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24700.0 | 2020-02-12 00:00:00 UTC | Gilead Sciences Looks Ready to Outpace AbbVie | ABBV | https://www.nasdaq.com/articles/gilead-sciences-looks-ready-to-outpace-abbvie-2020-02-12 | nan | nan | Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) are two of the world's largest pharmaceutical stocks by market capitalization. AbbVie is the bigger of the two, at $139 billion to Gilead's $86 billion, and its stock value has grown significantly over the past year.
When considering the long-term prospects, is either company a better fit for your portfolio? Here are the key takeaways on Gilead Sciences and AbbVie.
Image Source: Getty Images.
What do they do?
Gilead Sciences and AbbVie each have very diversified portfolios, offering medicines across various highly competitive markets. Their products match up most closely in the spaces of human immunodeficiency virus (HIV), hepatitis C virus (HCV), and oncology. Along with Merck (NYSE: MRK), Gilead and AbbVie are highly competitive in the HCV space in particular.
A head-to-head race in HCV treatment
Hepatitis C is a blood-borne viral infection that causes damage to the liver, and more than 2.7 million people in the United States live with the disease.
Gilead had first-mover advantage in this space by being first to market with its Sovaldi drug after its approval in 2013. Shortly after, Gilead developed another HCV drug known as Harvoni that combines the use of Sovaldi and other antiviral medicines. The company generated record profits from both of these drugs -- $19.1 billion in 2015 alone -- before competitors AbbVie and Merck joined the HCV scene.
Sales of Gilead's products began to decline when AbbVie's HCV drug, Mavyret, was approved in 2017; changes to insurance coverage also reduced usage of HCV drugs, making them less lucrative overall. AbbVie's rise in the HCV market led Gilead to take the unexpected step of developing its own HCV generic drug, Epclusa, which would allow it to compete with AbbVie's Mavyret at a lower price and under similar indications to treat six different forms of HCV.
The usage of Epclusa in state-managed Medicaid plans boosted Gilead's total prescription numbers, while AbbVie's suffered a 16.3% decline in Q3 2019. Full-year HCV product sales for both companies were tied at $2.9 billion in 2019, lower than in 2018, when AbbVie hit $3.6 billion and Gilead notched $3.7 billion.
Gilead CEO Daniel O'Day expects to take advantage of the regained market share from this strategy to focus on geographic expansion in China going forward. Both companies expect declining sales of HCV products, with AbbVie looking for a global total of about $2.5 billion in 2020 and Gilead sustaining its current sales.
How they could grow
Gilead leads the way in HIV drugs, with product sales in that division increasing to $16.4 billion in 2019 from $14.6 billion in 2018. O'Day noted in the most recentearnings callthat the company is working on 14 late-stage studies -- including HIV drugs, other antivirals, immuno-oncology drugs, and drugs to treat inflammation and fibrosis -- this year, with four receiving a "breakthrough" designation from the U.S. Food and Drug Administration (FDA) to expedite their progress. "Over the next 10 years, we aim to introduce 10 new transformative therapies," O'Day said.
Gilead's pipeline is largely focused on viral diseases, inflammation, oncology, and fibrotic diseases, all of which bode well for long-term growth. Most recently, the company submitted a new drug application for a compound called filgotinib, which is a treatment for moderate to severe rheumatoid arthritis (RA). The filing shows promise, and it's supported by a 52-week study showing that the compound met its targets for efficacy and safety. The drug is also under review in Japan and the European Union, so an approval could provide significant growth for Gilead in the long run.
Gilead currently has $25.8 billion in cash on the balance sheet. Could this be used to acquire new assets? Investors should keep an eye on the current management. O'Day, who is completing his first year as CEO at Gilead, was formerly CEO at Roche and has held many leadership roles since joining the company in 1987; his experience overseeing a portfolio of various therapeutics in the fields of oncology, hemophilia, and many others, and his expertