesia as well as similar improvements in normalized off time compared to oral levodopa-carbidopa. We're very pleased with these results, which we believe support our view that 951 has the potential to become a transformative improvement to current treatment options for patients with advanced Parkinson's disease. We plan to submit our regulatory application next year with approval decisions anticipated in the U.S. and Europe in early 2023.
And in eye care. We announced a partnership with REGENXBIO to develop and commercialize RGX-314, a potential gene therapy for the treatment of wet AMD, diabetic retinopathy, and other chronic retinal diseases. RGX-314 is a very attractive addition to our pipeline and complements our Eye Care portfolio with a potential flagship product in retinal disease. REGENXBIO recently presented initial data from two phases two studies evaluating RGX-314 in wet AMD and diabetic retinopathy using in-office suprachoroidal delivery.
While early, these results are encouraging with RGX-314 demonstrating efficacy at the lowest dose and the study showing that the drug and delivery method both appear to be well tolerated. Also in eye care, we continue to expect approval for beauty shortly, formerly known as AGN-190584, and for the treatment of symptoms associated with presbyopia. This once-daily eye drop was developed to help address the presbyopia that is often corrected through reading glasses and once approved, would be a convenient on-demand solution for patients with mild to moderate presbyopia, who may not want to wear reading glasses. This has been a very productive year thus far for our R&D organization and we anticipate several additional milestones in the coming months.
We expect this momentum to continue into next year, which is looking to be a milestone-filled year for AbbVie as well. With that, I'll turn the call over to Rob for additional comments on our third quarter performance and financial outlook. Rob?
Rob Michael -- Executive Vice President and Chief Financial Officer
Thank you, Mike. As you have heard from Rick, Jeff and Mike, we once again delivered outstanding performance this quarter, while also advancing our strategic priorities. Our results demonstrate the strong momentum of the business and support AbbVie's long-term financial outlook. Turning to third quarter results.
We reported adjusted earnings per share of $3.33, up 17.7%, compared to the prior year and $0.13 above our guidance midpoint. This includes $0.05 from accelerated synergies and $0.03 from mark-to-market equity gains. Total adjusted net revenues were $14.3 billion, up 10.8% on an operational basis excluding a 0.5% favorable impact from foreign exchange. The adjusted operating margin ratio was 51.1% of sales, an improvement of 230 basis points versus the prior year.
This includes adjusted gross margin of 83.2% of sales, adjusted R&D investment of 11.4% of sales, and adjusted SG&A expense up 20.6% of sales. Net interest expense was $585 million, and the adjusted tax rate was 12.6%. As Rick previously mentioned, we are raising our full-year adjusted earnings per share guidance to between $12.63 and $12.67, reflecting growth of 19.8% at the midpoint. Excluded from this guidance is $6.34 of known intangible amortization and specified items.
This guidance continues to contemplate full-year revenue growth of 10.7% on a comparable operational basis. At current rates, we now expect foreign exchange to have a 0.7% and favorable impact on full-year comparable sales growth. This implies a full-year revenue forecast of approximately $56.2 billion. Included in this guidance are the following updated full-year assumptions.
We now expect Aesthetics global revenue of approximately $5.1 billion. We now expect international Humira sales of approximately $3.3 billion. For Imbruvica, we now expect global revenue of approximately $5.5 billion, reflecting a slower recovery of the CLL market. For Mavyret, we now expect global sales of approximately $1.7 billion, and we now expect organic expense synergies of approximately $1.8 billion.
As we look ahead to the fourth quarter, we anticipate net revenue approaching $15 billion. At current rates, we expect foreign exchange to have a modest unfavorable impact on sales growth. We expect adjusted earnings per share between $3.24 and $3.28, excluding approximately $1.14 of known intangible amortization and specified items. Finally, AbbVie's strong business performance continues to support our capital allocation priorities.
We generated $17 billion of free cash flow in the first nine months of the year, and our cash balance at the end of September was $12 billion, underscoring our confidence in AbbVie's long-term outlook, today, we announced an 8.5% increase in our quarterly cash dividend, beginning with the dividend payable in February 2022. And we remain on track to achieve $17 billion of cumulative debt paydown by the end of this year with further deleveraging through 2023. This will bring our net leverage ratio to 2.3 times by the end of 2021 and approximately two times by the end of 2022. In closing, AbbVie has once again delivered outstanding results and our financial outlook remains very strong.
With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President, Investor Relations
Thanks, Rob. We will now open the call for questions. [Operator instructions] Operator, we'll take the first question.
Questions & Answers:
Operator
Thank you, Ms. Shea. Our first question comes from Geoffrey Porges with Leerink. Your line is open, sir.
Geoffrey Porges -- SVB Leerink -- Analyst
Thank you very much. Rick, I guess I'll jump in with the big one that I think is still the overhang for the stock, which is the Rinvoq outlook. You have 15 billion out there for 2025 in combined Skyrizi, Rinvoq, forecast guidance. And I'm just wondering if you could give us a sense of the puts and takes.
Skyrizi doing really well, but some overhangs for Rinvoq. Is that 15 billion still achievable? Do you think you're trending above that? Or do you have to make up a shortfall? Thanks
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Yeah. I mean, Jeffrey, this is Rick. It's a great question. What I'd say is the following.
If I look at Skyrizi I would tell you that Skyrizi's performance is very, very impressive. Jeff outlined what the in-play share is and what the total TRxs are and it's very close to passing Humira now, which in this short period of time is, frankly, a surprise, how quickly it has ran. So I think that's a very positive case. If I look at Rinvoq, actually, the in-play share looks very good.
Now we would expect if the label gets changed and restricts the label to do behind T&Fs that, that will have some impact on the frontline patients that we're capturing now. And so we will see that impact. Having said that, I would say that when I look at Rinvoq's performance overall and how durable it's been throughout this situation, we'll obviously shift more toward second-line patients and beyond, which was originally in the plan, but the emphasis would have occurred a year or two later than this, where we would have driven that. We have very good data to be able to support that.
The other thing I'd say is if you look at the indications that we have coming out for these two assets. We have AD, which is a very significant opportunity for us. We have PSA and is a very significant opportunity. But next year, we have the IBD indication, coming out.
And I'd say there, when we gave the $15 million forecast, the performance that was in our TPP, or our target product profile, that we had assumed, we have outperformed that in the clinical trials that we've submitted. And so I think that's a very significant opportunity for us and a significant opportunity for us to outperform. Having said all of that, we don't want to reconfirm the guidance yet. We want to see what the final label looks like from the agency.
And then we'll be in a position, I think, to come out and until the investor community exactly what we think. The only other thing I'd say is I think if you go back five, six years ago, what we were trying to accomplish with the company, we're basically trying to accomplish with the company, build a set of assets that could ultimately significantly replace Humira in the marketplace and be superior to Humira. These two assets already are at $5 billion and growing very rapidly. So I think everything I know about these two assets, they'll be able to do exactly what we expected of them, even in the most negative outcome from a label standpoint that we would expect.
Second thing is we built a significant hem/onc portfolio that when I look at the pipeline behind Imbruvica and Venclexta, I think there's a significant opportunity to drive significant growth in that portfolio. And then with the Allergan acquisition, I couldn't be more pleased. And Aesthetics franchise is performing at an outstanding level, the neuroscience franchise is performing at an outstanding level. I think migraine is a very significant opportunity for us to be able to drive and eye care is another one.
And so we now have multiple assets and multiple portfolios to be able to drive the growth. And our goal is still what we described to the analysts early on. We expect to see the impact of the LOE on Humira in '23. And immediately be able to grow beyond that, starting in '24, return to growth, sales growth at that point.
And regardless of what happens with Rinvoq's label, I have a high level of confidence we can continue to do that. Rob, anything you'd add?
Rob Michael -- Executive Vice President and Chief Financial Officer
I would just add that, obviously, with the confidence, we have in the dividend increase we announced today, we feel very strong about the long-term outlook. We haven't backed off on the high single-digit growth in '25 and beyond. You look at the portfolio we've assembled, if you look at the assets we have today, you look at our pipeline, you look at the BD work we've been doing over the last couple of years with some nice licensing deals, and we still feel very confident in the outlook for this business.
Geoffrey Porges -- SVB Leerink -- Analyst
Great. Thank you.
Liz Shea -- Vice President, Investor Relations
Thanks, Geoffrey. Operator, next question, please.
Operator
Thank you. Our next question is from Andrew Baum with Citi. Your line is open, sir.
Andrew Baum -- Citi -- Analyst
Yeah. Thank you. You flip back to the other side of Rinvoq, Skyrizi, and talk to Humira. Could you talk to your comfort level with where consensus currently has Humira pegged and the anticipated scale and scope of the erosion? And then second, in relation to your ongoing Alvotech pending court case, could you just confirm whether if they prevail that would effectively invalidate the signed settlements with the other biosimilar players, meaning that you would have a number of players cutting that much quicker onto the market with anticipated price and volume impact.
Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
OK. Andrew, this is Rick. So I'll cover the second one, the Alvotech one. I'm going to have Rob cover the first one.
Rob Michael -- Executive Vice President and Chief Financial Officer
Yes, we've seen movement in terms of consensus numbers since we've given just some direction on how to model it. I think right now, consensus in '23 sell-in consensus has about 41% erosion in the U.S. in '23. And we've said -- think about it in terms of 45% based on what we saw in Europe in year one, plus or minus 10%, given the differences in the payer landscape.
-- in the U.S. versus other markets. So we have seen the Humira consensus move. Today, it's at 41%.
So it's a lot closer than it was a year ago.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
OK. Andrew, this is Rick. I'll cover the Alvotech situation. So as you know, we're in litigation with Alvotech.
I think it's important to understand the nuances behind that litigation. So in this first set of litigation, this first wave of litigation, we are basically applying 10 patents in Humira. And as you know, we have a very robust patent portfolio around Humira. But these 10 patents are both formulation patents and indication patterns.
Many of these patents were challenged through the IPR process and upheld by the patent office. So it gives you some idea of the strength of these patents. So the first thing I'd say to you is we have a high level of confidence that we will prevail in this litigation. There will be a second wave of litigation that occurs after that.
which will bring into the portfolio, the rest of the patents that we think Alvotech infringes. So there could be another phase of litigation that occurs after this one. But I can tell you, we're highly confident that we will prevail in this first set of litigation based on the strength of those patents. To specifically answer your question, if they were to prevail, which I don't believe they will, then it would accelerate the other patent settlements, yes, that is correct.
Liz Shea -- Vice President, Investor Relations
Thank you, Andrew. Operator, next question, please.
Operator
Thank you. It comes from Chris Schott with JPMorgan. Your line is open, sir.
Chris Schott -- JPMorgan Chase & Co. -- Analyst
OK, great. Thank you so much. Just one quick follow-up on Rinvoq and the upcoming indications. I guess do you see a scenario where you are unable to get the drug approved in these pending indications, particularly AD over the next few months? Or is your view based on all the interactions, etc, that this is largely, I guess, a label and maybe line of therapy kind of discussion and decision with the agency? And then my second question was on Botox Aesthetics, very healthy growth you're seeing here.
We're now coming up against even some more normalized comps and you're still seeing the growth rate very, very healthy. Just are we still seeing catch-up usage in this? Or is this just really underlying demand at this point? And just a little bit more color about just how you're thinking about kind of the near-term growth trajectory? I know you talked about high single digits over time. But just as we may look out to '22, '23, could this remain kind of a mid-teens type of growth rate product over that window? Thank you so much.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Mike?
Mike Severino -- Vice Chairman and President
OK. Thanks, Chris. This is Mike. I'll take the first one, and then Rick will take the second part of your question.
With respect to Rinvoq and the three new indications, psoriatic arthritis, atopic dermatitis, and ankylosing spondylitis. We remain very confident in those files, and we remain very confident in approval decisions. The gating factor here is really getting to the specifics of the language around RA, which is a process that is well underway. And we would expect to be in a position to gain approvals after that is completed.
And again, we hope that's completed in the near future, certainly this year. Psoriatic arthritis and atopic dermatitis filings. We would expect to follow fairly closely on the heels of that RA decision for ankylosing spondylitis as I mentioned in my prepared remarks, we've rolled in a new study, which is a positive study and a very strong study in ankylosing spondylitis into that submission. And so that 1 might be on a slightly different time frame.
But we remain very confident in that approval as well.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
OK. Chris, this is Rick. On Botox, I think one of the things when we first went through the integration process that was compelling to us was the amount of penetration in these markets and Allergan's ability to be able to reach out and touch consumers and activate those consumers. And that's part of what drove our decision globally to go with this fully integrated totally dedicated Aesthetics organization because in many other markets around the world, although the data is not quite as good as it is here in the U.S., but in China as an example, you see very similar kinds of dynamics.
And so focusing that team purely on Aesthetics was part of the effort here to be able to drive accelerated growth. The second one is when we looked at the ability to be able to use various methods to be able to activate consumers. We believe that the business was being underfunded in a way both in the way it was being funded and the total amount that was being funded. And so we did some early work to determine whether or not that funding could drive incremental market growth, and it showed a positive result.
And then when we saw that, we applied significantly greater funding to it. And what you're actually seeing now, I think, is we are driving the market. We're bringing more patients into the category and obviously because we have the leadership position from a market share standpoint, we get the vast majority of those patients. Is there still some pent-up demand I would tell you, it's hard to believe at this point that there can be a lot of it, but there has to be some of it, right? Because remember, those practices reopened in the U.S.
in the summer of 2020. And so that's a long time to have pent-up demand. But it's impossible to tell one way or another. So I would say the majority of it is certainly being driven by us activating patients and retaining more patients.
One of the other things we saw was the retention rate was relatively low once you activated a patient. And so we spent some time working with the team to figure out how could you retain those patients at a higher rate, meaning they repeat their procedures. They don't just do it once and then disappear, but they come back for a second procedure or plus go into pillars as an example. So the data is very clear.
If you look at the U.S. as an example, toxins and pillars are growing high 30% the market. We're growing at about the same rate. maybe a little bit lower on pillars, but about that rate on toxins.
When we look at globally, the overall brands are growing at about that rate. And so I think this is a business that is sustainable over the long term. When we say across the decade-high single digits, obviously, if we keep this growth rate, the business is getting bigger and bigger. So, therefore, the percentage will come down a bit.
But I'll tell you, I'm very optimistic about this in this market. And our ability to be able to bring new assets into this market that can change the standard of care going forward and us being able to drive market growth at the same time. It's a very good business.
Liz Shea -- Vice President, Investor Relations
Thank you, Chris. Operator? Will take the next question, please.
Operator
Thank you. That comes from Tim Anderson with Wolfe Research. Your line is open, sir.
Tim Anderson -- Wolfe Research -- Analyst
Thank you. I wanted to ask a question on Humira in 2023. And just really trying to nail down what's in that erosion guidance of 45%, plus or minus 10%. That's sales erosion, not volume, correct? I'm trying to think through what happens to the U.S.
rebate stream in 2023, which is likely in the billions of dollars. Do you think you'll retain favorable formulary positioning even with biosimilars? In which case you keep paying that rebate, but you also would have less volume loss? Or do you think it becomes disadvantaged on formulary, in which case you pull back those billions of dollars in rebates and that flows through to the bottom line. To me, I just wonder if your guidance on erosion is frankly too conservative or I should say, too aggressive because those rebate dynamics in the U.S. may make us a more durable market than ex U.S.
where those rebate dynamics don't exist.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Yes. So, Tim, this is Rick. Maybe Rob and I will tag team this one. I'll start.
I think the guidance we laid out of 45 or 48% whichever is the latest number, plus or minus 10%, it's still a guidance that we feel pretty comfortable with. To your point about, is the bulk of it priced? It is. Even if you look at the international markets, it's about one-third, two-third, and maybe slightly higher than that. meaning two-third of its price, one-third of it is volume.
And I would expect that we will maintain a significant part of the volume. Obviously, we don't talk publicly about what our managed care strategy is -- But what I would tell you is we're close enough now to that '23 time frame that you would expect us to be starting the work to ensure formulary access on all of our products, and certainly, Humira is one of those for 2023. And I think it is logical to assume that we will want to maintain that formulary position. And we've been pretty effective at doing that historically.
So I believe we'll be pretty effective at doing it again. Rob, anything you want to add?
Rob Michael -- Executive Vice President and Chief Financial Officer
Just as a reminder, I mean so we gave that -- we were using Europe as an analog, but keep in mind that the U.S. system is very, very different. It's why we gave you a range. And so as we get closer to '23, obviously, we'll give more specific guidance on the U.S.
But we were communicating with more directional information based on the experience we saw with Europe. Keep in mind there were four biosimilars that came in the market at that time, there'll be more biosimilars coming in the U.S. markets. There's a different level of competitive intensity, but also it's a very different payer landscape.
So it's something to keep in mind.
Tim Anderson -- Wolfe Research -- Analyst
Thank you.
Liz Shea -- Vice President, Investor Relations
Thank you, Tim. Operator, next question, please.
Operator
Thank you. It comes from Gary Nachman with BMO Capital Markets. Your line is open, sir.
Gary Nachman -- BMO Capital Markets -- Analyst
Thanks. Good morning. A couple on neuro that had some recent wins. So first on Vraylar and the Phase III studies in MDD.
In 1 study, you hit on the 1.5-milligram dose, but not the three-milligram dose it was close, but not statistically significant. So will that matter to the FDA? Maybe you could remind us what doses hit in the previous phase three and now that you have the full data set, how do you think Vraylar will stack up competitively in the NDD space? And then just quickly, on migraine, a little bit more how the initial launch has gone for Qulipta? And how has that been rolled into the Botox and Ubrelvy offering? And just your confidence about the reimbursement you said going into the first half of next year. Thanks.
Mike Severino -- Vice Chairman and President
OK. This is Mike. I'll take the first part of your question, and then Jeff will take the second part of your question. With respect to Vraylar MDD, in the study that you described, the 1.5-milligram dose medicine point and met it with a highly statistically significant p-value of 0.005, so double zero five.
And that's important in terms of strength of evidence overall and weight of evidence overall. And then as you point out, in the three-milligram arm in that same study, we didn't hit significance, but we had a p-value that was very small. The nominal p-value was 0.073 if we round. So when you look at that overall study to our eye, it clearly shows an effect in MDD.
Now the second phase three study that we just read out did not reach statistical significance for either dose group, but there were favorable trends. And across a number of comparisons, there were nominal p-values that were quite small, and many of them were lower than 0.05. And I'll just remind the listeners that it's very common in depression studies. Even with the classes of medicines that have firmly established efficacy to have some studies that read out positive in some studies that are negative.
And so we think that overall package that we announced today is very strong. And it's also important to keep in mind that we did have a prior study that was conducted several years ago. That was also positive that demonstrated a statistically significant effect. Now that study looked at slightly different dosing, there were dose ranges that were studied in that trial with titration.
It was the upper two of the dose ranges that was significant, but it did show both a clinically meaningful and significant benefit. So we had two positive studies, and that's important. Because the way these studies are typically looked at is an overall weight of evidence, do you have a convincingly positive phase three study. And is there other evidence within the overall data package that is supportive, and we feel comfortable that, that is the case here.
And lastly, what I'd say is if you look at the precedent and you look at other approvals, findings like the ones that we described are not at all uncommon. In fact, I think they're very common among approved agents in this space, including some of the more recent approvals in adjunctive MDD like Rexulti. So overall, we think it is a strong package that has a viable regulatory pathway and will stack up very nicely to competitors, and we're going to begin those regulatory discussions shortly. So with that, I'll turn it over to Jeff.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. Thank you, Mike. Look, it's a meaningful opportunity for sure. When we look at the market sizes, about 60 million total prescriptions for the adjunctive MDD market.
And that's very similar to the bipolar market that we operate in now. So it's a very meaningful opportunity for us. If you think about the -- what Mike was saying in terms of the competitive profile, I think we have to remember that while it's got a fairly low share, the Vraylar is very attractive, which is why it's the fast and growing agent. So the efficacy is viewed very, very nicely overall.
And I think that if approved, this also has competitive efficacy, a very gentle metabolic profile, minimal weight gain, very tolerable, and also very simple dosing for the psychiatrists and the primary care doctors that look at this. So when you start to see the potential for an agent like Vraylar that's got the full spectrum across bipolar disease in terms of media, mixed episodes, and depression, and then the adjunctive depression indication, if approved, it will be very attractive. So we anticipate a nice catalyst here and certainly a nice add to Vraylar's overall profile.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff, do you want to cover the second question?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah, perfect. The second question you had was quarter. And Qulipta, it's very early. We just introduced the product with our full commercial promotion.
As I mentioned in my prepared remarks, we have now, as of this quarter, a dedicated migraine sales force, which shows you how important, we think that this franchise is and what we can do with this franchise. So we have an entire sales team out there that is launching Qulipta and now also focused on Ubrelvy. And the early feedback has been very strong. What we hear qualitatively from our field and certainly from our research in the first few weeks of launch is, first, the simplicity and strength of Qulipta for prevention.
We see very, very nice response to our efficacy data, which as Mike has said before and I've said before, is on the very high end of preventative performance. So 60% of patients in our trials achieved a greater than 50% reduction in migraine days, which is viewed as very significant. And almost 30% have a complete control, 100% decrease in their migraine days. So that's very compelling in terms of this Qulipta power.
Also, physicians like the simple everyday dosing once a day. And so things are quite strong in terms of our early qualitative feedback. So we do obviously anticipate that the majority of our prescriptions will be bridge prescriptions until our -- we get the full ramp of our market access, which as I mentioned, we're quite confident by the first half of the year. We should ramp similar to Ubrelvy, where ultimately, as you remember, we achieved about a 90% access in the U.S.
So quite good early feedback on the launch. And again, we think that the three assets together our unique competitive positioning for AbbVie.
Liz Shea -- Vice President, Investor Relations
Thank you, Gary. Operator, next question, please.
Operator
Our next question is from Matthew Harrison with Morgan Stanley. Your line is open, sir.
Matthew Harrison -- Morgan Stanley -- Analyst
Great. Good morning. Thanks for taking my question. I guess two for me.
So one, if I could just follow up on CGRP. I'm curious, obviously, you have a different strategy than your competitor when it comes to the prophylactic market. I'm just wondering how you think where your sources of patients are going to come from? Are you expecting more transitions from injectables? Or do you think there are going to be more de novo patients? And if you could just talk about that a little bit. And then Secondly, on REGENX, could you just talk about your confidence in the data there? Obviously, there was some inflammation there, though it did seem self-limiting.
I'm just curious how you think about that and how you think about that. impacting the profile because, obviously, in other gene therapy products in the eye inflammation has sometimes proven to be pretty significant as a long-term sequela. Thanks.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff, why don't you --
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes, I'll take the first one. Thanks. So in terms of the source of business, we think that Qulipta is going to source business from two primary areas. First is the big headache specialists, the big neurologists, we think, absolutely from our research and feedback that you'll start to see an early trade-off of the injectable mAbs in favor of the orals and certainly, in favor of it, I think that this is viewed as very attractive.
In many cases, some people have spontaneously highlighted wow, it looks like a very strong mAbs in a single oral pill. So that's a source of business in terms of market share trade-off. I think the other insight that we have from the market is that we are going to a calling on a substantial amount of high-prescribing primary care physicians who don't write a lot of mAbs, but they certainly write a lot of generic topiramate and some other older agents. And so we also see that we have a unique opportunity in a wider audience to source from physicians that really don't lean toward the mAbs because of the injectable nature of those, etc.
So think we're going to have a good balance between those two sources of business, and that's quite attractive for us right now.
Mike Severino -- Vice Chairman and President
So this is Mike. I'll take the question regarding REGENX. We're very encouraged by the recent data. If we take a step back and look at the program overall, they have very strong efficacy data already demonstrated with subretinal delivery.
Now that's an OR procedure, but it gives clear proof of concept for the approach and shows that we can get durable control and that component of the program is already in phase three. And then the more recent data that were presented just about a month ago, several weeks ago, looked at suprachoroidal delivery. So that is a delivery method that can be done in office. It's a specialized form of injection, but it is a form of injection.
And that is also showing very good promise. We're already seeing signs of efficacy in the first cohort, which is the lowest dose cohort, which, quite frankly, is sooner than we expected to see them before that study. had started to deliver results. And the tolerability is very good.
If one looks at the inflammation that is reported in the REGENX trials, it's very different in its nature and its severity than that that has been seen with other agents. It's principally anterior chamber or exclusively anterior chamber. There's no vasculitis, no more significant inflammation. It is readily treated with topical steroids and generally resolves without any difficulty and, in fact, quite rapidly.
And it's also important to remember that there's no prophylactic steroids being used here. Other approaches have required that. So these are patients who have no prophylaxis upfront and are responding to what's often a brief course of topical steroids. And the reason why there's no prophylactic steroids given is they're just not felt to be needed given the very mild nature of the inflammation that's being observed.
So we're very confident with it. And again, we feel it's qualitatively very different than what has been seen in other agents. And we've obviously talked to retinal specialists as well who are quite familiar with the program. And the views we've heard from them are supportive of what I just described.
Liz Shea -- Vice President, Investor Relations
Thank you, Matthew. Operator, next question, please.
Operator
Thank you. Our next question is from Steve Scala with Cowen. Your line is open, sir.
Steve Scala -- Cowen and Company -- Analyst
Thank you. I have a few questions. A couple of follow-ups. But how would you describe the nature and the tone of conversations with FDA regarding Rinvoq's new label in RA would you say you're pleased with how things are going? Is the outcome unclear to AbbVie at this juncture? Or is the outcome obvious and in line with what the FDA had in its statement in September.
So that's the first question. Second question, to my knowledge, Vraylar has shown superiority to Placebo but not generics in MDD. So how would AbbVie establish it as a leading MDD agent given the presence of lower-cost alternatives? And then lastly, any thoughts on the Soliton acquisition relative to its closing. Thank you.
Mike Severino -- Vice Chairman and President
OK. This is Mike. I'll start, and then Rick will take the question regarding Soliton. With respect to the tone of conversations with the FDA for Rinvoq, I would describe them as productive.
With respect to your question specifically about the RA label, those discussions are productive as well. I would assume the base case is what they announced conceptually back in early September, but we are working through the specifics of how that translates into labeling language. And I would characterize the discussions around the other indications as being very productive and very positive as well. And so as I mentioned earlier in this call, we remain very confident in the files for those new indications for all three of them.
With respect to Vraylar, head-to-head superiority studies are not typically done in the space. They're very challenging. It is challenging to show an impact even with established classes period in major depressive disorder and particularly in this space because this is the adjunctive treatment of major depressive disorder. So these are patients who aren't responding to the current therapies and require an add-on and atypical antipsychotics with pharmacology similar to Vraylar are one of the most commonly used agents in this space.
So we think the very strong data that we have from the study that we described and the fact that we have prior supportive evidence as well from the earlier study will position it very well to be competitive in that marketplace.
Jeff Stewart -- Executive Vice President, Commercial Operations
And Steve, it's Jeff. Just to build on Mike's point. I mean, if you think about the size of Vraylar now, approaching $1.8 billion, it has a 2.5 share in terms of the antipsychotic market. So it's a low share, high value in growth areas.
So when you think about most of our business is already stepped through in some cases, one or two of the generics. The problem is that these patients are so fragile. They just don't respond well. So we would still anticipate that with the approval, a new approval for MDD, you're still going to have step therapy and other approaches in the marketplace, but that -- there's still a very, very nice commercial opportunity.
That's just the way the markets work today.
Steve Scala -- Cowen and Company -- Analyst
All right. Thanks.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
So this is Rick, Steve. On Soliton, as you know, we obviously announced the -- our intention to acquire the company. and submitted for approval. We did receive a second request.
Maybe just to frame a bit why we're interested in this area. We tend to look at this market where the third major leg of the stool in Aesthetics is body contouring. And this is a good fit with cool faulting and pool home. Obviously, cool sculpting is focused more on reduction of fat in targeted areas, and cool tones more focused on the area of enhancing muscle tone in specific areas.
This particular asset is designed to reduce cellulite. We don't have a position in cellulite now. So there's not any kind of competitive overlap in that area. Having said that, we are responding to the FTC's inquiry.
We believe that's going reasonably well. So we would expect this to be resolved at some point here in the future. I can't tell you a specific date, but I would expect it have a positive outcome over a period of time here.
Liz Shea -- Vice President, Investor Relations
Thank you, Steve. Operator, next question please.
Operator
Thank you. Our next question is from Vamil Divan with Mizuho Securities. Your line is open.
Vamil Divan -- Mizuho Securities -- Analyst
Thanks so much for taking my question. So just maybe one more just on Vraylar following up on the other comments. I think before you talked about this being as maybe a sort of multibillion-dollar type opportunity in MDD. Is that still sort of the lines you're thinking now that you've seen the data that you disclosed today? And then the second one, just going back to Rinvoq, and obviously sounds like you're still pretty confident on that product's outlook.
But I'm just curious if that's changed any of your sort of priorities as you think about business development, specifically in immunology, sort of the need for maybe look at other oral agents that might be in development there, just sort of how you're thinking about the broader BD landscape there. Thank you.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff?
Jeff Stewart -- Executive Vice President, Commercial Operations
Yes. I think if you look at the -- as I highlighted that the market sizes are roughly the same. However, the competitive context is quite a bit different and the competitive set is a little bit different. So we view it again as an important incremental opportunity that even with low incremental share that we can drive Vraylar to that multibillion-dollar guidance that we look at.
We do think it's an incremental catalyst and an exciting approach if it were to be approved.
Mike Severino -- Vice Chairman and President
So this is Mike. I'll take the Rinvoq question. So as you point out, yes, we are very confident in Rinvoq as a molecule overall. We've talked about the progress on the RA indication and our confidence in the new indications, both those that are under review and indications where we have data but have not yet submitted like the IBD indications.
And so we feel that it's going to be an important part of our portfolio and the treatment armamentarium going forward. So having said that, immunology is always an area where we are scouring the landscape to look to for the best opportunities. So I wouldn't say it's changed our focus in any way or changed our approach. But we will continue to look for novel therapies that can raise the bar on the standard of care across a number of areas, the current indications where we are already playing, and new indications that have fewer treatment options areas like lupus and scleroderma.
So the Rinvoq situation has not changed that strategy in any way.
Liz Shea -- Vice President, Investor Relations
Thanks, Vamil. Operator? Will take next question, please.
Operator
Thank you. It was from Ronny Gal with Bernstein. Your line is open, sir.
Ronny Gal -- Sanford C. Bernstein -- Analyst
Good morning and thank you for taking my question. I got a clarification and then a couple of questions. First, Rick, you kind of mentioned regarding Alvotech about the acceleration clauses. And I just want to clarify if this is on district decision or appeal.
Given the timing, it actually makes quite a bit of difference. Then the two questions I have first are interchangeability for Humira. Do you think this will matter in the marketplace, we are hearing different things from the large payers. What is your take here and what is going AbbVie's position about this? And the second question is the last dress we've seen from D.C.
regarding the infrastructure build does not include a reduction of out-of-pocket costs in Medicare. We're still hearing from context, this still might be the case that it is still included. If you can comment on this issue, do you expect it to be included and the impact it might have on AbbVie's business.
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
So, Ronnie, this is Rick. On Alvotech, obviously, the agreements that we have with the other biosimilar players are confidential. So I'm not going to delve into some of the specifics around those. What I would tell you is what I said before.
I mean, we are highly confident in our position with this IP. This IP has been challenged multiple times. And we have a high degree of confidence that we will prevail. So I think it's obviously a hypothetical scenario, but I don't -- I wouldn't give it a lot of merits.
Second, on interchangeable Humira. As we discussed previously, when we built the erosion model that we described a couple of years ago, recently year and a half or so ago, we did assume at that point that there were going to be two interchangeable biosimilars. It does matter from a pricing standpoint to some extent. So I think it will have an impact, but it's consistent with what we had assumed.
And so we've essentially taking that into consideration in the forecast that we provided you and the estimates that we provided you. On drug pricing in the U.S. Look, I would say it's a very fluid situation. It's a little difficult to truly understand exactly where we are.
You are correct. If you look at the framework that came out yesterday, essentially talked about repeal of the rebate rule being eliminated and he didn't talk about much else. So look, the things that we're focused on and things that we think would make a difference or out-of-pocket costs for patients and making them lower for Medicare patients, making them something that they can spread over a period of time, a 12-month period of time to make the cash flow easier to deal with. And as we've said before, we think industry could play a role in that as one of the participants.
And we would hope that we will get back to that because I think we think that is the most fundamental issue is reducing the out-of-pocket cost for these patients.
Liz Shea -- Vice President, Investor Relations
Thank you, Ronny. Operator, next question, please.
Operator
Thank you. Our next question is from Geoff Meacham with Bank of America. Your line is now open, sir.
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Great. Hey, guys. Thanks so much for the question. I just have two quick ones probably for Mike.
To follow up on Rinvoq, I know it's been asked a lot, but you have a number of labeling scenarios that could play out just with respect to dose or TNF requirement or language on black box or any maybe any limit on duration. Is there one of those items that has more of an impact than the others? I'm just trying to think about what informs your assumptions. And the second question on cystic fibrosis. When you look to the upcoming proof-of-concept data readout, is there a minimal effect size or sort of profile that you're looking for that would justify moving to a larger scale phase three? Thanks so much.
Jeff Stewart -- Executive Vice President, Commercial Operations
So I'll take the Rinvoq question first and then make some comments on CF. What I would say about Rinvoq is our assumptions around the labeling at a base case are based on what the agency announced in their safety communication in September. So that's principally updates to the black box warnings that all of these agents have. And in fact, all agents in immunology have some degree of this that treat similar conditions to Rinvoq.
For example, the TNFs have some of the same, but not all of the same warnings. So updating that section of the label is part of our base case. And then the restriction that the agency described for certain patients around TNF inadequate response forms our base case. And those are the two factors that we're considering.
We would not anticipate any limit in duration of therapy, for example. And the question dosed principally applies to the atopic dermatitis file because we have just a single dose in the other files and the files that are in the rheumatology space. And we feel confident about both doses in terms of the benefit risk that we've demonstrated in that atopic dermatitis program. So it's really those two dimensions and how those translate into specific language in RA.
And then, of course, how they translate to the other indications because TNFs are not the standard of care in all indications. They are not used in atopic dermatitis. So then it's how do those concepts get translated into the label in other indications. Those are the principal dimensions that we're looking at when we think about those programs.
And again, we feel very confident in the files that we put forward and feel very good about how discussions have gone to date. With respect to CF and what we're looking for, we're looking for something that has demonstrated benefit compared to what's already out there or what will be out there at the time our agents come to market. Obviously, the principal competitor, the only group with a marketed product right now in this space is Vertex, and so that's what we would be benchmarking ourselves against. I would say, at an absolute minimum, you'd have to have efficacy that was just as good with other meaningful advantages.
But what we're striving for is something that has an efficacy advantage of a small number of absolute FEV1 points. A small number of absolute FEV1 points might not sound much, but it can translate into real benefit for patients in this disease.
Liz Shea -- Vice President, Investor Relations
Thank you, Geoff. Operator, next question, please.
Operator
Thank you. Our next question is from Luisa Hector with Berenberg. Your line is now open, ma'am.
Luisa Hector -- Berenberg -- Analyst
Thank you. Good morning, and sorry, I still have a couple more on Rinvoq. I just wanted to understand whether the label updates in RA and then the approvals in the new indications can essentially all happen on the same day? Or is the gating in the RA update? And then there's still a bit more work to be done for the new indications. And then looking on to the UC filing, is the acceptance of that filing in any way dependent on the RA label being resolved first? Or that's free to be accepted as a filing while the label update is still outstanding? Thank you.
Mike Severino -- Vice Chairman and President
This is Mike. I'll take those two questions. So with respect to the ongoing reviews. What I would say is the discussions around the RA label update and the new indications that are under review are going on simultaneously.
And there is some level of interdependence. In other words, we need to understand where the RA label will land because some of those elements like the warning super cautions will translate over to the other indications because, in the U.S., you get on label for the molecule, that applies across all of the indications. So there's some interdependency. That's why getting the RA label update resolved is a gating factor whether it could happen on the same day or in close succession, I think it's too early to call with that fine level of detail.
But we would expect psoriatic arthritis and atopic dermatitis filings to follow in a very reasonable time frame after that label update. As I mentioned, we are adding new data to the ankylosing spondylitis submission, which is smallest of the three indications. And so that one might be on a slightly different time frame as the agency reviews those new data. With respect to the UC filing, the RA label update is not on critical path to file acceptance.
What the agency looks at when they look at file acceptances have you provided sufficient data for them to evaluate the file? Is it in an appropriate format that they can review? Are there any significant efficiencies? And of course, we're very confident in the file that we've submitted. So we would not, in any way, anticipate any challenges there. And the RA safety label update is not a gating factor for that file acceptance.
Liz Shea -- Vice President, Investor Relations
Thank you, Lisa. Operator, next question, please.
Operator
Thank you. Our next question is from Chris Raymond with Piper Sandler. Your line is open.
Allison Bratzel -- Piper Sandler -- Analyst
Hi. Good morning. This is Ali Bratzel on for Chris. So on ABBV-951 in Parkinson's, we're just hoping you could put some of the safety findings from the phase three trial in context particularly the imbalance in hallucination psychosis and the 22%, I think, treatment discontinuation rates.
Basically, just how did that safety profile stack up against your expectations? And how would this translate into real-world use of 951? Thanks.
Mike Severino -- Vice Chairman and President
So this is Mike. I'll take that question. With respect to the data for 951, we're very pleased with the data. There's very strong efficacy.
And the safety is within our expectations. It matches our expectations across essentially all important areas. What's important to keep in mind is this agent delivers transformative benefit to patients who have extremely difficult to control Parkinson's disease through other measures and to have a very, very difficult time controlling their disease, for example, with orals or with other approaches. And so the overall picture has to be looked at in that context.
With respect to treatment discontinuations, what I would say is the treatment discontinuation. The rate of that overall is very similar to what you see with similar devices with insulin pump-like devices used across a range of conditions. Most of these were driven by either local tolerability issues like injection site reactions, which were principally erythema or technical usability issues because these are older patient populations with limited mobility and dexterity in many cases. And there's always a subset of patients who find that they have difficulty using any device under those circumstances.
But again, those rates of discontinuation are very similar to what you see with similar insulin pump-like devices. And keep in mind, this is a very, very large population, this advanced Parkinson's population only a very small proportion of which currently get advanced treatments because it's so limited in how they can be delivered. We think there's a big opportunity here and that treatment discontinuation rate doesn't change that and is in line with our expectations. With respect to hallucinations, we know that that is on mechanism for levodopa and carbidopa and it's essentially evidence that we are delivering levodopa and carbidopa in a way that's more effective than can be done through other methods.
And it's something that can be titrated and something that can be managed. And what I would point to is in the other direction, the oral group, the control group that got oral levodopa-carbidopa, had more falls. And that to our eye shows a lower degree of control, which matches the clinical efficacy data because we know falls are common in Parkinson's disease patients. So we need to keep that in mind and with the efficacy that we've delivered, we think these are all very attractive profiles and ones that will translate into significant real-world use.
When we look at how this will impact our oil use, again, keep in mind that a very broad population, only a very small segment of which can access the kind of therapies that they need to control their disease. Therapies like [Inaudible] which is transformative, but takes a surgical gastric tube. It's actually threaded into the small bowel to get deep brain stimulation and other types of measures. So this is a much less invasive approach that delivers very strong efficacy, and we think that will translate very, very effectively into the real world.
Liz Shea -- Vice President, Investor Relations
Thanks, Ali. Operator, we have time for one final question.
Operator
That will come from Josh Schimmer with Evercore ISI. Your line is open, sir.
Josh Schimmer -- Evercore ISI -- Analyst
Great. Thanks for asking me. Can you talk about the current contracting season with payers for Humira and whether think you'll be able to lock in multi-year contracts either now to extend to 2023 or next year to extend to 2024. And then I'm surprised you're not more bullish with your guidance for the migraine franchise given the strong trajectory, it's on already.
Any reason I think there's going to be a significant plateau in the years ahead. Thank you.
Jeff Stewart -- Executive Vice President, Commercial Operations
Yeah. It's Jeff. So typically, when we start to negotiate with the payers in the spring of the year for the following year. And typically, those contracts can be multi-year contracts, maybe 2-year contracts.
So really, that's sort of the season where we'll have, as Rob and Rick said, we'll have probably some more guidance over how things are shaping up for '23 and possibly '24, depending on the posture of the payers and how those things work out. So we're not quite there yet. I think that what I can say is we're quite confident based on the timing that I described in terms of general cycles in terms of where we're going to be for our portfolio, certainly in '22. In terms of Qulipta, look, we are off to a very good start.
I can tell you that Ubrelvy continues to run a pace that total oral CGRP market is upwards of maybe 18% of new prescriptions and it's still early, and that would be us and Nurtec in the acute segment. And at a theoretical peak level, you could see maybe 30% or 40% based on cardiovascular issues with triptans or some other issues. So we still have clearly some runway to go. It's probably a little early to sort of determine how that preventative segment will really grow because you've only seen really the mAbs so far.
They certainly tripled the market size how will both of these orals and particularly in oral like Qulipta in terms of the market development run a pace. It's encouraging for sure, particularly if you have all three of these agents in the market and the investment behind it. Right now, though, we feel quite comfortable with the $1 billion opportunity for both of the orals.
Liz Shea -- Vice President, Investor Relations
Thanks, Josh. And that concludes today's conference call. If you would like to listen to a replay of the call, please visit our website at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator signoff]
Duration: 86 minutes
Call participants:
Liz Shea -- Vice President, Investor Relations
Rick Gonzalez -- Chairman of the Board and Chief Executive Officer
Jeff Stewart -- Executive Vice President, Commercial Operations
Mike Severino -- Vice Chairman and President
Rob Michael -- Executive Vice President and Chief Financial Officer
Geoffrey Porges -- SVB Leerink -- Analyst
Andrew Baum -- Citi -- Analyst
Chris Schott -- JPMorgan Chase & Co. -- Analyst
Tim Anderson -- Wolfe Research -- Analyst
Gary Nachman -- BMO Capital Markets -- Analyst
Matthew Harrison -- Morgan Stanley -- Analyst
Steve Scala -- Cowen and Company -- Analyst
Vamil Divan -- Mizuho Securities -- Analyst
Ronny Gal -- Sanford C. Bernstein -- Analyst
Geoff Meacham -- Bank of America Merrill Lynch -- Analyst
Luisa Hector -- Berenberg -- Analyst
Allison Bratzel -- Piper Sandler -- Analyst
Josh Schimmer -- Evercore ISI -- Analyst
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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 also recently announced positive top-line results from a phase three study comparing our novel subcutaneous levodopa, carbidopa delivery system, ABBV-951 to oral levodopa-carbidopa in patients with advanced Parkinson's disease. AbbVie (NYSE: ABBV) Q3 2021 Earnings Call Oct 29, 2021, 9:00 a.m. Welcome to the AbbVie third quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. | Operator [Operator signoff] Duration: 86 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Andrew Baum -- Citi -- Analyst Chris Schott -- JPMorgan Chase & Co. -- Analyst Tim Anderson -- Wolfe Research -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Matthew Harrison -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Luisa Hector -- Berenberg -- Analyst Allison Bratzel -- Piper Sandler -- Analyst Josh Schimmer -- Evercore ISI -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q3 2021 Earnings Call Oct 29, 2021, 9:00 a.m. Welcome to the AbbVie third quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. | Operator [Operator signoff] Duration: 86 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Andrew Baum -- Citi -- Analyst Chris Schott -- JPMorgan Chase & Co. -- Analyst Tim Anderson -- Wolfe Research -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Matthew Harrison -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Luisa Hector -- Berenberg -- Analyst Allison Bratzel -- Piper Sandler -- Analyst Josh Schimmer -- Evercore ISI -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q3 2021 Earnings Call Oct 29, 2021, 9:00 a.m. Welcome to the AbbVie third quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. | Operator [Operator signoff] Duration: 86 minutes Call participants: Liz Shea -- Vice President, Investor Relations Rick Gonzalez -- Chairman of the Board and Chief Executive Officer Jeff Stewart -- Executive Vice President, Commercial Operations Mike Severino -- Vice Chairman and President Rob Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Andrew Baum -- Citi -- Analyst Chris Schott -- JPMorgan Chase & Co. -- Analyst Tim Anderson -- Wolfe Research -- Analyst Gary Nachman -- BMO Capital Markets -- Analyst Matthew Harrison -- Morgan Stanley -- Analyst Steve Scala -- Cowen and Company -- Analyst Vamil Divan -- Mizuho Securities -- Analyst Ronny Gal -- Sanford C. Bernstein -- Analyst Geoff Meacham -- Bank of America Merrill Lynch -- Analyst Luisa Hector -- Berenberg -- Analyst Allison Bratzel -- Piper Sandler -- Analyst Josh Schimmer -- Evercore ISI -- Analyst More ABBV analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. AbbVie (NYSE: ABBV) Q3 2021 Earnings Call Oct 29, 2021, 9:00 a.m. Welcome to the AbbVie third quarter 2021earnings conference call [Operator instructions] I would now like to introduce Ms. Liz Shea, vice president of investor relations. |
23831.0 | 2021-10-29 00:00:00 UTC | US STOCKS-Microsoft brings S&P 500, Nasdaq back into record territory | ABBV | https://www.nasdaq.com/articles/us-stocks-microsoft-brings-sp-500-nasdaq-back-into-record-territory-2021-10-29 | nan | nan | By Devik Jain and Shashank Nayar
Oct 29 (Reuters) - The S&P 500 and the Nasdaq crept back up to record territory on Friday after a boost from Microsoft, which overtook Apple Inc as the world's most valuable company after the iPhone maker posted downbeat quarterly revenue on hit from supply chain disruptions.
Wall Street's tech titans Google-owner Alphabet Inc GOOGL.O, Meta Platforms(Facebook Inc) FB.Oand Tesla Inc TSLA.O rose between 1.2% and 2.3%, while Microsoft Corp MSFT.O gained 1.3% to provide the biggest boost to all the three major indexes.
Microsoft'sshares touched a record high and crossed a market capitalization of $2.46 trillion, above Apple Inc's AAPL.O $2.45 trillion market cap.
Markets had earlier taken a hit from a 2.2% drop in shares of Apple after it warned the impact of supply chain disruptions will be even worse during the current holiday sales quarter. Its shares rose 2.5% in the previous session.
After gaining 3.8% in the run-up to its earnings report since Monday, shares of Amazon.com Inc AMZN.O dropped 2.8% as it forecast downbeat holiday-quarter sales amid labor shortages.
"It seems like the weakness is pretty much contained to these names and hasn't spread out to the broader market very much," said Dan Eye, chief investment officer at Fort Pitt Capital Group.
"Even a business like Apple that said they saw something like a $6 billion headwind ... the markets kind of allow us to look past that, especially because we have seen or heard some commentary recently that some of these supply chain issues seems to be working themselves out."
Market participants have been closely watching how corporate America navigates through these challenges along with concerns about rising inflation, after largely upbeat earnings reports so far helped investors look past a mixed macro-economic picture.
Data showed U.S. consumer spending increased solidly in September, but was partly flattered by higher prices as inflation remained hot.
The report came ahead of the Federal Reserve's policy meeting next week, where it is expected to announce the start of its tapering of monthly bond purchases.
At 12:47 p.m. ET, the Dow Jones Industrial Average .DJI was up 87.75 points, or 0.25%, at 35,818.23, the S&P 500 .SPX was up 5.84 points, or 0.13%, at 4,602.26, and the Nasdaq Composite .IXIC was up 8.81 points, or 0.06%, at 15,456.93.
Caterpillar Inc CAT.N added 0.6%, building up on a 4% rally in the previous session after its quarterly results.
AbbVie Inc ABBV.N gained 4.1% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year.
Starbucks Corp SBUX.Otumbled 7.4% after the coffee chain said it expects fiscal 2022 operating margin to be below its long-term target due to inflation and investments.
Declining issues outnumbered advancers for a 1.27-to-1 ratio on the NYSE and for a 1.08-to-1 ratio on the Nasdaq.
The S&P index recorded 45 new 52-week highs and four new lows, while the Nasdaq recorded 97 new highs and 54 new lows.
(Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
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.N gained 4.1% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq crept back up to record territory on Friday after a boost from Microsoft, which overtook Apple Inc as the world's most valuable company after the iPhone maker posted downbeat quarterly revenue on hit from supply chain disruptions. Wall Street's tech titans Google-owner Alphabet Inc GOOGL.O, Meta Platforms(Facebook Inc) FB.Oand Tesla Inc TSLA.O rose between 1.2% and 2.3%, while Microsoft Corp MSFT.O gained 1.3% to provide the biggest boost to all the three major indexes. | AbbVie Inc ABBV.N gained 4.1% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq crept back up to record territory on Friday after a boost from Microsoft, which overtook Apple Inc as the world's most valuable company after the iPhone maker posted downbeat quarterly revenue on hit from supply chain disruptions. Microsoft'sshares touched a record high and crossed a market capitalization of $2.46 trillion, above Apple Inc's AAPL.O $2.45 trillion market cap. | AbbVie Inc ABBV.N gained 4.1% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq crept back up to record territory on Friday after a boost from Microsoft, which overtook Apple Inc as the world's most valuable company after the iPhone maker posted downbeat quarterly revenue on hit from supply chain disruptions. Microsoft'sshares touched a record high and crossed a market capitalization of $2.46 trillion, above Apple Inc's AAPL.O $2.45 trillion market cap. | AbbVie Inc ABBV.N gained 4.1% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq crept back up to record territory on Friday after a boost from Microsoft, which overtook Apple Inc as the world's most valuable company after the iPhone maker posted downbeat quarterly revenue on hit from supply chain disruptions. Markets had earlier taken a hit from a 2.2% drop in shares of Apple after it warned the impact of supply chain disruptions will be even worse during the current holiday sales quarter. |
23832.0 | 2021-10-29 00:00:00 UTC | AbbVie Q3 21 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q3-21-earnings-conference-call-at-9%3A00-am-et-2021-10-29 | nan | nan | (RTTNews) - AbbVie (ABBV) will host a conference call at 9:00 AM ET on October 29, 2021, to discuss Q3 21 earnings results.
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 host a conference call at 9:00 AM ET on October 29, 2021, to discuss Q3 21 earnings results. 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 host a conference call at 9:00 AM ET on October 29, 2021, to discuss Q3 21 earnings results. 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 host a conference call at 9:00 AM ET on October 29, 2021, to discuss Q3 21 earnings results. 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 host a conference call at 9:00 AM ET on October 29, 2021, to discuss Q3 21 earnings results. 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. |
23833.0 | 2021-10-29 00:00:00 UTC | AbbVie Q3 adjusted earnings Beat Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-q3-adjusted-earnings-beat-estimates-2021-10-29 | nan | nan | (RTTNews) - AbbVie (ABBV) announced earnings for its third quarter that advanced from the same period last year.
The company's profit totaled $3.18 billion, or $1.78 per share. This compares with $2.31 billion, or $1.29 per share, in last year's third quarter.
Excluding items, AbbVie reported adjusted earnings of $5.95 billion or $3.33 per share for the period.
Analysts had expected the company to earn $3.22 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 11.2% to $14.34 billion from $12.90 billion last year.
AbbVie earnings at a glance:
-Earnings (Q3): $5.95 Bln. vs. $5.05 Bln. last year. -EPS (Q3): $3.33 vs. $2.83 last year. -Analysts Estimate: $3.22 -Revenue (Q3): $14.34 Bln vs. $12.90 Bln last year.
-Guidance: Full year EPS guidance: $12.63 to $12.67
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 earnings for its third quarter that advanced from the same period last year. Excluding items, AbbVie reported adjusted earnings of $5.95 billion or $3.33 per share for the period. AbbVie earnings at a glance: -Earnings (Q3): $5.95 Bln. | Excluding items, AbbVie reported adjusted earnings of $5.95 billion or $3.33 per share for the period. (RTTNews) - AbbVie (ABBV) announced earnings for its third quarter that advanced from the same period last year. AbbVie earnings at a glance: -Earnings (Q3): $5.95 Bln. | (RTTNews) - AbbVie (ABBV) announced earnings for its third quarter that advanced from the same period last year. Excluding items, AbbVie reported adjusted earnings of $5.95 billion or $3.33 per share for the period. AbbVie earnings at a glance: -Earnings (Q3): $5.95 Bln. | Excluding items, AbbVie reported adjusted earnings of $5.95 billion or $3.33 per share for the period. (RTTNews) - AbbVie (ABBV) announced earnings for its third quarter that advanced from the same period last year. AbbVie earnings at a glance: -Earnings (Q3): $5.95 Bln. |
23834.0 | 2021-10-29 00:00:00 UTC | US STOCKS-Apple, Amazon set to knock S&P 500, Nasdaq off record peak | ABBV | https://www.nasdaq.com/articles/us-stocks-apple-amazon-set-to-knock-sp-500-nasdaq-off-record-peak-2021-10-29 | nan | nan | By Devik Jain and Shashank Nayar
Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes looked set to drop from record highs on Friday, as results from mega-cap firms Apple and Amazon.com reignited concerns of labor and supply shortages that have been at the forefront of this quarterly earnings season.
Market participants have been closely watching how corporate America navigates through these challenges along with concerns about rising inflation, after largely upbeat earnings reports so far helped investors look past a mixed batch of macro-economic data.
Apple AAPL.O slipped 3.7% in premarket trading after the iPhone maker warned the impact of supply chain disruptions will be even worse during the current holiday sales quarter.
Amazon.com Inc AMZN.O dropped 4.4% as it forecast downbeat holiday-quarter sales amid labor shortages.
"The reason Apple and Amazon is key to watch is only because of their weightage which will lead to some weakness in the Nasdaq but it is definitely not creating any huge cloud over the market regarding strong earnings," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
Starbucks Corp SBUX.O fell 6.0% after the coffee chain expects fiscal 2022 operating margin to be below its long-term target, due to inflation and investments.
Data showed U.S. consumer spending increased solidly in September, but was partly flattered by higher prices as inflation remained hot. [nL1N2RO35T]
The report came ahead of the Federal Reserve's policy meeting next week, where it is expected to announce the start of its tapering of monthly bond purchases.
"The Fed has been pretty open about how they are going to go about tapering and rate hikes, but if they become more aggressive it could create issues for equities," Nolte said.
Meanwhile, U.S. President Joe Biden was dealt a setback on Thursday as the House of Representatives abandoned plans for a vote on an infrastructure bill with progressives seeking more time to consider his call for a separate $1.75 trillion plan for social initiatives.
"Some actual concrete progress on the U.S. spending bills instead of empty rhetoric could give a pleasant boost to markets in the end of the week," said Jeffrey Halley, senior market analyst, Asia Pacific, OANDA.
At 8:50 a.m. ET, Dow e-minis 1YMcv1 were down 73 points, or 0.2%, S&P 500 e-minis EScv1 were down 25.25 points, or 0.55%, and Nasdaq 100 e-minis NQcv1 were down 143.25 points, or 0.91%.
For the week, S&P 500 has gained nearly 1.1%, while the tech-heavy Nasdaq has risen 2.4%.
Analysts expect profits for S&P 500 companies to grow 38.6% year-on-year in the third quarter, up from an expected 29.4% rise at the start of the earnings season, according to data from Refinitiv.
Oil majors Chevron Corp CVX.N and Exxon Mobil XOM.Nrose about 1.6% each after posting strong quarterly profits on soaring oil and gas prices.
AbbVie Inc ABBV.N gained 2.7% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year.
Caterpillar Inc CAT.N added 1.2% after brokerages raised their price targets on the construction and mining equipment maker's stock.
Western Digital Corp WDC.O tumbled 12.2% after the storage hardware maker forecast downbeat second-quarter profit and revenue.
(Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
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.N gained 2.7% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes looked set to drop from record highs on Friday, as results from mega-cap firms Apple and Amazon.com reignited concerns of labor and supply shortages that have been at the forefront of this quarterly earnings season. Market participants have been closely watching how corporate America navigates through these challenges along with concerns about rising inflation, after largely upbeat earnings reports so far helped investors look past a mixed batch of macro-economic data. | AbbVie Inc ABBV.N gained 2.7% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes looked set to drop from record highs on Friday, as results from mega-cap firms Apple and Amazon.com reignited concerns of labor and supply shortages that have been at the forefront of this quarterly earnings season. Amazon.com Inc AMZN.O dropped 4.4% as it forecast downbeat holiday-quarter sales amid labor shortages. | AbbVie Inc ABBV.N gained 2.7% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes looked set to drop from record highs on Friday, as results from mega-cap firms Apple and Amazon.com reignited concerns of labor and supply shortages that have been at the forefront of this quarterly earnings season. "The reason Apple and Amazon is key to watch is only because of their weightage which will lead to some weakness in the Nasdaq but it is definitely not creating any huge cloud over the market regarding strong earnings," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. | AbbVie Inc ABBV.N gained 2.7% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes looked set to drop from record highs on Friday, as results from mega-cap firms Apple and Amazon.com reignited concerns of labor and supply shortages that have been at the forefront of this quarterly earnings season. Analysts expect profits for S&P 500 companies to grow 38.6% year-on-year in the third quarter, up from an expected 29.4% rise at the start of the earnings season, according to data from Refinitiv. |
23835.0 | 2021-10-29 00:00:00 UTC | US STOCKS-Apple, Amazon knock S&P 500, Nasdaq off record peak; Caterpillar lifts Dow | ABBV | https://www.nasdaq.com/articles/us-stocks-apple-amazon-knock-sp-500-nasdaq-off-record-peak-caterpillar-lifts-dow-2021-10 | nan | nan | By Devik Jain and Shashank Nayar
Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes dropped from their record highs on Friday after dismal results from mega-cap firms Apple and Amazon.com, while gains in Chevron and Caterpillar helped the blue-chip Dow outperform.
Market participants have been closely watching how corporate America navigates through these challenges along with concerns about rising inflation, after largely upbeat earnings reports so far helped investors look past a mixed batch of macro-economic data.
Apple AAPL.O slipped 3.7% after the iPhone maker warned the impact of supply chain disruptions will be even worse during the current holiday sales quarter.
Amazon.com Inc AMZN.O dropped 3.7% as it forecast downbeat holiday-quarter sales amid labor shortages.
"The reason Apple and Amazon is key to watch is only because of their weightage which will lead to some weakness in the Nasdaq but it is definitely not creating any huge cloud over the market regarding strong earnings," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
Starbucks Corp SBUX.O fell 7.3% after the coffee chain said it expects fiscal 2022 operating margin to be below its long-term target due to inflation and investments.
Data showed U.S. consumer spending increased solidly in September, but was partly flattered by higher prices as inflation remained hot.
The report came ahead of the Federal Reserve's policy meeting next week, where it is expected to announce the start of its tapering of monthly bond purchases.
Meanwhile, U.S. President Joe Biden was dealt a setback on Thursday as the House of Representatives abandoned plans for a vote on an infrastructure bill with progressives seeking more time to consider his call for a separate $1.75 trillion plan for social initiatives.
"Some actual concrete progress on the U.S. spending bills instead of empty rhetoric could give a pleasant boost to markets in the end of the week," said Jeffrey Halley, senior market analyst, Asia Pacific, OANDA.
At 9:57 a.m. ET, the Dow Jones Industrial Average .DJI was up 39.49 points, or 0.11%, at 35,769.97, the S&P 500 .SPX was down 8.95 points, or 0.19%, at 4,587.47, and the Nasdaq Composite .IXIC was down 66.71 points, or 0.43%, at 15,381.41.
Seven of the 11 major S&P sectors declined in early trading. Energy shares .SPNY outperformed after oil majors Chevron Corp CVX.N and Exxon Mobil XOM.N posted strong quarterly profits on soaring oil and gas prices.
Their shares rose 1.3% and 0.9% respectively.
Analysts expect profits for S&P 500 companies to grow 38.6% year-on-year in the third quarter, up from an expected 29.4% rise at the start of the earnings season, according to data from Refinitiv.
Caterpillar Inc CAT.N added 1.2% to provide the biggest boost to the Dow after brokerages raised their price targets on the construction and mining equipment maker's stock.
AbbVie Inc ABBV.N gained 3.8% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year.
Declining issues outnumbered advancers for a 1.17-to-1 ratio on the NYSE and for a 1.02-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and one new low, while the Nasdaq recorded 60 new highs and 23 new lows.
(Reporting by Devik Jain and Shashank Nayar in Bengaluru; Editing by Maju Samuel)
((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2062; ;))
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.N gained 3.8% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes dropped from their record highs on Friday after dismal results from mega-cap firms Apple and Amazon.com, while gains in Chevron and Caterpillar helped the blue-chip Dow outperform. Market participants have been closely watching how corporate America navigates through these challenges along with concerns about rising inflation, after largely upbeat earnings reports so far helped investors look past a mixed batch of macro-economic data. | AbbVie Inc ABBV.N gained 3.8% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes dropped from their record highs on Friday after dismal results from mega-cap firms Apple and Amazon.com, while gains in Chevron and Caterpillar helped the blue-chip Dow outperform. Energy shares .SPNY outperformed after oil majors Chevron Corp CVX.N and Exxon Mobil XOM.N posted strong quarterly profits on soaring oil and gas prices. | AbbVie Inc ABBV.N gained 3.8% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes dropped from their record highs on Friday after dismal results from mega-cap firms Apple and Amazon.com, while gains in Chevron and Caterpillar helped the blue-chip Dow outperform. "The reason Apple and Amazon is key to watch is only because of their weightage which will lead to some weakness in the Nasdaq but it is definitely not creating any huge cloud over the market regarding strong earnings," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. | AbbVie Inc ABBV.N gained 3.8% as the U.S. drugmaker raised its 2021 adjusted profit forecast for the third time this year. By Devik Jain and Shashank Nayar Oct 29 (Reuters) - The S&P 500 and the Nasdaq indexes dropped from their record highs on Friday after dismal results from mega-cap firms Apple and Amazon.com, while gains in Chevron and Caterpillar helped the blue-chip Dow outperform. Apple AAPL.O slipped 3.7% after the iPhone maker warned the impact of supply chain disruptions will be even worse during the current holiday sales quarter. |
23836.0 | 2021-10-29 00:00:00 UTC | What To Expect From Merck's Q3? | ABBV | https://www.nasdaq.com/articles/what-to-expect-from-mercks-q3-2021-10-29 | nan | nan | 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 2016.
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. | 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. 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. 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. | 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. (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. 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. | 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. (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. (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. | 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. 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. 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. |
23837.0 | 2021-10-29 00:00:00 UTC | Friday Sector Leaders: Healthcare, Technology & Communications | ABBV | https://www.nasdaq.com/articles/friday-sector-leaders%3A-healthcare-technology-communications-2021-10-29 | nan | nan | The best performing sector as of midday Friday is the Healthcare sector, higher by 0.4%. Within that group, DexCom Inc (Symbol: DXCM) and AbbVie Inc (Symbol: ABBV) are two large stocks leading the way, showing a gain of 8.3% and 4.6%, respectively. Among healthcare ETFs, one ETF following the sector is the Health Care Select Sector SPDR ETF (Symbol: XLV), which is up 0.8% on the day, and up 18.92% year-to-date. DexCom Inc, meanwhile, is up 67.08% year-to-date, and AbbVie Inc is up 11.89% year-to-date. Combined, DXCM and ABBV make up approximately 5.0% of the underlying holdings of XLV.
The next best performing sector is the Technology & Communications sector, higher by 0.3%. Among large Technology & Communications stocks, Verisign Inc (Symbol: VRSN) and eBay Inc. (Symbol: EBAY) are the most notable, showing a gain of 5.7% and 5.5%, respectively. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 0.3% in midday trading, and up 24.69% on a year-to-date basis. Verisign Inc, meanwhile, is up 2.95% year-to-date, and eBay Inc. is up 53.11% year-to-date. VRSN makes up approximately 0.2% of the underlying holdings of XLK.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Friday. As you can see, three sectors are up on the day, while six sectors are down.
SECTOR % CHANGE
Healthcare +0.4%
Technology & Communications +0.3%
Industrial +0.2%
Consumer Products -0.1%
Financial -0.4%
Services -0.6%
Utilities -0.8%
Materials -1.2%
Energy -1.6%
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Combined, DXCM and ABBV make up approximately 5.0% of the underlying holdings of XLV. Within that group, DexCom Inc (Symbol: DXCM) and AbbVie Inc (Symbol: ABBV) are two large stocks leading the way, showing a gain of 8.3% and 4.6%, respectively. DexCom Inc, meanwhile, is up 67.08% year-to-date, and AbbVie Inc is up 11.89% year-to-date. | Within that group, DexCom Inc (Symbol: DXCM) and AbbVie Inc (Symbol: ABBV) are two large stocks leading the way, showing a gain of 8.3% and 4.6%, respectively. DexCom Inc, meanwhile, is up 67.08% year-to-date, and AbbVie Inc is up 11.89% year-to-date. Combined, DXCM and ABBV make up approximately 5.0% of the underlying holdings of XLV. | Within that group, DexCom Inc (Symbol: DXCM) and AbbVie Inc (Symbol: ABBV) are two large stocks leading the way, showing a gain of 8.3% and 4.6%, respectively. DexCom Inc, meanwhile, is up 67.08% year-to-date, and AbbVie Inc is up 11.89% year-to-date. Combined, DXCM and ABBV make up approximately 5.0% of the underlying holdings of XLV. | Within that group, DexCom Inc (Symbol: DXCM) and AbbVie Inc (Symbol: ABBV) are two large stocks leading the way, showing a gain of 8.3% and 4.6%, respectively. DexCom Inc, meanwhile, is up 67.08% year-to-date, and AbbVie Inc is up 11.89% year-to-date. Combined, DXCM and ABBV make up approximately 5.0% of the underlying holdings of XLV. |
23838.0 | 2021-10-29 00:00:00 UTC | AbbVie Raises FY21 Outlook; Boosts Dividend 8.5% - Quick Facts | ABBV | https://www.nasdaq.com/articles/abbvie-raises-fy21-outlook-boosts-dividend-8.5-quick-facts-2021-10-29 | nan | nan | (RTTNews) - While reporting financial results for the third quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) raised its adjusted earnings guidance for the full-year 2021.
For fiscal 2021, AbbVie now projects earnings in a range of $6.29 to $6.33 per share and adjusted earnings in a range of $12.63 to $12.67 per share.
Previously, the company expected adjusted earnings in a range of $6.04 to $6.14 per share and adjusted earnings in a range of $12.52 to $12.62 per share.
On average, 19 analysts polled by Thomson Reuters expect the company to report earnings of $12.59 per share for the year. Analysts' estimates typically exclude special items.
Further, AbbVie announced that its board of directors declared a 8.5 percent higher quarterly cash dividend of $1.41 per share, beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - While reporting financial results for the third quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) raised its adjusted earnings guidance for the full-year 2021. Further, AbbVie announced that its board of directors declared a 8.5 percent higher quarterly cash dividend of $1.41 per share, beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. For fiscal 2021, AbbVie now projects earnings in a range of $6.29 to $6.33 per share and adjusted earnings in a range of $12.63 to $12.67 per share. | For fiscal 2021, AbbVie now projects earnings in a range of $6.29 to $6.33 per share and adjusted earnings in a range of $12.63 to $12.67 per share. (RTTNews) - While reporting financial results for the third quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) raised its adjusted earnings guidance for the full-year 2021. Further, AbbVie announced that its board of directors declared a 8.5 percent higher quarterly cash dividend of $1.41 per share, beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. | For fiscal 2021, AbbVie now projects earnings in a range of $6.29 to $6.33 per share and adjusted earnings in a range of $12.63 to $12.67 per share. (RTTNews) - While reporting financial results for the third quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) raised its adjusted earnings guidance for the full-year 2021. Further, AbbVie announced that its board of directors declared a 8.5 percent higher quarterly cash dividend of $1.41 per share, beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. | Further, AbbVie announced that its board of directors declared a 8.5 percent higher quarterly cash dividend of $1.41 per share, beginning with the dividend payable on February 15, 2022 to shareholders of record as of January 14, 2022. (RTTNews) - While reporting financial results for the third quarter on Friday, biopharmaceutical company AbbVie Inc. (ABBV) raised its adjusted earnings guidance for the full-year 2021. For fiscal 2021, AbbVie now projects earnings in a range of $6.29 to $6.33 per share and adjusted earnings in a range of $12.63 to $12.67 per share. |
23839.0 | 2021-10-29 00:00:00 UTC | AbbVie gets a shot in the arm from newer drug sales, lifts profit view | ABBV | https://www.nasdaq.com/articles/abbvie-gets-a-shot-in-the-arm-from-newer-drug-sales-lifts-profit-view-2021-10-29-0 | nan | nan | Compares profit with estimates, adds share prices
Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly profit and revenue.
The company has been focusing on gaining expanded approvals and driving growth for Skyrizi and Rinvoq, launched in 2019, as it prepares for competition for its blockbuster rheumatoid arthritis drug, Humira.
Humira is the world's highest selling medicine, accounting for nearly 40% of AbbVie's total sales.
Humira sales, which rose 5.6% to $5.43 billion in the third quarter, are expected to be squeezed when generic rivals enter the U.S. market in 2023.
Rinvoq sales could take a near-term hit, analysts have said, after the U.S. drug regulator asked the company and others to present information about the risks of death and serious conditions from the use of their drugs that belong to a class of treatments known as JAK inhibitors.
Meanwhile, sales from the rheumatoid arthritis drug more than doubled to $453 million in the quarter ended Sept. 30, beating the average analyst estimate of $436.8 million, according to Refinitiv IBES estimates.
Sales from plaque psoriasis drug Skyrizi jumped 83.3% to $796 million, also above estimates of $765 million.
Revenue from Botox, used as an anti-wrinkle injection and for other cosmetic purposes, also beat estimates.
Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion.
AbbVie now expects full-year adjusted profit of $12.63 to $12.67 per share, compared with prior expectation of $12.52 to $12.62.
Excluding one-time items, the company earned $3.33 per share, beating estimates of $3.22.
Shares of the Illinois-based company rose 2.8% to $112.72 before the opening bell.
(Reporting by Manas Mishra and Oishee Majumdar in Bengaluru; Editing by Shinjini Ganguli)
((oishee.majumdar@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. | Humira is the world's highest selling medicine, accounting for nearly 40% of AbbVie's total sales. Compares profit with estimates, adds share prices Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly profit and revenue. Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion. | Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion. AbbVie now expects full-year adjusted profit of $12.63 to $12.67 per share, compared with prior expectation of $12.52 to $12.62. Compares profit with estimates, adds share prices Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly profit and revenue. | Compares profit with estimates, adds share prices Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly profit and revenue. Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion. Humira is the world's highest selling medicine, accounting for nearly 40% of AbbVie's total sales. | Total sales for AbbVie rose 11.2% to $14.34 billion, narrowly beating estimates of $14.32 billion. AbbVie now expects full-year adjusted profit of $12.63 to $12.67 per share, compared with prior expectation of $12.52 to $12.62. Compares profit with estimates, adds share prices Oct 29 (Reuters) - U.S. drugmaker AbbVie Inc ABBV.N on Friday raised its 2021 adjusted profit forecast for the third time this year after a stellar performance by its newer drugs helped it beat Wall Street estimates for quarterly profit and revenue. |
23840.0 | 2021-10-29 00:00:00 UTC | AbbVie Says Cariprazine Met Primary Endpoint In Phase 3 Study For Major Depressive Disorder | ABBV | https://www.nasdaq.com/articles/abbvie-says-cariprazine-met-primary-endpoint-in-phase-3-study-for-major-depressive | nan | nan | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday top-line results from two Phase 3 clinical trials, Study 3111-301-001 and Study 3111-302-001, evaluating the efficacy and safety of cariprazine (Vraylar) as an adjunctive treatment for patients with major depressive disorder (MDD).
In Study 3111-301-001, cariprazine showed a statistically significant change from baseline to week six in the Montgomery-Åsberg Depression Rating Scale (MADRS) total score compared with placebo.
Patients treated with cariprazine at 1.5 mg/day achieved improved MADRS total score at week six compared to placebo. Patients treated with cariprazine at 3.0 mg/day demonstrated improvement in MADRS total score at week six over placebo but did not meet statistical significance.
In Study 3111-302-001, cariprazine demonstrated numerical improvement in depressive symptoms from baseline to week six in MADRS total score compared with placebo but did not meet its primary endpoint for either the 1.5 mg/day or 3.0 mg/day dose.
In a previously published Phase 2/3 registration-enabling study, RGH-MD-75, patients treated with cariprazine flexible doses of 2.0-4.5 mg/day in addition to ongoing antidepressant therapy (ADT) met the primary endpoint and achieved improved MADRS total scores at week eight compared to placebo.
Based on the positive results of studies 3111-301-001 and RGH-MD-75, and the totality of data reported, AbbVie intends to submit a supplemental New Drug Application (sNDA) with the U.S. Food and Drug Administration for the expanded use of cariprazine for the adjunctive treatment of MDD.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday top-line results from two Phase 3 clinical trials, Study 3111-301-001 and Study 3111-302-001, evaluating the efficacy and safety of cariprazine (Vraylar) as an adjunctive treatment for patients with major depressive disorder (MDD). Based on the positive results of studies 3111-301-001 and RGH-MD-75, and the totality of data reported, AbbVie intends to submit a supplemental New Drug Application (sNDA) with the U.S. Food and Drug Administration for the expanded use of cariprazine for the adjunctive treatment of MDD. In Study 3111-301-001, cariprazine showed a statistically significant change from baseline to week six in the Montgomery-Åsberg Depression Rating Scale (MADRS) total score compared with placebo. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday top-line results from two Phase 3 clinical trials, Study 3111-301-001 and Study 3111-302-001, evaluating the efficacy and safety of cariprazine (Vraylar) as an adjunctive treatment for patients with major depressive disorder (MDD). Based on the positive results of studies 3111-301-001 and RGH-MD-75, and the totality of data reported, AbbVie intends to submit a supplemental New Drug Application (sNDA) with the U.S. Food and Drug Administration for the expanded use of cariprazine for the adjunctive treatment of MDD. Patients treated with cariprazine at 1.5 mg/day achieved improved MADRS total score at week six compared to placebo. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday top-line results from two Phase 3 clinical trials, Study 3111-301-001 and Study 3111-302-001, evaluating the efficacy and safety of cariprazine (Vraylar) as an adjunctive treatment for patients with major depressive disorder (MDD). Based on the positive results of studies 3111-301-001 and RGH-MD-75, and the totality of data reported, AbbVie intends to submit a supplemental New Drug Application (sNDA) with the U.S. Food and Drug Administration for the expanded use of cariprazine for the adjunctive treatment of MDD. In Study 3111-301-001, cariprazine showed a statistically significant change from baseline to week six in the Montgomery-Åsberg Depression Rating Scale (MADRS) total score compared with placebo. | (RTTNews) - Biopharmaceutical company AbbVie Inc. (ABBV) announced Friday top-line results from two Phase 3 clinical trials, Study 3111-301-001 and Study 3111-302-001, evaluating the efficacy and safety of cariprazine (Vraylar) as an adjunctive treatment for patients with major depressive disorder (MDD). Based on the positive results of studies 3111-301-001 and RGH-MD-75, and the totality of data reported, AbbVie intends to submit a supplemental New Drug Application (sNDA) with the U.S. Food and Drug Administration for the expanded use of cariprazine for the adjunctive treatment of MDD. Patients treated with cariprazine at 3.0 mg/day demonstrated improvement in MADRS total score at week six over placebo but did not meet statistical significance. |
23841.0 | 2021-10-29 00:00:00 UTC | AbbVie’s ABBV-951 Phase 3 Study Reflects Optimism; Shares Rise | ABBV | https://www.nasdaq.com/articles/abbvies-abbv-951-phase-3-study-reflects-optimism-shares-rise-2021-10-29 | nan | nan | Shares of AbbVie (ABBV) rose 1.2% to close at $109.67 on Thursday after the biopharmaceutical company study revealed the results of the Phase 3 study of ABBV-951, an investigational therapy.
The results showed that continuous, subcutaneous infusion of ABBV-951 met its primary endpoint. (See Insiders’ Hot Stocks on TipRanks)
Notably, the study compared the efficacy, safety and tolerability profile of ABBV-951 (foslevodopa/foscarbidopa) to oral levodopa/carbidopa in advanced Parkinson’s disease (PD) patients. It is being investigated for patients whose motor symptoms are not controlled by oral medications.
According to the company, patients who received daily ABBV-951 showed statistically significant increases in hours of “On” time without troublesome dyskinesia (involuntary movements), which can impact daily activities, compared to oral LD/CD. Globally, more than 10 million people are suffering from this disease.
VC of AbbVie, Michael Severino, said, “Parkinson’s disease is a progressive, irreversible neurological disease with debilitating symptoms that can make daily life challenging. We’re committed to addressing the continued needs of patients and are encouraged by these results that highlight a potential alternative treatment option for those affected by advanced Parkinson’s disease.”
Wall Street's Take
On October 14, Mizuho Securities analyst Vamil Divan reiterated a Buy rating on the stock, with a price target of $131 (19.45% upside potential).
Divan expects “a solid quarter, with focus to remain on key growth drivers such as Humira, Imbruvica, and Rinvoq, and the health of the aesthetics business through the pandemic.”
Consensus among analysts is a Strong Buy based on 10 Buys versus two Holds. The average AbbVie price target of $129.58 implies 18.2% upside potential from current levels.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 100% Bullish on AbbVie, compared to a sector average of 70%.
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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. | (See Insiders’ Hot Stocks on TipRanks) Notably, the study compared the efficacy, safety and tolerability profile of ABBV-951 (foslevodopa/foscarbidopa) to oral levodopa/carbidopa in advanced Parkinson’s disease (PD) patients. Shares of AbbVie (ABBV) rose 1.2% to close at $109.67 on Thursday after the biopharmaceutical company study revealed the results of the Phase 3 study of ABBV-951, an investigational therapy. The results showed that continuous, subcutaneous infusion of ABBV-951 met its primary endpoint. | The average AbbVie price target of $129.58 implies 18.2% upside potential from current levels. Bloggers Weigh In TipRanks data shows that financial blogger opinions are 100% Bullish on AbbVie, compared to a sector average of 70%. Shares of AbbVie (ABBV) rose 1.2% to close at $109.67 on Thursday after the biopharmaceutical company study revealed the results of the Phase 3 study of ABBV-951, an investigational therapy. | (See Insiders’ Hot Stocks on TipRanks) Notably, the study compared the efficacy, safety and tolerability profile of ABBV-951 (foslevodopa/foscarbidopa) to oral levodopa/carbidopa in advanced Parkinson’s disease (PD) patients. VC of AbbVie, Michael Severino, said, “Parkinson’s disease is a progressive, irreversible neurological disease with debilitating symptoms that can make daily life challenging. Shares of AbbVie (ABBV) rose 1.2% to close at $109.67 on Thursday after the biopharmaceutical company study revealed the results of the Phase 3 study of ABBV-951, an investigational therapy. | Shares of AbbVie (ABBV) rose 1.2% to close at $109.67 on Thursday after the biopharmaceutical company study revealed the results of the Phase 3 study of ABBV-951, an investigational therapy. The results showed that continuous, subcutaneous infusion of ABBV-951 met its primary endpoint. (See Insiders’ Hot Stocks on TipRanks) Notably, the study compared the efficacy, safety and tolerability profile of ABBV-951 (foslevodopa/foscarbidopa) to oral levodopa/carbidopa in advanced Parkinson’s disease (PD) patients. |
23842.0 | 2021-10-28 00:00:00 UTC | AbbVie: Phase 3 Trial Of ABBV-951 Shows Improvement In Motor Fluctuations In Parkinson's Disease | ABBV | https://www.nasdaq.com/articles/abbvie%3A-phase-3-trial-of-abbv-951-shows-improvement-in-motor-fluctuations-in-parkinsons | nan | nan | (RTTNews) - AbbVie (ABBV) said ABBV-951 (Foslevodopa/Foscarbidopa) showed improvement in controlling motor fluctuations compared to oral Levodopa/Carbidopa medication in pivotal phase 3 trial in patients with advanced Parkinson's Disease.
The pivotal Phase 3, randomized, double-blind, double-dummy, active-controlled study of continuous, subcutaneous infusion of ABBV-951 in patients with advanced Parkinson's disease met its primary endpoint in a 12-week study.
The company stated that patients who received 24 hours/daily ABBV-951 showed statistically significant increases in hours of "On" time without troublesome dyskinesia, compared to oral levodopa/carbidopa. A significant reduction in hours of "Off" time was also observed.
The systemic adverse events were generally consistent with the well-established safety profile of levodopa/carbidopa medications and infusion site adverse events were mostly non-serious and mild or moderate in severity.
The company noted that full results from the Phase 3 study will be presented at a future medical meeting or submitted for publication in a peer-reviewed journal. ABBV-951 is an investigational therapy and it is not approved for use.
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 ABBV-951 (Foslevodopa/Foscarbidopa) showed improvement in controlling motor fluctuations compared to oral Levodopa/Carbidopa medication in pivotal phase 3 trial in patients with advanced Parkinson's Disease. The company stated that patients who received 24 hours/daily ABBV-951 showed statistically significant increases in hours of "On" time without troublesome dyskinesia, compared to oral levodopa/carbidopa. The pivotal Phase 3, randomized, double-blind, double-dummy, active-controlled study of continuous, subcutaneous infusion of ABBV-951 in patients with advanced Parkinson's disease met its primary endpoint in a 12-week study. | (RTTNews) - AbbVie (ABBV) said ABBV-951 (Foslevodopa/Foscarbidopa) showed improvement in controlling motor fluctuations compared to oral Levodopa/Carbidopa medication in pivotal phase 3 trial in patients with advanced Parkinson's Disease. The pivotal Phase 3, randomized, double-blind, double-dummy, active-controlled study of continuous, subcutaneous infusion of ABBV-951 in patients with advanced Parkinson's disease met its primary endpoint in a 12-week study. The company stated that patients who received 24 hours/daily ABBV-951 showed statistically significant increases in hours of "On" time without troublesome dyskinesia, compared to oral levodopa/carbidopa. | (RTTNews) - AbbVie (ABBV) said ABBV-951 (Foslevodopa/Foscarbidopa) showed improvement in controlling motor fluctuations compared to oral Levodopa/Carbidopa medication in pivotal phase 3 trial in patients with advanced Parkinson's Disease. The pivotal Phase 3, randomized, double-blind, double-dummy, active-controlled study of continuous, subcutaneous infusion of ABBV-951 in patients with advanced Parkinson's disease met its primary endpoint in a 12-week study. The company stated that patients who received 24 hours/daily ABBV-951 showed statistically significant increases in hours of "On" time without troublesome dyskinesia, compared to oral levodopa/carbidopa. | (RTTNews) - AbbVie (ABBV) said ABBV-951 (Foslevodopa/Foscarbidopa) showed improvement in controlling motor fluctuations compared to oral Levodopa/Carbidopa medication in pivotal phase 3 trial in patients with advanced Parkinson's Disease. The company stated that patients who received 24 hours/daily ABBV-951 showed statistically significant increases in hours of "On" time without troublesome dyskinesia, compared to oral levodopa/carbidopa. The pivotal Phase 3, randomized, double-blind, double-dummy, active-controlled study of continuous, subcutaneous infusion of ABBV-951 in patients with advanced Parkinson's disease met its primary endpoint in a 12-week study. |
23843.0 | 2021-10-28 00:00:00 UTC | What Investors Should Pay Attention to in AbbVie's Q3 Earnings Report | ABBV | https://www.nasdaq.com/articles/what-investors-should-pay-attention-to-in-abbvies-q3-earnings-report-2021-10-28 | nan | nan | With AbbVie's (NYSE: ABBV) third-quarter earnings report scheduled for Oct. 29, shareholders and prospective investors should be on alert. AbbVie is in the middle of transitioning its revenue base away from dependence on its blockbuster drug Humira, as its exclusivity protections are starting to expire outside the U.S. That means the company's stock is in a particularly sensitive time, as the prospective replacements for Humira are still in the process of ramping up.
The earnings report will likely give investors updates on progress in the clinical trial pipeline, but the main dish will be the story about the pace of its revenue growth in Humira's replacements, or lack thereof. Of course, if Humira's market share crumbles even faster than predicted, it'll leave AbbVie in a pickle, and there's a little evidence that it's already happening.
Image source: Getty Images.
Will Humira revenue finally hit the wall in the U.S.?
As the world's leading immunology drug, AbbVie's Humira is approved for no fewer than 16 different indications in dermatology and other specialty areas. In 2020, it made AbbVie $20.4 billion, making the drug one of the best sellers of all time. But, its reign will soon be ending.
Humira's revenue will soon start to fall rapidly as its exclusivity rights expire and biosimilar drugs hit the market in the U.S., which follows an influx of biosimilars in the E.U. and elsewhere worldwide that started from 2018. In the first year Humira faced erosion of its market share from biosimilars in the E.U., its sales dropped by a shocking 45%. Management expects the same thing to happen in 2023 in the U.S. when at least eight competitors to the drug will launch.
Until that point, however, sales are predicted to keep rising by as much as 8% per year in the U.S. In the second quarter, quarterly income from Humira sales in the U.S. only grew by 7.1%, whereas its international revenue dropped by 6% on a reported basis. If the upcoming earnings update shows further deceleration of growth, the total at year-end might be paltry in comparison to what was expected.
All successful pharmaceutical companies eventually face the same problem that AbbVie is facing with Humira, but that doesn't mean the market is going to be any gentler to the stock. Many investors are banking on management's timeline for Humira's phase-out being correct, not to mention the phasing-in of other revenue sources. If in the earnings report, domestic growth is even slower than that or if international sales start to collapse even faster, it could spell serious short-term trouble, as the market's appraisal of AbbVie's future revenue will dim even more.
How are Humira's replacements shaping up?
Management estimates that the collection of immunology therapies the company is advancing to replace the revenue from Humira will be worth more than $15 billion per year by 2025. The two most important projects to reach that estimate are Rinvoq and Skyrizi, both of which are indicated for many of the same conditions as Humira, like atopic dermatitis and psoriatic arthritis.
Work is currently underway to investigate Rinvoq and Skyrizi for a plethora of additional indications, which will be key to increasing their total revenue potential. Many of these investigations concluded in regulatory approvals in 2021, and even more, are scheduled to be sent to regulators for consideration in 2022.
In the meantime, investors will need to take a look at how quickly Rinvoq and Skyrizi's sales volume is rising. For the second quarter, globally Skyrizi brought in $674 million whereas Rinvoq only made $378 million. If management's strategy to replace Humira with Skyrizi and Rinvoq is going to work -- and it looks like it will -- the proof will be in the pudding.
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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. | If in the earnings report, domestic growth is even slower than that or if international sales start to collapse even faster, it could spell serious short-term trouble, as the market's appraisal of AbbVie's future revenue will dim even more. With AbbVie's (NYSE: ABBV) third-quarter earnings report scheduled for Oct. 29, shareholders and prospective investors should be on alert. AbbVie is in the middle of transitioning its revenue base away from dependence on its blockbuster drug Humira, as its exclusivity protections are starting to expire outside the U.S. That means the company's stock is in a particularly sensitive time, as the prospective replacements for Humira are still in the process of ramping up. | As the world's leading immunology drug, AbbVie's Humira is approved for no fewer than 16 different indications in dermatology and other specialty areas. With AbbVie's (NYSE: ABBV) third-quarter earnings report scheduled for Oct. 29, shareholders and prospective investors should be on alert. AbbVie is in the middle of transitioning its revenue base away from dependence on its blockbuster drug Humira, as its exclusivity protections are starting to expire outside the U.S. That means the company's stock is in a particularly sensitive time, as the prospective replacements for Humira are still in the process of ramping up. | AbbVie is in the middle of transitioning its revenue base away from dependence on its blockbuster drug Humira, as its exclusivity protections are starting to expire outside the U.S. That means the company's stock is in a particularly sensitive time, as the prospective replacements for Humira are still in the process of ramping up. All successful pharmaceutical companies eventually face the same problem that AbbVie is facing with Humira, but that doesn't mean the market is going to be any gentler to the stock. If in the earnings report, domestic growth is even slower than that or if international sales start to collapse even faster, it could spell serious short-term trouble, as the market's appraisal of AbbVie's future revenue will dim even more. | With AbbVie's (NYSE: ABBV) third-quarter earnings report scheduled for Oct. 29, shareholders and prospective investors should be on alert. AbbVie is in the middle of transitioning its revenue base away from dependence on its blockbuster drug Humira, as its exclusivity protections are starting to expire outside the U.S. That means the company's stock is in a particularly sensitive time, as the prospective replacements for Humira are still in the process of ramping up. Of course, if Humira's market share crumbles even faster than predicted, it'll leave AbbVie in a pickle, and there's a little evidence that it's already happening. |
23844.0 | 2021-10-28 00:00:00 UTC | Pre-Market Earnings Report for October 29, 2021 : XOM, CVX, ABBV, CHTR, AON, CL, LHX, PSX, LYB, WY, IMO, GWW | ABBV | https://www.nasdaq.com/articles/pre-market-earnings-report-for-october-29-2021-%3A-xom-cvx-abbv-chtr-aon-cl-lhx-psx-lyb-wy | nan | nan | The following companies are expected to report earnings prior to market open on 10/29/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation (XOM)is reporting for the quarter ending September 30, 2021. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.57. This value represents a 972.22% increase compared to the same quarter last year. In the past year XOM has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 7.84%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for XOM is 12.75 vs. an industry ratio of 8.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation (CVX)is reporting for the quarter ending September 30, 2021. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.21. This value represents a 1909.09% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CVX is 15.10 vs. an industry ratio of 8.70, implying that they will have a higher earnings growth than their competitors in the same industry.
AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2021. The large cap pharmaceutical company's consensus earnings per share forecast from the 6 analysts that follow the stock is $3.23. This value represents a 14.13% increase compared to the same quarter last year. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.58 vs. an industry ratio of 15.70.
Charter Communications, Inc. (CHTR)is reporting for the quarter ending September 30, 2021. The cable tv company's consensus earnings per share forecast from the 16 analysts that follow the stock is $5.69. This value represents a 45.90% increase compared to the same quarter last year. CHTR missed the consensus earnings per share in the 1st calendar quarter of 2021 by -5.3%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CHTR is 33.64 vs. an industry ratio of 25.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Aon plc (AON)is reporting for the quarter ending September 30, 2021. The insurance brokers company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.67. This value represents a 9.15% increase compared to the same quarter last year. In the past year AON has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 27.22%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AON is 27.22 vs. an industry ratio of 25.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Colgate-Palmolive Company (CL)is reporting for the quarter ending September 30, 2021. The cleaning company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.79. This value represents a no change for the same quarter last year. In the past year CL has met analyst expectations three times and beat the expectations the other quarter. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CL is 23.64 vs. an industry ratio of 22.70, implying that they will have a higher earnings growth than their competitors in the same industry.
L3Harris Technologies, Inc. (LHX)is reporting for the quarter ending September 30, 2021. The aerospace and defense company's consensus earnings per share forecast from the 8 analysts that follow the stock is $3.16. This value represents a 11.27% increase compared to the same quarter last year. In the past year LHX has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.84%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LHX is 17.55 vs. an industry ratio of -19.70, implying that they will have a higher earnings growth than their competitors in the same industry.
Phillips 66 (PSX)is reporting for the quarter ending September 30, 2021. The oil refining company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.95. This value represents a 19600.00% increase compared to the same quarter last year. PSX missed the consensus earnings per share in the 4th calendar quarter of 2020 by -6.42%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PSX is 28.75 vs. an industry ratio of 46.80.
LyondellBasell Industries NV (LYB)is reporting for the quarter ending September 30, 2021. The chemical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $5.78. This value represents a 355.12% increase compared to the same quarter last year. In the past year LYB has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 8.11%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for LYB is 4.70 vs. an industry ratio of 14.00.
Weyerhaeuser Company (WY)is reporting for the quarter ending September 30, 2021. The building company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.56. This value represents a 7.69% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for WY is 11.19 vs. an industry ratio of 16.60.
Imperial Oil Limited (IMO)is reporting for the quarter ending September 30, 2021. The consensus earnings per share forecast from the 2 analysts that follow the stock is $1.05. IMO reported earnings of $0 per share for the same quarter a year ago; representing aIMO missed the consensus earnings per share in the 4th calendar quarter of 2020 by -71.43%. W.W. Grainger, Inc. (GWW)is reporting for the quarter ending September 30, 2021. The industrial services company's consensus earnings per share forecast from the 7 analysts that follow the stock is $5.31. This value represents a 17.48% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for GWW is 22.17 vs. an industry ratio of 12.50, implying that they will have a higher earnings growth than their competitors in the same industry.
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)is reporting for the quarter ending September 30, 2021. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.58 vs. an industry ratio of 15.70. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2021. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.58 vs. an industry ratio of 15.70. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2021. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.58 vs. an industry ratio of 15.70. | AbbVie Inc. (ABBV)is reporting for the quarter ending September 30, 2021. In the past year ABBV has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ABBV is 8.58 vs. an industry ratio of 15.70. |
23845.0 | 2021-10-28 00:00:00 UTC | Should Investors Worry About AbbVie? | ABBV | https://www.nasdaq.com/articles/should-investors-worry-about-abbvie-2021-10-28 | nan | nan | Pharmaceutical giant AbbVie (NYSE: ABBV) has built a good business on its long-running exclusivity of the world's top-selling drug, Humira, used for treating arthritis. However, Humira will lose its patent protection in 2023, and a handful of biosimilars -- that is, "copy cat" versions of the drug made by competitors when a patent expires -- will enter the market.
Competition for Humira may seem scary since it represents more than a third of AbbVie's sales. But before investors panic, let's look at why things may not be as bad as they seem.
AbbVie has been preparing for 2023 for a while
It shouldn't be a stretch to call Humira's upcoming patent expiration the "elephant in the room" with AbbVie's management. The company knew this was coming and has steadily taken steps to counter the looming drop in sales that will likely occur as competing products begin to flood the market at lower prices.
Image source: Getty Images.
For starters, AbbVie has brought new drugs to market that treat similar conditions as Humira does but with potential advantages. One of them, Skyrizi, could require fewer doses; the other, Rinvoq, could be taken as an oral pill instead of an injection. While these new products are much smaller than Humira, they are growing rapidly. Skyrizi's sales through the first six months of 2021 are up 98% year over year to $1.2 billion while Rinvoq's sales are up 190% to $681 million.
These products continue to grow sales, which should help fill the hole that Humira leaves in 2023. Let's also not forget that it's still unknown just how sharply sales for Humira will actually drop off; it's unlikely they will drop to zero overnight. Patients and doctors may need time to trust the new biosimilars, and some patients may prefer to stick with the "name brand."
AbbVie also made a significant acquisition, buying pharmaceutical company Allergan last year for $63 billion. This brought a whole pipeline of products to AbbVie, including Allergan's famous Botox brand. The combined entity is now less reliant on Humira's sales than it has been in the past. While it's still a big contributor at 37% of sales in the first half of 2021, that's down significantly from the 57% Humira accounted for in 2019.
Its excellent dividend is well-covered
One of the reasons many people invest in AbbVie is the company's dividend. With a yield of more than 4.7%, it gives shareholders a significant income stream along with potential upside in the share price.
As long as AbbVie can do a solid job replacing lost Humira sales, the company should have little issue continuing to pay a large dividend while developing new drugs in its pipeline. The dividend itself has grown at an average rate of 18% over the past five years, so that might slow down as Humira fades.
However, the dividend payout ratio is just 45% of cash flow, so it would take a catastrophic collapse for the dividend to be threatened, in my opinion. Analysts are still projecting positive earnings growth over the next three to five years of about 4% per year.
Stock is valued like it's going out of business
It's fair to be a little skeptical; competition for your best product -- and the top-selling drug on Earth -- is an adverse event no matter how you spin it. So suppose we would like to discount the valuation to justify the risk of investing in AbbVie as it loses Humira.
The stock has traded at a historical average price-to-earnings ratio (P/E) of nearly 21 over the past decade. Analysts estimate AbbVie's full-year 2021 earnings per share will be $12.60, giving the stock a P/E ratio of just under nine. In other words, the stock is trading at more than a 50% discount to its "normal" valuation.
Let's assume that AbbVie sees a dramatic decline in Humira sales right when it loses exclusivity (which I think is unlikely). If the company saw its earnings fall 25%, the resulting P/E ratio would be just 11.5, still a cheap valuation. AbbVie will likely get even less expensive in 2022; analysts expect EPS of $13.95, or 10% higher than 2021 estimates.
Are there risks in AbbVie with it losing exclusivity to Humira? Yes, of course. However, it seems fair to argue that investors have overreacted, and the stock has gotten far too cheap for investors to ignore. The risks could be more than factored into today's prices at this point.
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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. | Pharmaceutical giant AbbVie (NYSE: ABBV) has built a good business on its long-running exclusivity of the world's top-selling drug, Humira, used for treating arthritis. As long as AbbVie can do a solid job replacing lost Humira sales, the company should have little issue continuing to pay a large dividend while developing new drugs in its pipeline. Competition for Humira may seem scary since it represents more than a third of AbbVie's sales. | AbbVie also made a significant acquisition, buying pharmaceutical company Allergan last year for $63 billion. Analysts estimate AbbVie's full-year 2021 earnings per share will be $12.60, giving the stock a P/E ratio of just under nine. Pharmaceutical giant AbbVie (NYSE: ABBV) has built a good business on its long-running exclusivity of the world's top-selling drug, Humira, used for treating arthritis. | As long as AbbVie can do a solid job replacing lost Humira sales, the company should have little issue continuing to pay a large dividend while developing new drugs in its pipeline. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. Pharmaceutical giant AbbVie (NYSE: ABBV) has built a good business on its long-running exclusivity of the world's top-selling drug, Humira, used for treating arthritis. | AbbVie also made a significant acquisition, buying pharmaceutical company Allergan last year for $63 billion. Analysts estimate AbbVie's full-year 2021 earnings per share will be $12.60, giving the stock a P/E ratio of just under nine. Pharmaceutical giant AbbVie (NYSE: ABBV) has built a good business on its long-running exclusivity of the world's top-selling drug, Humira, used for treating arthritis. |
23846.0 | 2021-10-28 00:00:00 UTC | ABBV December 10th Options Begin Trading | ABBV | https://www.nasdaq.com/articles/abbv-december-10th-options-begin-trading-2021-10-28 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the December 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 10th contracts and identified one put and one call contract of particular interest.
The put contract at the $100.00 strike price has a current bid of 74 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $100.00, but will also collect the premium, putting the cost basis of the shares at $99.26 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $108.97/share today.
Because the $100.00 strike represents an approximate 8% 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 86%. 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 0.74% return on the cash commitment, or 6.28% 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 $100.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $112.00 strike price has a current bid of $1.91. If an investor was to purchase shares of ABBV stock at the current price level of $108.97/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $112.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.53% if the stock gets called away at the December 10th 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 $112.00 strike highlighted in red:
Considering the fact that the $112.00 strike represents an approximate 3% 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 65%. 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 1.75% boost of extra return to the investor, or 14.86% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 29%, while the implied volatility in the call contract example is 24%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $108.97) to be 22%. 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 $112.00 strike highlighted in red: Considering the fact that the $112.00 strike represents an approximate 3% 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 December 10th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $112.00 strike highlighted in red: Considering the fact that the $112.00 strike represents an approximate 3% 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 December 10th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 10th 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 $100.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $112.00 strike price has a current bid of $1.91. Below is a chart showing ABBV's trailing twelve month trading history, with the $112.00 strike highlighted in red: Considering the fact that the $112.00 strike represents an approximate 3% 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 December 10th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new December 10th 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 $112.00 strike highlighted in red: Considering the fact that the $112.00 strike represents an approximate 3% 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 December 10th expiration. |
23847.0 | 2021-10-27 00:00:00 UTC | AbbVie Takes Another Step Toward Its Post-Humira Future | ABBV | https://www.nasdaq.com/articles/abbvie-takes-another-step-toward-its-post-humira-future-2021-10-27 | nan | nan | Since AbbVie (NYSE: ABBV) began trading in December 2012, it has left the S&P 500 in the dust. AbbVie has outperformed the S&P 500 by nearly 60% in the past nine years. Most of the returns that AbbVie has generated for its shareholders have come from its top-selling drug in the world, Humira, which has grown sales from $9.3 billion in 2012 to just shy of $20 billion last year. But with the U.S. patents on Humira set to expire in 2023, AbbVie has been working diligently for many years to build a promising post-Humira future.
One of AbbVie's successors to Humira is the immunology drug known as Skyrizi. It recently received a recommendation from the European Union (E.U.) Committee for Medicinal Products for Human Use (CHMP) that it should be approved to treat adults with active psoriatic arthritis who have failed at least one other drug.
Let's take a look at why this is a huge step for AbbVie in helping to move beyond Humira.
Image source: Getty Images.
Another treatment option for healthcare providers
Psoriatic arthritis (PsA) is a form of arthritis that leads to a condition known as psoriasis, which results in patches of itchy and scaly skin. PsA often causes symptoms of joint pain, swelling, and redness. Psoriasis is estimated to impact 2% to 3% of the global population. And approximately 30% of psoriasis patients eventually go on to develop psoriatic arthritis. Because 40% of patients with psoriatic arthritis report that their condition causes major problems in their daily life, it is crucial for them to seek treatment from their healthcare providers.
Conventional synthetic disease-modifying anti-rheumatic drugs such as methotrexate are often the first-line treatment for patients with PsA. And although they work well for some patients, a recent study found that 71% of PsA patients fail their first-line therapy. This is where Skyrizi could potentially help countless patients.
Based on results announced by AbbVie earlier this year, Skyrizi was demonstrated to be far superior to placebo in treating PsA. In fact, Skyrizi was far more likely to help PsA patients achieve at least a 90% skin clearance improvement as measured by the Psoriasis Area Severity Index (PASI90) at week 24 compared to placebo. And at least 52% of PsA patients receiving injections of Skyrizi across the two Phase 3 clinical trials achieved PASI90 at week 24 against just 10% of PsA patients who were injected with placebo. PsA patients receiving Skyrizi also reported notable improvements in their joint pain more frequently than those receiving placebo injections.
Based on this data and the news that the CHMP recommended that Skyrizi be approved, Skyrizi could be only months away from hitting the market in the E.U. The PsA indication for Skyrizi would be the second indication for the drug, joining its adult plaque psoriasis indication in the E.U.
Psoriatic Arthritis would be a major indication for Skyrizi
So, Skyrizi appears to be a great treatment option for PsA patients who haven't responded to first-line treatments. But what could a PsA indication in the European Union mean for AbbVie? Factoring in the E.U.'s population of 446 million, the 2% to 3% prevalence of psoriasis, and that 30% of psoriasis patients develop PsA, there are more than 2.7 million PsA patients living in the E.U.
And assuming that approximately 70% of PsA patients fail first-line therapy, this would indicate that there are at least 2 million PsA patients in the E.U. who have failed or will fail first-line therapy. Conservatively, one could assume that Skyrizi's potential PsA patient pool is 1 million. Since there are a variety of treatments available for PsA in the E.U. like Humira (and its biosimilars), I believe that Skyrizi will be able to capture 5% of the total market. This works out to around 50,000 patients.
While Skyrizi's annual list price is $68,000 in the United States, drugs in large E.U. countries like Germany and France are anywhere from one-third to one-half of the U.S. list price. And this is before also considering insurance adjustments that lower the annual net price. Noting insurance adjustments, AbbVie will likely receive $20,000 in annual revenue per patient for Skyrizi, which equates to $1 billion in annual sales potential for a PsA indication.
Even for a pharma stock such as AbbVie that analysts expect will generate $56.3 billion in revenue this year, a blockbuster indication like PsA for Skyrizi is a meaningful boost. Another indication for Skyrizi would add more fuel to the fast-growing drug, which has already recorded $1.2 billion in sales in the first half of this year.
A high yielder that isn't too good to be true
While AbbVie's 4.8% dividend yield may come off as a yield trap at first glance, AbbVie is proof that you can't always judge a book by its cover. This is because the payout ratio is expected to be in the low 40% range this year.
Since AbbVie was spun off from Abbott Laboratories (NYSE: ABT), AbbVie has raised its dividend each year. Because AbbVie inherited Abbott Laboratories' dividend increase streak and has raised its dividend each year since 2013, the stock is set to become a Dividend King with its next dividend increase, which is likely just days away. This will place it in the exclusive company of less than three dozen other stocks, which have raised their dividends at least 50 years straight. Analysts also expect that AbbVie will grow its adjusted earnings per share at 5% annually over the next five years, which should not only support the current dividend but allow future dividend growth.
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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. | Even for a pharma stock such as AbbVie that analysts expect will generate $56.3 billion in revenue this year, a blockbuster indication like PsA for Skyrizi is a meaningful boost. Since AbbVie (NYSE: ABBV) began trading in December 2012, it has left the S&P 500 in the dust. AbbVie has outperformed the S&P 500 by nearly 60% in the past nine years. | Noting insurance adjustments, AbbVie will likely receive $20,000 in annual revenue per patient for Skyrizi, which equates to $1 billion in annual sales potential for a PsA indication. Even for a pharma stock such as AbbVie that analysts expect will generate $56.3 billion in revenue this year, a blockbuster indication like PsA for Skyrizi is a meaningful boost. Since AbbVie (NYSE: ABBV) began trading in December 2012, it has left the S&P 500 in the dust. | Noting insurance adjustments, AbbVie will likely receive $20,000 in annual revenue per patient for Skyrizi, which equates to $1 billion in annual sales potential for a PsA indication. Since AbbVie (NYSE: ABBV) began trading in December 2012, it has left the S&P 500 in the dust. AbbVie has outperformed the S&P 500 by nearly 60% in the past nine years. | Noting insurance adjustments, AbbVie will likely receive $20,000 in annual revenue per patient for Skyrizi, which equates to $1 billion in annual sales potential for a PsA indication. Since AbbVie was spun off from Abbott Laboratories (NYSE: ABT), AbbVie has raised its dividend each year. Since AbbVie (NYSE: ABBV) began trading in December 2012, it has left the S&P 500 in the dust. |
23848.0 | 2021-10-27 00:00:00 UTC | 3 Stocks You Can Still Buy on Sale in a Ridiculously Expensive Market | ABBV | https://www.nasdaq.com/articles/3-stocks-you-can-still-buy-on-sale-in-a-ridiculously-expensive-market-2021-10-27 | nan | nan | Most stocks are priced at a premium right now. Wall Street knows it. I know it. You know it. In fact, the Shiller cyclically adjusted price-to-earnings (CAPE) ratio is at its highest level since early 2000 during the heady dot-com days.
But that doesn't mean that every stock is trading at a nosebleed level. Here are three stocks you can still buy on sale in a ridiculously expensive market.
Image source: Getty Images.
1. AbbVie
AbbVie's (NYSE: ABBV) shares currently trade at close to 7.9 times expected earnings. To put that into perspective, the S&P 500's forward earnings multiple stands at 20.4. The average forward price-to-earnings ratio for pharmaceutical stocks in the index is 13.3.
To be sure, there's a reason why AbbVie is cheap. The company faces biosimilar competition in the U.S. for Humira beginning in 2023. The autoimmune disease drug generated 36% of AbbVie's total revenue in the second quarter.
However, AbbVie has other products that should help take up the slack once Humira's sales begin to decline. Newer autoimmune disease drugs Rinvoq and Skyrizi are already blockbusters. The acquisition of Allergan brought growth drivers including antipsychotic Vraylar and migraine drug Ubrelvy into AbbVie's lineup.
With these and other products plus pipeline candidates on the way, AbbVie should be able to deliver solid growth throughout this decade except in 2023. It also offers a juicy dividend yield of nearly 4.8% that will reward investors even during the one trough year.
2. Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) is another stock that's inexpensive relative to the overall market. Shares of the midstream energy company trade at 11.1 times expected earnings.
Arguably an even better valuation metric to use for Enterprise is price-to-free-cash-flow. The company's shares trade at near the lowest level in the past five years using this metric.
Yes, there's a concerted effort to decrease the use of fossil fuels to reduce carbon emissions. However, the demand for fossil fuels will likely continue to grow (albeit at slower rates than in the past) to help meet the world's energy needs. Enterprise's pipelines, storage, processing, and transportation assets will be needed for decades to come.
Wall Street analysts project that the stock could jump 16% over the next 12 months. And that doesn't include Enterprise's dividend yield of nearly 7.4%. But the company's prospects aren't just favorable over the next year. This cheap energy stock is one that you can buy and hold for the long term.
3. Viatris
Few stocks are as dirt cheap right now as Viatris (NASDAQ: VTRS) is. Shares of the biosimilars and generic-drug maker trade at only 3.7 times expected earnings. Viatris even trades less than its book value.
One main reason why Viatris is so inexpensive is the increased competition for the company's complex biosimilar and generic products. In particular, sales for respiratory drug Wixela and birth control patch Xulane have eroded.
However, analysts think that Viatris could rebound strongly. The consensus price target reflects a 46% upside potential for the stock.
Over the longer term, Viatris' pipeline should be able to get the company on a solid growth trajectory. Several biosimilars and complex generics are either awaiting approvals or are in late-stage clinical testing. In the meantime, Viatris pays a dividend that yields 3.1%.
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Keith Speights owns shares of AbbVie, Enterprise Products Partners, and Viatris Inc. The Motley Fool recommends Enterprise Products Partners and 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. | The acquisition of Allergan brought growth drivers including antipsychotic Vraylar and migraine drug Ubrelvy into AbbVie's lineup. AbbVie AbbVie's (NYSE: ABBV) shares currently trade at close to 7.9 times expected earnings. To be sure, there's a reason why AbbVie is cheap. | AbbVie AbbVie's (NYSE: ABBV) shares currently trade at close to 7.9 times expected earnings. To be sure, there's a reason why AbbVie is cheap. The autoimmune disease drug generated 36% of AbbVie's total revenue in the second quarter. | See the 10 stocks *Stock Advisor returns as of October 20, 2021 Keith Speights owns shares of AbbVie, Enterprise Products Partners, and Viatris Inc. AbbVie AbbVie's (NYSE: ABBV) shares currently trade at close to 7.9 times expected earnings. To be sure, there's a reason why AbbVie is cheap. | With these and other products plus pipeline candidates on the way, AbbVie should be able to deliver solid growth throughout this decade except in 2023. AbbVie AbbVie's (NYSE: ABBV) shares currently trade at close to 7.9 times expected earnings. To be sure, there's a reason why AbbVie is cheap. |
23849.0 | 2021-10-26 00:00:00 UTC | Was Atea Pharmaceutical's Flop Predictable? | ABBV | https://www.nasdaq.com/articles/was-atea-pharmaceuticals-flop-predictable-2021-10-26 | nan | nan | This month, as Merck (NYSE: MRK) moves forward with an Emergency Use Authorization in the U.S. for its oral antiviral for COVID-19, Atea Pharmaceuticals (NASDAQ: AVIR) stock saw a significant drop. Unfortunately, investors are unlikely to see the small-cap biotech replicate Moderna's success as the next COVID-19 underdog success story after news of its negative clinical trial.
Let's explore what caused Atea's drop and how biotech investors should examine their future investments.
image source: Getty Images.
Did timing and trial design predetermine outcomes?
In order to begin, one must compare the Merck and Atea trials. Both examined patients with mild to moderate COVID-19 that were initially well enough to be treated at home outside of the hospital. In the Merck trial, having at least one underlying risk factor associated with worse clinical outcomes was a requirement to be enrolled, whereas about one-third of Atea's trial had patients had no underlying health issues. Atea included vaccinated patients in its trial, whereas the mega pharma did not enroll vaccinated patients.
Looking at the trial designs, the inclusion of risk factors was right there for all of us to see the entire time. And while vaccine status was not disclosed, at the initiation of Merck's trial, on Oct. 5, 2020, there were no approved vaccines. The vaccine rollout had just begun when Atea started its trial on Jan. 14, 2021. Knowing this in retrospect, is it any wonder that Merck, with an unvaccinated and more at-risk patient population, was more likely to generate a positive outcome? With forward-thinking and trial design by the experienced team at Merck, it was able to optimize molnupiravir's chances for success.
Endpoints matter
Being a phase 2 trial, Atea used reduction in viral load as an endpoint. The endpoint we all ultimately care about, the frequency of complications related to COVID-19, was a secondary endpoint. Kudos to the company for this patient-centered secondary endpoint. Merck's phase 3 trial went with one of the most patient-oriented primary outcomes there is: hospitalization or death within 29 days due to all causes. Who cares if you survive the virus only to die of drug toxicity, right? This is ultimately low-hanging fruit when evaluating a trial; if it's not a patient-centered outcome, I'd toss it from the watch list.
Let's look at a different company that has come under fire for its therapy and clinical trials: Biogen (NASDAQ: BIIB) and its Alzheimer's disease treatment, Aduhelm. Certain types of buildup in the brain of a protein called beta-amyloid is believed to play a role in the disease. And Biogen actually demonstrated that Aduhelm was able to reduce the amount of beta-amyloid buildup. Great news, right? Except that phase 3 trials were terminated because the drug failed to slow cognitive and functional decline in Alzheimer's patients.
Despite its approval, clinicians have seemed to agree with an overwhelmingly negative Food and Drug Administration advisory committee that recommended against Aduhelm to hit the market. The controversial therapy has generated only $300,000 this past quarter. This is far below the $12 million analysts were expecting, at least partially because clinicians feel that there is next to no benefit for the drug but there are other potential downsides. Ultimately, just because something works in a test tube does not mean it works in humans; keep this in mind the next time a small-cap pops but lacks a patient-oriented endpoint.
So where does this leave Atea?
Atea has a rather bare cupboard beyond its SARS-CoV-2 program. It does have a hepatitis C treatment in phase 2 trials, which currently shows as an eight-week trial. Unfortunately, this does not significantly differentiate the product from AbbVie's Mavyret, which sold $442 million in the most recent quarter and also uses an eight-week treatment period. I'm not particularly hopeful about the hepatitis C franchise given that the company did not even include it on a slide in its most recent earnings call.
However, Atea does have over $800 million in cash and cash equivalents as of the end of June. While its COVID-19 hopes may have been dashed, it does have one other program in clinical trials -- a phase 1 program for dengue fever. The total addressable market globally for dengue is currently at $500 million annually and is expected to reach over $3 billion by 2028. With that much cash on hand and a sizable potential market, this beaten-down biotech might be able to thrive in a few years despite the AT-527 saga, if the dengue fever therapy can get off the ground. But it could take a lot more than a phase 1 program for Atea to turn things around.
Fundamentals of biotech research
This current trial failure with Atea should serve as an example. It's possible a company can learn from its blunders but investors must know how to maneuver in these situations, especially if this is the worst-case scenario. When a company is going all-in on one particular program (in this case, COVID-19), it is high-risk, high-reward.
There are a few ways to minimize the risks, though. First, drugs with patient-centered outcomes will be more likely to be approved and prescribed by the medical community. Secondly, if investors had looked at the timing of trials and exclusion criteria for these antivirals, in retrospect it becomes clear that Atea was unlikely to come close to Merck's results. And finally, biotech investors should develop a checklist that at a minimum includes a review of the pipeline and clinical trials prior to owning shares in any biotech company.
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Patrick Bafuma has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Atea Pharmaceuticals, Inc. The Motley Fool recommends Biogen and Moderna 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. | Unfortunately, this does not significantly differentiate the product from AbbVie's Mavyret, which sold $442 million in the most recent quarter and also uses an eight-week treatment period. This month, as Merck (NYSE: MRK) moves forward with an Emergency Use Authorization in the U.S. for its oral antiviral for COVID-19, Atea Pharmaceuticals (NASDAQ: AVIR) stock saw a significant drop. Let's look at a different company that has come under fire for its therapy and clinical trials: Biogen (NASDAQ: BIIB) and its Alzheimer's disease treatment, Aduhelm. | Unfortunately, this does not significantly differentiate the product from AbbVie's Mavyret, which sold $442 million in the most recent quarter and also uses an eight-week treatment period. Let's look at a different company that has come under fire for its therapy and clinical trials: Biogen (NASDAQ: BIIB) and its Alzheimer's disease treatment, Aduhelm. While its COVID-19 hopes may have been dashed, it does have one other program in clinical trials -- a phase 1 program for dengue fever. | Unfortunately, this does not significantly differentiate the product from AbbVie's Mavyret, which sold $442 million in the most recent quarter and also uses an eight-week treatment period. In the Merck trial, having at least one underlying risk factor associated with worse clinical outcomes was a requirement to be enrolled, whereas about one-third of Atea's trial had patients had no underlying health issues. Atea included vaccinated patients in its trial, whereas the mega pharma did not enroll vaccinated patients. | Unfortunately, this does not significantly differentiate the product from AbbVie's Mavyret, which sold $442 million in the most recent quarter and also uses an eight-week treatment period. Atea included vaccinated patients in its trial, whereas the mega pharma did not enroll vaccinated patients. It does have a hepatitis C treatment in phase 2 trials, which currently shows as an eight-week trial. |
23850.0 | 2021-10-25 00:00:00 UTC | Bausch, Clearside receive U.S. approval for eye injection | ABBV | https://www.nasdaq.com/articles/bausch-clearside-receive-u.s.-approval-for-eye-injection-2021-10-25 | nan | nan | Oct 25 (Reuters) - Bausch Health Companies Inc BHC.TO and Clearside Biomedical Inc CLSD.O said on Monday they received approval from the U.S. health regulator for their eye injection, giving patients access to a novel treatment for vision loss resulting from an inflammatory eye condition.
The drug, Xipere, is injected to the back of the eye and delivers a version of a steroid commonly used for the treatment of uveitis, an inflammation of tissues in the eye.
Macular edema, a build-up of fluid in a part of the retina, is the leading cause of vision loss among people with uveitis.
Xipere achieved its main goal in Clearside's late-stage study, with nearly half the patients on the treatment showing improvement in the clarity of their vision. The drug was also shown to be generally well tolerated.
With Xipere, high levels of medication can be delivered to target tissues, such as the retina and the drug can treat the swelling, leading to visual improvement, Dr. Steven Yeh, the main investigator for the study, told Reuters in an interview.
The drug delivery approach is the first of its kind for the treatment of macular edema stemming from noninfectious uveitis, which affects about 300,000 adults in the United States, Dr. Yeh said.
Other drugs used to treat the condition in the United States include Bristol Myers Squibb's BMY.N Kenalog, administered near the eye and AbbVie Inc's ABBV.N Ozurdex eye implant. There are some topical treatments as well.
In 2019, Bausch acquired the rights to develop and sell Xipere in the United States and Canada from Clearside.
Bausch expects to make Xipere available in the United States during the first quarter of 2022.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
((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 used to treat the condition in the United States include Bristol Myers Squibb's BMY.N Kenalog, administered near the eye and AbbVie Inc's ABBV.N Ozurdex eye implant. Xipere achieved its main goal in Clearside's late-stage study, with nearly half the patients on the treatment showing improvement in the clarity of their vision. With Xipere, high levels of medication can be delivered to target tissues, such as the retina and the drug can treat the swelling, leading to visual improvement, Dr. Steven Yeh, the main investigator for the study, told Reuters in an interview. | Other drugs used to treat the condition in the United States include Bristol Myers Squibb's BMY.N Kenalog, administered near the eye and AbbVie Inc's ABBV.N Ozurdex eye implant. With Xipere, high levels of medication can be delivered to target tissues, such as the retina and the drug can treat the swelling, leading to visual improvement, Dr. Steven Yeh, the main investigator for the study, told Reuters in an interview. The drug delivery approach is the first of its kind for the treatment of macular edema stemming from noninfectious uveitis, which affects about 300,000 adults in the United States, Dr. Yeh said. | Other drugs used to treat the condition in the United States include Bristol Myers Squibb's BMY.N Kenalog, administered near the eye and AbbVie Inc's ABBV.N Ozurdex eye implant. Oct 25 (Reuters) - Bausch Health Companies Inc BHC.TO and Clearside Biomedical Inc CLSD.O said on Monday they received approval from the U.S. health regulator for their eye injection, giving patients access to a novel treatment for vision loss resulting from an inflammatory eye condition. The drug, Xipere, is injected to the back of the eye and delivers a version of a steroid commonly used for the treatment of uveitis, an inflammation of tissues in the eye. | Other drugs used to treat the condition in the United States include Bristol Myers Squibb's BMY.N Kenalog, administered near the eye and AbbVie Inc's ABBV.N Ozurdex eye implant. Oct 25 (Reuters) - Bausch Health Companies Inc BHC.TO and Clearside Biomedical Inc CLSD.O said on Monday they received approval from the U.S. health regulator for their eye injection, giving patients access to a novel treatment for vision loss resulting from an inflammatory eye condition. Macular edema, a build-up of fluid in a part of the retina, is the leading cause of vision loss among people with uveitis. |
23851.0 | 2021-10-25 00:00:00 UTC | What Could These Clinical Results Mean for AbbVie's Shareholders? | ABBV | https://www.nasdaq.com/articles/what-could-these-clinical-results-mean-for-abbvies-shareholders-2021-10-25 | nan | nan | Earlier this month, AbbVie (NYSE: ABBV) announced promising top-line results from a phase 3 study examining the efficacy and safety of Rinvoq in treating patients diagnosed with active ankylosing spondylitis. But what impact could these clinical results have on pharma stock AbbVie in the years ahead?
Let's dive into the data studying Rinvoq's effect on patients with ankylosing spondylitis, as well as Rinvoq's U.S. sales potential to address this question.
Image source: Getty Images.
A highly effective treatment
Ankylosing spondylitis is a "rare type of arthritis that causes pain and stiffness in your spine," according to WebMD. Ankylosis refers to the fusion of bones or hard tissue, whereas spondylitis means inflammation in your vertebrae. While it often starts in the lower back, it can spread to the neck and damage other joints in the body as well.
Since ankylosing spondylitis can result in significant pain and mobility limitations, it is important for patients with the disease to develop and modify their treatment plan with the consultation of a medical professional. One biologic drug that could soon be a tool for doctors to treat refractory and severe cases of ankylosing spondylitis is Rinvoq, which was demonstrated to be beneficial in controlling it.
AbbVie enrolled 420 adult patients with ankylosing spondylitis who previously failed at least one biologic disease-modifying antirheumatic drug (bDMARD) into its phase 3 clinical trial to test the efficacy and safety of Rinvoq. The drug significantly reduced the symptoms of ankylosing spondylitis, which was demonstrated by the proportion of patients achieving an Assessment in SpondyloArthritis International Society (ASAS) 40 response.
An ASAS40 response means that a patient has experienced at least a 40% improvement in their ankylosing spondylitis. This includes patient measures, such as the severity of back pain and the duration of morning stiffness, as well as laboratory measures of inflammation levels. The higher the ASAS number, the more impactful a therapy was for a patient.
An astounding 45% of patients receiving 15 milligrams of Rinvoq each day achieved ASAS40 at week 14, which was more than double the 18% of patients receiving the placebo who achieved ASAS40 at week 14. And despite the U.S. Food and Drug Administration's (FDA) caution with Janus kinase (JAK) inhibitors as of late, Rinvoq was well tolerated. To this point, 0% of patients taking Rinvoq had adverse events that resulted in discontinuation of treatment, compared to 1.4% of patients receiving the placebo.
A large market with a need for more options
Rinvoq appears to be effective and well-tolerated by patients, which is why it was approved for use in the European Union in January for three rheumatic indications, including for ankylosing spondylitis. But what could that mean for the sales potential of an ankylosing spondylitis indication here in the United States?
Firstly, there are an estimated 300,000 Americans who have ankylosing spondylitis. And while the majority of patients find meaningful relief on their first DMARD, this isn't the case for all patients. In fact, 16.3% of ankylosing spondylitis patients in North America failed their first DMARD, which means the treatment was ineffective in managing the condition.
Based on this data, there are approximately 49,000 ankylosing spondylitis patients who have failed their first treatment and who could need another treatment. Since I believe that Rinvoq's efficacy makes up for the potential safety concerns associated with the JAK inhibitor drug class, the drug can reasonably capture 15%, or around 7,300, of these patients.
Rinvoq's annual list price for its rheumatoid arthritis indication in the U.S. is around $60,000. But since the Institute for Clinical and Economic Review (ICER) believes that a value-based price for the drug would be $45,000 annually, that likely is a more appropriate figure for list price. Conservatively accounting for insurance adjustments, the company probably would receive $40,000.
Factoring in 7,300 patients taking Rinvoq for ankylosing spondylitis in the U.S. at a net annual price of $40,000, the indication in the U.S. could realistically haul in nearly $300 million in annual revenue for AbbVie. This would be a nice revenue addition for AbbVie, which analysts already expect will generate $56.3 billion in revenue this year.
AbbVie is a soon-to-be Dividend King
By way of its roots dating back to when it was part of Abbott Laboratories, AbbVie is set to become a Dividend King. Its next dividend increase should be announced in the near future. This is despite the fact that AbbVie was spun off from Abbott Labs in 2013. But to its credit, AbbVie has raised its dividend each year since the spin-off.
AbbVie's dividend payout ratio is set to be in the low-40% range for this year, which is the reason for my confidence that AbbVie will soon raise its dividend and become a member of the highly respected Dividend Kings. And trading at less than nine times this year's non-GAAP earnings per share (EPS) forecast, AbbVie offers a market-crushing 4.8% dividend yield at an attractive price to income investors. With an already strong yield, the addition of this Rinvoq indication in the U.S. would provide more cushion for the company.
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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. | Earlier this month, AbbVie (NYSE: ABBV) announced promising top-line results from a phase 3 study examining the efficacy and safety of Rinvoq in treating patients diagnosed with active ankylosing spondylitis. AbbVie enrolled 420 adult patients with ankylosing spondylitis who previously failed at least one biologic disease-modifying antirheumatic drug (bDMARD) into its phase 3 clinical trial to test the efficacy and safety of Rinvoq. But what impact could these clinical results have on pharma stock AbbVie in the years ahead? | Earlier this month, AbbVie (NYSE: ABBV) announced promising top-line results from a phase 3 study examining the efficacy and safety of Rinvoq in treating patients diagnosed with active ankylosing spondylitis. But what impact could these clinical results have on pharma stock AbbVie in the years ahead? AbbVie enrolled 420 adult patients with ankylosing spondylitis who previously failed at least one biologic disease-modifying antirheumatic drug (bDMARD) into its phase 3 clinical trial to test the efficacy and safety of Rinvoq. | Earlier this month, AbbVie (NYSE: ABBV) announced promising top-line results from a phase 3 study examining the efficacy and safety of Rinvoq in treating patients diagnosed with active ankylosing spondylitis. AbbVie enrolled 420 adult patients with ankylosing spondylitis who previously failed at least one biologic disease-modifying antirheumatic drug (bDMARD) into its phase 3 clinical trial to test the efficacy and safety of Rinvoq. Factoring in 7,300 patients taking Rinvoq for ankylosing spondylitis in the U.S. at a net annual price of $40,000, the indication in the U.S. could realistically haul in nearly $300 million in annual revenue for AbbVie. | See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Abbott Laboratories. Earlier this month, AbbVie (NYSE: ABBV) announced promising top-line results from a phase 3 study examining the efficacy and safety of Rinvoq in treating patients diagnosed with active ankylosing spondylitis. But what impact could these clinical results have on pharma stock AbbVie in the years ahead? |
23852.0 | 2021-10-21 00:00:00 UTC | Progenity Has Seven Quarters Left to Reverse Its Burn Rate | ABBV | https://www.nasdaq.com/articles/progenity-has-seven-quarters-left-to-reverse-its-burn-rate-2021-10-21 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Progenity (NASDAQ:PROG) is a San Diego-based biotech company that specializes in gastrointestinal health and oral biotherapeutics. Right now the company has no real revenue to speak of and is burning through cash. If Progenity can cut its burn rate, PROG stock might have a chance of rebounding.
Source: shutterstock.com/MAD.vertise
Year-to-date (YTD) the stock is down 48.78% from $5.31 at the end of last year to $2.72 as of Oct. 20. That is not going to reflect very well on the company.
However, the stock seems to have bottomed out as of Aug. 20, when it hit 67.4 cents per share. It has been slowly rising ever since then. If the company can lower its cash burn rate, PROG stock might have a chance of moving even higher.
Where Things Stand Now
As far as good news, it doesn’t hurt that Progenity recently announced it had received four patents. These were related to its ingestible technologies for the delivery of therapeutics via the gastrointestinal (GI) tract.
As a result, Progenity says it now has 96 patent families. This includes 180 issued patents and more than 220 pending applications. These patents relate to drug delivery, GI (gastrointestinal) sampling and diagnostics. They also cover disease, protein, and molecular tools, methods, assays and diagnostics.
This is nice, but so far this huge portfolio has not led to any real revenue. The company is hoping that these recent patents can be used by a major drug company. For example, one patent titled “Ingestible device for delivery of therapeutic agent to the gastrointestinal tract,” and other related patents could be a candidate for several large pharmaceutical firms.
For example, Progenity is working closely with AbbVie (NYSE:ABBV). One of its patents is being tested for the delivery of Humira in an ingestible capsule version of the drug which alleviates moderate to severe Crohn’s disease.
Progenity also has a capsule for one of Novo Nordisk’s (NYSE:NVO) drugs called Saxenda (for excess weight loss) and Victoza (for Type 2 diabetes).
Cash Burn at Progenity
The problem the company has is its huge cash burn rate until one of its patents starts to produce large amounts of revenue. In the last six months, according to the latest 10-Q, Progenity had a loss in cash flow from operations of $84.25 million.
That can be seen on page 5 of its latest 10-Q in its Consolidated Cash Flow Statement. After deducting capital expenditures of $853,000, its total cash burn in the first 6 months was $85.1 million.
This obviously cannot keep going on. For one, Progenity had just $65.991 million on its balance sheet. This will not last another six months.
As a result, the company both raised more cash and indicated it was going to lower its cash expenses. Since the end of Q2 Progenity appear to have raised another $60 million in equity capital. This was done in two equity tranches of $40 million and $20 million at $1 and $1.50 per share, respectively. I suspect that it may have to continue to do at least one more equity raise.
In addition, on Aug. 12, when the company released its Q2 earnings, Progenity said it was going to cut its expenses. It indicated these measures would result in approximately $97 million of cost savings on an annual run-rate basis.
What Will Happen With PROG Stock
So let’s do the math. Right now the burn rate is $85.1 million every six months, or $170 million annually. The company claims it will reduce this by $97 million to $73.2 million. It had $66 million in cash and raised it by another $60 million to $126 million.
That means it can last a little over 1.72 years ($126 million / $73.2 million), or nearly one year and nine months in terms of net cash burn. And that is without taking into account fees from the cash raise and frictional costs getting the $97 in cost-cutting into play.
This could have a beneficial impact on PROG stock, especially if the market believes that the cost-cutting will start immediately and be helpful.
What to Do With PROG Stock
When Progenity releases its Q3 earnings, analysts will be paying particular attention to its cash burn rate. If the company can show that revenue is rising and its ongoing negative cash flow is improving, it’s possible that the market could push the stock higher.
The problem is that at $2.72, the stock already reflects a lot of this projected good news. Nevertheless, for the time being, the company seems to have a plan that can last a year and three quarters. So this gives it a leash to work with and get its financial act in order.
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On the date of publication, Mark R. Hake 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.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.
The post Progenity Has Seven Quarters Left to Reverse Its Burn Rate 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. | For example, Progenity is working closely with AbbVie (NYSE:ABBV). Progenity also has a capsule for one of Novo Nordisk’s (NYSE:NVO) drugs called Saxenda (for excess weight loss) and Victoza (for Type 2 diabetes). If the company can show that revenue is rising and its ongoing negative cash flow is improving, it’s possible that the market could push the stock higher. | For example, Progenity is working closely with AbbVie (NYSE:ABBV). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Progenity (NASDAQ:PROG) is a San Diego-based biotech company that specializes in gastrointestinal health and oral biotherapeutics. These patents relate to drug delivery, GI (gastrointestinal) sampling and diagnostics. | For example, Progenity is working closely with AbbVie (NYSE:ABBV). Cash Burn at Progenity The problem the company has is its huge cash burn rate until one of its patents starts to produce large amounts of revenue. It had $66 million in cash and raised it by another $60 million to $126 million. | For example, Progenity is working closely with AbbVie (NYSE:ABBV). Cash Burn at Progenity The problem the company has is its huge cash burn rate until one of its patents starts to produce large amounts of revenue. In the last six months, according to the latest 10-Q, Progenity had a loss in cash flow from operations of $84.25 million. |
23853.0 | 2021-10-21 00:00:00 UTC | Top Dividend Stocks To Buy In 2021? 3 In Focus | ABBV | https://www.nasdaq.com/articles/top-dividend-stocks-to-buy-in-2021-3-in-focus-2021-10-21 | nan | nan | 3 Dividend Stocks Worth Checking Out Right Now
With all the focus on earnings and an improving job market, thestock market todayis filled with upbeat news. Regardless, some would argue that investors should not overlook dividend stocks as well. For the most part, this would be due to rising concerns over inflation as the red-hot economy continues to recover. In fact, Meera Pandit, aglobal marketstrategist at JPMorgan (NYSE: JPM) argues that there are cracks in the Fed’s “transitory narrative” on the matter. In essence, Pandit notes that inflation remains elevated for longer than anticipated. Among the core factors contributing to this would be a prolonged pandemic and skyrocketing consumer demands.
Now, how do dividend stocks factor into all of this? Well, even with strong earnings, there would be investors eager to make more defensive plays as well. Seeing as dividends offer a more consistent form of gains from the stock market, this would make sense. Arguably, diversifying one’s portfolio amidst such volatile times could also be a strategic play for less adventurous investors. For one thing, there is certainly no shortage of top-notch companies to choose from among dividend stocks.
Take Nucor (NYSE: NUE) for example. It is a leading name in the U.S. steel manufacturing industry today. Earlier today, the company posted stellar figures in its third-quarter earnings report. Notably, Nucor posted a record quarterly earnings per share of $7.28, an over 1,000% year-over-year surge. The company currently offers a cash dividend of $0.40 per share. Elsewhere, more defensive stock alternatives include consumer staples such as McDonald’s (NYSE: MCD) and Procter & Gamble (NYSE: PG). Should all this have you keen on top dividend stocks, here are three to know in the market now.
Top Dividend Stocks To Buy [Or Sell] Ahead Of November 2021
Apple Inc. (NASDAQ: AAPL)
Coca-Cola Company (NYSE: KO)
AbbVie Inc. (NYSE: ABBV)
Apple Inc.
Apple is a multinational technology that specializes in consumer electronics and online services. The company is one of the biggest tech companies in the world and also most valuable. Its next-generation products are used by billions. In fact, it continues to lead the world in innovation with its line of premium products that include the iPhone, iPad, and MacBook among others. With that, AAPL stock currently trades at $149.44 as of 10:30 a.m. ET.
Most recently, it announced its latest MacBook Pro, which features the new M1 Pro and M1 Max chips. It offers amazing performance with industry-leading power efficiency. With massive gains in CPU and GPU performance, it has one of the biggest generational leaps for its MacBook line of laptops. The company also announced its third-generation AirPods that feature spatial audio and deliver a wide number of new and advanced features. This includes new drivers for richer detail and computational audio to bring new breakthrough experiences. Ultimately, this new generation MacBooks could appeal to new markets and customer base.
The company also declared a dividend of $0.22 per share in July. The company will be announcing its fourth-quarter financials on October 28, 2021. Ahead of its financials, the company seems to have had an amazing year so far, reaching new all-time highs and posting record quarters. For instance, in its third-quarter financials, Apple reported a revenue of $81.4 billion, up by 36% year-over-year. It also posted a quarterly earnings per diluted share of $1.30. Impressively, it also saw new revenue records in each of its geographic segments and also double-digit growth in each of its new product categories. Considering the above, is AAPL stock worth investing in right now?
Source: TD Ameritrade TOS
[Read More] Top Reddit Stocks To Buy Right Now? 5 For Your Late 2021 Watchlist
Coca-Cola Company
Another name to know amongst dividend stocks now would be the Coca-Cola Company. By and large, Coca-Cola does not need much of an introduction. This would be the case as most would be familiar with the company’s vast array of beverages. The likes of which are readily available in over 200 countries and territories worldwide. As Coca-Cola continues to cater to the beverage wants of consumers across the globe, investors could be eyeing KO stock as well. The company’s latest dividend of $0.42 a share was announced back in July.
Now, KO stock currently trades at $54.39 a share as of 10:30 a.m. ET. If anything, Coca-Cola does not seem to have plans to slow down anytime soon. For starters, the company’s ongoing partnership with UPM, a Finnish forest industry firm, appears to be breaking new ground. In an exclusive interview with Packaging Europe earlier today, Coca-Cola unveiled the first prototype of its 100% plant-based plastic bottle. According to Coca-Cola senior director for environmental policy, Ben Jordan, the “critical next step” in this process would be scaling this tech across the wider industry. Given the growing need for more environmentally sustainable practices globally, Coca-Cola appears to be getting a head start on the competition with this.
Additionally, the company is also hard at work expanding its operations globally. In particular, Coca-Cola is reportedly looking to go public with its “Coca-Cola Beverages Africa” bottling division next year. Based on Bloomberg’s sources, the company is looking at an $8.1 billion valuation for the initial public offering. Given all of this, would you consider KO stock a buy?
Source: TD Ameritrade TOS
[Read More] Top Stocks To Buy Now? 4 Consumer Stocks To Consider
AbbVie Inc.
Next, we have AbbVie, a biopharmaceutical company that develops and commercializes advanced therapies that have an impact on millions of lives. With over 48,000 employees worldwide, it focuses on finding new ways to address the world’s most serious health issues. It concentrates on a core set of therapeutic areas like immunology, oncology, and virology among others. ABBV stock currently trades at $107.49 as of 10:30 a.m. ET.
Last month, the company announced that its board of directors have declared a quarterly cash dividend of $1.30 per share. The cash dividend will be payable on November 15, 2021, to stockholders of record at the close of business on October 15, 2021. Since the company’s inception in 2013, it has increased its dividend by 225%.
Last week, the company announced that the European Medicines Agency’s Committee for Medicinal Products for Human USE (CHMP) recommended the approval of risankizumab for the treatment of active psoriatic arthritis in the EU. “Many patients with psoriatic arthritis experience uncontrolled skin and joint symptoms despite the availability of existing therapies. For this reason, it is important to have multiple treatment options available for physicians to effectively manage their patients’ condition,” said Thomas Hudson, senior vice president, research and development, AbbVie. “The CHMP’s recommendation to approve risankizumab in psoriatic arthritis is an important step in bringing treatment to more patients in need.” With this piece of information, will you buy ABBV stock?
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. | For this reason, it is important to have multiple treatment options available for physicians to effectively manage their patients’ condition,” said Thomas Hudson, senior vice president, research and development, AbbVie. “The CHMP’s recommendation to approve risankizumab in psoriatic arthritis is an important step in bringing treatment to more patients in need.” With this piece of information, will you buy ABBV stock? Top Dividend Stocks To Buy [Or Sell] Ahead Of November 2021 Apple Inc. (NASDAQ: AAPL) Coca-Cola Company (NYSE: KO) AbbVie Inc. (NYSE: ABBV) Apple Inc. Apple is a multinational technology that specializes in consumer electronics and online services. | Top Dividend Stocks To Buy [Or Sell] Ahead Of November 2021 Apple Inc. (NASDAQ: AAPL) Coca-Cola Company (NYSE: KO) AbbVie Inc. (NYSE: ABBV) Apple Inc. Apple is a multinational technology that specializes in consumer electronics and online services. “The CHMP’s recommendation to approve risankizumab in psoriatic arthritis is an important step in bringing treatment to more patients in need.” With this piece of information, will you buy ABBV stock? 4 Consumer Stocks To Consider AbbVie Inc. Next, we have AbbVie, a biopharmaceutical company that develops and commercializes advanced therapies that have an impact on millions of lives. | Top Dividend Stocks To Buy [Or Sell] Ahead Of November 2021 Apple Inc. (NASDAQ: AAPL) Coca-Cola Company (NYSE: KO) AbbVie Inc. (NYSE: ABBV) Apple Inc. Apple is a multinational technology that specializes in consumer electronics and online services. 4 Consumer Stocks To Consider AbbVie Inc. Next, we have AbbVie, a biopharmaceutical company that develops and commercializes advanced therapies that have an impact on millions of lives. ABBV stock currently trades at $107.49 as of 10:30 a.m. | Top Dividend Stocks To Buy [Or Sell] Ahead Of November 2021 Apple Inc. (NASDAQ: AAPL) Coca-Cola Company (NYSE: KO) AbbVie Inc. (NYSE: ABBV) Apple Inc. Apple is a multinational technology that specializes in consumer electronics and online services. 4 Consumer Stocks To Consider AbbVie Inc. Next, we have AbbVie, a biopharmaceutical company that develops and commercializes advanced therapies that have an impact on millions of lives. ABBV stock currently trades at $107.49 as of 10:30 a.m. |
23854.0 | 2021-10-21 00:00:00 UTC | HDV, ABBV, BMY, TFC: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/hdv-abbv-bmy-tfc%3A-etf-outflow-alert-2021-10-21 | 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 High Dividend ETF (Symbol: HDV) where we have detected an approximate $93.1 million dollar outflow -- that's a 1.2% decrease week over week (from 76,500,000 to 75,550,000). Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.5%, and Truist Financial Corp (Symbol: TFC) is higher by about 0.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average:
Looking at the chart above, HDV's low point in its 52 week range is $76.23 per share, with $100.48 as the 52 week high point — that compares with a last trade of $97.80. 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 experienced notable outflows »
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 HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.5%, and Truist Financial Corp (Symbol: TFC) is higher by about 0.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $76.23 per share, with $100.48 as the 52 week high point — that compares with a last trade of $97.80. 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 HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.5%, and Truist Financial Corp (Symbol: TFC) is higher by about 0.1%. For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $76.23 per share, with $100.48 as the 52 week high point — that compares with a last trade of $97.80. 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). | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.5%, and Truist Financial Corp (Symbol: TFC) 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 iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $93.1 million dollar outflow -- that's a 1.2% decrease week over week (from 76,500,000 to 75,550,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $76.23 per share, with $100.48 as the 52 week high point — that compares with a last trade of $97.80. | Among the largest underlying components of HDV, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.8%, Bristol Myers Squibb Co. (Symbol: BMY) is down about 0.5%, and Truist Financial Corp (Symbol: TFC) 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 iShares Core High Dividend ETF (Symbol: HDV) where we have detected an approximate $93.1 million dollar outflow -- that's a 1.2% decrease week over week (from 76,500,000 to 75,550,000). For a complete list of holdings, visit the HDV Holdings page » The chart below shows the one year price performance of HDV, versus its 200 day moving average: Looking at the chart above, HDV's low point in its 52 week range is $76.23 per share, with $100.48 as the 52 week high point — that compares with a last trade of $97.80. |
23855.0 | 2021-10-21 00:00:00 UTC | Could This Be the Next Blockbuster Indication for Eli Lilly? | ABBV | https://www.nasdaq.com/articles/could-this-be-the-next-blockbuster-indication-for-eli-lilly-2021-10-21 | nan | nan | Eli Lilly (NYSE: LLY) and Incyte's (NASDAQ: INCY) drug, Olumiant, has received emergency use authorization (EUA) from the U.S. Food and Drug Administration (FDA) to treat hospitalized COVID-19 patients with or without remdesivir. While the EUAs for Olumiant to be used as both a monotherapy or a combination therapy with remdesivir are a revenue boost to Eli Lilly, there's a different potential indication for Olumiant that's worth investors' attention.
Late last month, Eli Lilly and Incyte announced impressive results from phase 3 clinical trials examining the efficacy of Olumiant in helping patients with an autoimmune disease known as alopecia areata regrow their hair. But could an indication for Olumiant to treat alopecia areata be the next blockbuster indication for pharma stock Eli Lilly?
Image source: Getty Images
The efficacy speaks for itself
Olumiant's two phase 3 clinical trials enrolled 1,088 adult patients who suffered from severe alopecia areata, which is defined as scalp hair loss of 50% or more. The severity of alopecia areata is measured by healthcare providers using the Severity of Alopecia Tool. The higher the number, the greater the proportion of scalp hair loss.
At their pretreatment baseline, the patients enrolled in Olumiant's two phase 3 clinical trials had an average SALT score of 85.5, which means that 85.5% of their scalp hair was gone. After 36 weeks of receiving the lowest once-daily dose of Olumiant (2 mg), one in five (or 20% of) patients experienced at least 80% scalp hair regrowth compared to only 5.3% of patients taking a placebo pill. Patients receiving the higher (4 mg) dose of Olumiant fared even better at 36 weeks, with one in three achieving at least 80% scalp hair regrowth.
A move from the FDA last month required Janus kinase (JAK) inhibitors such as Olumiant and AbbVie's (NYSE: ABBV) Rinvoq to carry a warning label disclosing serious potential side effects, such as cancer and blood clots. Despite this requirement, Olumiant has proven itself as a generally safe JAK inhibitor based on its phase 3 clinical trials treating alopecia areata to date.
Only 2.6% of patients receiving Olumiant to treat alopecia areata discontinued treatment due to adverse events. And of those 2.6%, the majority of these adverse events were mild to moderate in severity rather than serious events such as blood clots, according to Eli Lilly.
Based on the efficacy of Olumiant against the risks of the treatment, I believe that regulatory approval from agencies such as the FDA, with warning labels, is the most probable outcome.
An alopecia areata indication has near-blockbuster potential
Now that I have established Olumiant could be a game-changing treatment for the estimated 147 million around the world who live with alopecia areata, let's examine its sales potential if approved.
First, it would be helpful to know the arrangement that Eli Lilly and Incyte have for their partnership on Olumiant.
Eli Lilly purchased the rights to develop and commercialize Olumiant from Incyte in 2009 for an initial payment of $90 million. The agreement between the two companies also requires Eli Lilly to pay double-digit royalties of up to 20% on global net sales of Olumiant to Incyte (including for treatment of COVID-19).
For context, Olumiant generated $402 million in first-half sales this year through its rheumatoid arthritis indication and COVID-19 treatment, which is a 41% growth rate compared to the year-ago period.
The market research firm Grand View Research anticipates that the global alopecia market will grow 8.1% annually from $7.6 billion in 2020 to $14.2 billion in revenue by 2028. Assuming that alopecia areata continues to hold approximately 35% of the total alopecia market, this would work out to an addressable market of $5 billion by 2028 for Olumiant.
Since Pfizer's (NYSE: PFE) abrocitinib (known as Cibinqo) will likely be a solid competitor in the alopecia areata space, I believe a 15%global marketshare is realistic for Olumiant. This would translate into annual revenue of $750 million for Olumiant by the end of the decade, which would be around $600 million in additional sales for Eli Lilly after up to 20% royalty payments to Incyte. With Eli Lilly forecasting $26.8 to $27.4 billion in total revenue for this year, this suggests that an alopecia areata indication for Olumiant would be enough to move the needle for the company.
A strong pick for future growth
While an alopecia areata indication could be a growth catalyst for Eli Lilly, the company arguably doesn't need this to be a hit to do well in the future. That's because Eli Lilly has an up-and-coming diabetes drug known as tirzepatide, which could potentially expand its diabetes market share. The potential drug has already proven more effective than its competitor from Novo Nordisk (NYSE: NVO), Ozempic.
Eli Lilly isn't getting complacent about its status as a leader in the area of diabetes. Eli Lilly has ramped up its research and development (R&D) spending by 21% year over year to $3.36 billion in the first half of this year. While there are never any guarantees that higher R&D spending will lead to commercial success, it's arguably the only way for a pharmaceutical to keep its pipeline relevant aside from prudent acquisitions.
Eli Lilly's dividend payout ratio is set to be in the low 40% range for this year, which should allow for robust dividend growth going forward. This is especially true since analysts expect that Eli Lilly's earnings per share will grow at 16% annually over the next five years. Taken all together, even if Olumiant doesn't achieve blockbuster status, all of these factors make Eli Lilly a stock to buy and hold for the long haul.
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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. | A move from the FDA last month required Janus kinase (JAK) inhibitors such as Olumiant and AbbVie's (NYSE: ABBV) Rinvoq to carry a warning label disclosing serious potential side effects, such as cancer and blood clots. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Pfizer. Late last month, Eli Lilly and Incyte announced impressive results from phase 3 clinical trials examining the efficacy of Olumiant in helping patients with an autoimmune disease known as alopecia areata regrow their hair. | A move from the FDA last month required Janus kinase (JAK) inhibitors such as Olumiant and AbbVie's (NYSE: ABBV) Rinvoq to carry a warning label disclosing serious potential side effects, such as cancer and blood clots. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Pfizer. Image source: Getty Images The efficacy speaks for itself Olumiant's two phase 3 clinical trials enrolled 1,088 adult patients who suffered from severe alopecia areata, which is defined as scalp hair loss of 50% or more. | A move from the FDA last month required Janus kinase (JAK) inhibitors such as Olumiant and AbbVie's (NYSE: ABBV) Rinvoq to carry a warning label disclosing serious potential side effects, such as cancer and blood clots. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Pfizer. Late last month, Eli Lilly and Incyte announced impressive results from phase 3 clinical trials examining the efficacy of Olumiant in helping patients with an autoimmune disease known as alopecia areata regrow their hair. | A move from the FDA last month required Janus kinase (JAK) inhibitors such as Olumiant and AbbVie's (NYSE: ABBV) Rinvoq to carry a warning label disclosing serious potential side effects, such as cancer and blood clots. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Pfizer. But could an indication for Olumiant to treat alopecia areata be the next blockbuster indication for pharma stock Eli Lilly? |
23856.0 | 2021-10-20 00:00:00 UTC | Could This Beaten-Down Biotech Stock Be the Next Buyout Target? | ABBV | https://www.nasdaq.com/articles/could-this-beaten-down-biotech-stock-be-the-next-buyout-target-2021-10-20 | nan | nan | What do AbbVie, Bristol Myers Squibb, and AstraZeneca all have in common? All three are among the largest pharma companies in the world. But all of these drugmakers have also closed high-profile acquisitions within the past two years. These deals helped them bolster their lineups and deepen their pipelines, among other benefits.
The acquiree can also benefit from the transaction, especially if it had fallen on hard times before being bought out. With that in mind, let's look at a biotech company that could become a buyout target within the next couple of years, Bluebird Bio (NASDAQ: BLUE). Below are two reasons why a larger drugmaker could be interested in buying this gene-editing specialist.
BLUE data by YCharts
1. Bluebird's stock has gotten hammered lately
Over the past three years, Bluebird's shares have dropped by over 80%. That's an awful performance by any metric. Both the broader market and the biotech industry -- as measured by the SPDR S&P Biotech Index -- have performed substantially better. Bluebird's business has encountered a series of headwinds that have caused its stock to collapse. Here are some of those issues.
First, the company's Biologics License Application (BLA) in the U.S. for LentiGlobin as a potential treatment for transfusion-dependent beta-thalassemia (TDT, a rare blood-related disorder) was delayed. The company had initially planned to complete the BLA in the second half of 2020, but Bluebird was unable to provide some of the information requested by the U.S. Food and Drug Administration (FDA) as part of the application, which led to the delay. The company then said it expected the application to be complete in the second or third quarter of this year (between April 1 and Sept. 30), but that application still has not been submitted.
Second, back in January, the biotech temporarily halted a pair of clinical trials for LentiGlobin as a potential treatment for sickle cell disease (SCD). The company said a patient treated with the therapy more than five years ago was diagnosed with leukemia. Bluebird went on to investigate whether LentiGlobin caused this severe adverse reaction. Fortunately, it seems as though LentiGlobin wasn't to blame after all, and the FDA lifted its holds on LentiGlobin's clinical studies in June.
Third, Bluebird announced its exit from the European market in its latest quarterly update (in early August). The company's decision came after it was unable to negotiate lucrative deals with third-party payers in the old continent for a pair of approved gene therapies.
As a result of all these troubles, Bluebird's market cap of $1.39 billion is lower than those of most other gene-editing specialists on the market. That could attract a larger drugmaker looking to dip its toes in the space.
2. Promising gene-editing platform
Bluebird has earned several regulatory approvals for its gene-editing therapies. In 2019, the company's Zynteglo got the green light in Europe as a treatment for TDT. Patients with this illness typically have no choice but to receive regular blood transfusions. Zynteglo was approved as a one-time curative treatment, which was clearly a significant breakthrough.
In March, the FDA approved Abecma, a treatment for multiple myeloma that Bluebird developed with Bristol Myers Squibb. Lastly, the biotech's Skysona earned approval in Europe back in July. Skysona is a treatment for a pediatric neurodegenerative disorder called cerebral adrenoleukodystrophy (CALD).
CALD only affects boys, and before Skysona, the only known treatment was a stem-cell transplant. While three regulatory approvals isn't a big deal for larger biotechs, for a company the size of Bluebird -- particularly one that focuses on gene editing -- this is a rare feat.
Since the company exited the European market, so it won't generate revenue from those approved products there. But these approvals show that Bluebird's platform carries serious potential, and that's one powerful reason why a larger company could pounce on the opportunity to acquire it. It's worth noting that Bluebird is currently planning to spin off its oncology business into a separate company called 2seventy bio. The separation should be completed by early November.
Bluebird will focus exclusively on its severe genetic-diseases business moving forward, but even within this smaller arena, the company still shows plenty of promise.
What does this mean for investors?
The market is not valuing Bluebird's programs very highly right now. Given its current market cap, the company could be an excellent target for bargain-hunting biotech investors who are willing to be patient. Of course, nobody knows what the future holds. I can't say for sure that Bluebird will become an acquisition target, but the move would certainly make sense for a company looking to get in on the gene-editing bandwagon.
It would also be good for Bluebird since it currently generates little by way of revenue. It won't record any sales from two of its three approved products (since they were approved in Europe and it decided to leave this market). Zynteglo earned the green light more than two years ago, and the company expected to already be recording sales from it. Developing gene-editing therapies isn't cheap either. If a larger company with the resources to bring Bluebird's products to the market swoops in, that will help Bluebird, too.
News of a pending acquisition at a premium would cause the company's stock to soar. Why would the biotech be acquired at a premium? Because that's typically the case for smaller biotechs that larger companies buy out. The company could also argue that some of its current programs could reach blockbuster status if approved in the U.S., justifying a premium-priced acquisition. In my view, there's an argument to be made for that, given that Bluebird is going after rare diseases with few treatment options, and considering it has already earned some regulatory nods.
I think this biotech stock is worth serious consideration -- regardless of whether it will be bought out soon -- especially at current levels.
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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 do AbbVie, Bristol Myers Squibb, and AstraZeneca all have in common? First, the company's Biologics License Application (BLA) in the U.S. for LentiGlobin as a potential treatment for transfusion-dependent beta-thalassemia (TDT, a rare blood-related disorder) was delayed. The company had initially planned to complete the BLA in the second half of 2020, but Bluebird was unable to provide some of the information requested by the U.S. Food and Drug Administration (FDA) as part of the application, which led to the delay. | What do AbbVie, Bristol Myers Squibb, and AstraZeneca all have in common? Promising gene-editing platform Bluebird has earned several regulatory approvals for its gene-editing therapies. Since the company exited the European market, so it won't generate revenue from those approved products there. | What do AbbVie, Bristol Myers Squibb, and AstraZeneca all have in common? With that in mind, let's look at a biotech company that could become a buyout target within the next couple of years, Bluebird Bio (NASDAQ: BLUE). While three regulatory approvals isn't a big deal for larger biotechs, for a company the size of Bluebird -- particularly one that focuses on gene editing -- this is a rare feat. | What do AbbVie, Bristol Myers Squibb, and AstraZeneca all have in common? First, the company's Biologics License Application (BLA) in the U.S. for LentiGlobin as a potential treatment for transfusion-dependent beta-thalassemia (TDT, a rare blood-related disorder) was delayed. Promising gene-editing platform Bluebird has earned several regulatory approvals for its gene-editing therapies. |
23857.0 | 2021-10-19 00:00:00 UTC | FDA OKs Cyltezo As First Interchangeable Biosimilar To Humira | ABBV | https://www.nasdaq.com/articles/fda-oks-cyltezo-as-first-interchangeable-biosimilar-to-humira-2021-10-19 | nan | nan | (RTTNews) - The U.S. Food and Drug Administration (FDA) approved Boehringer Ingelheim's Cyltezo as the first interchangeable biosimilar to AbbVie's top-selling drug Humira or adalimumab. Cyltezo, originally approved in August 2017, is both biosimilar to, and interchangeable with Humira for Cyltezo's approved uses.
Cyltezo is the first interchangeable monoclonal antibody and only the second interchangeable biosimilar product ever approved by the FDA. Meanwhile, the FDA has already approved 31 biosimilar products, including six biosimilars to Humira itself.
The regulatory approval for interchangeability was supported by positive data from Boehringer Ingelheim's Phase III randomized VOLTAIRE-X clinical trial. The data showed that interchanging several times between Cyltezo and Humira resulted in no meaningful clinical differences for pharmacokinetics, efficacy, immunogenicity, and safety.
Amgen's Amjevita will be the first Humira biosimilar to hit the market on January 31, 2023, while Cyltezo will hit the market in the U.S. only on July 1, 2023. Boehringer Ingelheim, along with five other Humira biosimilar maker's, settled with AbbVie for launch dates in 2023 due to patent protections. Biosimilars to Humira were launched in Europe in 2018 itself.
These types of biosimilar and interchangeable biosimilar products can help increase access to treatment options for patients with serious medical conditions. They may also cost less than the brand-name medicine.
Cyltezo, offered in a single-dose, pre-filled glass syringe of 40 mg/0.8 mL and 20 mg/0.4 mL, is administered subcutaneously (under the skin) under the guidance of a physician.
Cyltezo is already approved for moderately to severely active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, moderately to severely active Crohn's disease, moderately to severely active ulcerative colitis and moderate to severe chronic plaque psoriasis.
Cyltezo is also indicated for moderately to severely active polyarticular juvenile idiopathic arthritis in patients two years of age and older, and pediatric patients six years of age or older with Crohn's disease.
A biosimilar is a biological product that is highly similar and has no clinically meaningful differences with an FDA approved biological product in terms of safety, potency and purity. Meanwhile, an interchangeable biosimilar or substitute product can be expected to produce the same clinical result as the reference product.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Boehringer Ingelheim, along with five other Humira biosimilar maker's, settled with AbbVie for launch dates in 2023 due to patent protections. (RTTNews) - The U.S. Food and Drug Administration (FDA) approved Boehringer Ingelheim's Cyltezo as the first interchangeable biosimilar to AbbVie's top-selling drug Humira or adalimumab. The regulatory approval for interchangeability was supported by positive data from Boehringer Ingelheim's Phase III randomized VOLTAIRE-X clinical trial. | (RTTNews) - The U.S. Food and Drug Administration (FDA) approved Boehringer Ingelheim's Cyltezo as the first interchangeable biosimilar to AbbVie's top-selling drug Humira or adalimumab. Boehringer Ingelheim, along with five other Humira biosimilar maker's, settled with AbbVie for launch dates in 2023 due to patent protections. Cyltezo is already approved for moderately to severely active rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, moderately to severely active Crohn's disease, moderately to severely active ulcerative colitis and moderate to severe chronic plaque psoriasis. | (RTTNews) - The U.S. Food and Drug Administration (FDA) approved Boehringer Ingelheim's Cyltezo as the first interchangeable biosimilar to AbbVie's top-selling drug Humira or adalimumab. Boehringer Ingelheim, along with five other Humira biosimilar maker's, settled with AbbVie for launch dates in 2023 due to patent protections. Cyltezo, originally approved in August 2017, is both biosimilar to, and interchangeable with Humira for Cyltezo's approved uses. | (RTTNews) - The U.S. Food and Drug Administration (FDA) approved Boehringer Ingelheim's Cyltezo as the first interchangeable biosimilar to AbbVie's top-selling drug Humira or adalimumab. Boehringer Ingelheim, along with five other Humira biosimilar maker's, settled with AbbVie for launch dates in 2023 due to patent protections. Cyltezo is the first interchangeable monoclonal antibody and only the second interchangeable biosimilar product ever approved by the FDA. |
23858.0 | 2021-10-19 00:00:00 UTC | 3 Leading Healthcare Stocks to Buy in 2021 and Beyond | ABBV | https://www.nasdaq.com/articles/3-leading-healthcare-stocks-to-buy-in-2021-and-beyond-2021-10-19 | nan | nan | Resmed (NYSE: RMD), Walgreens Boots Alliance (NASDAQ: WBA) and AbbVie (NYSE: ABBV) are profitable companies that have clear paths to future revenue growth.
ResMed is already an industry leader in sleep apnea therapies, an area that's expected to grow as our population ages. Walgreens Boots Alliance is jumping onto the trend toward value-oriented healthcare services, and AbbVie's huge stable of drugs and pipeline give it a diversity that protects its long-term outlook.
Image source: Getty Images
Don't sleep on ResMed
ResMed stock is up more than 20% this year, and over the past five years the stock's total return is up more than 320%, compared to 109% for the S&P 500. The company is the leading manufacturer of sleep apnea therapies, including positive airway pressure devices and masks.
Only half of the company's revenue comes from selling sleep apnea machines, however -- most of the other 50% is from replenishing the add-ons that go with the machines, including new filters, masks and tubing, along with sales of its software-as-a-service (Saas) platform for out-of-hospital care providers. That helps explain why the company's revenue has risen more than 62% over the past five years.
In its fiscal year 2021, which ended on June 30, the company reported yearly revenue of $3.2 billion, up 8% over 2020. Net income was $474.5 million, down 24% as the company's expenses rose during the pandemic. However, net income seems to be picking up: Fourth-quarter net income was $195.1 million, up 10% year over year.
The company sees plenty of growth possibilities in sleep apnea, stating that more than 80% of people with sleep apnea go without being diagnosed and could be helped by ResMed's devices. It stands to reason that, as our population ages -- and in some cases, grows more overweight -- the need for sleep apnea devices will grow. Theglobal marketfor sleep apnea devices is expected to reach $6.1 billion by 2028, achieving a compound annual growth rate (CAGR) of 6.2% over that period, according to a report by Grand View Research.
Walgreens' shift should boost numbers
Walgreens Boots Alliance's stock is up more than 20% this year. The pharmacy company is a Dividend Aristocrat, having increased its dividend for 46 straight years, including a 2.1% raise this year to $0.475 per quarterly share, giving it a yield of 3.89%.
What's exciting about this stock is the new direction it is headed in. Company CEO Rosalind Brewer said in the company's fourth-quarter and fiscal 2021 earnings call that Walgreens is pivoting to make its retail outlets into locations for primary care, post-acute care, and home care medical needs. At the core of the move is a new segment, Walgreen's Health. The segment utilizes the company's investments in CareCentrix, which focuses on the post-acute and home care sectors, and VillageMD, which focuses on value-based primary care. Walgreen said it expects its number of co-located WBA and VillageMD locations to jump from 52 to 80 by the end of this year. The company's stock rose last week on the announcements -- but even with that, I believe it is a bargain based on its price-to-earnings ratio of 18.3.
The company just closed its fiscal 2021 books. It reported $132.5 billion in revenue for the year, up 8.6% over 2020. Its diluted earnings per share for the year were reported as $2.93, compared to $0.52 in 2020.
AbbVie is a solid play for the future
AbbVie share price movement has been practically flat so far this year, but I think the underlying business has been undervalued considering its revenue and impressive dividend. I think the reason for the current undervaluation is investors' concern about the eventual revenue drop when Humira, its star immunology drug, loses patent protection in 2023.
Let's start with the company's dividend, which has been raised 225% since the company split off from Abbott Laboratories in 2013. Counting its time with Abbott, AbbVie is considered a Dividend Aristocrat with 49 consecutive years of quarterly dividend raises. This year it lifted its dividend by 10.2% to $1.30 a share, which translated to a yield of around 4.84% as of this writing. That's nearly four times the typical dividend yield of a S&P 500 company.
Through the last six months, AbbVie reported net revenue of $26.9 billion, up 41.2% year over year. Net earnings were listed at $4.3 billion over six months, up 90% compared to the same period last year. EPS through six months was reported at $6.06, compared to 4.76 in the first six months of 2020.
While Humira's sales growth is already slowing thanks to biosimilar competition in Europe, the slack is being taken up by AbbVie's newest immunology drugs, Skyrizi and Rinvoq. AbbVie CEO Richardo Gonzalez said in the company's second-quarter earnings call that he expects the pair to bring in $4.6 billion or more this year combined. Through the last six months, Skyrizi brought in $1.2 billion and Rinvoq brought in $681 million, and the company plans to expand their applications. It just got approval to use Skyrizi in Europe to treat adults with psoriatic arthritis, and Rinvoq is coming off what the company said was a successful phase 3 trial to treat ankylosing spondylitis, a type of arthritis of the spine.
As additional uses are found for those two, their profits should continue to grow. The company is also seeing strong sales from Botox Therapeutic ($1.1 billion in the first six months of the year) and Botox Cosmetic ($1 billion through six months).
On top of that, the pile of money AbbVie has been making from Humira has helped fund the company's research and development efforts. Its pipeline is immense and promising: the company says it expects as many as 10 new approvals next year for its therapies.
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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. | Walgreens Boots Alliance is jumping onto the trend toward value-oriented healthcare services, and AbbVie's huge stable of drugs and pipeline give it a diversity that protects its long-term outlook. Resmed (NYSE: RMD), Walgreens Boots Alliance (NASDAQ: WBA) and AbbVie (NYSE: ABBV) are profitable companies that have clear paths to future revenue growth. AbbVie is a solid play for the future AbbVie share price movement has been practically flat so far this year, but I think the underlying business has been undervalued considering its revenue and impressive dividend. | Resmed (NYSE: RMD), Walgreens Boots Alliance (NASDAQ: WBA) and AbbVie (NYSE: ABBV) are profitable companies that have clear paths to future revenue growth. Through the last six months, AbbVie reported net revenue of $26.9 billion, up 41.2% year over year. Walgreens Boots Alliance is jumping onto the trend toward value-oriented healthcare services, and AbbVie's huge stable of drugs and pipeline give it a diversity that protects its long-term outlook. | Resmed (NYSE: RMD), Walgreens Boots Alliance (NASDAQ: WBA) and AbbVie (NYSE: ABBV) are profitable companies that have clear paths to future revenue growth. Walgreens Boots Alliance is jumping onto the trend toward value-oriented healthcare services, and AbbVie's huge stable of drugs and pipeline give it a diversity that protects its long-term outlook. AbbVie is a solid play for the future AbbVie share price movement has been practically flat so far this year, but I think the underlying business has been undervalued considering its revenue and impressive dividend. | Through the last six months, AbbVie reported net revenue of $26.9 billion, up 41.2% year over year. Resmed (NYSE: RMD), Walgreens Boots Alliance (NASDAQ: WBA) and AbbVie (NYSE: ABBV) are profitable companies that have clear paths to future revenue growth. Walgreens Boots Alliance is jumping onto the trend toward value-oriented healthcare services, and AbbVie's huge stable of drugs and pipeline give it a diversity that protects its long-term outlook. |
23859.0 | 2021-10-18 00:00:00 UTC | 2 Best Biotech Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/2-best-biotech-stocks-to-buy-right-now-2021-10-18 | nan | nan | It's no secret that it has progressively become more difficult for investors to find high-yield investments these days. After all, the current 1.3% yield of the S&P 500 isn't that far off the 1.1% yield of the index leading up to the dot-com bubble that occurred two decades ago.
Frothy market valuations can lead income investors astray and into dividend stocks with unsustainable dividends that are often referred to as "yield traps." That's because these investors feel as though they have few options to meet their expenses with dividend income. Well, here are two biotech dividend stocks whose dividends are safe and poised to grow in the years ahead.
Image source: Getty Images.
1. Merck
The first biotech stock that income investors should contemplate buying right now is the $200 billion (by market capitalization) Merck (NYSE: MRK). Merck is best known for the second best-selling drug in the world, Keytruda, behind AbbVie's (NYSE: ABBV) immunology drug, Humira. With 17 approved indications in the U.S., Keytruda is the top-selling cancer drug in the world. Analysts expect Keytruda will assume the mantle of the top-selling drug in the world from Humira when the latter loses its exclusivity in the U.S. in 2023.
That's because Keytruda still has five Phase 3 clinical trials for additional cancer indications ongoing in the U.S. It also has another four Phase 3 clinical trials for additional cancer indications in the European Union. These indications could be yet another huge boost to Keytruda, which already accounted for 36.7% of Merck's $22 billion in first-half sales this year. And since Keytruda is under patent until 2028, Merck has plenty of time to diversify its revenue base to prepare for biosimilar competition against Keytruda.
For one, Merck has fast-growing vaccine and animal health segments that comprised 30.8% of the company's first-half sales this year. Merck's leadership in these two growing industries should contribute to future growth to partially offset Keytruda's eventual patent cliff. Second, Merck recently flexed its nearly $9 billion cash balance to acquire Acceleron Pharma (NASDAQ: XLRN) for $11.5 billion. As a result, Merck will own the pulmonary arterial hypertension (PAH) drug known as sotatercept, which is currently in Phase 3 clinical trials. Analysts estimate the drug could reach peak sales of $2 billion annually, which would be a nice boost to Merck's diversification efforts.
Merck also picked up the drug approved to treat patients with anemia known as Reblozyl. Since Acceleron Pharma will receive low- to mid-20% royalty payments from Bristol Myers Squibb (NYSE: BMY) on sales of Reblozyl and analysts expect $2 billion in peak sales , this could add another $500 million to annual sales in the near future.
Analysts expect Merck's earnings per share (EPS) growth will accelerate to 13% annually over the next five years. This arguably makes the stock a solid value considering it's trading at less than 14 times this year's EPS forecast. As Merck's dividend payout ratio will be in the low-40% range for this year, its market-beating 3.3% dividend yield is safe and likely to grow in the future.
Image source: Getty Images.
2. Amgen
Another biotech stock for investors to check out is the $117 billion (by market cap) Amgen (NASDAQ: AMGN). Unlike Merck, which is reliant on one drug, Amgen's revenue stream through the first half of this year is more diversified. Amgen's top-selling drug Enbrel (approved to treat plaque psoriasis and various forms of arthritis) made up only 16.6% of the company's $12 billion in total first-half sales this year. And while Enbrel experienced a moderate dip in revenue this year, Amgen has approved drugs and drugs in its pipeline to offset future declines in Enbrel.
Amgen expects to receive approval later this year from the U.S. Food and Drug Administration (FDA) for a label expansion of its psoriatic arthritis and plaque psoriasis drug, Otezla, into mild to moderate psoriasis. For context, this would be a key approval for Amgen because it would greatly expand the market for Otezla. That's because, with its psoriatic arthritis indication, Otezla is currently only reaching 30% of psoriasis patients who also have psoriatic arthritis.
The company's expectation of an Otezla launch in China soon and a gradual recovery in visits to dermatologists who prescribe Otezla to patients should help sales grow meaningfully from the $1 billion generated in the first half of this year. The FDA also approved Amgen's targeted lung cancer therapy known as Lumakras earlier this year, which Cory Renauer believes has blockbuster potential in its own right.
Amgen has also made a huge bet on biosimilars as part of its future growth ambitions. For instance, Amgen has biosimilar candidates for Johnson & Johnson's (NYSE: JNJ) immunology drug Stelara, Regeneron's (NASDAQ: REGN) eye injection drug Eylea, and AstraZeneca's (NASDAQ: AZN) rare disease drug Soliris all in Phase 3 clinical trials. Considering the tens of billions of dollars in sales those three drugs record each year, even a small slice of such a large pie could be a significant boost to Amgen if these biosimilar candidates are eventually approved.
These factors help to explain why analysts are forecasting 6% annual earnings growth from Amgen over the next five years. While this is more moderated growth than Merck, Amgen is trading at less than 13 times this year's average EPS estimate.
And with a payout ratio set to be in the low-40% range for this year, Amgen's dividend should be able to grow in the high single digits in the years to come. Pairing this kind of dividend growth with a 3.4% dividend yield is what makes Amgen an attractive biotech to buy now.
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Kody Kester owns shares of AbbVie, Amgen, Bristol Myers Squibb, Johnson & Johnson, and Merck & Co. The Motley Fool owns shares of 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. | Merck is best known for the second best-selling drug in the world, Keytruda, behind AbbVie's (NYSE: ABBV) immunology drug, Humira. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie, Amgen, Bristol Myers Squibb, Johnson & Johnson, and Merck & Co. Amgen's top-selling drug Enbrel (approved to treat plaque psoriasis and various forms of arthritis) made up only 16.6% of the company's $12 billion in total first-half sales this year. | See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie, Amgen, Bristol Myers Squibb, Johnson & Johnson, and Merck & Co. Merck is best known for the second best-selling drug in the world, Keytruda, behind AbbVie's (NYSE: ABBV) immunology drug, Humira. Since Acceleron Pharma will receive low- to mid-20% royalty payments from Bristol Myers Squibb (NYSE: BMY) on sales of Reblozyl and analysts expect $2 billion in peak sales , this could add another $500 million to annual sales in the near future. | Merck is best known for the second best-selling drug in the world, Keytruda, behind AbbVie's (NYSE: ABBV) immunology drug, Humira. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie, Amgen, Bristol Myers Squibb, Johnson & Johnson, and Merck & Co. Amgen's top-selling drug Enbrel (approved to treat plaque psoriasis and various forms of arthritis) made up only 16.6% of the company's $12 billion in total first-half sales this year. | Merck is best known for the second best-selling drug in the world, Keytruda, behind AbbVie's (NYSE: ABBV) immunology drug, Humira. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie, Amgen, Bristol Myers Squibb, Johnson & Johnson, and Merck & Co. With 17 approved indications in the U.S., Keytruda is the top-selling cancer drug in the world. |
23860.0 | 2021-10-18 00:00:00 UTC | Why Revance Therapeutics Stock Is Getting Crushed Today | ABBV | https://www.nasdaq.com/articles/why-revance-therapeutics-stock-is-getting-crushed-today-2021-10-18 | nan | nan | What happened
Shares of the aesthetic and therapeutic company Revance Therapeutics (NASDAQ: RVNC) are in for a turbulent Monday. In premarket trading, the biopharma's shares sank by as much as 34% on heavy volume.
What's sparking this double-digit sell-off? After the closing bell last Friday, Revance announced that the U.S. Food and Drug Administration issued a complete response letter (a rejection) for the company's experimental treatment for moderate to severe glabellar (frown) lines called DaxibotulinumtoxinA for Injection.
Image source: Getty Images.
So what
DaxibotulinumtoxinA for Injection was expected to compete against AbbVie's blockbuster cosmetic therapy Botox, which the biotech acquired when it merged with Allergan last year. Now, that putative competition will have to wait while Revance sorts out the problems associated with its regulatory filing for DaxibotulinumtoxinA for Injection. The silver lining, if you can call it that, is that Revance noted that the only issue cited by the FDA for the rejection was a "deficiency" in the company's manufacturing site for the drug. Revance thus plans to request a Type A meeting with the FDA as soon as possible to discuss a possible fix.
Now what
Is this small-cap biopharma stock a bad news buy? In this case, I think the answer is yes. Manufacturing issues are typically easy to remedy. More importantly, the company apparently won't have to run another costly clinical trial to get this high-value drug over the finish line from a regulatory standpoint (at least according to Revance's press release). So, if things go smoothly, Revance could have this rival to AbbVie's Botox on the market by mid to late 2022.
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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. | So what DaxibotulinumtoxinA for Injection was expected to compete against AbbVie's blockbuster cosmetic therapy Botox, which the biotech acquired when it merged with Allergan last year. So, if things go smoothly, Revance could have this rival to AbbVie's Botox on the market by mid to late 2022. After the closing bell last Friday, Revance announced that the U.S. Food and Drug Administration issued a complete response letter (a rejection) for the company's experimental treatment for moderate to severe glabellar (frown) lines called DaxibotulinumtoxinA for Injection. | So what DaxibotulinumtoxinA for Injection was expected to compete against AbbVie's blockbuster cosmetic therapy Botox, which the biotech acquired when it merged with Allergan last year. So, if things go smoothly, Revance could have this rival to AbbVie's Botox on the market by mid to late 2022. What happened Shares of the aesthetic and therapeutic company Revance Therapeutics (NASDAQ: RVNC) are in for a turbulent Monday. | So what DaxibotulinumtoxinA for Injection was expected to compete against AbbVie's blockbuster cosmetic therapy Botox, which the biotech acquired when it merged with Allergan last year. So, if things go smoothly, Revance could have this rival to AbbVie's Botox on the market by mid to late 2022. After the closing bell last Friday, Revance announced that the U.S. Food and Drug Administration issued a complete response letter (a rejection) for the company's experimental treatment for moderate to severe glabellar (frown) lines called DaxibotulinumtoxinA for Injection. | So what DaxibotulinumtoxinA for Injection was expected to compete against AbbVie's blockbuster cosmetic therapy Botox, which the biotech acquired when it merged with Allergan last year. So, if things go smoothly, Revance could have this rival to AbbVie's Botox on the market by mid to late 2022. The silver lining, if you can call it that, is that Revance noted that the only issue cited by the FDA for the rejection was a "deficiency" in the company's manufacturing site for the drug. |
23861.0 | 2021-10-18 00:00:00 UTC | 3 High-Yield Dividend Stocks I'm Not Selling Anytime Soon | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-im-not-selling-anytime-soon-2021-10-18 | nan | nan | I like the noun version of "yield" a lot more than I like the verb. One means making money. The other means giving up.
Admittedly, I don't have many stocks in my portfolio that pay high dividend yields. My positions tend to focus more on growth than on dividends. However, I do own a few high-yield dividend stocks. Here are three that I'm not selling anytime soon.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) is only one dividend increase away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases. I'm confident that promotion is on the way. That's especially encouraging considering that AbbVie's dividend yield already stands at nearly 4.8%.
Let's address the elephant in the room with AbbVie right out of the gate. The company's top-selling drug, Humira, faces biosimilar rivals in the U.S. beginning in 2023. AbbVie acknowledges that its revenue will slip when that happens.
The big drugmaker also has another potential problem. The U.S. Food and Drug Administration (FDA) recently slapped safety warnings and restrictions on JAK inhibitors. Peak sales for AbbVie's Rinvoq could be several billion dollars lower than initially expected as a result.
However, Rinvoq should still be a megablockbuster -- as will Skyrizi, AbbVie's other new autoimmune disease drug that isn't a JAK inhibitor. The company also has other growth drivers that should help offset the coming sales declines for Humira, notably including antipsychotic Vraylar and blood cancer drug Venclexta.
AbbVie recently announced that it's partnering with Regenxbio to gain rights to a late-stage gene therapy targeting wet age-related macular degeneration. I look for the company to make more business development deals to bolster its pipeline. That should enable AbbVie to deliver respectable growth that combined with its strong dividend generate solid total returns.
2. Devon Energy
Which S&P 500 member offers the highest dividend yield of all? Devon Energy (NYSE: DVN). Granted, the oil producer's dividend comes with a twist.
Devon's dividend contains two parts. The fixed portion gives investors a yield of only 1.1% or so. It's the variable component that makes Devon's dividend so juicy. Based on the company's guidance for the rest of this year, the total dividend yield should top 10%.
Earlier this month, my Motley Fool colleague Matt DiLallo picked Devon as his top oil stock to buy right now. I completely agree with Matt. Devon is arguably the best way for investors to profit from rising oil prices.
Even if oil prices fall somewhat, Devon should still be in great shape to keep those dividends flowing. I plan to ride this gravy train for a while.
3. Enterprise Products Partners
Wall Street analysts are especially bullish about another energy stock -- Enterprise Products Partners (NYSE: EPD). The consensus price target for Enterprise reflects an upside potential of 17%.
But the stock doesn't have to deliver anywhere near that gain to still make investors a lot of money. Enterprise's dividend currently yields 7.5%. Even modest share appreciation should be enough for the stock's total return to beat the market.
Oil and gas prices won't matter as much for Enterprise as they do for Devon. Enterprise focuses on the midstream sector. Its pipelines, storage facilities, and processing facilities are primarily fee-based.
Enterprise Products Partners is the world's largest exporter of liquified petroleum gas. The company is expanding its capacity to deliver liquid natural gas. Even with the shift to renewable energy sources, Enterprise should still have plenty of room to grow over the next decade and beyond.
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Keith Speights owns shares of AbbVie, Devon Energy, and Enterprise Products Partners. The Motley Fool owns shares of and recommends Regenxbio. The Motley Fool recommends Enterprise Products Partners. 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 recently announced that it's partnering with Regenxbio to gain rights to a late-stage gene therapy targeting wet age-related macular degeneration. AbbVie AbbVie (NYSE: ABBV) is only one dividend increase away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases. That's especially encouraging considering that AbbVie's dividend yield already stands at nearly 4.8%. | See the 10 stocks *Stock Advisor returns as of September 17, 2021 Keith Speights owns shares of AbbVie, Devon Energy, and Enterprise Products Partners. AbbVie AbbVie (NYSE: ABBV) is only one dividend increase away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases. That's especially encouraging considering that AbbVie's dividend yield already stands at nearly 4.8%. | AbbVie AbbVie (NYSE: ABBV) is only one dividend increase away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Keith Speights owns shares of AbbVie, Devon Energy, and Enterprise Products Partners. That's especially encouraging considering that AbbVie's dividend yield already stands at nearly 4.8%. | AbbVie AbbVie (NYSE: ABBV) is only one dividend increase away from becoming a Dividend King -- S&P 500 members with at least 50 consecutive years of dividend increases. That's especially encouraging considering that AbbVie's dividend yield already stands at nearly 4.8%. Let's address the elephant in the room with AbbVie right out of the gate. |
23862.0 | 2021-10-18 00:00:00 UTC | 7 Blue Chips to Shield Your Portfolio From Market Downturn | ABBV | https://www.nasdaq.com/articles/7-blue-chips-to-shield-your-portfolio-from-market-downturn-2021-10-18 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Investors fearful of a stock market correction currently playing out for October should accumulate blue-chip stocks. The market downturn is long overdue. October may have seasonal weakness, thanks to epic crashes like the one in 1929. In 1987, the crash occurred over several days in late October, too. Yet two incidences of crashes are not enough to predict another one will come.
Should inflation spook markets, investors still need to stay in the market. Stocks are the best hedge against inflation, while cash will lose value as its buying power weakens. Readers have many ways to minimize the risks of holding stocks that fall worse than the market average. This includes buying stocks that do not trade at excessive valuations. Price-to-earnings (P/E) ratios are one way to measure value. As shown below, a quality score that uses P/E as one of the metrics will work, too.
Buy stocks that pay a dividend. The company will return regular income in good times and in bad. Plus they must generate free cash flow every quarter to cover the dividend.
7 Growth Stocks That You Should Sell in October
I’ve picked seven blue-chip stocks for readers to consider buying to shield their portfolios from a market downturn. They are:
AbbVie (NYSE:ABBV)
Consolidated Edison (NYSE:ED)
Coca-Cola (NYSE:KO)
PepsiCo (NASDAQ:PEP)
Procter & Gamble (NYSE:PG)
Raytheon Technologies (NYSE:RTX)
Unilever (NYSE:UL)
Chart courtesy of Stock Rover
All but Unilever score well on growth. Unilever has a very strong quality score because of its strong gross margins and falling debt/equity in the last few years.
Soft drink suppliers Coca-Cola and PepsiCo have similar quality scores, while Pepsi comes out ahead on growth.
Blue-Chip Stocks to Buy: AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie pulled back sharply in September on heavy volume. The drug manufacturer has multiple tailwinds that will reward blue-chip investors.
On Oct. 7, Health Canada approved the use of Rinvoq (upadacitinib) for treating patients suffering from atopic dermatitis. Monotherapy is far more effective than topical steroid-based drugs. Patients may take the drug orally once a day. The JAK inhibitor will improve a patient’s quality of life by controlling chronic inflammatory skin disease.
AbbVie’s Skyrizi data in psoriatic arthritis is another positive development. Patients showed improved signs and symptoms of the disease, with efficacy maintained through one year. Growing Skyrizi revenue will offset a drop in Humira sales when the latter loses exclusivity. Biosimilar manufacturers may sell Humira in early 2023. Even after the loss of exclusivity, AbbVie’s successful legal wins will ensure sustained profit margins for Humira sales.
On Sept. 28 the Food and Drug Administration approved atogepant, AbbVie’s drug for preventative treatment of migraines. Migraines affect one billion people worldwide, so this drug is a potential blockbuster for AbbVie.
A dozen analysts offer coverage on ABBV stock. The average price target is $128, according to data collected by TipRanks.
Consolidated Edison (ED)
Source: Shutterstock
Consolidated Edison, or ConEd, is a world-class electricity supplier. It has 3.5 million customers. It is eight times more reliable than the national average, as Chief Executive Officer Timothy Cawley mentioned in an energy conference.
ConEd sees transmission investments will cost $1 billion over the next five years. This will position the grid to take in solar and wind for renewable energy.
ED stock is underperforming because investors worry about things like New York regulation. Markets fail to recognize their efforts in the clean energy business. As investors assign a higher value to its robust pipeline and 2,700 megawatts in clean energy operations today, the stock will climb from current levels.
7 Best Bargain Stocks to Buy in October
ConEd has 3,000 megawatts of mostly solar and some storage in the pipeline. Strong governmental support from the U.S. for clean energy initiatives will attract investors to ED stock.
In the second quarter, Consolidated Edison posted revenue of $2.97 billion, up 9.2% from last year. When the stock slipped post-earnings, it created a good entry point for investors seeking a stable blue-chip stock.
Blue-Chip Stocks to Buy: Coca-Cola (KO)
KO) bottles and cans. coke is a blue-chip stocks" width="300" height="169">
Source: Fotazdymak / Shutterstock.com
Coca-Cola has two growth catalysts ahead. Its new global platform launch announced on Sept. 29 will re-energize the brand. Chief Marketing Officer Manolo Arroyo said, “the Real Magic philosophy is rooted in the belief that dichotomies can make the world a more interesting place.” As customers connect the company’s product taste to “real magic,” expect sales to grow.
European markets are a positive catalyst for KO stock. After posting strong Q2 results, its digital ecosystem transformation will accelerate its growth. In Europe, its e-commerce grew retail value faster than 50% across major markets. Latin America and the Middle East & Africa also added to the strong soft drink sales growth.
Coca-Cola is an attractive holding. It has initiatives in hard seltzers, the Monster product line, and coffee. Last month, selling pressure sent KO stock below the 50-day moving average. Investors took advantage of the temporary correction to accumulate shares at a better price.
Analysts have an average price target of ~$62 on Coca-Cola stock, according to data collected by TipRanks.
PepsiCo (PEP)
Source: suriyachan / Shutterstock.com
PepsiCo is the other drinks maker that investors should buy. CFO Hugh Johnston earlier this month told CNBC, “we’ll probably see a little bit more pricing increases in the first quarter of next year as we deal with the fact that input costs are just higher.”
Not all consumer discretionary firms may pass higher input prices to customers. Pepsi may do so because customers do not have a substitute.
Pepsi’s CEO, Ramon Laguarta, said that beverage and food categories are healthy. Snack sales are outpacing food and beverage globally. As the world economy recovers, expect Pepsi’s momentum to continue to rise.
7 Growth Stocks That You Should Sell in October
In 2022, core earnings a share, and revenue will continue growing. Pepsi has plenty of momentum that will lift top-line results. It managed its supply chain well. Expect PEP stock to climb to new highs as it delivers another solid result next year. Prudent research and development spending will pay off, too. Pepsi has a strong pipeline. It is seeing its innovation from around the world paying off in the long term.
Investors should accumulate PEP stock, regardless of the share price.
Blue-Chip Stocks to Buy: Procter & Gamble (PG)
PG) distribution center in Vandalia." width="300" height="169">
Source: Jonathan Weiss / Shutterstock.com
P&G posted another year of strong results in Q4 and for the fiscal 2021 year. EPS was $5.50, up 11% Y/Y. The firm benefited from a positive mix, increased pricing, and a higher operating margin.
CEO David Taylor said in the press release that it expected continued top-line and bottom-line growth in fiscal 2022. Since P&G has a strong cash flow, a dividend hike and a stock buyback would increase shareholder returns.
P&G’s focus is on the U.S. and China, its two biggest markets. Investors may worry about the increasing financial turmoil in China. The company is widening its opportunities to accelerate growth. It identified 10 categories having a growth story. It will focus on those 10 markets to grow the business.
Listening to the customer is paying off. For example, it reads reviews and ratings in the skincare and haircare segment. By showing before and after photos in those markets, sales conversion increased by over 20%.
Japan and Western Europe could fare better. Investors may expect the company to improve sales in those regions.
Raytheon Technologies (RTX)
RTX) defense company logo hanging from glass building" width="300" height="169">
Source: JHVEPhoto / Shutterstock.com
Some investors are wary of holding companies involved in the military. But Raytheon offers as much defense for countries that will maintain peace. When the stock market wants companies that win billion-dollar contracts, Raytheon is the stock to hold.
In August, the company won a 4960 million indefinite-delivery/indefinite-quantity (IDIQ) contract. Later that month, it acquired FlightAware. FlightAware is a digital aviation company. It provides functions like flight tracking solutions and predictive technology. Dave Nieuwsma, Collins Aerospace’s head of Avionics, said that “FlightAware’s flight tracking and data platform, the largest in the world, has the potential to deliver new capabilities and innovations across our entire business.”
Raytheon will expand its product offering as it embraces AI and predictive analytics with FlightAware.
7 Best Bargain Stocks to Buy in October
RTX stock is not without risks. Pratt & Whitney depends on passenger airline traffic rebounding. Assuming the delta variant of Covid does not hurt travel, Pratt will recover. When this happens, the unit’s revenue will improve. CEO Greg Hayes also worried about higher input costs. He said, “with the raw materials, copper, aluminum, steel, nickel, all of the other precious metal prices going up, we’re going to see a little bit of pressure in the coming years.”
Blue-Chip Stocks to Buy: Unilever (UL)
Source: BYonkruud / Shutterstock.com
Unilever shares skidded lower in the last few months after posting quarterly results. Higher commodity costs hurt its bottom line.
In Q2, CEO Alan Jope said that the team is confident it will deliver sales growth this year. Its multi-year target is a 3%-5% growth rate. The CEO acknowledged tougher second-half comparables. The stock’s decline will give investors a discount that prices in the upcoming risks. The discount gives investors a chance to get a top-rated blue-chip stock on sale.
Unilever’s e-commerce business showed promise. It grew by 50% and now accounts for 11% of total sales. Instead of buying inflated e-commerce firms that lose money, UL stock gives investors a strong underlying business and an online business that markets are overlooking.
Unilever’s iconoclastic Ben & Jerry’s said it would end sales of its ice cream in the occupied Palestinian territory. The mixing of politics with investing is clouding Unilever’s prospects. As the news subsides, the company must manage commodity costs. Its margins cannot fall as it passes the higher costs to customers.
On the date of publication, Chris Lau 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.
Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns.
The post 7 Blue Chips to Shield Your Portfolio From Market Downturn 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. | They are: AbbVie (NYSE:ABBV) Consolidated Edison (NYSE:ED) Coca-Cola (NYSE:KO) PepsiCo (NASDAQ:PEP) Procter & Gamble (NYSE:PG) Raytheon Technologies (NYSE:RTX) Unilever (NYSE:UL) Chart courtesy of Stock Rover All but Unilever score well on growth. Blue-Chip Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie pulled back sharply in September on heavy volume. AbbVie’s Skyrizi data in psoriatic arthritis is another positive development. | They are: AbbVie (NYSE:ABBV) Consolidated Edison (NYSE:ED) Coca-Cola (NYSE:KO) PepsiCo (NASDAQ:PEP) Procter & Gamble (NYSE:PG) Raytheon Technologies (NYSE:RTX) Unilever (NYSE:UL) Chart courtesy of Stock Rover All but Unilever score well on growth. Blue-Chip Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie pulled back sharply in September on heavy volume. AbbVie’s Skyrizi data in psoriatic arthritis is another positive development. | They are: AbbVie (NYSE:ABBV) Consolidated Edison (NYSE:ED) Coca-Cola (NYSE:KO) PepsiCo (NASDAQ:PEP) Procter & Gamble (NYSE:PG) Raytheon Technologies (NYSE:RTX) Unilever (NYSE:UL) Chart courtesy of Stock Rover All but Unilever score well on growth. Blue-Chip Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie pulled back sharply in September on heavy volume. AbbVie’s Skyrizi data in psoriatic arthritis is another positive development. | They are: AbbVie (NYSE:ABBV) Consolidated Edison (NYSE:ED) Coca-Cola (NYSE:KO) PepsiCo (NASDAQ:PEP) Procter & Gamble (NYSE:PG) Raytheon Technologies (NYSE:RTX) Unilever (NYSE:UL) Chart courtesy of Stock Rover All but Unilever score well on growth. Blue-Chip Stocks to Buy: AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie pulled back sharply in September on heavy volume. AbbVie’s Skyrizi data in psoriatic arthritis is another positive development. |
23863.0 | 2021-10-16 00:00:00 UTC | 2 Buffett Stocks to Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/2-buffett-stocks-to-buy-and-hold-forever-2021-10-16 | nan | nan | It's an understatement to say Warren Buffett knows a thing or two about investing. Few if any CEOs have generated such high returns as consistently and for as long as Buffett has.
Although his total returns have actually lagged well behind the S&P 500 for the past decade, that's really a more recent phenomenon and a result of the pandemic dramatically dragging down his holdings. Yet for a portfolio worth over $300 billion, it's still an amazing feat and one worth watching closely.
Below are two stocks owned by Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) that any investor will not regret buying and holding onto forever.
Image source: The Motley Fool.
AbbVie
Pharmaceutical giant AbbVie (NYSE: ABBV) is a beaten-down Buffett stock that has dragged the portfolio lower. Its stock lost $20 billion in market value after the Food and Drug Administration said all Janus kinase (JAK) inhibitors for sale in the U.S. must carry a warning label announcing the drugs carry serious side effects, including blood clots and even death.
AbbVie was clobbered because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug that is supposed to replace Humira when it goes off-patent. Humira, of course, has been AbbVie's money-maker, generating $19.8 billion in sales in 2020 and accounting for about 43% of the pharma's total revenue.
But AbbVie says the market has it wrong because the FDA's decision is based on the agency's study of Xeljanz, made by Pfizer, which has a different safety profile than that of Rinvoq. Rinvoq was also recently shown in late-stage trials to be superior to Dupixent, the non-JAK inhibitor drug from Sanofi and Regeneron.
What this means is investors have a unique opportunity to buy into a stable, cash-generating pharma giant at a big discount.
Because Humira has multiple indications it's approved for here and abroad, it will still be a massively growing therapy for years to come despite the presence of biosimilars in foreign markets and soon in the U.S.
Also, last year's acquisition of Allergan brought Botox into its portfolio along with added cash flow for research and development. The deal was immediately accretive to earnings and will result in more than $2 billion in cost synergies by the end of the third year.
That's all to say you can buy AbbVie's stock for less than eight times earnings estimates and less than 18 times the free cash flow it produces, meaning it's poised to deliver big returns going forward for its shareholders.
Image source: Amazon.
Amazon
Amazon (NASDAQ: AMZN) may at once be an obvious choice and one that's surprising. It has become such an omnipresent company in our lives and in the market, it's easy to ignore, but is also a no-brainer investment.
The prime reason most investors would choose Amazon as a lifelong investment is because of its clear dominance of the e-commerce space. While it might not always be the premier online retailer in the U.S., there isn't anyone close to giving it a run for its money.
The industry analysts at eMarketer estimate Amazon will account for 40% of all online spending in the U.S. this year, or more than five times the share of runner-up Walmart. In fact, if you add up the market share of Amazon's nine top competitors, its market share would still exceed their combined share by 50%.
Perhaps the most remarkable thing is that e-tail isn't even the best part of an Amazon investment. It's the cloud-based Amazon Web Services that provides the most potential.
Without question, AWS is the leader in cloud infrastructure market share, too, and over the first six months of 2021 it's on pace to surpass $56 billion in revenue for the year, some 33% more than it generated last year.
Lest you think that's an easy bar to step over since last year was a pandemic-addled one, AWS actually enjoyed 30% growth over 2019, so not only is it still growing, but the growth is accelerating. Estimates from Canalys suggest AWS has a 32% share of worldwide cloud-infrastructure spending.
Despite this muscular effort, Amazon's stock is down 14% from the highs it hit this summer, and while it might not be as discounted as AbbVie, its stock is one that belongs in the long-term holding folder of your portfolio.
10 stocks we like better than 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. | But AbbVie says the market has it wrong because the FDA's decision is based on the agency's study of Xeljanz, made by Pfizer, which has a different safety profile than that of Rinvoq. AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV) is a beaten-down Buffett stock that has dragged the portfolio lower. AbbVie was clobbered because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug that is supposed to replace Humira when it goes off-patent. | AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV) is a beaten-down Buffett stock that has dragged the portfolio lower. AbbVie was clobbered because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug that is supposed to replace Humira when it goes off-patent. Humira, of course, has been AbbVie's money-maker, generating $19.8 billion in sales in 2020 and accounting for about 43% of the pharma's total revenue. | Despite this muscular effort, Amazon's stock is down 14% from the highs it hit this summer, and while it might not be as discounted as AbbVie, its stock is one that belongs in the long-term holding folder of your portfolio. AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV) is a beaten-down Buffett stock that has dragged the portfolio lower. AbbVie was clobbered because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug that is supposed to replace Humira when it goes off-patent. | AbbVie Pharmaceutical giant AbbVie (NYSE: ABBV) is a beaten-down Buffett stock that has dragged the portfolio lower. AbbVie was clobbered because its arthritis therapy Rinvoq is a JAK-inhibiting prescription drug that is supposed to replace Humira when it goes off-patent. Humira, of course, has been AbbVie's money-maker, generating $19.8 billion in sales in 2020 and accounting for about 43% of the pharma's total revenue. |
23864.0 | 2021-10-15 00:00:00 UTC | U.S. FDA declines to approve Revance's frown-line treatment | ABBV | https://www.nasdaq.com/articles/u.s.-fda-declines-to-approve-revances-frown-line-treatment-2021-10-15 | nan | nan | Adds background, CEO comment, share move
Oct 15 (Reuters) - Revance Therapeutics Inc RVNC.O said on Friday the U.S. Food and Drug Administration had declined to approve its long-actinginjectable drug to treat moderate to severe frown lines, sending its shares plunging 29%.
The company said the FDA pointed to "deficiencies" related to the regulator's inspection of Revance's manufacturing site.
No other concerns were raised in the agency's "complete response letter", the drug developer said.
Revance's DaxibotulinumtoxinA for Injection, a potential rival for AbbVie Inc's ABBV.N Botox anti-wrinkle injection, was successful in reducing moderate to severe frown lines in a late-stage study in December 2018.
In November last year, the U.S. FDA delayed its decision on the drug, as it was unable to conduct required inspection of the company's manufacturing facility due to COVID-19 travel restrictions. Revance later said it was expecting approval in 2021.
"We are very disappointed by this unanticipated response from the FDA and are seeking further clarity from the agency," Mark Foley, the chief executive officer of Revance, said in a statement on Friday.
Revance said it plans to request a meeting with the FDA as soon as possible to address the agency's concerns.
The company's shares, which closed at $22.71 on Friday, were at $16.20 in extended trade.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
((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. | Revance's DaxibotulinumtoxinA for Injection, a potential rival for AbbVie Inc's ABBV.N Botox anti-wrinkle injection, was successful in reducing moderate to severe frown lines in a late-stage study in December 2018. Adds background, CEO comment, share move Oct 15 (Reuters) - Revance Therapeutics Inc RVNC.O said on Friday the U.S. Food and Drug Administration had declined to approve its long-actinginjectable drug to treat moderate to severe frown lines, sending its shares plunging 29%. In November last year, the U.S. FDA delayed its decision on the drug, as it was unable to conduct required inspection of the company's manufacturing facility due to COVID-19 travel restrictions. | Revance's DaxibotulinumtoxinA for Injection, a potential rival for AbbVie Inc's ABBV.N Botox anti-wrinkle injection, was successful in reducing moderate to severe frown lines in a late-stage study in December 2018. Adds background, CEO comment, share move Oct 15 (Reuters) - Revance Therapeutics Inc RVNC.O said on Friday the U.S. Food and Drug Administration had declined to approve its long-actinginjectable drug to treat moderate to severe frown lines, sending its shares plunging 29%. The company said the FDA pointed to "deficiencies" related to the regulator's inspection of Revance's manufacturing site. | Revance's DaxibotulinumtoxinA for Injection, a potential rival for AbbVie Inc's ABBV.N Botox anti-wrinkle injection, was successful in reducing moderate to severe frown lines in a late-stage study in December 2018. Adds background, CEO comment, share move Oct 15 (Reuters) - Revance Therapeutics Inc RVNC.O said on Friday the U.S. Food and Drug Administration had declined to approve its long-actinginjectable drug to treat moderate to severe frown lines, sending its shares plunging 29%. "We are very disappointed by this unanticipated response from the FDA and are seeking further clarity from the agency," Mark Foley, the chief executive officer of Revance, said in a statement on Friday. | Revance's DaxibotulinumtoxinA for Injection, a potential rival for AbbVie Inc's ABBV.N Botox anti-wrinkle injection, was successful in reducing moderate to severe frown lines in a late-stage study in December 2018. Adds background, CEO comment, share move Oct 15 (Reuters) - Revance Therapeutics Inc RVNC.O said on Friday the U.S. Food and Drug Administration had declined to approve its long-actinginjectable drug to treat moderate to severe frown lines, sending its shares plunging 29%. The company said the FDA pointed to "deficiencies" related to the regulator's inspection of Revance's manufacturing site. |
23865.0 | 2021-10-15 00:00:00 UTC | AbbVie's Risankizumab Gets CHMP Positive Opinion For Active Psoriatic Arthritis Treatment | ABBV | https://www.nasdaq.com/articles/abbvies-risankizumab-gets-chmp-positive-opinion-for-active-psoriatic-arthritis-treatment | nan | nan | (RTTNews) - AbbVie (ABBV) said that the European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP recommended the approval of Risankizumab (SKYRIZI) alone or in combination with methotrexate (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 antirheumatic drugs.
SKYRIZI is 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter.
The CHMP positive opinion is a scientific recommendation for marketing authorization to the European Commission, which authorizes marketing approval in the European Union.
If the CHMP recommendation is accepted by the European Commission, this will mark the second indication for risankizumab in the European Union, which was approved in 2019 for the treatment of adult plaque psoriasis.
The Marketing Authorization will be valid in all member states of the European Union, as well as Iceland, Liechtenstein, Norway and Northern Ireland.
Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
Use of risankizumab in psoriatic arthritis is not approved and its safety and efficacy are under evaluation by regulatory authorities.
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 European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP recommended the approval of Risankizumab (SKYRIZI) alone or in combination with methotrexate (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 antirheumatic drugs. Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The Marketing Authorization will be valid in all member states of the European Union, as well as Iceland, Liechtenstein, Norway and Northern Ireland. | (RTTNews) - AbbVie (ABBV) said that the European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP recommended the approval of Risankizumab (SKYRIZI) alone or in combination with methotrexate (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 antirheumatic drugs. Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The CHMP positive opinion is a scientific recommendation for marketing authorization to the European Commission, which authorizes marketing approval in the European Union. | (RTTNews) - AbbVie (ABBV) said that the European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP recommended the approval of Risankizumab (SKYRIZI) alone or in combination with methotrexate (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 antirheumatic drugs. Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. The CHMP positive opinion is a scientific recommendation for marketing authorization to the European Commission, which authorizes marketing approval in the European Union. | (RTTNews) - AbbVie (ABBV) said that the European Medicines Agency's or EMA Committee for Medicinal Products for Human Use or CHMP recommended the approval of Risankizumab (SKYRIZI) alone or in combination with methotrexate (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 antirheumatic drugs. Risankizumab (SKYRIZI) is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. SKYRIZI is 150 mg, subcutaneous injection at week 0, week 4 and every 12 weeks thereafter. |
23866.0 | 2021-10-15 00:00:00 UTC | Want More Monthly Income? Invest in These 3 Stocks | ABBV | https://www.nasdaq.com/articles/want-more-monthly-income-invest-in-these-3-stocks-2021-10-15 | nan | nan | Whether you're a retiree looking to help pay your bills or you just want to save up for your next vacation, everyone can use some extra cash every month. And one way you can generate more money for your portfolio is by investing in dividend stocks. Few dividend stocks pay on a monthly basis, but you can still collect cash every month by investing in stocks that pay at different periods.
Below, I'll show you how investing just over $22,000 across three stocks -- AbbVie (NYSE: ABBV), Enbridge (NYSE: ENB), and BCE (NYSE: BCE) -- can generate at least $100 in cash for your portfolio every month.
Image source: Getty Images.
AbbVie
Biopharmaceutical company AbbVie is a big name in the healthcare industry with revenue topping more than $50 billion over the past 12 months. And with a profit margin of 12% on that, the company has plenty of income at its disposal to share with investors.
Today, AbbVie pays a quarterly dividend of $1.30 per share, which yields 4.8% annually, well above the S&P 500 average of less than 1.3%. Its payments are made every February, May, August, and November. And if you were to invest roughly $8,300 into AbbVie, you could expect to collect $100 in each of those months. And there's a good chance you'll be earning more over time as AbbVie has been increasing its payouts over the years. In 2016, its quarterly payment was only $0.57, and it has gone on to more than double since then.
That doesn't mean you should expect that to happen over the next five years, but with AbbVie expanding its operations with the acquisition of Botox maker Allergan, a deal that closed in May of last year, there are plenty of growth opportunities for the business. AbbVie anticipates that its adjusted per-share earnings will top more than $12 this year, strong enough to support its current payout, which totals just $5.20 per share on an annual basis.
Enbridge
Investors in pipeline company Enbridge will earn the highest payout on this list, at 6.3%. It makes payments to shareholders every March, June, September, and December. And if you want to collect $100 from those payments, you'll need to invest roughly $6,350 into the stock today. Like AbbVie, Enbridge has also been generously increasing its dividend over the years. Since 1995, the company has raised its payouts by an average of 10%. If the company were to maintain that rate of increase into the future, it would take eight years for your dividend to double in value.
Enbridge offers investors safety through its long-term contracts, and the business has posted a profit in each of the past five years; over the trailing 12 months, its profit margin sits comfortably at more than 15% of revenue. For the current year, the company projects that its distributable cash flow (a metric that oil and gas companies often use to help assess performance) will total 4.70 Canadian dollars ($3.80) on a per-share basis. Based on that, the company's dividend, which pays CA$3.34 annually, looks to be safe.
Plus, Enbridge expects its Line 3 pipeline to be fully operational before the end of this month. The pipeline replaces old infrastructure that has been in place for decades, and it will also add capacity: 370,000 additional barrels of oil per day can be transported between Alberta, Canada, and Wisconsin once the project is complete (bringing the total number of barrels per day to 760,000). Enbridge says the Line 3 replacement project can help generate significant growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), which can pave the way for more dividend increases.
BCE
Telecom company BCE will pay you a dividend every January, April, July, and October. Its 5.4% yield would require a $7,400 investment for you to collect $100 every time it makes a dividend payment.
You won't see much fluctuation with this stock, and that's a good thing if your priority is the dividend. Although BCE did generate 6.4% revenue growth in its most recent quarter (for the period ending June 30), that has more to do with the impact of COVID-19 a year ago, when its stores were impacted by lockdowns and travel was down (which would have affected roaming charges). Revenue of CA$22.9 billion in 2020 was down 4.5% from the previous year and was the lowest the company reported since 2017, when its top line was CA$22.7 billion.
But with BCE being one of the top telecom companies in Canada and consistently reporting profit margins of at least 11% annually, it still makes for a safe dividend stock to invest in. It has raised its quarterly payments by 28% over the past five years, and with free cash flow of CA$3.4 billion over the past 12 months being above the CA$3.2 billion that it has paid out in dividends during that time, there's still room for this payout to continue growing.
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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 anticipates that its adjusted per-share earnings will top more than $12 this year, strong enough to support its current payout, which totals just $5.20 per share on an annual basis. Below, I'll show you how investing just over $22,000 across three stocks -- AbbVie (NYSE: ABBV), Enbridge (NYSE: ENB), and BCE (NYSE: BCE) -- can generate at least $100 in cash for your portfolio every month. AbbVie Biopharmaceutical company AbbVie is a big name in the healthcare industry with revenue topping more than $50 billion over the past 12 months. | Below, I'll show you how investing just over $22,000 across three stocks -- AbbVie (NYSE: ABBV), Enbridge (NYSE: ENB), and BCE (NYSE: BCE) -- can generate at least $100 in cash for your portfolio every month. AbbVie Biopharmaceutical company AbbVie is a big name in the healthcare industry with revenue topping more than $50 billion over the past 12 months. Today, AbbVie pays a quarterly dividend of $1.30 per share, which yields 4.8% annually, well above the S&P 500 average of less than 1.3%. | Below, I'll show you how investing just over $22,000 across three stocks -- AbbVie (NYSE: ABBV), Enbridge (NYSE: ENB), and BCE (NYSE: BCE) -- can generate at least $100 in cash for your portfolio every month. AbbVie Biopharmaceutical company AbbVie is a big name in the healthcare industry with revenue topping more than $50 billion over the past 12 months. Today, AbbVie pays a quarterly dividend of $1.30 per share, which yields 4.8% annually, well above the S&P 500 average of less than 1.3%. | Below, I'll show you how investing just over $22,000 across three stocks -- AbbVie (NYSE: ABBV), Enbridge (NYSE: ENB), and BCE (NYSE: BCE) -- can generate at least $100 in cash for your portfolio every month. AbbVie Biopharmaceutical company AbbVie is a big name in the healthcare industry with revenue topping more than $50 billion over the past 12 months. Today, AbbVie pays a quarterly dividend of $1.30 per share, which yields 4.8% annually, well above the S&P 500 average of less than 1.3%. |
23867.0 | 2021-10-13 00:00:00 UTC | AbbVie Inc. (ABBV) Ex-Dividend Date Scheduled for October 14, 2021 | ABBV | https://www.nasdaq.com/articles/abbvie-inc.-abbv-ex-dividend-date-scheduled-for-october-14-2021-2021-10-13 | nan | nan | AbbVie Inc. (ABBV) will begin trading ex-dividend on October 14, 2021. A cash dividend payment of $1.3 per share is scheduled to be paid on November 15, 2021. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that ABBV has paid the same dividend. At the current stock price of $108.57, the dividend yield is 4.79%.
The previous trading day's last sale of ABBV was $108.57, representing a -10.66% decrease from the 52 week high of $121.53 and a 37.24% increase over the 52 week low of $79.11.
ABBV is a part of the Health Care sector, which includes companies such as McKesson Corporation (MCK) and AmerisourceBergen Corporation (Holding Co) (ABC). ABBV's current earnings per share, an indicator of a company's profitability, is $3.71. Zacks Investment Research reports ABBV's forecasted earnings growth in 2021 as 19.79%, compared to an industry average of 3.6%.
For more information on the declaration, record and payment dates, visit the abbv Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to ABBV through an Exchange Traded Fund [ETF]?
The following ETF(s) have ABBV as a top-10 holding:
First Trust Nasdaq Pharmaceuticals ETF (FTXH)
First Trust Morningstar ETF (FDL)
Invesco Dynamic Pharmaceuticals ETF (PJP)
iShares Evolved U.S. Innovative Healthcare ETF (IEIH)
WisdomTree U.S. High Dividend Fund (DHS).
The top-performing ETF of this group is IEIH with an increase of 2.26% over the last 100 days. FTXH has the highest percent weighting of ABBV at 7.32%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports ABBV's forecasted earnings growth in 2021 as 19.79%, compared to an industry average of 3.6%. For more information on the declaration, record and payment dates, visit the abbv Dividend History page. | ABBV's current earnings per share, an indicator of a company's profitability, is $3.71. The following ETF(s) have ABBV as a top-10 holding: First Trust Nasdaq Pharmaceuticals ETF (FTXH) First Trust Morningstar ETF (FDL) Invesco Dynamic Pharmaceuticals ETF (PJP) iShares Evolved U.S. AbbVie Inc. (ABBV) will begin trading ex-dividend on October 14, 2021. | Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the abbv Dividend History page. The following ETF(s) have ABBV as a top-10 holding: First Trust Nasdaq Pharmaceuticals ETF (FTXH) First Trust Morningstar ETF (FDL) Invesco Dynamic Pharmaceuticals ETF (PJP) iShares Evolved U.S. | ABBV's current earnings per share, an indicator of a company's profitability, is $3.71. AbbVie Inc. (ABBV) will begin trading ex-dividend on October 14, 2021. Shareholders who purchased ABBV prior to the ex-dividend date are eligible for the cash dividend payment. |
23868.0 | 2021-10-12 00:00:00 UTC | IVW, QCOM, ABBV, DHR: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/ivw-qcom-abbv-dhr%3A-large-inflows-detected-at-etf-2021-10-12 | 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $275.8 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 474,050,000 to 477,750,000). Among the largest underlying components of IVW, in trading today Qualcomm Inc (Symbol: QCOM) is off about 1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Danaher Corp (Symbol: DHR) is lower by about 0.2%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $55.48 per share, with $79.17 as the 52 week high point — that compares with a last trade of $74.52. 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 IVW, in trading today Qualcomm Inc (Symbol: QCOM) is off about 1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Danaher Corp (Symbol: DHR) is lower by about 0.2%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $55.48 per share, with $79.17 as the 52 week high point — that compares with a last trade of $74.52. 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 IVW, in trading today Qualcomm Inc (Symbol: QCOM) is off about 1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Danaher Corp (Symbol: DHR) is lower by about 0.2%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $55.48 per share, with $79.17 as the 52 week high point — that compares with a last trade of $74.52. 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 IVW, in trading today Qualcomm Inc (Symbol: QCOM) is off about 1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Danaher Corp (Symbol: DHR) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $275.8 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 474,050,000 to 477,750,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $55.48 per share, with $79.17 as the 52 week high point — that compares with a last trade of $74.52. | Among the largest underlying components of IVW, in trading today Qualcomm Inc (Symbol: QCOM) is off about 1%, AbbVie Inc (Symbol: ABBV) is down about 0.9%, and Danaher Corp (Symbol: DHR) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $275.8 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 474,050,000 to 477,750,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $55.48 per share, with $79.17 as the 52 week high point — that compares with a last trade of $74.52. |
23869.0 | 2021-10-12 00:00:00 UTC | Ex-Dividend Reminder: AbbVie, BlackRock Health Sciences Trust II and Pennymac Mortgage Investment Trust | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder%3A-abbvie-blackrock-health-sciences-trust-ii-and-pennymac-mortgage | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 10/14/21, AbbVie Inc (Symbol: ABBV), BlackRock Health Sciences Trust II (Symbol: BMEZ), and Pennymac Mortgage Investment Trust (Symbol: PMT) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc will pay its quarterly dividend of $1.30 on 11/15/21, BlackRock Health Sciences Trust II will pay its monthly dividend of $0.145 on 10/29/21, and Pennymac Mortgage Investment Trust will pay its quarterly dividend of $0.47 on 10/28/21. As a percentage of ABBV's recent stock price of $109.94, this dividend works out to approximately 1.18%, so look for shares of AbbVie Inc to trade 1.18% lower — all else being equal — when ABBV shares open for trading on 10/14/21. Similarly, investors should look for BMEZ to open 0.53% lower in price and for PMT to open 2.29% lower, all else being equal.
Below are dividend history charts for ABBV, BMEZ, and PMT, showing historical dividends prior to the most recent ones declared.
AbbVie Inc (Symbol: ABBV):
BlackRock Health Sciences Trust II (Symbol: BMEZ):
Pennymac Mortgage Investment Trust (Symbol: PMT):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.73% for AbbVie Inc, 6.37% for BlackRock Health Sciences Trust II, and 9.18% for Pennymac Mortgage Investment Trust.
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In Tuesday trading, AbbVie Inc shares are currently down about 0.4%, BlackRock Health Sciences Trust II shares are up about 0.3%, and Pennymac Mortgage Investment Trust shares are up about 0.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Looking at the universe of stocks we cover at Dividend Channel, on 10/14/21, AbbVie Inc (Symbol: ABBV), BlackRock Health Sciences Trust II (Symbol: BMEZ), and Pennymac Mortgage Investment Trust (Symbol: PMT) will all trade ex-dividend for their respective upcoming dividends. As a percentage of ABBV's recent stock price of $109.94, this dividend works out to approximately 1.18%, so look for shares of AbbVie Inc to trade 1.18% lower — all else being equal — when ABBV shares open for trading on 10/14/21. AbbVie Inc will pay its quarterly dividend of $1.30 on 11/15/21, BlackRock Health Sciences Trust II will pay its monthly dividend of $0.145 on 10/29/21, and Pennymac Mortgage Investment Trust will pay its quarterly dividend of $0.47 on 10/28/21. | Looking at the universe of stocks we cover at Dividend Channel, on 10/14/21, AbbVie Inc (Symbol: ABBV), BlackRock Health Sciences Trust II (Symbol: BMEZ), and Pennymac Mortgage Investment Trust (Symbol: PMT) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc will pay its quarterly dividend of $1.30 on 11/15/21, BlackRock Health Sciences Trust II will pay its monthly dividend of $0.145 on 10/29/21, and Pennymac Mortgage Investment Trust will pay its quarterly dividend of $0.47 on 10/28/21. AbbVie Inc (Symbol: ABBV): BlackRock Health Sciences Trust II (Symbol: BMEZ): Pennymac Mortgage Investment Trust (Symbol: PMT): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 10/14/21, AbbVie Inc (Symbol: ABBV), BlackRock Health Sciences Trust II (Symbol: BMEZ), and Pennymac Mortgage Investment Trust (Symbol: PMT) will all trade ex-dividend for their respective upcoming dividends. AbbVie Inc will pay its quarterly dividend of $1.30 on 11/15/21, BlackRock Health Sciences Trust II will pay its monthly dividend of $0.145 on 10/29/21, and Pennymac Mortgage Investment Trust will pay its quarterly dividend of $0.47 on 10/28/21. AbbVie Inc (Symbol: ABBV): BlackRock Health Sciences Trust II (Symbol: BMEZ): Pennymac Mortgage Investment Trust (Symbol: PMT): In general, dividends are not always predictable, following the ups and downs of company profits over time. | As a percentage of ABBV's recent stock price of $109.94, this dividend works out to approximately 1.18%, so look for shares of AbbVie Inc to trade 1.18% lower — all else being equal — when ABBV shares open for trading on 10/14/21. AbbVie Inc (Symbol: ABBV): BlackRock Health Sciences Trust II (Symbol: BMEZ): Pennymac Mortgage Investment Trust (Symbol: PMT): In general, dividends are not always predictable, following the ups and downs of company profits over time. If they do continue, the current estimated yields on annualized basis would be 4.73% for AbbVie Inc, 6.37% for BlackRock Health Sciences Trust II, and 9.18% for Pennymac Mortgage Investment Trust. |
23870.0 | 2021-10-11 00:00:00 UTC | Surprising Analyst 12-Month Target For XLG | ABBV | https://www.nasdaq.com/articles/surprising-analyst-12-month-target-for-xlg-2021-10-11 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P 500— Top 50 ETF (Symbol: XLG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $378.76 per unit.
With XLG trading at a recent price near $337.35 per unit, that means that analysts see 12.27% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Medtronic PLC (Symbol: MDT), and AbbVie Inc (Symbol: ABBV). Although AMZN has traded at a recent price of $3288.62/share, the average analyst target is 26.72% higher at $4167.26/share. Similarly, MDT has 18.47% upside from the recent share price of $125.27 if the average analyst target price of $148.41/share is reached, and analysts on average are expecting ABBV to reach a target price of $127.64/share, which is 14.80% above the recent price of $111.18. Below is a twelve month price history chart comparing the stock performance of AMZN, MDT, and ABBV:
Combined, AMZN, MDT, and ABBV represent 8.93% of the Invesco S&P 500— Top 50 ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco S&P 500— Top 50 ETF XLG $337.35 $378.76 12.27%
Amazon.com Inc AMZN $3288.62 $4167.26 26.72%
Medtronic PLC MDT $125.27 $148.41 18.47%
AbbVie Inc ABBV $111.18 $127.64 14.80%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of AMZN, MDT, and ABBV: Combined, AMZN, MDT, and ABBV represent 8.93% of the Invesco S&P 500— Top 50 ETF. Invesco S&P 500— Top 50 ETF XLG $337.35 $378.76 12.27% Amazon.com Inc AMZN $3288.62 $4167.26 26.72% Medtronic PLC MDT $125.27 $148.41 18.47% AbbVie Inc ABBV $111.18 $127.64 14.80% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Medtronic PLC (Symbol: MDT), and AbbVie Inc (Symbol: ABBV). | Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Medtronic PLC (Symbol: MDT), and AbbVie Inc (Symbol: ABBV). Similarly, MDT has 18.47% upside from the recent share price of $125.27 if the average analyst target price of $148.41/share is reached, and analysts on average are expecting ABBV to reach a target price of $127.64/share, which is 14.80% above the recent price of $111.18. Invesco S&P 500— Top 50 ETF XLG $337.35 $378.76 12.27% Amazon.com Inc AMZN $3288.62 $4167.26 26.72% Medtronic PLC MDT $125.27 $148.41 18.47% AbbVie Inc ABBV $111.18 $127.64 14.80% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, MDT has 18.47% upside from the recent share price of $125.27 if the average analyst target price of $148.41/share is reached, and analysts on average are expecting ABBV to reach a target price of $127.64/share, which is 14.80% above the recent price of $111.18. Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Medtronic PLC (Symbol: MDT), and AbbVie Inc (Symbol: ABBV). Below is a twelve month price history chart comparing the stock performance of AMZN, MDT, and ABBV: Combined, AMZN, MDT, and ABBV represent 8.93% of the Invesco S&P 500— Top 50 ETF. | Below is a twelve month price history chart comparing the stock performance of AMZN, MDT, and ABBV: Combined, AMZN, MDT, and ABBV represent 8.93% of the Invesco S&P 500— Top 50 ETF. Three of XLG's underlying holdings with notable upside to their analyst target prices are Amazon.com Inc (Symbol: AMZN), Medtronic PLC (Symbol: MDT), and AbbVie Inc (Symbol: ABBV). Similarly, MDT has 18.47% upside from the recent share price of $125.27 if the average analyst target price of $148.41/share is reached, and analysts on average are expecting ABBV to reach a target price of $127.64/share, which is 14.80% above the recent price of $111.18. |
23871.0 | 2021-10-09 00:00:00 UTC | Is It Worth Considering AbbVie Inc. (NYSE:ABBV) For Its Upcoming Dividend? | ABBV | https://www.nasdaq.com/articles/is-it-worth-considering-abbvie-inc.-nyse%3Aabbv-for-its-upcoming-dividend-2021-10-09 | nan | nan | AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in 4 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled 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 14th of October to receive the dividend, which will be paid on the 15th of November.
The company's next dividend payment will be US$1.30 per share. Last year, in total, the company distributed US$5.20 to shareholders. Calculating the last year's worth of payments shows that AbbVie has a trailing yield of 4.7% on the current share price of $111.18. 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 136% 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. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It distributed 45% of its free cash flow as dividends, a comfortable payout level for most companies.
It's good to see that while AbbVie's dividends were not covered by profits, at least they are affordable from a cash perspective. Still, if the company repeatedly paid a dividend greater than its profits, we'd be concerned. Extraordinarily few companies are capable of persistently paying a dividend that is greater than their profits.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:ABBV Historic Dividend October 9th 2021
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 business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see AbbVie earnings per share are up 3.5% per annum over the last five years.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past nine years, AbbVie has increased its dividend at approximately 14% 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.
To Sum It Up
Is AbbVie an attractive dividend stock, or better left on the shelf? AbbVie has been steadily growing its earnings per share, and it is paying out just 45% of its cash flow but an uncomfortably high 136% of its income. Overall, it's not a bad combination, but we feel that there are likely more attractive dividend prospects out there.
If you want to look further into AbbVie, it's worth knowing the risks this business faces. To help with this, we've discovered 4 warning signs for AbbVie that you should be aware of before investing in their shares.
If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Calculating the last year's worth of payments shows that AbbVie has a trailing yield of 4.7% on the current share price of $111.18. AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in 4 days. Meaning, you will need to purchase AbbVie's shares before the 14th of October to receive the dividend, which will be paid on the 15th of November. | NYSE:ABBV Historic Dividend October 9th 2021 Have Earnings And Dividends Been Growing? AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in 4 days. Meaning, you will need to purchase AbbVie's shares before the 14th of October to receive the dividend, which will be paid on the 15th of November. | AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in 4 days. Meaning, you will need to purchase AbbVie's shares before the 14th of October to receive the dividend, which will be paid on the 15th of November. Calculating the last year's worth of payments shows that AbbVie has a trailing yield of 4.7% on the current share price of $111.18. | AbbVie has been steadily growing its earnings per share, and it is paying out just 45% of its cash flow but an uncomfortably high 136% of its income. AbbVie Inc. (NYSE:ABBV) stock is about to trade ex-dividend in 4 days. Meaning, you will need to purchase AbbVie's shares before the 14th of October to receive the dividend, which will be paid on the 15th of November. |
23872.0 | 2021-10-07 00:00:00 UTC | Why AbbVie Stock Sank in September | ABBV | https://www.nasdaq.com/articles/why-abbvie-stock-sank-in-september-2021-10-07 | nan | nan | What happened
Shares of the Illinois-based AbbVie (NYSE: ABBV) sank by an eye-catching 10.7% last month, according to data provided by S&P Global Market Intelligence. That's equivalent to a $20 billion drop in market capitalization. What caused investors to hit the panic button on the drugmaker's stock last month? Early on in September, the U.S. Food and Drug Administration issued a wave of new warnings for a class of drugs known as JAK inhibitors.
The warning stemmed from a large safety-related study showing that patients taking Pfizer's JAK inhibitor medication Xeljanz, an arthritis drug, were at increased risk of heart attack, stroke, cancer, blood clots, and death. AbbVie's next-generation rheumatoid arthritis med, Rinvoq, received a similar warning from the FDA because it belongs to the same class of medications as Pfizer's drug. Investors apparently took this regulatory setback to mean that AbbVie's new growth product will ultimately be negatively impacted by this news.
Image source: Getty Images.
So what
AbbVie has been going through a long-winded metamorphosis for a number of years. The biopharma has been working diligently to build a portfolio of newer growth products to soften the blow from the patent expiration for Humira, an autoimmune disease medication used for a laundry list of conditions. Humira was formerly the world's best-selling pharma product of all time before the COVID-19 pandemic, and a big reason AbbVie has been one of the fastest-growing pharma companies over the prior decade.
Rinvoq, unfortunately, was a key part of AbbVie's plan. Wall Street estimated that the drug could bring in over $10 billion in sales a little past the middle of the decade. This new warning, however, could slow of the adoption rate for this entire class of potent medications. That's not guaranteed to happen of course. But the market seems to think this dire outcome is a foregone conclusion, at least based on how AbbVie's stock has reacted to this news so far.
Now what
Is AbbVie's stock a bad news buy? Prior to this pullback, I thought AbbVie's stock was getting a little overheated. The drugmaker's shares were up by close to 17% for the year (when including dividends as part of the total return), and it sported a price-to-earnings ratio well over 30. Even after this drop, though, AbbVie's shares aren't exactly cheap (with trailing P/E of about 30), and this JAK regulatory news will take a while to fully understand. All told, investors might be better off to sidestep this beaten-down biotech stock for the time being.
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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's next-generation rheumatoid arthritis med, Rinvoq, received a similar warning from the FDA because it belongs to the same class of medications as Pfizer's drug. What happened Shares of the Illinois-based AbbVie (NYSE: ABBV) sank by an eye-catching 10.7% last month, according to data provided by S&P Global Market Intelligence. Investors apparently took this regulatory setback to mean that AbbVie's new growth product will ultimately be negatively impacted by this news. | What happened Shares of the Illinois-based AbbVie (NYSE: ABBV) sank by an eye-catching 10.7% last month, according to data provided by S&P Global Market Intelligence. AbbVie's next-generation rheumatoid arthritis med, Rinvoq, received a similar warning from the FDA because it belongs to the same class of medications as Pfizer's drug. Investors apparently took this regulatory setback to mean that AbbVie's new growth product will ultimately be negatively impacted by this news. | Now what Is AbbVie's stock a bad news buy? 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. What happened Shares of the Illinois-based AbbVie (NYSE: ABBV) sank by an eye-catching 10.7% last month, according to data provided by S&P Global Market Intelligence. | AbbVie's next-generation rheumatoid arthritis med, Rinvoq, received a similar warning from the FDA because it belongs to the same class of medications as Pfizer's drug. Now what Is AbbVie's stock a bad news 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! |
23873.0 | 2021-10-07 00:00:00 UTC | ABBV Crosses Above Key Moving Average Level | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-key-moving-average-level-2021-10-07 | nan | nan | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.02, changing hands as high as $111.12 per share. AbbVie Inc shares are currently trading up about 1.3% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $79.1101 per share, with $121.53 as the 52 week high point — that compares with a last trade of $110.90. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.02, changing hands as high as $111.12 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $79.1101 per share, with $121.53 as the 52 week high point — that compares with a last trade of $110.90. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.02, changing hands as high as $111.12 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $79.1101 per share, with $121.53 as the 52 week high point — that compares with a last trade of $110.90. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.02, changing hands as high as $111.12 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $79.1101 per share, with $121.53 as the 52 week high point — that compares with a last trade of $110.90. The ABBV DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $111.02, changing hands as high as $111.12 per share. AbbVie Inc shares are currently trading up about 1.3% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $79.1101 per share, with $121.53 as the 52 week high point — that compares with a last trade of $110.90. |
23874.0 | 2021-10-07 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-2021-10-07 | 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) $48.66 $58.78 20.79%
AbbVie Inc (Symbol: ABBV) $109.32 $127.64 16.75%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $143.96 $166.75 15.83%
Cincinnati Financial Corp. (Symbol: CINF) $116.47 $132.75 13.98%
General Dynamics Corp (Symbol: GD) $199.36 $223.33 12.02%
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) 4.03% 20.79% 24.82%
AbbVie Inc (Symbol: ABBV) 4.76% 16.75% 21.51%
RenaissanceRe Holdings Ltd. (Symbol: RNR) 1.00% 15.83% 16.83%
Cincinnati Financial Corp. (Symbol: CINF) 2.16% 13.98% 16.14%
General Dynamics Corp (Symbol: GD) 2.39% 12.02% 14.41%
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%
AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20%
RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.39 $1.43 2.88%
Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51%
General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02%
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. | Cardinal Health, Inc. (Symbol: CAH) $48.66 $58.78 20.79% AbbVie Inc (Symbol: ABBV) $109.32 $127.64 16.75% RenaissanceRe Holdings Ltd. (Symbol: RNR) $143.96 $166.75 15.83% Cincinnati Financial Corp. (Symbol: CINF) $116.47 $132.75 13.98% General Dynamics Corp (Symbol: GD) $199.36 $223.33 12.02% 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. Cardinal Health, Inc. (Symbol: CAH) 4.03% 20.79% 24.82% AbbVie Inc (Symbol: ABBV) 4.76% 16.75% 21.51% RenaissanceRe Holdings Ltd. (Symbol: RNR) 1.00% 15.83% 16.83% Cincinnati Financial Corp. (Symbol: CINF) 2.16% 13.98% 16.14% General Dynamics Corp (Symbol: GD) 2.39% 12.02% 14.41% Another consideration with dividend growth stocks is just how much the dividend is growing. Cardinal Health, Inc. (Symbol: CAH) $1.934 $1.954 1.03% AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.39 $1.43 2.88% Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51% General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02% These five stocks are part of our full Dividend Aristocrats List. | Cardinal Health, Inc. (Symbol: CAH) $48.66 $58.78 20.79% AbbVie Inc (Symbol: ABBV) $109.32 $127.64 16.75% RenaissanceRe Holdings Ltd. (Symbol: RNR) $143.96 $166.75 15.83% Cincinnati Financial Corp. (Symbol: CINF) $116.47 $132.75 13.98% General Dynamics Corp (Symbol: GD) $199.36 $223.33 12.02% 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. Cardinal Health, Inc. (Symbol: CAH) 4.03% 20.79% 24.82% AbbVie Inc (Symbol: ABBV) 4.76% 16.75% 21.51% RenaissanceRe Holdings Ltd. (Symbol: RNR) 1.00% 15.83% 16.83% Cincinnati Financial Corp. (Symbol: CINF) 2.16% 13.98% 16.14% General Dynamics Corp (Symbol: GD) 2.39% 12.02% 14.41% Another consideration with dividend growth stocks is just how much the dividend is growing. Cardinal Health, Inc. (Symbol: CAH) $1.934 $1.954 1.03% AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.39 $1.43 2.88% Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51% General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02% These five stocks are part of our full Dividend Aristocrats List. | Cardinal Health, Inc. (Symbol: CAH) $48.66 $58.78 20.79% AbbVie Inc (Symbol: ABBV) $109.32 $127.64 16.75% RenaissanceRe Holdings Ltd. (Symbol: RNR) $143.96 $166.75 15.83% Cincinnati Financial Corp. (Symbol: CINF) $116.47 $132.75 13.98% General Dynamics Corp (Symbol: GD) $199.36 $223.33 12.02% 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. Cardinal Health, Inc. (Symbol: CAH) 4.03% 20.79% 24.82% AbbVie Inc (Symbol: ABBV) 4.76% 16.75% 21.51% RenaissanceRe Holdings Ltd. (Symbol: RNR) 1.00% 15.83% 16.83% Cincinnati Financial Corp. (Symbol: CINF) 2.16% 13.98% 16.14% General Dynamics Corp (Symbol: GD) 2.39% 12.02% 14.41% Another consideration with dividend growth stocks is just how much the dividend is growing. Cardinal Health, Inc. (Symbol: CAH) $1.934 $1.954 1.03% AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.39 $1.43 2.88% Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51% General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02% These five stocks are part of our full Dividend Aristocrats List. | Cardinal Health, Inc. (Symbol: CAH) $48.66 $58.78 20.79% AbbVie Inc (Symbol: ABBV) $109.32 $127.64 16.75% RenaissanceRe Holdings Ltd. (Symbol: RNR) $143.96 $166.75 15.83% Cincinnati Financial Corp. (Symbol: CINF) $116.47 $132.75 13.98% General Dynamics Corp (Symbol: GD) $199.36 $223.33 12.02% 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. Cardinal Health, Inc. (Symbol: CAH) 4.03% 20.79% 24.82% AbbVie Inc (Symbol: ABBV) 4.76% 16.75% 21.51% RenaissanceRe Holdings Ltd. (Symbol: RNR) 1.00% 15.83% 16.83% Cincinnati Financial Corp. (Symbol: CINF) 2.16% 13.98% 16.14% General Dynamics Corp (Symbol: GD) 2.39% 12.02% 14.41% Another consideration with dividend growth stocks is just how much the dividend is growing. Cardinal Health, Inc. (Symbol: CAH) $1.934 $1.954 1.03% AbbVie Inc (Symbol: ABBV) $4.61 $5.08 10.20% RenaissanceRe Holdings Ltd. (Symbol: RNR) $1.39 $1.43 2.88% Cincinnati Financial Corp. (Symbol: CINF) $2.36 $2.49 5.51% General Dynamics Corp (Symbol: GD) $4.24 $4.58 8.02% These five stocks are part of our full Dividend Aristocrats List. |
23875.0 | 2021-10-07 00:00:00 UTC | Notable Thursday Option Activity: PLUG, ABBV, IDT | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-plug-abbv-idt-2021-10-07 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Plug Power Inc (Symbol: PLUG), where a total volume of 73,504 contracts has been traded thus far today, a contract volume which is representative of approximately 7.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.1% of PLUG's average daily trading volume over the past month, of 15.9 million shares. Particularly high volume was seen for the $27 strike call option expiring October 15, 2021, with 5,544 contracts trading so far today, representing approximately 554,400 underlying shares of PLUG. Below is a chart showing PLUG's trailing twelve month trading history, with the $27 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,171 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 45.1% of ABBV's average daily trading volume over the past month, of 7.4 million shares. Particularly high volume was seen for the $109 strike call option expiring October 15, 2021, with 4,179 contracts trading so far today, representing approximately 417,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $109 strike highlighted in orange:
And IDT Corp (Symbol: IDT) saw options trading volume of 754 contracts, representing approximately 75,400 underlying shares or approximately 44.5% of IDT's average daily trading volume over the past month, of 169,350 shares. Particularly high volume was seen for the $55 strike call option expiring October 15, 2021, with 121 contracts trading so far today, representing approximately 12,100 underlying shares of IDT. Below is a chart showing IDT's trailing twelve month trading history, with the $55 strike highlighted in orange:
For the various different available expirations for PLUG options, ABBV options, or IDT 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 $109 strike call option expiring October 15, 2021, with 4,179 contracts trading so far today, representing approximately 417,900 underlying shares of ABBV. Below is a chart showing PLUG's trailing twelve month trading history, with the $27 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,171 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 45.1% of ABBV's average daily trading volume over the past month, of 7.4 million shares. | Below is a chart showing PLUG's trailing twelve month trading history, with the $27 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,171 contracts thus far today. Below is a chart showing ABBV's trailing twelve month trading history, with the $109 strike highlighted in orange: And IDT Corp (Symbol: IDT) saw options trading volume of 754 contracts, representing approximately 75,400 underlying shares or approximately 44.5% of IDT's average daily trading volume over the past month, of 169,350 shares. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 45.1% of ABBV's average daily trading volume over the past month, of 7.4 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $109 strike highlighted in orange: And IDT Corp (Symbol: IDT) saw options trading volume of 754 contracts, representing approximately 75,400 underlying shares or approximately 44.5% of IDT's average daily trading volume over the past month, of 169,350 shares. Below is a chart showing PLUG's trailing twelve month trading history, with the $27 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 33,171 contracts thus far today. That number of contracts represents approximately 3.3 million underlying shares, working out to a sizeable 45.1% of ABBV's average daily trading volume over the past month, of 7.4 million shares. | Particularly high volume was seen for the $109 strike call option expiring October 15, 2021, with 4,179 contracts trading so far today, representing approximately 417,900 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $109 strike highlighted in orange: And IDT Corp (Symbol: IDT) saw options trading volume of 754 contracts, representing approximately 75,400 underlying shares or approximately 44.5% of IDT's average daily trading volume over the past month, of 169,350 shares. Below is a chart showing IDT's trailing twelve month trading history, with the $55 strike highlighted in orange: For the various different available expirations for PLUG options, ABBV options, or IDT options, visit StockOptionsChannel.com. |
23876.0 | 2021-10-07 00:00:00 UTC | AbbVie: RINVOQ Meets Primary Endpoints In Phase 3 Studies - Quick Facts | ABBV | https://www.nasdaq.com/articles/abbvie%3A-rinvoq-meets-primary-endpoints-in-phase-3-studies-quick-facts-2021-10-07 | nan | nan | (RTTNews) - AbbVie (ABBV) reported positive top-line results from the first of two studies of the phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients with active ankylosing spondylitis who had an inadequate response to biologic DMARD therapy. RINVOQ met its primary endpoint of ASAS 40 response and all ranked secondary endpoints at week 14. Safety data were consistent with SELECT-AXIS 1, previous phase 3 studies in other indications, and the known safety profile of RINVOQ, with no new risks identified.
Separately, AbbVie reported positive top-line results from study 2 of the phase 3 SELECT-AXIS 2 clinical trial in adults with active non-radiographic axial spondyloarthritis, showing RINVOQ met the primary endpoint of Assessment in ASAS 40 response and the majority of ranked secondary endpoints at week 14. Safety data were consistent with SELECT-AXIS 1, previous phase 3 studies in other indications, and the known safety profile of upadacitinib, with no new risks identified.
RINVOQ 15 mg is approved by the FDA for adults with moderately to severely active rheumatoid arthritis. Phase 3 trials of RINVOQ in rheumatoid arthritis, atopic dermatitis, psoriatic arthritis, axial spondyloarthritis, Crohn's disease, ulcerative colitis, giant cell arteritis and Takayasu arteritis are ongoing.
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) reported positive top-line results from the first of two studies of the phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients with active ankylosing spondylitis who had an inadequate response to biologic DMARD therapy. Separately, AbbVie reported positive top-line results from study 2 of the phase 3 SELECT-AXIS 2 clinical trial in adults with active non-radiographic axial spondyloarthritis, showing RINVOQ met the primary endpoint of Assessment in ASAS 40 response and the majority of ranked secondary endpoints at week 14. RINVOQ 15 mg is approved by the FDA for adults with moderately to severely active rheumatoid arthritis. | Separately, AbbVie reported positive top-line results from study 2 of the phase 3 SELECT-AXIS 2 clinical trial in adults with active non-radiographic axial spondyloarthritis, showing RINVOQ met the primary endpoint of Assessment in ASAS 40 response and the majority of ranked secondary endpoints at week 14. (RTTNews) - AbbVie (ABBV) reported positive top-line results from the first of two studies of the phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients with active ankylosing spondylitis who had an inadequate response to biologic DMARD therapy. RINVOQ met its primary endpoint of ASAS 40 response and all ranked secondary endpoints at week 14. | (RTTNews) - AbbVie (ABBV) reported positive top-line results from the first of two studies of the phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients with active ankylosing spondylitis who had an inadequate response to biologic DMARD therapy. Separately, AbbVie reported positive top-line results from study 2 of the phase 3 SELECT-AXIS 2 clinical trial in adults with active non-radiographic axial spondyloarthritis, showing RINVOQ met the primary endpoint of Assessment in ASAS 40 response and the majority of ranked secondary endpoints at week 14. Safety data were consistent with SELECT-AXIS 1, previous phase 3 studies in other indications, and the known safety profile of RINVOQ, with no new risks identified. | Separately, AbbVie reported positive top-line results from study 2 of the phase 3 SELECT-AXIS 2 clinical trial in adults with active non-radiographic axial spondyloarthritis, showing RINVOQ met the primary endpoint of Assessment in ASAS 40 response and the majority of ranked secondary endpoints at week 14. (RTTNews) - AbbVie (ABBV) reported positive top-line results from the first of two studies of the phase 3 SELECT-AXIS 2 clinical trial evaluating RINVOQ in patients with active ankylosing spondylitis who had an inadequate response to biologic DMARD therapy. Safety data were consistent with SELECT-AXIS 1, previous phase 3 studies in other indications, and the known safety profile of RINVOQ, with no new risks identified. |
23877.0 | 2021-10-05 00:00:00 UTC | S&P 500 Analyst Moves: ABBV | ABBV | https://www.nasdaq.com/articles/sp-500-analyst-moves%3A-abbv-2021-10-05 | nan | nan | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie is now the #92 analyst pick, moving up by 40 spots.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, AbbVie is showing a gain of 2.8%.
VIDEO: S&P 500 Analyst Moves: ABBV
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie is now the #92 analyst pick, moving up by 40 spots. Looking at the stock price movement year to date, AbbVie is showing a gain of 2.8%. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie is now the #92 analyst pick, moving up by 40 spots. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at the stock price movement year to date, AbbVie is showing a gain of 2.8%. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie is now the #92 analyst pick, moving up by 40 spots. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Looking at the stock price movement year to date, AbbVie is showing a gain of 2.8%. | The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, AbbVie is now the #92 analyst pick, moving up by 40 spots. Looking at the stock price movement year to date, AbbVie is showing a gain of 2.8%. VIDEO: S&P 500 Analyst Moves: ABBV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
23878.0 | 2021-10-05 00:00:00 UTC | With Acceleron Acquisition Merck Stock Is Likely To See A Multiple Revision | ABBV | https://www.nasdaq.com/articles/with-acceleron-acquisition-merck-stock-is-likely-to-see-a-multiple-revision-2021-10-05 | nan | nan | [Updated: Oct 1, 2021] Merck To Acquire Acceleron
Merck (NYSE: MRK) yesterday announced that it will acquire Acceleron Pharma – a biopharmaceutical company focused on rare diseases – for $11.5 billion funded in cash and debt. Acceleron has multiple potentially blockbuster drugs in its pipeline. To name a few, Sotatercept – is in late stage clinical trials for the treatment of pulmonary arterial hypertension (PAH) with peak sales estimated to be north of $2 billion. Another drug – Reblozyl (in partnership with Bristol Myers Squibb) – which is used to treat anemia in myelodysplastic syndromes (MDS) – is estimated to garner over $2 billion in peak sales.
Now, MRK stock was being weighed down in the recent past due to slowing sales for some of its drugs and a high reliance on a single drug – Keytruda – for revenue growth. The Acceleron acquisition is seen as a positive for Merck, as it will strengthen its cardiovascular portfolio and it gives the company multiple potentially blockbuster drugs. The price of $180 a share paid by Merck is also not out of the line with a 34% premium over the levels of around $134 Acceleron’s stock was trading at a couple of weeks ago. Overall, this deal is likely to put some of the concerns around Merck’s growth trajectory to rest and bolster its trading multiple going forward.
We continue to believe that MRK stock is undervalued, and going by our Merck valuation of $91 a share, based on our adjusted EPS forecast of $5.65 and a P/E multiple of around 16x for 2021, there is more than 20% upside likely from the current levels of around $75.
[Updated: Sep 21, 2021] Merck Stock Undervalued
The stock price of Merck (NYSE: MRK) reached its 52-week high of around $82 in Sep 2020. It has since hovered in the range of $70-80 for the better part of the last year, and it currently trades at levels of around $72. We believe that MRK stock is undervalued at its current levels, and investors can use the recent dips as a buying opportunity for long-term gains, in our view. MRK stock is down more than 15% over the last year or so, despite revenue increasing 6% over the same period. Looking at a longer time period, MRK stock is up only 28% from the levels of around $56 seen toward the end of 2017, significantly underperforming the broader markets, with the S&P 500 rising 63%. The growth in Merck’s earnings was partly offset by a decline in its P/E multiple, resulting in slower stock appreciation.
Looking at its fundamentals, Merck’s total revenue actually grew 21% to $48.5 billion over the last twelve-month period, compared to $40.1 billion in 2017. The revenue growth can largely be attributed to market share gains for its mega-blockbuster drug – Keytruda – approved for multiple types of cancer treatments. Merck’s net income more than doubled since 2017 to $5.6 billion over the last twelve month period, driven by both a rise in revenues as well as margin expansion. The company also repurchased more shares over the recent years, resulting in a 7% fall in total shares outstanding since the end of 2017. As such, on a per share basis, Merck’s earnings surged 150% to $2.20 for the last twelve month period, compared to $0.88 in 2017. Despite a large EPS growth over the recent years, Merck’s P/E multiple has contracted 49% to 33x currently, compared to levels of 64x seen in 2017, and we believe that the multiple will likely expand over the coming years. Our dashboard, Buy Or Fear Merck’s Stock has the underlying numbers.
Outlook
For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. Though the Covid-19 pandemic surely impacted the sales growth for some of its drugs due to fewer hospital visits, and a lower vaccination rate for Gardasil and Proquad, this trend reversed in Q2, with Gardasil sales surging 88%. There are concerns over slowing sales of Januvia and Janumet, which are nearing their patent expiration. However, Merck is seeing steady growth in other areas, including its Animal Health business as well as Lynparaza and Lenvima alliance revenues. There has been a rise in pet ownership during the pandemic and this has resulted in an increased demand for animal health pharmaceuticals products at large, including those offered by Merck.
Merck’s cash-cow – Keytruda – continues to gain share in several markets given its approval in multiple indications, including, lung, head & neck, bladder, renal, and skin cancer among others. Keytruda’s patents are protected for another seven years and it alone will likely garner over $25 billion in annual sales by 2026. With its recent spin-off of its women’s health, legacy brands, and biosimilars businesses, Merck can now focus on more profitable drugs, implying better margins going forward.
Overall, there are more positives for Merck to look forward to than the pessimism surrounding slowing sales growth for some of its drugs. Going by our Merck’s Valuation, with an adjusted EPS estimate of $5.65 and a P/E multiple of 16x in 2021, this translates into a price of $91, which is over 26% above the current market price of around $72.
While MRK stock may see higher levels, 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 Freeport vs UnitedHealth.
————————————————————————————– 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. | Another drug – Reblozyl (in partnership with Bristol Myers Squibb) – which is used to treat anemia in myelodysplastic syndromes (MDS) – is estimated to garner over $2 billion in peak sales. Merck’s cash-cow – Keytruda – continues to gain share in several markets given its approval in multiple indications, including, lung, head & neck, bladder, renal, and skin cancer among others. With its recent spin-off of its women’s health, legacy brands, and biosimilars businesses, Merck can now focus on more profitable drugs, implying better margins going forward. | [Updated: Sep 21, 2021] Merck Stock Undervalued The stock price of Merck (NYSE: MRK) reached its 52-week high of around $82 in Sep 2020. The revenue growth can largely be attributed to market share gains for its mega-blockbuster drug – Keytruda – approved for multiple types of cancer treatments. Despite a large EPS growth over the recent years, Merck’s P/E multiple has contracted 49% to 33x currently, compared to levels of 64x seen in 2017, and we believe that the multiple will likely expand over the coming years. | [Updated: Sep 21, 2021] Merck Stock Undervalued The stock price of Merck (NYSE: MRK) reached its 52-week high of around $82 in Sep 2020. Despite a large EPS growth over the recent years, Merck’s P/E multiple has contracted 49% to 33x currently, compared to levels of 64x seen in 2017, and we believe that the multiple will likely expand over the coming years. Outlook For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. | We continue to believe that MRK stock is undervalued, and going by our Merck valuation of $91 a share, based on our adjusted EPS forecast of $5.65 and a P/E multiple of around 16x for 2021, there is more than 20% upside likely from the current levels of around $75. MRK stock is down more than 15% over the last year or so, despite revenue increasing 6% over the same period. Overall, there are more positives for Merck to look forward to than the pessimism surrounding slowing sales growth for some of its drugs. |
23879.0 | 2021-10-05 00:00:00 UTC | Here's Why Merck Stock May Continue To Rise | ABBV | https://www.nasdaq.com/articles/heres-why-merck-stock-may-continue-to-rise-2021-10-05 | nan | nan | [Updated: Oct 4, 2021] Merck Stock Rise
The stock price of Merck (NYSE: MRK) surged 8% to levels of $81 on Friday, Oct 1, after the company announced that its Molnupiravir pill reduces the risk of hospitalization and death by 50% for patients with mild to moderate Covid-19. The data is so encouraging that Merck has now stopped new patient enrollments and it is moving forward for regulatory approvals. Once approved, it will likely be a game-changing moment for the entire healthcare sector. In fact, the stock prices of vaccine makers, such as Moderna plummeted 11% in Friday’s trade, as the pill will be more desirable for people compared to a vaccine jab for Covid-19. The need for booster shots in the long-run may also be of less importance, while the Covid-19 oral pills of Merck may now become a multi-billion dollar opportunity for the company. Note that vaccines are helpful to avoid catching the virus, while the oral pill is an antiviral, and it will help in the treatment of the virus. That said, if the Covid-19 risk can be reduced by a pill, people may be less motivated to take the vaccine jab. As per a media report, the U.S. government had earlier agreed to pay $700 a patient for the drug, and Merck’s margin could be as high as 60%, implying a profit of over $400 per patient. This pricing may not hold steady at a large scale and with different countries, but it does give an idea of the revenue potential for Merck ($7 billion revenues for 10 million patients).
But now that the MRK stock has seen a 11% rise in a week, will it continue its upward trajectory or is a fall in MRK stock imminent? According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 4% in the next one-month (twenty-one trading days) period after experiencing a 11% rise over the previous week (five trading days) implying that the stock will likely continue to rise in the near term. In fact, the Covid-19 pill opportunity is huge for Merck, and it is very likely that MRK stock may see much higher gains than 4% (going by historical performance). But how would the returns fare if you are interested in holding MRK stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test Merck stock price forecast. You can test the chance of recovery over different time intervals of a quarter, month, or even just 1 day!
For additional details about Merck historical returns, and return comparison to peers see Merck (MRK) Stock Return
Merck Stock Movements: Q&A with Trefis AI Engine
Q1: Is the price forecast for Merck stock higher after a drop?
Answer: Consider two situations,
Case 1: Merck stock drops by -5% or more in a week
Case 2: Merck stock rises by 5% or more in a week
Is the price forecast for Merck stock higher over the subsequent month after Case 1 or Case 2?
MRK stock fares better after Case 1, with an expected return of 4% over the next month (21 trading days) under Case 1 (where the stock has just suffered a 5% loss over the previous week), versus, an expected return of -0.5% for Case 2. This implies a price forecast of $85 in Case 1 and a figure of $81 in Case 2 using MRK market price of $81.40 on 10/4/2021.
In comparison, the S&P 500 has an expected return of 3.1% over the next 21 trading days under Case 1, and an expected return of just 0.5% for Case 2 as detailed in our dashboard that details the expected return for the S&P 500 after a rise or drop.
Try the Trefis machine learning engine above to see for yourself how the forecast for Merck stock is likely to changes after any specific gain or loss over a period.
Q2: Does patience pay?
Answer: If you buy and hold Merck stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong.
Overall, according to data and Trefis machine learning engine’s calculations, patience absolutely pays for most stocks!
For MRK stock, the returns over the next N days after a -5% change over the last five trading days is detailed in the table below, along with the returns for the S&P500:
You can try the engine to see what this table looks like for Merck after a larger loss over the last week, month, or quarter.
Q3: What about the average return after a rise if you wait for a while?
Answer: The average return after a rise is understandably lower than a after a fall as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets. More specifically, after the S&P500 rises 5% over five days, the average return over the next seven trading days is negative. You can expect a nominal gain only if you remain invested for at least two weeks (10 trading days). But this average return figure swells to 11.7% over a period of a year (252 trading days).
It’s pretty powerful to test the trend for yourself for Merck stock. It would be great to hear how the results compare versus your own intuition.
[Updated: Oct 1, 2021] Merck To Acquire Acceleron
Merck (NYSE: MRK) yesterday announced that it will acquire Acceleron Pharma – a biopharmaceutical company focused on rare diseases – for $11.5 billion funded in cash and debt. Acceleron has multiple potentially blockbuster drugs in its pipeline. To name a few, Sotatercept – is in late stage clinical trials for the treatment of pulmonary arterial hypertension (PAH) with peak sales estimated to be north of $2 billion. Another drug – Reblozyl (in partnership with Bristol Myers Squibb) – which is used to treat anemia in myelodysplastic syndromes (MDS) – is estimated to garner over $2 billion in peak sales.
Now, MRK stock was being weighed down in the recent past due to slowing sales for some of its drugs and a high reliance on a single drug – Keytruda – for revenue growth. The Acceleron acquisition is seen as a positive for Merck, as it will strengthen its cardiovascular portfolio and it gives the company multiple potentially blockbuster drugs. The price of $180 a share paid by Merck is also not out of the line with a 34% premium over the levels of around $134 Acceleron’s stock was trading at a couple of weeks ago. Overall, this deal is likely to put some of the concerns around Merck’s growth trajectory to rest and bolster its trading multiple going forward.
We continue to believe that MRK stock is undervalued, and going by our Merck valuation of $91 a share, based on our adjusted EPS forecast of $5.65 and a P/E multiple of around 16x for 2021, there is more than 20% upside likely from the current levels of around $75.
[Updated: Sep 21, 2021] Merck Stock Undervalued
The stock price of Merck (NYSE: MRK) reached its 52-week high of around $82 in Sep 2020. It has since hovered in the range of $70-80 for the better part of the last year, and it currently trades at levels of around $72. We believe that MRK stock is undervalued at its current levels, and investors can use the recent dips as a buying opportunity for long-term gains, in our view. MRK stock is down more than 15% over the last year or so, despite revenue increasing 6% over the same period. Looking at a longer time period, MRK stock is up only 28% from the levels of around $56 seen toward the end of 2017, significantly underperforming the broader markets, with the S&P 500 rising 63%. The growth in Merck’s earnings was partly offset by a decline in its P/E multiple, resulting in slower stock appreciation.
Looking at its fundamentals, Merck’s total revenue actually grew 21% to $48.5 billion over the last twelve-month period, compared to $40.1 billion in 2017. The revenue growth can largely be attributed to market share gains for its mega-blockbuster drug – Keytruda – approved for multiple types of cancer treatments. Merck’s net income more than doubled since 2017 to $5.6 billion over the last twelve month period, driven by both a rise in revenues as well as margin expansion. The company also repurchased more shares over the recent years, resulting in a 7% fall in total shares outstanding since the end of 2017. As such, on a per share basis, Merck’s earnings surged 150% to $2.20 for the last twelve month period, compared to $0.88 in 2017. Despite a large EPS growth over the recent years, Merck’s P/E multiple has contracted 49% to 33x currently, compared to levels of 64x seen in 2017, and we believe that the multiple will likely expand over the coming years. Our dashboard, Buy Or Fear Merck’s Stock has the underlying numbers.
Outlook
For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. Though the Covid-19 pandemic surely impacted the sales growth for some of its drugs due to fewer hospital visits, and a lower vaccination rate for Gardasil and Proquad, this trend reversed in Q2, with Gardasil sales surging 88%. There are concerns over slowing sales of Januvia and Janumet, which are nearing their patent expiration. However, Merck is seeing steady growth in other areas, including its Animal Health business as well as Lynparaza and Lenvima alliance revenues. There has been a rise in pet ownership during the pandemic and this has resulted in an increased demand for animal health pharmaceuticals products at large, including those offered by Merck.
Merck’s cash-cow – Keytruda – continues to gain share in several markets given its approval in multiple indications, including, lung, head & neck, bladder, renal, and skin cancer among others. Keytruda’s patents are protected for another seven years and it alone will likely garner over $25 billion in annual sales by 2026. With its recent spin-off of its women’s health, legacy brands, and biosimilars businesses, Merck can now focus on more profitable drugs, implying better margins going forward.
Overall, there are more positives for Merck to look forward to than the pessimism surrounding slowing sales growth for some of its drugs. Going by our Merck’s Valuation, with an adjusted EPS estimate of $5.65 and a P/E multiple of 16x in 2021, this translates into a price of $91, which is over 26% above the current market price of around $72.
While MRK stock may see higher levels, 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 Freeport vs UnitedHealth.
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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. | Answer: If you buy and hold Merck stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you – at least if the company is otherwise strong. Another drug – Reblozyl (in partnership with Bristol Myers Squibb) – which is used to treat anemia in myelodysplastic syndromes (MDS) – is estimated to garner over $2 billion in peak sales. Merck’s cash-cow – Keytruda – continues to gain share in several markets given its approval in multiple indications, including, lung, head & neck, bladder, renal, and skin cancer among others. | [Updated: Oct 4, 2021] Merck Stock Rise The stock price of Merck (NYSE: MRK) surged 8% to levels of $81 on Friday, Oct 1, after the company announced that its Molnupiravir pill reduces the risk of hospitalization and death by 50% for patients with mild to moderate Covid-19. According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 4% in the next one-month (twenty-one trading days) period after experiencing a 11% rise over the previous week (five trading days) implying that the stock will likely continue to rise in the near term. For additional details about Merck historical returns, and return comparison to peers see Merck (MRK) Stock Return Merck Stock Movements: Q&A with Trefis AI Engine Q1: Is the price forecast for Merck stock higher after a drop? | According to the Trefis Machine Learning Engine, which identifies trends in the company’s stock price using ten years of historical data, returns for MRK stock average around 4% in the next one-month (twenty-one trading days) period after experiencing a 11% rise over the previous week (five trading days) implying that the stock will likely continue to rise in the near term. For additional details about Merck historical returns, and return comparison to peers see Merck (MRK) Stock Return Merck Stock Movements: Q&A with Trefis AI Engine Q1: Is the price forecast for Merck stock higher after a drop? Answer: Consider two situations, Case 1: Merck stock drops by -5% or more in a week Case 2: Merck stock rises by 5% or more in a week Is the price forecast for Merck stock higher over the subsequent month after Case 1 or Case 2? | For additional details about Merck historical returns, and return comparison to peers see Merck (MRK) Stock Return Merck Stock Movements: Q&A with Trefis AI Engine Q1: Is the price forecast for Merck stock higher after a drop? MRK stock is down more than 15% over the last year or so, despite revenue increasing 6% over the same period. Outlook For Merck much of the revenue growth over the recent years has been led by its oncology drug – Keytruda – which saw its sales double from $7.1 billion in 2017 to $14.4 billion in 2020. |
23880.0 | 2021-10-04 00:00:00 UTC | Investing in Pharma Stocks? Watch for These 2 Red Flags | ABBV | https://www.nasdaq.com/articles/investing-in-pharma-stocks-watch-for-these-2-red-flags-2021-10-04 | nan | nan | Pharmaceutical companies can be a great pickup for the conservative portion of your portfolio. Everyone is going to need the life-saving medications that pharmas develop at one point or another, and that means they're never going to go out of style.
Still, it takes more than making medicines for a drug stock to be lucrative for shareholders, and non-experts might not know what to avoid. Follow along as I explain two of the biggest red flags to be aware of when you're investing in pharma stocks.
Image source: Getty Images
1. Pipeline insufficiency
Biopharma companies develop new drugs and then sell those drugs for revenue. So it's a red flag when a company's pipeline doesn't contain enough drug programs in development. Let's explore what this means a bit further, because it's extremely important to being an effective pharma investor.
It typically takes around 10 years to develop a new drug, when accounting for all of the work that goes on in the discovery phase, preclinical studies, clinical trials, and eventually, commercialization. Plus, only 13.8% of drug candidates prove themselves to be safe and effective in clinical trials.
That means if a pharma company wants to have a consistent and growing stream of revenue from drug sales over time, it needs to be constantly initiating (or acquiring) a hearty helping of new development projects. It also means that if a company's pipeline is sparse due to failed projects or a lack of resources to initiate new projects or advance old ones, hard times are all but guaranteed to be ahead.
Furthermore, drugs don't yield revenue forever. Some of the intellectual property protections afforded to new drugs eventually expire, and generic drug makers can copy the product to make a cheaper version, which inevitably erodes the market share of the branded drug. For a wholly new drug, exclusivity protections can last as few as five years. The more money a single drug brings in, the more painful its exclusivity expiration will be -- unless there are an even larger number of new programs scheduled to hit the market.
Take AbbVie (NYSE: ABBV), for example. While its pipeline is absolutely chock-full of programs in every phase of development, its revenue will still take a substantial hit over the next few years as its blockbuster drug, Humira, gets its market share eaten by generics starting in 2023. But because it steadily invested in investigating new drugs over the last decade, there are so many other projects expected to hit the market over the next few years that the dip in revenue is expected to be transient.
In short, not all pharma companies have enough in their pipeline to pull off such a smooth transition between revenue-bearing programs like AbbVie is planning. The smaller the company, the more you'll need to be on the lookout for weaknesses in the pipeline that could leave investors shouldering falling stock prices for years on end.
2. Excessive debt
Manufacturing drugs is capital intensive, as is the research and development process. Profitable pharmas can fund their operations with the cash flow generated from sales of medicines. A small amount of debt typically isn't a problem, and it can actually be a good way to finance capital expenditures rather than using cash.
But for unprofitable businesses, burning cash on hand and taking out debt may be the preferred options, and that can lead to a world of trouble for shareholders. Let's consider an example.
In 2020, the generic drug maker Teva Pharmaceuticals (NYSE: TEVA) spent $2.43 billion on repayment of debt, while also taking out an additional $550 million, making its total debt a whopping $26 billion. It isn't close to being profitable, and its quarterly revenue grew by only 1% year over year as of Q2. Now it has only $2.44 billion in cash and $3.53 billion in current debt. Shareholders can't count on revenue growth to spike anytime soon, as the demand for generic drugs is fairly consistent and the market for a given drug will be split with other generic manufacturers.
How will Teva navigate this conundrum? I can't say for sure, but I wouldn't be surprised if it issued billions of dollars in new shares. That would bludgeon shareholders, but it'd allow the show to go on until Teva returns to profitability.
And therein lies the reason for excessive debt being a red flag. For pharmas, fresh revenue growth can be years away, and contingent on progress in the clinic, or in Teva's case, on exclusivity protections expiring. Especially when the margins are thin, companies may be incapable of both paying off debt and investing in new projects, which perpetuates the problem.
Therefore, if you don't want the risk of perpetually slow growth or share dilution, it's often wiser to steer clear of indebted pharmas.
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Alex Carchidi 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. | Take AbbVie (NYSE: ABBV), for example. In short, not all pharma companies have enough in their pipeline to pull off such a smooth transition between revenue-bearing programs like AbbVie is planning. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | Take AbbVie (NYSE: ABBV), for example. In short, not all pharma companies have enough in their pipeline to pull off such a smooth transition between revenue-bearing programs like AbbVie is planning. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | Take AbbVie (NYSE: ABBV), for example. In short, not all pharma companies have enough in their pipeline to pull off such a smooth transition between revenue-bearing programs like AbbVie is planning. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | * They just revealed what they believe are the ten best stocks for investors to buy right now… and AbbVie wasn't one of them! Take AbbVie (NYSE: ABBV), for example. In short, not all pharma companies have enough in their pipeline to pull off such a smooth transition between revenue-bearing programs like AbbVie is planning. |
23881.0 | 2021-10-03 00:00:00 UTC | Johnson & Johnson Sell-Off: Is It a Buying Opportunity? | ABBV | https://www.nasdaq.com/articles/johnson-johnson-sell-off%3A-is-it-a-buying-opportunity-2021-10-03 | nan | nan | With the S&P 500 just 4% off of its all-time high, investors looking for safe and growing income are having to look much more closely than they did five or 10 years ago. Fortunately, there are still viable options for investors seeking income with reduced volatility.
Stocks that have raised their dividends for at least 50 years straight are referred to as Dividend Kings. Dividend Kings have historically provided the appealing combination of increasing dividends and more resilient stock performance through inevitable market downturns. Now that Dividend King Johnson & Johnson (NYSE: JNJ) is 8% off of its all-time high, let's look at why the recent weakness could be a buying opportunity for income investors.
Image source: Getty Images
The (likely) reason for Johnson & Johnson's pullback
Recently, House Democrats put forth a bill that would allow Medicare to leverage its size and scale to negotiate lower drug prices with pharma companies. It's estimated that the approach would save the U.S. Government $500 billion over the course of a decade.
The bill hit a roadblock after a few moderate Democrats and many Republicans voted in opposition. Thus, it appears that the odds of passing the House and Senate to make it to the desk of the White House for enactment are rather low.
And since the U.S. pharma industry took in $539 billion last year alone, a $500 billion decline in U.S. pharma industry revenue for an entire decade would only result in a modest hit to the industry's sales anyway.
Despite the pressure on Johnson & Johnson's stock price as a result of the bill, the impact on a diversified healthcare company such as Johnson & Johnson would be about a 3% decline in total revenue.
The first cushion for the business is that 49.5% of Johnson & Johnson's $45.63 billion in total first-half sales this year was derived from outside the U.S. Since the bill does not apply to Johnson & Johnson's consumer health segment (which sells key brands such as Neutrogena and Band-Aid) and medical devices segment (which treats cardiovascular, orthopedic, and other conditions), only Johnson & Johnson's U.S. pharmaceutical revenue would be adversely impacted. For context, U.S. pharmaceutical revenue accounted for only 29.2% of first-half sales for Johnson & Johnson.
A lengthy growth runway
Regardless of whether the aforementioned Medicare negotiation bill ever materializes, Johnson & Johnson is delivering satisfactory financial results, and this will likely not change in the foreseeable future.
Johnson & Johnson's top-selling drug, Stelara (used to treat inflammatory bowel diseases and plaque psoriasis), will see its last patent expire in 2023. But even with that, Johnson & Johnson is a diversified pharmaceutical company. Stelara comprises $4.42 billion, or less than 10% of total first-half revenue, and under 20% of total pharmaceutical segment revenue. Multiple fast-growing drugs in Johnson & Johnson's portfolio should be able to offset Stelara's eventual drop-off in revenue.
Johnson & Johnson's Tremfya (approved to treat plaque psoriasis and psoriatic arthritis) was first approved by the U.S. Food and Drug Administration (FDA) in 2017, which should translate into revenue growth for the drug this decade and into the beginning of next decade. Tremfya's first-half sales soared over 40% year over year to $897 million this year, the drug is being widely accepted by doctors and patients across the world. Tremfya alone should be able to offset much of Stelara's post-patent cliff revenue declines.
Johnson & Johnson's blood cancer drug Darzalex was first approved by the FDA in 2015, which also gives the drug a growth runway extending beyond this decade due to patent protection. Darzalex's first-half revenue skyrocketed 50%-plus year over year to $2.80 billion this year, the drug is on track to record over $5 billion in sales in its sixth full year on the market.
Johnson & Johnson and AbbVie's (NYSE: ABBV) blockbuster oncology drug Imbruvica was first approved by the FDA in 2013 and won't likely face any competition from generic drugs until at least early next decade. And even though Imbruvica is closing in on a decade since its first approval, Johnson & Johnson's share of the drug's sales in the first half were up 13% to $2.24 billion.
Johnson & Johnson's well-positioned pharmaceutical segment explains why analysts expect the stock to grow its earnings per share (EPS) at 8.9% annually over the next five years.
A reasonably valued Dividend King
With a great deal of earnings stability built into the foreseeable future, Johnson & Johnson is an ideal stock to own for the long term. I might argue that Johnson & Johnson was a buy near its 52-week high, but the company is much more compelling at the current price, especially since its long-term outlook hasn't changed in recent weeks.
At the current price of $163 a share, Johnson & Johnson is trading at 19 times its trailing 12 months' free cash flow (operating cash flows less capital expenditures), which is a tad below its 13-year median price-to-FCF of 19.7. This is moderately more attractive than when Johnson & Johnson was trading at its 52-week high of $179 a share and a price-to-FCF ratio of over 21.
Johnson & Johnson's beta of just 0.7 is a great fit for investors seeking a less volatile stock. A market-beating 2.6% dividend yield is just one more reason why the recent sell-off looks like a gift from the market to long-term investors.
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Kody Kester owns shares of AbbVie and Johnson & Johnson. 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. | Johnson & Johnson and AbbVie's (NYSE: ABBV) blockbuster oncology drug Imbruvica was first approved by the FDA in 2013 and won't likely face any competition from generic drugs until at least early next decade. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Johnson & Johnson. Image source: Getty Images The (likely) reason for Johnson & Johnson's pullback Recently, House Democrats put forth a bill that would allow Medicare to leverage its size and scale to negotiate lower drug prices with pharma companies. | Johnson & Johnson and AbbVie's (NYSE: ABBV) blockbuster oncology drug Imbruvica was first approved by the FDA in 2013 and won't likely face any competition from generic drugs until at least early next decade. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Johnson & Johnson. And since the U.S. pharma industry took in $539 billion last year alone, a $500 billion decline in U.S. pharma industry revenue for an entire decade would only result in a modest hit to the industry's sales anyway. | Johnson & Johnson and AbbVie's (NYSE: ABBV) blockbuster oncology drug Imbruvica was first approved by the FDA in 2013 and won't likely face any competition from generic drugs until at least early next decade. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Johnson & Johnson. Despite the pressure on Johnson & Johnson's stock price as a result of the bill, the impact on a diversified healthcare company such as Johnson & Johnson would be about a 3% decline in total revenue. | Johnson & Johnson and AbbVie's (NYSE: ABBV) blockbuster oncology drug Imbruvica was first approved by the FDA in 2013 and won't likely face any competition from generic drugs until at least early next decade. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Kody Kester owns shares of AbbVie and Johnson & Johnson. Now that Dividend King Johnson & Johnson (NYSE: JNJ) is 8% off of its all-time high, let's look at why the recent weakness could be a buying opportunity for income investors. |
23882.0 | 2021-10-02 00:00:00 UTC | Here's What Warren Buffett Looks For With Healthcare Stocks | ABBV | https://www.nasdaq.com/articles/heres-what-warren-buffett-looks-for-with-healthcare-stocks-2021-10-02 | nan | nan | If you're stumped about how to find lucrative healthcare stocks, Warren Buffett might be able to help. As the value investing rockstar of the late 20th century, Buffett's patient and conservative approach should be a tool in every investor's collection.
Today, I'll be explaining the most relevant bits of Buffett's philosophy as they apply to a pair of healthcare stocks that you may have heard of. You might not see these two stocks in his portfolio anytime soon, but you'll get an idea about what Buffett's rationale for them might be either way.
Image source: Getty Images.
Moats and evergreen products can go a long way
For Buffett, companies with sustainable competitive advantages are particularly attractive. One of the best competitive advantages that a company can have is an economic moat, which protects market share from being eroded by other businesses.
In the healthcare sector, there are many types of moats. For a company like Intuitive Surgical, (NASDAQ: ISRG) which makes robotic surgical units for general surgery use, one of its moats is in the form of customer lock-ins. Once a hospital purchases one of Intuitive's da Vinci surgical robots, surgeons need to spend a considerable amount of time being trained in its use.
Therefore, it's much less friction for the hospital to keep using the robots once surgeons are trained rather than switching to a competitor, which would require getting up to speed all over again. And, since hospitals purchase multi-year maintenance contracts for their robots, there aren't that many opportunities to switch without wasting money, which keeps them around for longer.
Intuitive has more than one type of moat, which Buffett would definitely approve of. The da Vinci brand of surgical robots has widespread and positive recognition, and the company's intellectual property (IP) protections ensure that competitors will have a harder time developing similar systems.
One thing that Buffett looks for that Intuitive doesn't have is a simple product with a highly repeatable business model. For all its merits, Intuitive is a technology-heavy company, and that means it spends more on research and development (R&D) with each passing year, which Buffett would not be a fan of. The more a company needs to spend on R&D to maintain its edge, the more pressure there will be on its profit margin when strong competitors are on the scene.
In contrast, Retractable Technologies (NYSEMKT: RVP) looks like it'd be much more up his alley when it comes to the ideal Buffett product in healthcare. The company makes retractable safety needles for safely administering medicines and vaccines without the risk of needle-stick injuries for healthcare providers. This is an evergreen product as it will be perpetually in demand.
Retractable's R&D costs have actually trended downward over the last decade up until last year when its revenue exploded due to the need to vaccinate people during the pandemic.
Financial strength, expense control, and consistency are key
The Oracle of Omaha is a stickler for consistent earnings and a healthy balance sheet. For example, Retractable's $2.3 million in debt is puny when compared to its $151.7 million in trailing revenue, which would be another factor in its favor for Buffett. Likewise, Intuitive's complete lack of debt is something he'd find strongly appealing.
Intuitive's earnings growth is far more consistent than Retractable's. One might assume that the steady level of demand for needles before the pandemic would lead to predictable gains compared to the rate of growth with less broadly distributed robotic surgical units, but that isn't the case.
Intuitive's quarterly earnings before interest, taxes, depreciation, and amortization (EBITDA) grew more or less without fail for each of the last five years. Whereas Retractable shifted between expansion and contraction before 2020.
RVP Revenue (Quarterly) data by YCharts
Finally, Buffett prefers companies that keep their expenses low as a percentage of their revenue. If costs get smaller in comparison to revenue over time, that's the icing on the cake.
And both of these stocks could fit the bill. Retractable's total expenses represent just over 70% of its quarterly revenue, and that proportion has fallen by more than 30% over the last three years. For Intuitive, the reduction has been a modest 1.4% in the same period, with total expenses reaching 65% of quarterly revenue. Still, Buffett would probably recognize that Intuitive's profit margin is more stable over time.
Would Buffett want to buy either stock?
Given that healthcare stocks only account for around 4% of Buffett's portfolio, it's important to recognize that they generally aren't his favorites. Of the healthcare stocks he owns, he seems to prefer drug developers like AbbVie and Biogen over hardware companies like Intuitive and Retractable.
Nonetheless, I think that both Retractable Technologies and Intuitive Surgical are candidates for being Buffett picks in healthcare. Between the two, Intuitive would doubtlessly be his preference, as it has a stronger track record of sustained growth.
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Alex Carchidi owns shares of AbbVie. The Motley Fool owns shares of and recommends Intuitive Surgical. The Motley Fool recommends Biogen and recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. 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. | Of the healthcare stocks he owns, he seems to prefer drug developers like AbbVie and Biogen over hardware companies like Intuitive and Retractable. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Alex Carchidi owns shares of AbbVie. The da Vinci brand of surgical robots has widespread and positive recognition, and the company's intellectual property (IP) protections ensure that competitors will have a harder time developing similar systems. | Of the healthcare stocks he owns, he seems to prefer drug developers like AbbVie and Biogen over hardware companies like Intuitive and Retractable. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Alex Carchidi owns shares of AbbVie. For a company like Intuitive Surgical, (NASDAQ: ISRG) which makes robotic surgical units for general surgery use, one of its moats is in the form of customer lock-ins. | Of the healthcare stocks he owns, he seems to prefer drug developers like AbbVie and Biogen over hardware companies like Intuitive and Retractable. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Alex Carchidi owns shares of AbbVie. Nonetheless, I think that both Retractable Technologies and Intuitive Surgical are candidates for being Buffett picks in healthcare. | Of the healthcare stocks he owns, he seems to prefer drug developers like AbbVie and Biogen over hardware companies like Intuitive and Retractable. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Alex Carchidi owns shares of AbbVie. Once a hospital purchases one of Intuitive's da Vinci surgical robots, surgeons need to spend a considerable amount of time being trained in its use. |
23883.0 | 2021-10-01 00:00:00 UTC | Noteworthy ETF Outflows: XLV, ABBV, LLY, BMY | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-xlv-abbv-lly-bmy-2021-10-01 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $509.1 million dollar outflow -- that's a 1.6% decrease week over week (from 247,370,000 to 243,370,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.5%, Eli Lilly (Symbol: LLY) is off about 2.2%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $125.57. 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 experienced notable outflows »
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 XLV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.5%, Eli Lilly (Symbol: LLY) is off about 2.2%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $509.1 million dollar outflow -- that's a 1.6% decrease week over week (from 247,370,000 to 243,370,000). 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 XLV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.5%, Eli Lilly (Symbol: LLY) is off about 2.2%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $125.57. 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). | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.5%, Eli Lilly (Symbol: LLY) is off about 2.2%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $509.1 million dollar outflow -- that's a 1.6% decrease week over week (from 247,370,000 to 243,370,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $125.57. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is off about 0.5%, Eli Lilly (Symbol: LLY) is off about 2.2%, and Bristol Myers Squibb Co. (Symbol: BMY) is lower by about 0.2%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Health Care Select Sector SPDR— Fund (Symbol: XLV) where we have detected an approximate $509.1 million dollar outflow -- that's a 1.6% decrease week over week (from 247,370,000 to 243,370,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $100.31 per share, with $137.045 as the 52 week high point — that compares with a last trade of $125.57. |
23884.0 | 2021-09-30 00:00:00 UTC | California judge questions counties' opioid case against drugmakers at trial's end | ABBV | https://www.nasdaq.com/articles/california-judge-questions-counties-opioid-case-against-drugmakers-at-trials-end-2021-09 | nan | nan | By Nate Raymond
Sept 30 (Reuters) - A California judge on Thursday said several large counties accusing four drugmakers of fueling an opioid epidemic had presented a "dearth of evidence" during a multi-billion dollar trial to support finding the companies' pain pill marketing caused the health crisis.
Judge Peter Wilson sharply questioned the counties' lawyer during closing arguments about what evidence would support finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit liable for the epidemic.
Fidelma Fitzpatrick, a lawyer for the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland, argued the drugmakers' marketing downplayed opioids' addictive risks and promoted them for broader uses than intended.
That advertising led to billions of pain pills flooding their communities over 20 years and an ongoing rise in opioid overdose deaths, Fitzpatrick said.
"Those promotional activities worked," she said.
But Wilson, the Orange County Superior Court judge presiding over the non-jury trial, said the plaintiffs lacked evidence showing the marketing caused doctors to write inappropriate, rather than appropriate, prescriptions.
Wilson said policymakers seemed to have known an increase in prescriptions of U.S. Food and Drug Administration-approved opioids could result in "regrettable" abuse yet accepted that as a trade-off to ensure pain was treated.
"It's the dearth of evidence by a single doctor, a single patient, a single person to say 'I changed my practices because ... ,'" he said.
The case is one of 3,300-plus lawsuits by largely state and local governments seeking to hold drugmakers, distributors and pharmacies responsible for an epidemic that U.S. government data shows led to nearly 500,000 opioid overdose deaths from 1999 to 2019.
The closing argument came after J&J and the three largest distributors- McKesson Corp MCK.N, Cardinal Health Inc CAH.N and AmersourceBergen -in July agreed to pay up to $26 billion to settle cases against them.
The California counties, though, are not part of the proposed settlement with J&J and have pressed ahead with their case.
Should Wilson find the drugmakers liable, the counties say they should have to pay more than $50 billion to cover the costs of abating the public nuisance they created, plus penalties.
(Reporting by Nate Raymond in Boston; Editing by Aurora Ellis)
((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. | Judge Peter Wilson sharply questioned the counties' lawyer during closing arguments about what evidence would support finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit liable for the epidemic. By Nate Raymond Sept 30 (Reuters) - A California judge on Thursday said several large counties accusing four drugmakers of fueling an opioid epidemic had presented a "dearth of evidence" during a multi-billion dollar trial to support finding the companies' pain pill marketing caused the health crisis. Fidelma Fitzpatrick, a lawyer for the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland, argued the drugmakers' marketing downplayed opioids' addictive risks and promoted them for broader uses than intended. | Judge Peter Wilson sharply questioned the counties' lawyer during closing arguments about what evidence would support finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit liable for the epidemic. By Nate Raymond Sept 30 (Reuters) - A California judge on Thursday said several large counties accusing four drugmakers of fueling an opioid epidemic had presented a "dearth of evidence" during a multi-billion dollar trial to support finding the companies' pain pill marketing caused the health crisis. The case is one of 3,300-plus lawsuits by largely state and local governments seeking to hold drugmakers, distributors and pharmacies responsible for an epidemic that U.S. government data shows led to nearly 500,000 opioid overdose deaths from 1999 to 2019. | Judge Peter Wilson sharply questioned the counties' lawyer during closing arguments about what evidence would support finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit liable for the epidemic. By Nate Raymond Sept 30 (Reuters) - A California judge on Thursday said several large counties accusing four drugmakers of fueling an opioid epidemic had presented a "dearth of evidence" during a multi-billion dollar trial to support finding the companies' pain pill marketing caused the health crisis. Fidelma Fitzpatrick, a lawyer for the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland, argued the drugmakers' marketing downplayed opioids' addictive risks and promoted them for broader uses than intended. | Judge Peter Wilson sharply questioned the counties' lawyer during closing arguments about what evidence would support finding Johnson & Johnson JNJ.N, Teva Pharmaceutical Industries Ltd TEVA.TA, Endo International PLC ENDP.O and AbbVie Inc's ABBV.N Allergan unit liable for the epidemic. By Nate Raymond Sept 30 (Reuters) - A California judge on Thursday said several large counties accusing four drugmakers of fueling an opioid epidemic had presented a "dearth of evidence" during a multi-billion dollar trial to support finding the companies' pain pill marketing caused the health crisis. Fidelma Fitzpatrick, a lawyer for the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland, argued the drugmakers' marketing downplayed opioids' addictive risks and promoted them for broader uses than intended. |
23885.0 | 2021-09-30 00:00:00 UTC | Interesting ABBV Put And Call Options For November 12th | ABBV | https://www.nasdaq.com/articles/interesting-abbv-put-and-call-options-for-november-12th-2021-09-30 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the November 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 12th contracts and identified one put and one call contract of particular interest.
The put contract at the $107.00 strike price has a current bid of $3.05. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $107.00, but will also collect the premium, putting the cost basis of the shares at $103.95 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $109.07/share today.
Because the $107.00 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 59%. 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 2.85% return on the cash commitment, or 24.17% 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 $107.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $110.00 strike price has a current bid of $2.57. If an investor was to purchase shares of ABBV stock at the current price level of $109.07/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $110.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.21% if the stock gets called away at the November 12th 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 $110.00 strike highlighted in red:
Considering the fact that the $110.00 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 55%. 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 2.36% boost of extra return to the investor, or 19.98% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 31%, while the implied volatility in the call contract example is 23%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $109.07) to be 23%. 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 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 November 12th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 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 November 12th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 12th 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 $107.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $110.00 strike price has a current bid of $2.57. Below is a chart showing ABBV's trailing twelve month trading history, with the $110.00 strike highlighted in red: Considering the fact that the $110.00 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 November 12th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new November 12th 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 $110.00 strike highlighted in red: Considering the fact that the $110.00 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 November 12th expiration. |
23886.0 | 2021-09-30 00:00:00 UTC | AbbVie: New Analysis Show RINVOQ's Potential To Alleviate Itch And Rash In Atopic Dermatitis | ABBV | https://www.nasdaq.com/articles/abbvie%3A-new-analysis-show-rinvoqs-potential-to-alleviate-itch-and-rash-in-atopic | nan | nan | (RTTNews) - AbbVie (ABBV) reported new analyses from the phase 3 RINVOQ atopic dermatitis clinical trial program. The company said one analysis showed a greater proportion of patients treated with RINVOQ with or without topical corticosteroids achieved 75 percent improvement in the Eczema Area Severity Index at week 16 compared to placebo. An additional analysis demonstrated that more patients treated with RINVOQ 30 mg achieved Eczema Area Severity Index at week 16 compared to dupilumab when measured in four body regions. The company also noted that no new safety risks were observed compared to previously reported results from RINVOQ atopic dermatitis studies.
"These data further highlight RINVOQ's potential to help alleviate the itch and rash in moderate to severe atopic dermatitis, offering additional support of its efficacy across various patient characteristics and areas of the body," said Thomas Hudson, chief scientific officer, AbbVie.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | "These data further highlight RINVOQ's potential to help alleviate the itch and rash in moderate to severe atopic dermatitis, offering additional support of its efficacy across various patient characteristics and areas of the body," said Thomas Hudson, chief scientific officer, AbbVie. (RTTNews) - AbbVie (ABBV) reported new analyses from the phase 3 RINVOQ atopic dermatitis clinical trial program. The company said one analysis showed a greater proportion of patients treated with RINVOQ with or without topical corticosteroids achieved 75 percent improvement in the Eczema Area Severity Index at week 16 compared to placebo. | "These data further highlight RINVOQ's potential to help alleviate the itch and rash in moderate to severe atopic dermatitis, offering additional support of its efficacy across various patient characteristics and areas of the body," said Thomas Hudson, chief scientific officer, AbbVie. (RTTNews) - AbbVie (ABBV) reported new analyses from the phase 3 RINVOQ atopic dermatitis clinical trial program. The company said one analysis showed a greater proportion of patients treated with RINVOQ with or without topical corticosteroids achieved 75 percent improvement in the Eczema Area Severity Index at week 16 compared to placebo. | "These data further highlight RINVOQ's potential to help alleviate the itch and rash in moderate to severe atopic dermatitis, offering additional support of its efficacy across various patient characteristics and areas of the body," said Thomas Hudson, chief scientific officer, AbbVie. (RTTNews) - AbbVie (ABBV) reported new analyses from the phase 3 RINVOQ atopic dermatitis clinical trial program. The company said one analysis showed a greater proportion of patients treated with RINVOQ with or without topical corticosteroids achieved 75 percent improvement in the Eczema Area Severity Index at week 16 compared to placebo. | (RTTNews) - AbbVie (ABBV) reported new analyses from the phase 3 RINVOQ atopic dermatitis clinical trial program. "These data further highlight RINVOQ's potential to help alleviate the itch and rash in moderate to severe atopic dermatitis, offering additional support of its efficacy across various patient characteristics and areas of the body," said Thomas Hudson, chief scientific officer, AbbVie. The company said one analysis showed a greater proportion of patients treated with RINVOQ with or without topical corticosteroids achieved 75 percent improvement in the Eczema Area Severity Index at week 16 compared to placebo. |
23887.0 | 2021-09-29 00:00:00 UTC | Here's How a New Investor Started Her Portfolio With Just 10 Top Stocks | ABBV | https://www.nasdaq.com/articles/heres-how-a-new-investor-started-her-portfolio-with-just-10-top-stocks-2021-09-29 | nan | nan | Investing in the stock market to successfully generate portfolio returns doesn't require some super special set of skills or secret knowledge. It requires research, patience, and time. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributor Rachel Warren tells fellow Fool contributor Brian Withers why she chose to invest in household-name companies with established track records of growth when she bought her first 10 stocks.
10 stocks we like better than Johnson & Johnson
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Brian Withers: I just want us to stop there. I look at your list of stocks and there's a couple of things that stick out to me that I wanted you to respond to. One is, these are like no-brainer. I know when people talk about what's my first stock that I should invest in? Like, where do you shop? [laughs] What companies are you familiar with? The old, "buy what you know" thing.
But these are one, very widely held stocks and popular across The Fool. You could say, well, the growth has been, they're found already. They're not hidden gems anymore. Then the other thing is, I bet you, if I look at the five-year history of these, a lot of them are multibaggers.
Not only are you picking some ones that everybody realizes that these aren't hidden gems and the fact that they've run up. Did that bother you at all when you went to go buy these companies?
Rachel Warren: I think, for me, I think that there's this idea of sometimes among investors that you have to look for the newest hidden gem, and that's a great thing. There's nothing wrong with, you find those small cap companies early on, you invest, and it blows up your portfolio.
That's excellent. [laughs] For me, especially as a newer investor, I did want to go with established companies. I wanted to pick brands that I knew well. It's like a couple of the healthcare stocks we talked about earlier, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV).
Yes, they have grown a lot, but they also have so much history behind them and so much consistent growth that hasn't been in just the two-, three, five-year snapshot. That was something that was really big for me. With some of these stocks like in e-commerce, for example, that I feel like have grabbed investors' attention more in recent years.
I looked at, well, you have these industries that have already realized tremendous growth -- e-commerce -- but they are set to realize tremendous growth over the next 10 years alone. These are areas that are continuing to expand. More and more people are shopping online, People like the convenience of it. People like how easy it is. You don't have to stand around for hours hunting for things.
I think people value convenience more and more in today's world. I looked at some of those ones that have been maybe more hype surrounding them, and I felt that they were in industries that still have a lot of room left to grow. I think that and then given the quality of their businesses, I felt were good fits for my portfolio.
Brian Withers: It's certainly positive to look at a company's past history, and look at the growth and the management. If you've done well historically, that doesn't mean that it'll repeat itself but certainly, winners tend to keep on winning. I think that's how you built your first 10.
Brian Withers has no position in any of the stocks mentioned. Rachel Warren owns shares of AbbVie and Johnson & Johnson. 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's like a couple of the healthcare stocks we talked about earlier, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). Rachel Warren owns shares of AbbVie and Johnson & Johnson. Investing in the stock market to successfully generate portfolio returns doesn't require some super special set of skills or secret knowledge. | It's like a couple of the healthcare stocks we talked about earlier, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). Rachel Warren owns shares of AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributor Rachel Warren tells fellow Fool contributor Brian Withers why she chose to invest in household-name companies with established track records of growth when she bought her first 10 stocks. | It's like a couple of the healthcare stocks we talked about earlier, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). Rachel Warren owns shares of AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributor Rachel Warren tells fellow Fool contributor Brian Withers why she chose to invest in household-name companies with established track records of growth when she bought her first 10 stocks. | It's like a couple of the healthcare stocks we talked about earlier, Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV). Rachel Warren owns shares of AbbVie and Johnson & Johnson. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! |
23888.0 | 2021-09-29 00:00:00 UTC | Here's Why Investors Shouldn't Count Out Johnson & Johnson as a Coronavirus Vaccine Stock | ABBV | https://www.nasdaq.com/articles/heres-why-investors-shouldnt-count-out-johnson-johnson-as-a-coronavirus-vaccine-stock-2021 | nan | nan | In the early days of the coronavirus vaccine race, it seemed as if Johnson & Johnson (NYSE: JNJ) was neck-and-neck with other major contenders. A range of factors including manufacturing delays and quality control issues caused the company to fall behind in the race, and despite the proven efficacy of its vaccine and the convenience of the one-dose regimen, the company has generated far less hype among investors in the pandemic era.
In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributors Rachel Warren, Toby Bordelon, and Brian Withers discuss why investors shouldn't dismiss Johnson & Johnson's ability to generate long-term growth from its coronavirus vaccine, and what makes the stock an all-around excellent choice for a rock-solid investment portfolio.
10 stocks we like better than Johnson & Johnson
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Rachel Warren: I think one area where there's been a lot of attention on Johnson & Johnson has been its COVID vaccine. I think in the early days, there was a lot of hype around that along with, of course Pfizer and Moderna, and wondering how that was going to maybe affect Johnson & Johnson's shares and its balance sheet. Then it had these issues with, briefly in the spring, there were some concerns with the blood clots from the vaccine, and then there was some issues with its manufacturing partner that slowed production down, all of which has been put in the past.
But management's still forecasting about $2.5 billion in revenue from that vaccine this year, even though they are currently distributing it on a not-for-profit basis during the pandemic. So I wouldn't say that it's a reason to buy the company. I think its dividend, its steady growth history, strong demand for its products are really what make its business great. But I wouldn't count it out for that just yet. So that's kind of my take on it.
Toby Bordelon: I definitely agree with you on that, Rachel, with the not count it out, right, because it's, you know I'm not sure how much a company like J&J needs a boost to their brand-name [laughs], I think people probably know them around the world. But when you think about it, giving this thing away on a not-for-profit basis, especially as you see more distribution, I think, from Johnson & Johnson around the world, and some of the lower-income countries, because of it's easier to transport, it's easier to store it, and it's only a once shot regimen, I think that's just going to be an even bigger boost for them in terms of brand recognition.
What it's done for me, right, so I've always thought of it as more of a household supplies company, with the over-the-counter drugs and the over-the-counter medical supplies and that sort of thing. But they are definitely playing this prescription-drug space and the vaccination space. This has kind of made me like reengage with that aspect of the business. It is very interesting. I think, was it Janssen Pharmaceuticals they acquired years ago to do their kind of whole like drug development?
Rachel Warren: Yeah.
Toby Bordelon: That's what become, that's kind of forgotten, when the average person thinks of Johnson & Johnson, you don't think about that aspect quite as much, right?
But this is a massive company and good one you said, a steady dividend, the steady growth, they have a better debt rating better than U.S. government I saw [laughs] and I think it's only like one of two companies that has that distinction. So they are not going anywhere. I think it's a very solid company to anchor your portfolio with, I would suspect.
One question I have for you got, I don't know if you have thoughts on this. Do you see them becoming even more of a biotech company or drug manufacturer over time, especially with this COVID vaccine boost they've gotten, does that product mix change at all? Or are they still going to be that in-home medical company that we all know and love?
Rachel Warren: Yeah, I think it's a little bit of both. I mean, I think obviously their consumer health segment is what everyone really thinks of when they think of Johnson & Johnson, and I think that it's already such a giant in that area. I think it can continue to build on top of that. But I do also think that you're going to see a lot more of its expansion specifically in the pharmaceutical world.
I was actually reading a study earlier today and it was saying that Johnson & Johnson controls a roughly 8% share of the global pharmaceutical market. So, I mean, pretty impressive in a global perspective. So I do think there's a lot of room for it to grow, and there I see it going more, continuing to grow both sides. I don't know that I necessarily see it focusing more on one than the other. But I do think it's actually that diversification of its businesses that really make it also such an attractive investment.
Toby Bordelon: Cool, thank you. Fascinating company. It's definitely worth a look, I think for anyone, especially a new investor who's thinking, how do I, if I'm only going to start with maybe ten companies like you did. They want some that have that diversification. How do your diversification in the healthcare pharmaceutical space? This is a way to do it instantly with one company to get massive diversification across that industry.
Rachel Warren: Absolutely.
Toby Bordelon: One worth considering.
Brian Withers: Yes, I look at both AbbVie and J&J, and they have similar aspects. They've been around for over 100 years. They have this massive portfolio. They know how to do R&D. I think that some may discount as these new biotech start-ups are coming up, is that 100 years of experience of dealing with the FDA is a competitive advantage, [laughs] you know?
Rachel Warren: Yes [laughs].
Withers: Having worked a decade in companies that were regulated by the FDA, they can show up any day and ask any questions they want. They can disrupt your business. They can poke into all sorts of things and you say, "Thank you, we will get that right away for you," and just to have been through the numerous audits and experiences they have and the relationships that they have with the FDA is certainly something that investors may not think about at first glance.
But I absolutely think that's a plus for them as far as getting new things across the line, as well as if there are problems after the product is released.
Brian Withers has no position in any of the stocks mentioned. Rachel Warren owns shares of AbbVie and Johnson & Johnson. Toby Bordelon has no position in any of the stocks mentioned. 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. | Brian Withers: Yes, I look at both AbbVie and J&J, and they have similar aspects. Rachel Warren owns shares of AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributors Rachel Warren, Toby Bordelon, and Brian Withers discuss why investors shouldn't dismiss Johnson & Johnson's ability to generate long-term growth from its coronavirus vaccine, and what makes the stock an all-around excellent choice for a rock-solid investment portfolio. | Brian Withers: Yes, I look at both AbbVie and J&J, and they have similar aspects. Rachel Warren owns shares of AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributors Rachel Warren, Toby Bordelon, and Brian Withers discuss why investors shouldn't dismiss Johnson & Johnson's ability to generate long-term growth from its coronavirus vaccine, and what makes the stock an all-around excellent choice for a rock-solid investment portfolio. | Brian Withers: Yes, I look at both AbbVie and J&J, and they have similar aspects. Rachel Warren owns shares of AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributors Rachel Warren, Toby Bordelon, and Brian Withers discuss why investors shouldn't dismiss Johnson & Johnson's ability to generate long-term growth from its coronavirus vaccine, and what makes the stock an all-around excellent choice for a rock-solid investment portfolio. | Brian Withers: Yes, I look at both AbbVie and J&J, and they have similar aspects. Rachel Warren owns shares of AbbVie and Johnson & Johnson. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributors Rachel Warren, Toby Bordelon, and Brian Withers discuss why investors shouldn't dismiss Johnson & Johnson's ability to generate long-term growth from its coronavirus vaccine, and what makes the stock an all-around excellent choice for a rock-solid investment portfolio. |
23889.0 | 2021-09-29 00:00:00 UTC | Here's Why AbbVie Is a Great Healthcare Stock for Long-Term Investors | ABBV | https://www.nasdaq.com/articles/heres-why-abbvie-is-a-great-healthcare-stock-for-long-term-investors-2021-09-29 | nan | nan | Pharmaceutical giant AbbVie (NYSE: ABBV) is best known for its mega-blockbuster drug Humira, which raked in more revenue than any other medicine in the world in yet another year of successive growth in 2020. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributors Brian Withers and Rachel Warren discuss what makes AbbVie such a stalwart choice for the long-term investor's portfolio.
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Brian Withers: The next company is AbbVie, I was just going to jump on to the next company, the next company is AbbVie. I'm not a big healthcare guy, [laughs] but interestingly enough, I worked for Allergan. When I left corporate world in 2019, Allergan was the last company I worked for, and AbbVie recently purchased Allergan. I know a little bit about the inner workings and some of the products, but I didn't know a ton about AbbVie and I just wanted to share what I found is super-interesting. For those who don't know, AbbVie started out, it was a split off from Abbott, and Abbott has been just over a century-old company that is focused on healthcare research and producing products that makes people's lives better.
In 2013, it was formed and spun out as ABBV. What's interesting is I looked at the initial announcement letter and they talked about how Abbott has been transformative in its 125-year history and enduring success, reinventing our times, reinventing ourselves. The bottom line of the announcement, it talked about a total of 10 programs that are currently in phase 3 clinical development.
The thing that came out most for me as I looked at AbbVie is these guys are an innovation machine. They used to be just focused on this immunology piece, but with the Allergan purchase, both aesthetics here, some neuroscience, Ubrelvy and Botox are both Allergan tools.
But they've expanded beyond their immunology routes into a number of other segments. I hadn't gotten to the R&D pipeline yet. But since 2013, solid growth on the top and the bottom line, shareholder return, and oh, yeah, dividends, big-time dividends, 225% increase in the quarterly dividend since 2013. Look at this pipeline, it is just amazing.
A number of different healthcare areas, as well as stuff throughout the pipeline in phases ready to go or even just early stage is just amazing. Then not only is this pipeline huge and continually growing, they have upcoming key events in the next one and two years that should result in real revenue for the company as they go forward in the next couple of years. Pretty exciting. As you cover healthcare, Rachel, I imagine this name comes up quite often.
Rachel Warren: Oh, yeah. I love writing about the healthcare industry. I think it has a lot of great investment opportunities for long-term buy-and-hold retail investors. I think AbbVie was definitely an easy pick for me in terms of the long list of healthcare stocks that are out there.
You were talking about its dividend. Because of the spin-off with Abbott, it maintained Abbott's dividend history. It qualifies as a Dividend Aristocrat. To be a Dividend Aristocrat, you have to have 20 years of consecutive dividend increases or more. AbbVie also has an incredibly above-average dividend yield. I believe, based on current share prices, it's in the ballpark of 4.9% -- that may have changed since I logged on -- which is quite a bit higher. I believe the average stock trading on the S&P 500 right about now, it's about 1.3% dividend yield. So, it's got a super high dividend.
I think the other thing, as with these very large pharmaceutical companies, is you're buying into a company that has a really stable track record of growth and it's definitely accomplished that. Then like you were saying, it's really going outside of these areas like immunology that it's really known for and expanding. I know one thing that's been a concern for some investors is that it's going to be losing U.S. patent exclusivity for Humira, which is the world's top-selling drug. I think it raked in like $20 billion in revenue for the company last year.
But I would say that AbbVie's product portfolio, like you were mentioning has grown so much in recent years, and with its acquisition of Allergan has really changed direction and spanning so many different healthcare areas that are really raking in more and more profits for the company. I don't think the Humira concern is a huge one, and I think that that particular acquisition of Allergan was a really good step in the right direction.
Brian Withers has no position in any of the stocks mentioned. Rachel Warren 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. | Pharmaceutical giant AbbVie (NYSE: ABBV) is best known for its mega-blockbuster drug Humira, which raked in more revenue than any other medicine in the world in yet another year of successive growth in 2020. In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributors Brian Withers and Rachel Warren discuss what makes AbbVie such a stalwart choice for the long-term investor's portfolio. But I would say that AbbVie's product portfolio, like you were mentioning has grown so much in recent years, and with its acquisition of Allergan has really changed direction and spanning so many different healthcare areas that are really raking in more and more profits for the company. | In this segment of Backstage Pass, recorded on Sept. 20, 2021, Fool contributors Brian Withers and Rachel Warren discuss what makes AbbVie such a stalwart choice for the long-term investor's portfolio. See the 10 stocks *Stock Advisor returns as of September 17, 2021 Brian Withers: The next company is AbbVie, I was just going to jump on to the next company, the next company is AbbVie. When I left corporate world in 2019, Allergan was the last company I worked for, and AbbVie recently purchased Allergan. | See the 10 stocks *Stock Advisor returns as of September 17, 2021 Brian Withers: The next company is AbbVie, I was just going to jump on to the next company, the next company is AbbVie. For those who don't know, AbbVie started out, it was a split off from Abbott, and Abbott has been just over a century-old company that is focused on healthcare research and producing products that makes people's lives better. But I would say that AbbVie's product portfolio, like you were mentioning has grown so much in recent years, and with its acquisition of Allergan has really changed direction and spanning so many different healthcare areas that are really raking in more and more profits for the company. | See the 10 stocks *Stock Advisor returns as of September 17, 2021 Brian Withers: The next company is AbbVie, I was just going to jump on to the next company, the next company is AbbVie. But I would say that AbbVie's product portfolio, like you were mentioning has grown so much in recent years, and with its acquisition of Allergan has really changed direction and spanning so many different healthcare areas that are really raking in more and more profits for the company. Pharmaceutical giant AbbVie (NYSE: ABBV) is best known for its mega-blockbuster drug Humira, which raked in more revenue than any other medicine in the world in yet another year of successive growth in 2020. |
23890.0 | 2021-09-28 00:00:00 UTC | FDA Approves AbbVie's Qulipta For Preventive Treatment Of Migraine | ABBV | https://www.nasdaq.com/articles/fda-approves-abbvies-qulipta-for-preventive-treatment-of-migraine-2021-09-28 | nan | nan | (RTTNews) - The U.S. Food and Drug Administration approved AbbVie's (ABBV) Qulipta or atogepant for the preventive treatment of episodic migraine in adults.
Qulipta is the first and only oral calcitonin gene-related peptide (CGRP) receptor antagonist (gepant) specifically developed for the preventive treatment of migraine, the company said in a statement.
The approval is supported by data from a clinical program evaluating the efficacy, safety and tolerability of QULIPTA in nearly 2,000 patients who experienced 4 to 14 migraine days per month, including the pivotal Phase 3 ADVANCE study, the pivotal Phase 2b/3 study, and the Phase 3 long-term safety study.
AbbVie noted that Qulipta demonstrated statistically significant, clinically meaningful rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4.
The pivotal trial showed that when taking Qulipta, the majority of patients experienced between a 50-100% reduction in monthly migraine days across 12 week.
Migraine is a complex disease with recurrent attacks that are often incapacitating and characterized by severe, throbbing headache pain as well as compounding associated symptoms like extreme sensitivity to light, sound or nausea. It is highly prevalent, affecting more than 1 billion people worldwide, including 39 million people in the U.S. alone.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - The U.S. Food and Drug Administration approved AbbVie's (ABBV) Qulipta or atogepant for the preventive treatment of episodic migraine in adults. AbbVie noted that Qulipta demonstrated statistically significant, clinically meaningful rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4. Qulipta is the first and only oral calcitonin gene-related peptide (CGRP) receptor antagonist (gepant) specifically developed for the preventive treatment of migraine, the company said in a statement. | AbbVie noted that Qulipta demonstrated statistically significant, clinically meaningful rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4. (RTTNews) - The U.S. Food and Drug Administration approved AbbVie's (ABBV) Qulipta or atogepant for the preventive treatment of episodic migraine in adults. The approval is supported by data from a clinical program evaluating the efficacy, safety and tolerability of QULIPTA in nearly 2,000 patients who experienced 4 to 14 migraine days per month, including the pivotal Phase 3 ADVANCE study, the pivotal Phase 2b/3 study, and the Phase 3 long-term safety study. | AbbVie noted that Qulipta demonstrated statistically significant, clinically meaningful rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4. (RTTNews) - The U.S. Food and Drug Administration approved AbbVie's (ABBV) Qulipta or atogepant for the preventive treatment of episodic migraine in adults. The approval is supported by data from a clinical program evaluating the efficacy, safety and tolerability of QULIPTA in nearly 2,000 patients who experienced 4 to 14 migraine days per month, including the pivotal Phase 3 ADVANCE study, the pivotal Phase 2b/3 study, and the Phase 3 long-term safety study. | AbbVie noted that Qulipta demonstrated statistically significant, clinically meaningful rapid and continuous reductions in mean monthly migraine days among adults with episodic migraine compared to placebo across the 12-week treatment period with significant reductions seen in weeks 1-4. (RTTNews) - The U.S. Food and Drug Administration approved AbbVie's (ABBV) Qulipta or atogepant for the preventive treatment of episodic migraine in adults. Qulipta is the first and only oral calcitonin gene-related peptide (CGRP) receptor antagonist (gepant) specifically developed for the preventive treatment of migraine, the company said in a statement. |
23891.0 | 2021-09-28 00:00:00 UTC | U.S. FDA approves AbbVie's migraine prevention drug | ABBV | https://www.nasdaq.com/articles/u.s.-fda-approves-abbvies-migraine-prevention-drug-2021-09-28 | nan | nan | Sept 28 (Reuters) - AbbVie Inc ABBV.N said on Tuesday the U.S. health regulator approved its once-daily oral medicine for the preventive treatment of migraine in adults, adding a third drug to the drugmaker's bank of products for severe headaches.
The drugmaker acquired the medicine, Qulipta, as part of its $63 billion deal for Allergan, along with anti-wrinkle and chronic migraine treatment Botox and acute migraine drug Ubrelvy.
(Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri)
((manojna.kalyani@thomsonreuters.com; +91 8061822700))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 28 (Reuters) - AbbVie Inc ABBV.N said on Tuesday the U.S. health regulator approved its once-daily oral medicine for the preventive treatment of migraine in adults, adding a third drug to the drugmaker's bank of products for severe headaches. The drugmaker acquired the medicine, Qulipta, as part of its $63 billion deal for Allergan, along with anti-wrinkle and chronic migraine treatment Botox and acute migraine drug Ubrelvy. (Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri) ((manojna.kalyani@thomsonreuters.com; +91 8061822700)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 28 (Reuters) - AbbVie Inc ABBV.N said on Tuesday the U.S. health regulator approved its once-daily oral medicine for the preventive treatment of migraine in adults, adding a third drug to the drugmaker's bank of products for severe headaches. The drugmaker acquired the medicine, Qulipta, as part of its $63 billion deal for Allergan, along with anti-wrinkle and chronic migraine treatment Botox and acute migraine drug Ubrelvy. (Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri) ((manojna.kalyani@thomsonreuters.com; +91 8061822700)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 28 (Reuters) - AbbVie Inc ABBV.N said on Tuesday the U.S. health regulator approved its once-daily oral medicine for the preventive treatment of migraine in adults, adding a third drug to the drugmaker's bank of products for severe headaches. The drugmaker acquired the medicine, Qulipta, as part of its $63 billion deal for Allergan, along with anti-wrinkle and chronic migraine treatment Botox and acute migraine drug Ubrelvy. (Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri) ((manojna.kalyani@thomsonreuters.com; +91 8061822700)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 28 (Reuters) - AbbVie Inc ABBV.N said on Tuesday the U.S. health regulator approved its once-daily oral medicine for the preventive treatment of migraine in adults, adding a third drug to the drugmaker's bank of products for severe headaches. The drugmaker acquired the medicine, Qulipta, as part of its $63 billion deal for Allergan, along with anti-wrinkle and chronic migraine treatment Botox and acute migraine drug Ubrelvy. (Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri) ((manojna.kalyani@thomsonreuters.com; +91 8061822700)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
23892.0 | 2021-09-28 00:00:00 UTC | 7 Biotech Stocks Entering the Golden Boom Phase | ABBV | https://www.nasdaq.com/articles/7-biotech-stocks-entering-the-golden-boom-phase-2021-09-28 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Biotech stocks are infamously one of the most volatile sectors in the stock market. Investors often venture into speculative companies with no proven pipelines. Emerging firms with a pipeline of drugs and products still in the clinical phase post little to no revenue. They raise cash by tapping capital markets to pay for research and development. Investors face enormous risks if the firm fails to report statistically significant results. Most firms typically fail to post results, as they put all their potential into their product pipeline. In fact, one study by Avance, posits a roughly 20% success rate.
But the companies that fall into that 20% success rate can make millionaires overnight. Those who are willing to take more risks with biotech stocks will get an even bigger reward. Once the company posts favorable results and gets governmental approval, the stock could soar.
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Conservative investors unwilling to wait years for a big payout should stick with biotech stocks entering the golden boom phase. They are mature companies that either already have products on the market or have acquired companies with products on the market.
Click to Enlarge
Source: Chart courtesy of Stock Rover
With that in mind, let’s look at seven biotech stocks entering their golden phase. As you can see in the valuation table to the right, each company has great scores in their own ways.
AbbVie (NYSE:ABBV)
Horizon Therapeutics (NASDAQ:HZNP)
Johnson & Johnson (NYSE:JNJ)
Eli Lilly (NYSE:LLY)
Merck & Co (NYSE:MRK)
Novartis (NYSE:NVS)
Regeneron Pharmaceuticals (NASDAQ:REGN)
Biotech Stocks About to Boom: AbbVie (ABBV)
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Source: Piotr Swat / Shutterstock.com
AbbVie is on the verge of a blockbuster drug. Rinvoq, or Upadacitinib. The company submitted a regulatory application to the Food and Drug Administration and European Medicines Agency for Rinvoq in the treatment of ulcerative colitis. The company has data from two Phase 3 induction studies that support the drug approval. For example, the safety results involved more than 14,000 patients.
AbbVie’s Rinvoq already has approval for rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, and atopic dermatitis.
CEO Rich Gonzalez said, “…we remain confident that RINVOQ will be a major contributor to our long-term growth and will be a major blockbuster asset for AbbVie.” The drug will fare well against Orencia, a leading second-line agent in the market.
In the atopic dermatitis space, AbbVie will compete against Regeneron’s Dupixent. Executive Vice President of Commercial Operations Jeffrey Stewart said 20%-25% of patients that tried Dupixent in the last few years didn’t work for them. That opens the market for AbbVie’s AD drug to take that business.
Horizon Therapeutics (HZNP)
Source: Shutterstock
Buyers flocked to Horizon Therapeutics after it posted upbeat second-quarter results. The company benefited from a strong relaunch execution of Tepezza, which treats thyroid eye disease. Tepezza sales rose by 173% Y/Y to $453.3 million. Sales of Krystexxa, which treats severe, treatment-refractory, chronic gout, rose by 73% to $130.3 million.
On its conference call, Executive Vice President Liz Thompson highlighted their drug, Uplizna, which treats patients with Neuromyelitis optica spectrum disorders (NMOSD). She said that data suggests there is long-term efficacy. For example, a high proportion of patients are attack-free for as long as four years.
HZNP stock will keep rising as net income grows. In Q2, non-GAAP net income was $381.4 million. Earnings per share of $1.62 surpassed the 87 cents a share forecast. For the fiscal year 2021, Horizon expects sales coming in between $3.025B and $3.125B. Adjusted EBITDA is between $1.26 billion and $1.3 billion. The firm previously guided $1.02 billion to $1.06 billion.
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According to Tipranks, the average price target is $132.00.
Biotech Stocks About to Boom: Johnson & Johnson (JNJ)
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Source: Alexander Tolstykh / Shutterstock.com
JNJ has gotten major attention in the past year for its DNA-based Covid-19 vaccine. But the giant offers more than that.
Executive Vice President & Chief Financial Officer Joseph Wolk said that the business is stronger than before the pandemic period. He highlighted new products within its medical device and consumer business as an example.
JNJ is in a good position to post strong results in 2022 and into 2023. However, risks of the government demanding lower drug prices are holding JNJ stock back. CFO Wolk said that in the last five years, the company’s drug prices fell by 5% on average. Specifically, “the industry’s gross to net or the discount and rebate percentages that were applicable to list price was about 26% six years ago across the industry.”
JNJ’s consumer business has multiple tailwinds. For example, Neutrogena and Aveeno are faring very well in the skincare space. Johnson & Johnson will provide an update on their strong pharmaceutical pipeline on their Nov. 18 analyst day.
The average analyst price target is $190.50. A five-year discounted cash flow revenue exit model shows JNJ is projected to show moderate growth. This results in a nearly $200 fair value for JNJ shares.
Eli Lilly (LLY)
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Ely Lilly posted strong Q2 results, lifted by the performance of its Trulicity and Humalog products. Injectable diabetes medication Trulicity revenue rose by 25% to $1.54 billion. Trulicity is an injectable diabetes medicine. Humalog, a type of insulin used to treat diabetes, added $607.6 million in revenue, up 9% Y/Y.
Eli Lilly expects GAAP EPS in the range of $6.73 to $6.93 for FY 2021.
In the summer, the company said that its Phase 2 study demonstrated a benefit of its Alzheimer’s candidate donanemab. The drug targets a modified form of beta-amyloid plaque, called N3pG. Alzheimer’s has baffled the medical community for decades, and has very little on the market to treat or diminish its effects. The phase 2 results showed a slowdown of cognitive decline. Should the drug reach final approval by the FDA, LLY stock would likely experience a massive boon as one of the first companies to pass a drug that effectively slows the rate of Alzheimer’s.
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Eli Lilly may not necessarily have a blockbuster drug for Alzheimer’s if blocking amyloids does little to treat the disease. Still, patients are better off getting any available treatment. The company may analyze results and continue investing in the drug.
Biotech Stocks About to Boom: Merck & Co (MRK)
MRK) logo outside of corporate building" width="300" height="169">
Source: Atmosphere1 / Shutterstock.com
On Sept. 17, Merck announced the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency recommended approval of Keytruda, an anti-PD-1 therapy. Patients would use this drug in combination with chemotherapy to treat locally recurrent unresectable or metastatic triple-negative breast cancer when the tumor expresses PD-L1.
Merck is advancing its broad portfolio in the gynecologic and breast cancer space.
In the second quarter, Merck posted revenue growing by 22% from last year to $11.4 billion. It expects full-year 2021 revenue of between $46.4 billion and $47.4 billion. On the conference call, Frank Clyburn, President of Human Health, said that Keytruda sales grew by 20% Y/Y to $4.2 billion, benefiting from strong global demand.
Merck is navigating the eventual Keytruda loss of exclusivity. Its strategy of extending the benefit of Keytruda to more patients will pay off. This includes starting a phase III trial for “evaluating a subcutaneous formulation of Pembrolizumab in combination with chemotherapy in patients with non-small cell lung cancer.” Merck will post results in early 2023.
Novartis (NVS)
NVS) logo on a corporate building during daylight" width="300" height="169">
Source: Denis Linine / Shutterstock.com
Novartis recently posted positive data from studies. On Sept. 17, it announced that its alpelisib drug demonstrated clinical benefits in people with PIK3CA-related overgrowth spectrum. This is a rare disorder characterized by atypical, visible overgrowths in blood vessels, lymphatic system, and other tissues. On the same day, Novartis reported positive quality of life data for its study in patients with advanced prostate cancer.
In the second quarter, the company posted a non-GAAP EPS of $1.66. Revenue grew by 14% Y/Y to $12.96 billion. CEO Vas Narasimhan said, “We reached a notable milestone in our journey to build trust with society, tackling global health access challenges, by reaching a billion antimalarial courses delivered to patients most in need.”
In the medium term, Marie-France, President of Novartis Pharmaceuticals, said that Kesimpta will drive growth for the company. It has already added 500 new prescribers and doubled the number of patients on Kesimpta compared to the first quarter.
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Biotech Stocks About to Boom: Regeneron Pharmaceuticals (REGN)
Source: madamF / Shutterstock.com
Markets bid up shares of Covid-19 vaccine suppliers, overlooking Regeneron’s Covid-19 antibody cocktail. Last month, the U.K.’s Medicines and Healthcare products Regulatory Agency approved Ronapreve. This is Regeneron’s first monoclonal antibody that prevents and treats acute Covid-19.
Patients may take Ronapreve through injection or infusion. The drug acts at the lining of the respiratory system. It binds tightly to the virus, stopping it from gaining access to the cells of the respiratory system. Hospitals will inevitably get patients who refuse vaccination and get seriously ill. Breakthrough infections may increase in number, too. So, Regeneron’s cocktail will give hospitals another way to treat them.
On Sept. 14, Regeneron was awarded a $2.94 billion contract for the antibody therapeutic doses.
Dupixent, which treats Atopic Dermatitis and chronic spontaneous urticarial, accounted for $1.5 billion of the $5.14 billion in quarterly revenue.
CEO Leonard Schleifer also highlighted its genetics medicines business. He said the platform progressed, “with landmark clinical data alongside our collaborator Intellia using a CRISPR therapeutic and the discovery of a promising new obesity target from the Regeneron Genetics Center.”
REGN stock will continue rising from its blockbuster drug sales. Growth will accelerate as it wins approval for treatments from the genetics medicines platform.
On the date of publication, Chris Lau 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.
Chris Lau is a contributing author for InvestorPlace.com and numerous other financial sites. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. He shares his stock picks so readers get original insight that helps improve investment returns.
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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 (NYSE:ABBV) Horizon Therapeutics (NASDAQ:HZNP) Johnson & Johnson (NYSE:JNJ) Eli Lilly (NYSE:LLY) Merck & Co (NYSE:MRK) Novartis (NYSE:NVS) Regeneron Pharmaceuticals (NASDAQ:REGN) Biotech Stocks About to Boom: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is on the verge of a blockbuster drug. AbbVie’s Rinvoq already has approval for rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, and atopic dermatitis. CEO Rich Gonzalez said, “…we remain confident that RINVOQ will be a major contributor to our long-term growth and will be a major blockbuster asset for AbbVie.” The drug will fare well against Orencia, a leading second-line agent in the market. | AbbVie (NYSE:ABBV) Horizon Therapeutics (NASDAQ:HZNP) Johnson & Johnson (NYSE:JNJ) Eli Lilly (NYSE:LLY) Merck & Co (NYSE:MRK) Novartis (NYSE:NVS) Regeneron Pharmaceuticals (NASDAQ:REGN) Biotech Stocks About to Boom: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is on the verge of a blockbuster drug. AbbVie’s Rinvoq already has approval for rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, and atopic dermatitis. CEO Rich Gonzalez said, “…we remain confident that RINVOQ will be a major contributor to our long-term growth and will be a major blockbuster asset for AbbVie.” The drug will fare well against Orencia, a leading second-line agent in the market. | AbbVie (NYSE:ABBV) Horizon Therapeutics (NASDAQ:HZNP) Johnson & Johnson (NYSE:JNJ) Eli Lilly (NYSE:LLY) Merck & Co (NYSE:MRK) Novartis (NYSE:NVS) Regeneron Pharmaceuticals (NASDAQ:REGN) Biotech Stocks About to Boom: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is on the verge of a blockbuster drug. AbbVie’s Rinvoq already has approval for rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, and atopic dermatitis. CEO Rich Gonzalez said, “…we remain confident that RINVOQ will be a major contributor to our long-term growth and will be a major blockbuster asset for AbbVie.” The drug will fare well against Orencia, a leading second-line agent in the market. | AbbVie (NYSE:ABBV) Horizon Therapeutics (NASDAQ:HZNP) Johnson & Johnson (NYSE:JNJ) Eli Lilly (NYSE:LLY) Merck & Co (NYSE:MRK) Novartis (NYSE:NVS) Regeneron Pharmaceuticals (NASDAQ:REGN) Biotech Stocks About to Boom: AbbVie (ABBV) ABBV) website and logo on mobile phone" width="300" height="169"> Source: Piotr Swat / Shutterstock.com AbbVie is on the verge of a blockbuster drug. AbbVie’s Rinvoq already has approval for rheumatoid arthritis, psoriatic arthritis, ankylosing spondylitis, and atopic dermatitis. CEO Rich Gonzalez said, “…we remain confident that RINVOQ will be a major contributor to our long-term growth and will be a major blockbuster asset for AbbVie.” The drug will fare well against Orencia, a leading second-line agent in the market. |
23893.0 | 2021-09-28 00:00:00 UTC | 3 Top Stocks for Retirees | ABBV | https://www.nasdaq.com/articles/3-top-stocks-for-retirees-2021-09-28 | nan | nan | Let's face it. The average 35-year-old's investment portfolio should look considerably different than the average 65-year-old's. The former has plenty of time to ride out the market's inevitable ups and downs, and probably doesn't need investment income just yet. The latter, on the other hand, is likely in or nearing retirement and therefore looking for income to help pay monthly expenses.
With that as the backdrop, here's a closer look at three names that wouldn't necessarily be out of place as part of a younger person's stock holdings, but make a great deal of sense for the typical retiree.
1. AbbVie
Investors who know anything about AbbVie (NYSE: ABBV) probably know it's the name behind arthritis and Crohn's disease treatment Humira, which accounts for nearly 40% of the company's revenue. And that's a problem. Humira is AbbVie's breadwinner, but the drug is also going to start losing its most important patent protections beginning in 2023. It will lose more of that protection in the following years. This brewing revenue headwind is a big reason AbbVie shares have underperformed since 2018.
The focus on Humira's woes, however, has largely distracted investors from noticing that this pharmaceutical company has a portfolio and pipeline capable of offsetting Humira's waning revenue.
One of those other drugs is cancer-fighting Imbruvica. While the relatively young drug's sales of $2.6 billion through the first half of this year -- about a tenth of AbbVie's top line -- is impressive, it's also only a fraction of its ultimate potential. Some analysts believe Imbruvica will be able to generate $10 billion or more in annual sales within five years. The company also foresees 2025 combined revenue of more than $15 billion for Skyrizi and Rinvoq, as their approved uses and their acceptance grow between now and then. The two therapies have jointly produced just under $2 billion worth of sales through the first two quarters of 2021.
The point is, while it may never have another Humira, AbbVie's got a low-risk, relatively proven portfolio and pipeline that's not being reflected in the stock's performance. Not only is the company capable of driving future growth, it's also capable of supporting the continued payment of its dividend. In this vein, AbbVie's current dividend yield of 4.8% only bolsters the bullish case for retirees.
2. Procter & Gamble
AbbVie's isn't the only low-risk, proven portfolio that future or current retirees can feel good about plugging into. The Procter & Gamble Company (NYSE: PG) is another pick with a palatable balance of safety, income, and volatility.
Image source: Getty Images.
P&G's product lineup may be bigger than you realize. Consumers more or less know that Tide laundry detergent, Crest toothpaste, and Pampers diapers are all part of the Procter family. But did you know that Procter & Gamble is also parent to Bounty paper towels, Gillette razors, Puffs tissue, Cascade dishwasher detergent, Pepto-Bismol, and more? These are well-loved and well-recognized brands, and for good reason.
See, Procter & Gamble is typically one of the world's biggest spenders on advertising. It's expected by Ad Age, in fact, to reclaim its top spot this year by spending on the order of $11 billion on the effort. Rival consumer goods companies just can't keep up with the big marketing budget that stems from Procter's sheer scale. This of course lets P&G maintain its leading market share in many product categories.
That's not even the biggest reason a retiree would want to own a piece of Procter & Gamble. More than anything, this company sells the products that consumers buy regardless of the economic environment; that's why they're called consumer staples. The business's recurring revenue also makes for a reliable dividend, which Procter has not only paid every year since 1890, but increased every year for the past 65 years. This may not be a high-growth business, but the nature of the company's product lineup means it's producing the sort of revenue, income, and dividends that retirees count on.
3. Texas Instruments
Finally, add Texas Instruments (NASDAQ: TXN) to your list of top stocks for retirees.
It may seem a bit out of place at first. The technology sector is known for its never-ending cyclicity stemming from an ongoing stream of innovations, and subsequently, tech stocks are known for their volatility -- the last thing retirees need in their portfolios.
Texas Instruments is something of an exception to this norm. Rather than going toe-to-toe with R&D-intensive names like Nvidia or Qualcomm, TI is largely focused on making the basic semiconductors and chips that are in demand all the time, and are supportive of all technology manufacturers. For instance, Texas Instruments makes circuitry for internet routers, power supplies for televisions, and the control systems for coffee makers, just to name a few. It's not always sexy, but the bulk of this company's portfolio is always marketable.
There's a kicker, however. That is, in the same sense the repeat purchases of Procter & Gamble's consumable goods fund its reliable dividend, recurring sales of Texas Instruments' basic electronics components effectively make it a "consumer staples" name in the industrial and technology sectors, similarly supporting a reliable dividend payment. In fact, TI has made a dividend payment in every quarter since 2004, and has upped its annual dividend from $0.56 per share in 2011 to an annualized payout pace of $4.08 right now.
Don't look for the same sort of dividend growth going forward. Roughly half of the company's profits are now consumed by dividend payments, which is fine. But upping the payout ratio any further could stymie needed investments in its own growth. Still, TI brings a brilliant mix of income, growth, and consistency to the table.
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James Brumley has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nvidia, Qualcomm, and Texas Instruments. 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 Investors who know anything about AbbVie (NYSE: ABBV) probably know it's the name behind arthritis and Crohn's disease treatment Humira, which accounts for nearly 40% of the company's revenue. Humira is AbbVie's breadwinner, but the drug is also going to start losing its most important patent protections beginning in 2023. This brewing revenue headwind is a big reason AbbVie shares have underperformed since 2018. | Procter & Gamble AbbVie's isn't the only low-risk, proven portfolio that future or current retirees can feel good about plugging into. AbbVie Investors who know anything about AbbVie (NYSE: ABBV) probably know it's the name behind arthritis and Crohn's disease treatment Humira, which accounts for nearly 40% of the company's revenue. Humira is AbbVie's breadwinner, but the drug is also going to start losing its most important patent protections beginning in 2023. | AbbVie Investors who know anything about AbbVie (NYSE: ABBV) probably know it's the name behind arthritis and Crohn's disease treatment Humira, which accounts for nearly 40% of the company's revenue. Humira is AbbVie's breadwinner, but the drug is also going to start losing its most important patent protections beginning in 2023. This brewing revenue headwind is a big reason AbbVie shares have underperformed since 2018. | AbbVie Investors who know anything about AbbVie (NYSE: ABBV) probably know it's the name behind arthritis and Crohn's disease treatment Humira, which accounts for nearly 40% of the company's revenue. Humira is AbbVie's breadwinner, but the drug is also going to start losing its most important patent protections beginning in 2023. This brewing revenue headwind is a big reason AbbVie shares have underperformed since 2018. |
23894.0 | 2021-09-28 00:00:00 UTC | FOCUS-COVID-19 pill developers aim to top Merck, Pfizer efforts | ABBV | https://www.nasdaq.com/articles/focus-covid-19-pill-developers-aim-to-top-merck-pfizer-efforts-2021-09-28 | nan | nan | By Deena Beasley
Sept 28 (Reuters) - As Merck & Co MRK.N and Pfizer Inc PFE.N prepare to report clinical trial results for experimental COVID-19 antiviral pills, rivals are lining up with what they hope will prove to be more potent and convenient oral treatments of their own.
Enanta Pharmaceuticals ENTA.O, Pardes Biosciences, Japan's Shionogi & Co Ltd 4507.T and Novartis AG NOVN.S said they have designed antivirals that specifically target the coronavirus while aiming to avoid potential shortcomings such as the need for multiple pills per day or known safety issues.
Infectious disease experts stressed that preventing COVID-19 through wide use of vaccines remains the best way to control the pandemic. But they said the disease is here to stay and more convenient treatments are needed.
"We need to have oral alternatives for suppression of this virus. We have people who aren't vaccinated getting sick, people whose vaccine protection is waning, and people who can't get vaccinated," said Dr. Robert Schooley, an infectious diseases professor at UC San Diego School of Medicine.
Pfizer and Merck, as well as partners Atea Pharmaceuticals AVIR.O and Roche AG ROG.S have all said they could seek emergency approval for their COVID-19 antiviral pills this year.
Rivals are at least a year behind. Pardes began an early-stage trial last month, Shionogi plans to start large-scale clinical trials by year-end, Enanta aims to start human trials early next year and Novartis is still testing its pill in animals.
Enanta Chief Executive Jay Luly said re-purposing drugs originally developed for other viral infections is not an unreasonable approach. But it is not known how potent they will be against COVID-19 or how well they can target lung tissue, where the virus takes hold.
The risk is "if it's not a great effort ...you'll end up losing time," Luly said.
Antivirals are complex to develop because they must target the virus after it is already replicating inside human cells without damaging healthy cells. They also need to be given early to be most effective.
Currently, intravenous and injected antibodies are the only approved treatments for non-hospitalized COVID-19 patients.
An effective, convenient COVID-19 treatment could reach annual sales of over $10 billion, according to a recent Jefferies & Co estimate. Merck has a contract with the U.S. government that implies a price of $700 for a course of treatment with its antiviral molnupiravir.
SEARCH FOR AN EASY TREATMENT
Several classes of antiviral drugs are being explored. Polymerase inhibitors such as Atea's drug - first developed for hepatitis C - aim to disrupt the ability of the coronavirus to make copies of itself. There are also protease inhibitors, like Pfizer's pill, which are designed to block an enzyme the virus needs in order to multiply earlier in its lifecycle.
We are trying to halt the processes "that allow the virus to set up a replication factory," said Uri Lopatin, CEO at Pardes, which is also developing a COVID-19 protease inhibitor.
Merck's molnupiravir, developed with Ridgeback Therapeutics, was at one point envisioned as a flu drug and works by introducing errors into the genetic code of the virus.
"The broad spectrum activity of molnupiravir against RNA viruses, including other respiratory viruses, suggests that it should be a durable, useful molecule," said Jay Grobler, who oversees infectious disease and vaccines at Merck.
Merck said data shows the drug is not capable of inducing genetic changes in human cells, but men in its trials have to abstain from heterosexual intercourse or agree to use contraception.
Until reproductive toxicology study results are available, "we don't know if there's any potential effect of drug on sperm," said Merck research executive Nicholas Kartsonis.
Both molnupiravir and Pfizer's pill are taken every 12 hours for five days. Pfizer's drug must be combined with older antiviral ritonavir, which boosts the activity of protease inhibitors but can cause gastrointestinal side effects and interfere with other medications.
"It is a nuisance to add a drug you don't need to have a drug you want to take be effective," Schooley said.
Pfizer said a low dose of ritonavir will help its protease inhibitor remain in the body longer and at higher concentrations.
Enanta, which gets most of its revenue from a hepatitis C deal with AbbVie Inc ABBV.N, scanned its library of antiviral compounds early in 2020. It instead chose to design a new protease inhibitor that targets an enzyme vital to the ability of the coronavirus, and its variants, to replicate.
The drug will be tested at once daily dosing with no ritonavir boosting, Luly said.
Lopatin said Pardes is assessing once- and twice-a-day dosing and whether its drug needs to be combined with ritonavir. "We do not anticipate that we will need to use a booster," he said.
Pardes received funding from Gilead Sciences GILD.O, which gave up on an inhaled version of its remdesivir, an intravenous polymerase inhibitor approved for hospitalized COVID-19 patients.
Gilead is still working an oral remdesivir, which was also first developed for hepatitis C and is currently the only antiviral approved for treating COVID-19.
https://www.reuters.com/business/healthcare-pharmaceuticals/inside-race-find-covid-19-treatment-pill-2021-05-21/https://www.reuters.com/business/healthcare-pharmaceuticals/inside-race-find-covid-19-treatment-pill-2021-05-21/
(Reporting By Deena Beasley; Editing by Caroline Humer and Bill Berkrot)
((deena.beasley@thomsonreuters.com; 213 955 6746; Reuters Messaging: deena.beasley.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. | Enanta, which gets most of its revenue from a hepatitis C deal with AbbVie Inc ABBV.N, scanned its library of antiviral compounds early in 2020. By Deena Beasley Sept 28 (Reuters) - As Merck & Co MRK.N and Pfizer Inc PFE.N prepare to report clinical trial results for experimental COVID-19 antiviral pills, rivals are lining up with what they hope will prove to be more potent and convenient oral treatments of their own. Enanta Pharmaceuticals ENTA.O, Pardes Biosciences, Japan's Shionogi & Co Ltd 4507.T and Novartis AG NOVN.S said they have designed antivirals that specifically target the coronavirus while aiming to avoid potential shortcomings such as the need for multiple pills per day or known safety issues. | Enanta, which gets most of its revenue from a hepatitis C deal with AbbVie Inc ABBV.N, scanned its library of antiviral compounds early in 2020. By Deena Beasley Sept 28 (Reuters) - As Merck & Co MRK.N and Pfizer Inc PFE.N prepare to report clinical trial results for experimental COVID-19 antiviral pills, rivals are lining up with what they hope will prove to be more potent and convenient oral treatments of their own. Enanta Pharmaceuticals ENTA.O, Pardes Biosciences, Japan's Shionogi & Co Ltd 4507.T and Novartis AG NOVN.S said they have designed antivirals that specifically target the coronavirus while aiming to avoid potential shortcomings such as the need for multiple pills per day or known safety issues. | Enanta, which gets most of its revenue from a hepatitis C deal with AbbVie Inc ABBV.N, scanned its library of antiviral compounds early in 2020. By Deena Beasley Sept 28 (Reuters) - As Merck & Co MRK.N and Pfizer Inc PFE.N prepare to report clinical trial results for experimental COVID-19 antiviral pills, rivals are lining up with what they hope will prove to be more potent and convenient oral treatments of their own. Pardes began an early-stage trial last month, Shionogi plans to start large-scale clinical trials by year-end, Enanta aims to start human trials early next year and Novartis is still testing its pill in animals. | Enanta, which gets most of its revenue from a hepatitis C deal with AbbVie Inc ABBV.N, scanned its library of antiviral compounds early in 2020. They also need to be given early to be most effective. The drug will be tested at once daily dosing with no ritonavir boosting, Luly said. |
23895.0 | 2021-09-27 00:00:00 UTC | Could AbbVie's New Collaboration Be a Blockbuster? | ABBV | https://www.nasdaq.com/articles/could-abbvies-new-collaboration-be-a-blockbuster-2021-09-27 | nan | nan | Earlier this month, AbbVie (NYSE: ABBV) announced a deal with biotechnology company Regenxbio (NASDAQ: RGNX) to treat eye disorders using gene therapy. Specifically, the two companies are collaborating to develop and commercialize a gene therapy candidate, RGX-314, which is currently in phase 2 clinical trials.
Let's take a deeper look at this agreement, and the potential revenue it could generate for AbbVie.
Image source: Getty Images.
Details of the deal
RGX-314 is a potential one-time treatment for wet age-related macular degeneration (AMD), a chronic eye disorder that includes symptoms such as blurred vision and a blind spot in a patient's visual field, and diabetic retinopathy, a complication caused by diabetes that damages blood vessels in the retina, even leading to blindness.
For the uninitiated, gene therapy is a relatively new technique to treat disorders by genetically modifying cells in the patient, instead of administering drugs or undergoing surgery.
In the agreement AbbVie will pay $370 million up front to Regenxbio, while the latter could also receive up to $1.38 billion from AbbVie based on developmental and commercial milestones. AbbVie will use its expertise and vast resources to help commercialize RGX-314 around the world, while Regenxbio will participate in U.S. commercialization efforts alongside AbbVie.
While both companies will share equally in the profits generated within the U.S., AbbVie will pay tiered royalties to Regenxbio for international sales.
Retinal conditions more serious than you think
According to the BrightFocus Foundation, approximately 11 million people in the U.S. have some form of AMD, and that figure is expected to double to 22 million by 2050. More importantly, wet AMD, as opposed to dry AMD, is aggressive and accounts for 90% of AMD-linked legal blindness (despite only being 10% of AMD cases), which means early detection and treatment is critically important.
Diabetic retinopathy, on the other hand, is the leading cause of blindness in adults with diabetes and the top cause of blindness for all adults in the U.S. Similar to AMD, the symptoms can include loss of central vision, as well as black spots in the vision. The longer someone has diabetes and the less it is controlled as measured by blood glucose, the greater the risk for complications.
With the prevalence of diabetes increasing in the U.S., the National Eye Institute (NEI) estimates that the number of diabetic retinopathy cases will nearly double from 7.7 million in 2010 to 14.6 million by 2050.
A potentially groundbreaking therapy
While the therapy appears to be effective in phase 2 clinical trials, what makes RGX-314 a potentially significant breakthrough is that it's a one-time treatment. That's a massive advantage over the current standard of care where eye injection treatments, such as Regeneron's (NASDAQ: REGN) Eylea, must be administered every four to eight weeks.
In the clinical trials so far, RGX-314 helped 50% of patients to remain injection-free (the standard of care that includes Eylea) over a three-year period, with improvement in vision and stable retinal thickness. In addition, 67% of patients were able to remain injection-free from nine months to three years.
If these results are reproduced in eventual phase 3 clinical trials, this would represent a huge improvement in quality of life for wet AMD and diabetic retinopathy patients without sacrificing efficacy.
Two large, growing markets
But what could that mean for pharma stock AbbVie if RGX-314 is ultimately approved by regulatory agencies around the world?
The market research company IndustryArc estimates that the wet AMD market will grow 8.1% annually from 2020 to reach $8.7 billion in sales by 2025 due to an aging global demographic.
And the diabetic retinopathy market will grow at a 6.3% annual rate from 2017 to $10.1 billon by 2025, according to Grand View Research.
With several effective blockbuster therapies like Eylea on the market, it would be unrealistic to expect RGX-314 to be the top-selling therapy for the two retinal conditions. But for patients who are having a difficult time complying with the regular injections required by standard of care treatment options like Eylea or who want more convenient treatment options, I believe that RGX-314 can carve out a conservative 8% market share by 2030.
Assuming that the wet AMD and diabetic retinopathy markets continue their current growth rates, this would work out to $2.1 billion in annual sales for AbbVie by 2030 (shared with Regenxbio, of course).
Even with the tiered royalties payable to Regenxbio outside the U.S. and profit sharing in the U.S., AbbVie's partnership with Regenxbio on RGX-314 could generate over $1 billion in annual revenue by 2030.
For a company that analysts expect will generate $56.3 billion in revenue this year, $1 billion-plus in additional annual sales is enough to move the needle for AbbVie.
AbbVie is undervalued
Although AbbVie's partnership with Regenxbio is encouraging, the biopharmaceutical is so much more than this potentially huge deal.
AbbVie has an innovative line of drugs in its arsenal and in development that should help command strong pricing power in an otherwise competitive industry, and to take the reins from its top-selling drug in the world, Humira, whose exclusive patent expires in 2023.
From a valuation standpoint, AbbVie stock currently trades at less than eight times this year's earnings forecast. That's why I believe AbbVie is a buy for value investors. The market-beating 4.8% dividend yield also appears to be rather safe since the payout ratio will be in the low-40% range this year. In short, the company has substantial cash flows to reinvest in itself and develop more path-breaking drugs.
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Kody Kester owns shares of AbbVie. The Motley Fool owns shares of and recommends Regenxbio. 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. | Earlier this month, AbbVie (NYSE: ABBV) announced a deal with biotechnology company Regenxbio (NASDAQ: RGNX) to treat eye disorders using gene therapy. Assuming that the wet AMD and diabetic retinopathy markets continue their current growth rates, this would work out to $2.1 billion in annual sales for AbbVie by 2030 (shared with Regenxbio, of course). Let's take a deeper look at this agreement, and the potential revenue it could generate for AbbVie. | For a company that analysts expect will generate $56.3 billion in revenue this year, $1 billion-plus in additional annual sales is enough to move the needle for AbbVie. Earlier this month, AbbVie (NYSE: ABBV) announced a deal with biotechnology company Regenxbio (NASDAQ: RGNX) to treat eye disorders using gene therapy. Let's take a deeper look at this agreement, and the potential revenue it could generate for AbbVie. | In the agreement AbbVie will pay $370 million up front to Regenxbio, while the latter could also receive up to $1.38 billion from AbbVie based on developmental and commercial milestones. Assuming that the wet AMD and diabetic retinopathy markets continue their current growth rates, this would work out to $2.1 billion in annual sales for AbbVie by 2030 (shared with Regenxbio, of course). Earlier this month, AbbVie (NYSE: ABBV) announced a deal with biotechnology company Regenxbio (NASDAQ: RGNX) to treat eye disorders using gene therapy. | Earlier this month, AbbVie (NYSE: ABBV) announced a deal with biotechnology company Regenxbio (NASDAQ: RGNX) to treat eye disorders using gene therapy. Let's take a deeper look at this agreement, and the potential revenue it could generate for AbbVie. In the agreement AbbVie will pay $370 million up front to Regenxbio, while the latter could also receive up to $1.38 billion from AbbVie based on developmental and commercial milestones. |
23896.0 | 2021-09-27 00:00:00 UTC | 3 High-Yield Dividend Stocks Warren Buffett Loves | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-warren-buffett-loves-2021-09-27 | nan | nan | Few CEOs have delivered the green to their shareholders quite like billionaire Warren Buffett. Since taking the helm of conglomerate Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) in 1965, he's led his company to an average annual return of 20%. That might not sound all too nominally impressive, but he's overseen the creation of over $600 billion in shareholder value and a return of almost 3,400,000% for the company's Class A shares (BRK.A).
The Oracle of Omaha's success is based on a number of factors, such as his focus on sectors that he understands well and his leanings toward cyclical companies. But what might arguably be Berkshire's biggest tailwind is Warren Buffett's affinity for dividend stocks. This year, Berkshire Hathaway is set to collect more than $5 billion in dividend income.
Income investors always want the highest yield possible with the least amount of risk. Unfortunately, the data shows that risk and yield tend to be correlated once you hit high-yield status (i.e., yields of 4% or higher). But that hasn't stopped Buffett and his investment team from piling into these three high-yield dividend stocks.
Image source: Getty Images.
Chevron: 5.4% yield
Taking the 8% annual yield Berkshire Hathaway is netting from its preferred shares of Occidental Petroleum out of the equation, none of the nearly four dozen stocks in the company's portfolio are paying out more than integrated oil and gas giant Chevron (NYSE: CVX). Based on Berkshire's more than 23.1 million shares owned, it's on track to collect almost $124 million in dividend income over 12 months.
One reason Chevron is such an attractive income stock is its integrated operating model. By owning upstream (drilling and exploration) and downstream assets (refineries and petrochemical plants), it's able to generate substantial cash flow in any economic environment. Even though its upstream assets bring in the juiciest margins, a drop in crude oil prices reduces the input costs for its downstream assets. Being able to hedge against even the worst recessions has helped ensure this dividend remains one of the highest among major oil stocks.
Another reason Chevron has been a rock-solid dividend payer and is likely adored by Buffett and his investing team is the company's balance sheet. Although it does have approximately $43 billion in total debt, this works out to only a 32% debt-to-equity ratio. That's markedly lower than most integrated oil stocks and signifies that Chevron has more financial flexibility than its peers.
It doesn't hurt that the U.S. and global economy are in the early stages of what could be a multiyear bull market, either. This bodes well for the price of crude oil over the next couple of years.
Image source: Getty Images.
AbbVie: 4.8% yield
Warren Buffett and his team also seem to love pharmaceutical stock AbbVie (NYSE: ABBV), which is parsing out a nearly 5% yield. With Berkshire Hathaway holding north of 20.5 million shares, the company is set to collect about $106.7 million in dividend income over the next 12 months.
It's no secret that anti-inflammatory drug Humira is what makes AbbVie tick. Prior to the development of coronavirus vaccines, Humira was the top-selling drug in the world. It has 10 approved indications in the U.S., 14 indications internationally, and is pacing approximately $20 billion in global sales this year.
The interesting thing is that Humira continues to expand, even with biosimilar competition being introduced in international markets. Humira's multiple indications and its global reach effectively ensure that it'll remain a cash cow for AbbVie for a long time to come.
The big knock against this company has long been its reliance on Humira for the bulk of its revenue. But management is tackling this concern head-on. Last year, AbbVie completed a cash-and-stock purchase of Allergan. This deal added blockbuster drug Botox into the fold -- Botox has both therapeutic and cosmetic applications -- and it'll result in more than $2 billion in cost synergies by the end of the third year. With a more diverse product portfolio and pipeline, AbbVie is set to deliver for its shareholders.
Image source: Getty Images.
Verizon Communications: 4.7% yield
Last, but certainly not least, is telecom stock Verizon (NYSE: VZ), which is Buffett's unquestioned favorite high-yield dividend stock. As of Sept. 23, Verizon was the eighth-largest holding in Berkshire Hathaway's portfolio. With more than 158.8 million shares held, the Oracle of Omaha's company is netting about $406.6 million in dividend income per 12 months. This payout, coupled with historically low Treasury yields, likely played a big role in Buffett's decision to pile into Verizon over the previous two quarters.
Aside from its market-crushing and inflation-tempering payout, Verizon is set to benefit from two key catalysts. First, there's the ongoing rollout of 5G wireless infrastructure. It's been a decade since wireless download speeds were dramatically improved, meaning there'll likely be a strong response from consumers and businesses looking to upgrade their wireless devices. This device replacement cycle should last years and lead to a significant uptick in data consumption, which happens to be where the company's juiciest margins lie.
Additionally, the company spent big bucks acquiring 5G mid-band spectrum earlier this year. The goal is to expand the company's 5G wireless broadband services to as many as 30 million U.S. households by the end of 2023. In-home broadband isn't the growth story it once was, but it does generate highly predictable cash flow and create the potential for higher-margin service bundles or add-on sales.
It's also worth noting that Verizon is one of the least volatile large-cap companies. With a 52-week trading range of about $8 and the company generating almost $39 billion in trailing 12-month operating cash flow, buying Verizon stock is about as safe as it gets for income-seeking investors.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Verizon Communications 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: 4.8% yield Warren Buffett and his team also seem to love pharmaceutical stock AbbVie (NYSE: ABBV), which is parsing out a nearly 5% yield. It's no secret that anti-inflammatory drug Humira is what makes AbbVie tick. Humira's multiple indications and its global reach effectively ensure that it'll remain a cash cow for AbbVie for a long time to come. | AbbVie: 4.8% yield Warren Buffett and his team also seem to love pharmaceutical stock AbbVie (NYSE: ABBV), which is parsing out a nearly 5% yield. It's no secret that anti-inflammatory drug Humira is what makes AbbVie tick. Humira's multiple indications and its global reach effectively ensure that it'll remain a cash cow for AbbVie for a long time to come. | AbbVie: 4.8% yield Warren Buffett and his team also seem to love pharmaceutical stock AbbVie (NYSE: ABBV), which is parsing out a nearly 5% yield. It's no secret that anti-inflammatory drug Humira is what makes AbbVie tick. Humira's multiple indications and its global reach effectively ensure that it'll remain a cash cow for AbbVie for a long time to come. | AbbVie: 4.8% yield Warren Buffett and his team also seem to love pharmaceutical stock AbbVie (NYSE: ABBV), which is parsing out a nearly 5% yield. It's no secret that anti-inflammatory drug Humira is what makes AbbVie tick. Humira's multiple indications and its global reach effectively ensure that it'll remain a cash cow for AbbVie for a long time to come. |
23897.0 | 2021-09-27 00:00:00 UTC | Pfizer begins study for COVID-19 antiviral drug | ABBV | https://www.nasdaq.com/articles/pfizer-begins-study-for-covid-19-antiviral-drug-2021-09-27 | nan | nan | Sept 27 (Reuters) - Pfizer Inc PFE.N said on Monday it has started a mid-to-late-stage study testing its investigational oral antiviral drug, to be co-administered with HIV drug ritonavir, for the prevention of COVID-19 infection.
(Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri)
((manojna.kalyani@thomsonreuters.com; +91 8061822700;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 27 (Reuters) - Pfizer Inc PFE.N said on Monday it has started a mid-to-late-stage study testing its investigational oral antiviral drug, to be co-administered with HIV drug ritonavir, for the prevention of COVID-19 infection. (Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri) ((manojna.kalyani@thomsonreuters.com; +91 8061822700;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 27 (Reuters) - Pfizer Inc PFE.N said on Monday it has started a mid-to-late-stage study testing its investigational oral antiviral drug, to be co-administered with HIV drug ritonavir, for the prevention of COVID-19 infection. (Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri) ((manojna.kalyani@thomsonreuters.com; +91 8061822700;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 27 (Reuters) - Pfizer Inc PFE.N said on Monday it has started a mid-to-late-stage study testing its investigational oral antiviral drug, to be co-administered with HIV drug ritonavir, for the prevention of COVID-19 infection. (Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri) ((manojna.kalyani@thomsonreuters.com; +91 8061822700;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Sept 27 (Reuters) - Pfizer Inc PFE.N said on Monday it has started a mid-to-late-stage study testing its investigational oral antiviral drug, to be co-administered with HIV drug ritonavir, for the prevention of COVID-19 infection. (Reporting by Manojna Maddipatla in Bengaluru; Editing by Krishna Chandra Eluri) ((manojna.kalyani@thomsonreuters.com; +91 8061822700;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
23898.0 | 2021-09-25 00:00:00 UTC | Why AbbVie Just Made a $1.8 Billion Gene Therapy Deal | ABBV | https://www.nasdaq.com/articles/why-abbvie-just-made-a-%241.8-billion-gene-therapy-deal-2021-09-25 | nan | nan | AbbVie (NYSE: ABBV) recently announced a collaboration with Regenxbio (NASDAQ: RGNX) to develop a gene therapy targeting wet age-related macular degeneration. The deal could be worth up to nearly $1.8 billion including milestone payments. In this Motley Fool Live video recorded on Sept. 15, Motley Fool contributors Keith Speights and Brian Orelli discuss why AbbVie is teaming up with Regenxbio.
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Keith Speights: All right. Let's switch from COVID-19 to a non-COVID story now. AbbVie, the ticker for AbbVie as ABBV. AbbVie recently announced a partnership with Regenxbio, that ticker for Regenxbio is RGNX.
The two companies are developing a gene therapy together targeting wet age-related macular degeneration or AMD. This deal could be worth up to nearly $1.8 billion and that includes milestone payments.
Brian, why did AbbVie team up with Regenxbio? Do you think this is a smart move for the company?
Brian Orelli: AbbVie really needs near-term growth. I mean, this gene therapy which goes by RGNX 314 is in late-stage testing. They are already in one pivotal study already. Then they're going to run us than pivotal means that that's the study that we're going to send to the FDA for approval.
Then the second pivotal trial is on track to start in the fourth quarter. They'll have data within, I guess, probably a little over a year from now. Then approval 8-12 months after that. That should help AbbVie in the near term to try to increase its revenue. Because of course, it's losing Humira to biosimilar competition.
It seems like it's a pretty good deal for Regenxbio, and the shares popped on the news of the deal. Investors definitely thought it was, it only has to give up half of the value inside the US, the companies will share the profits equally in the US. Then outside the US, it's going to get a royalty. Probably didn't really want to expand outside the US.
Anyways, there is initially I know that it's a fairly small company. I think you can probably do a deal outside the US anyway. I don't think we got what exactly the royalties are going to be. But presumably, hopefully, they get a good royalty deal to justify giving away the full rights outside the US.
Then Regenxbio also gets $374 million upfront and which will help pay for their clinical trials. Then there's potential for 1.3 billion in additional development, regulatory and commercial milestones. Presumably, a lot of that in the commercial milestone bucket, but they don't break it out.
But you can pretty much assume that a lot of it will be bonuses based on the actual sales rather than development or approval milestones. But they'll probably get some money for completing the Phase III you're completing earlier stages testing the gene therapy and other eye diseases, and then of course, approvals, it'll get some bonuses as well.
Speights: I think we'll just have to wait and see if this ends up being a really smart move for AbbVie. Obviously, if this gene therapy pans out, it's going to look like a brilliant move in hindsight.
Orelli: But $70 million is they're risking something, but they've seen in the Phase II data so they know what they're getting themselves into. I think it's a fairly good risk, but I think it's a better deal for Regenxbio and it's probably has something to do with AbbVie's need for near-term catalysts and the lack of Phase III products on the market by small companies that they want to find a partner.
Brian Orelli, PhD has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie. The Motley Fool owns shares of and recommends Regenxbio. 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 (NYSE: ABBV) recently announced a collaboration with Regenxbio (NASDAQ: RGNX) to develop a gene therapy targeting wet age-related macular degeneration. I think it's a fairly good risk, but I think it's a better deal for Regenxbio and it's probably has something to do with AbbVie's need for near-term catalysts and the lack of Phase III products on the market by small companies that they want to find a partner. In this Motley Fool Live video recorded on Sept. 15, Motley Fool contributors Keith Speights and Brian Orelli discuss why AbbVie is teaming up with Regenxbio. | AbbVie (NYSE: ABBV) recently announced a collaboration with Regenxbio (NASDAQ: RGNX) to develop a gene therapy targeting wet age-related macular degeneration. In this Motley Fool Live video recorded on Sept. 15, Motley Fool contributors Keith Speights and Brian Orelli discuss why AbbVie is teaming up with Regenxbio. 10 stocks we like better than AbbVie When our award-winning analyst team has a stock tip, it can pay to listen. | AbbVie (NYSE: ABBV) recently announced a collaboration with Regenxbio (NASDAQ: RGNX) to develop a gene therapy targeting wet age-related macular degeneration. In this Motley Fool Live video recorded on Sept. 15, Motley Fool contributors Keith Speights and Brian Orelli discuss why AbbVie is teaming up with Regenxbio. I think it's a fairly good risk, but I think it's a better deal for Regenxbio and it's probably has something to do with AbbVie's need for near-term catalysts and the lack of Phase III products on the market by small companies that they want to find a partner. | AbbVie, the ticker for AbbVie as ABBV. I think it's a fairly good risk, but I think it's a better deal for Regenxbio and it's probably has something to do with AbbVie's need for near-term catalysts and the lack of Phase III products on the market by small companies that they want to find a partner. AbbVie (NYSE: ABBV) recently announced a collaboration with Regenxbio (NASDAQ: RGNX) to develop a gene therapy targeting wet age-related macular degeneration. |
23899.0 | 2021-09-23 00:00:00 UTC | Linda Evangelista files $50 mln lawsuit over disfiguring cosmetic treatment | ABBV | https://www.nasdaq.com/articles/linda-evangelista-files-%2450-mln-lawsuit-over-disfiguring-cosmetic-treatment-2021-09-23 | nan | nan | LOS ANGELES, Sept 23 (Reuters) - Former supermodel Linda Evangelista has filed a $50 million lawsuit over cosmetic procedures that she says left her "brutally disfigured" and turned her into a recluse.
The Canadian model, one of the biggest figures on runways and magazine covers in the 1990s, said in an Instagram post that she had undergone treatment to reduce fat some five years ago.
"To my followers who have wondered why I have not been working while my peers’ careers have been thriving, the reason is that I was brutally disfigured by Zeltiq’s CoolSculpting procedure which did the opposite of what it promised,” she wrote in the posting on Wednesday.
She said she suffered a rare side effect called paradoxical adipose hyperplasia (PAH) after the procedures, which causes people to develop a swelling in the areas that were treated.
“PAH has not only destroyed my livelihood, it has sent me into a cycle of deep depression, profound sadness, and the lowest depths of self-loathing. In the process, I have become a recluse,” she said.
Zeltiq Aesthetics, a unit of Allergan Aesthetics and parent company AbbVie ABBV.N, did not return a call for comment.
Evangelista filed the lawsuit on Tuesday in New York federal court against Zeltiq for negligence, misleading advertising and alleging that the company failed to warn customers of the possible side effects.
The lawsuit says Evangelista underwent multiple procedures between 2015 and 2016 to reduce fat on her thighs, abdomen, back, flanks and chin. Corrective surgery had not worked to fix the PAH.
She is seeking $50 million in damages for lost income and emotional distress, saying she was now unemployable as a model and has not earned anything from modeling since 2016.
(Reporting by Jill Serjeant Editing by Bill Berkrot)
((jill.serjeant1@thomsonreuters.com; 310 491 7279;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Zeltiq Aesthetics, a unit of Allergan Aesthetics and parent company AbbVie ABBV.N, did not return a call for comment. LOS ANGELES, Sept 23 (Reuters) - Former supermodel Linda Evangelista has filed a $50 million lawsuit over cosmetic procedures that she says left her "brutally disfigured" and turned her into a recluse. "To my followers who have wondered why I have not been working while my peers’ careers have been thriving, the reason is that I was brutally disfigured by Zeltiq’s CoolSculpting procedure which did the opposite of what it promised,” she wrote in the posting on Wednesday. | Zeltiq Aesthetics, a unit of Allergan Aesthetics and parent company AbbVie ABBV.N, did not return a call for comment. LOS ANGELES, Sept 23 (Reuters) - Former supermodel Linda Evangelista has filed a $50 million lawsuit over cosmetic procedures that she says left her "brutally disfigured" and turned her into a recluse. "To my followers who have wondered why I have not been working while my peers’ careers have been thriving, the reason is that I was brutally disfigured by Zeltiq’s CoolSculpting procedure which did the opposite of what it promised,” she wrote in the posting on Wednesday. | Zeltiq Aesthetics, a unit of Allergan Aesthetics and parent company AbbVie ABBV.N, did not return a call for comment. LOS ANGELES, Sept 23 (Reuters) - Former supermodel Linda Evangelista has filed a $50 million lawsuit over cosmetic procedures that she says left her "brutally disfigured" and turned her into a recluse. "To my followers who have wondered why I have not been working while my peers’ careers have been thriving, the reason is that I was brutally disfigured by Zeltiq’s CoolSculpting procedure which did the opposite of what it promised,” she wrote in the posting on Wednesday. | Zeltiq Aesthetics, a unit of Allergan Aesthetics and parent company AbbVie ABBV.N, did not return a call for comment. LOS ANGELES, Sept 23 (Reuters) - Former supermodel Linda Evangelista has filed a $50 million lawsuit over cosmetic procedures that she says left her "brutally disfigured" and turned her into a recluse. The Canadian model, one of the biggest figures on runways and magazine covers in the 1990s, said in an Instagram post that she had undergone treatment to reduce fat some five years ago. |
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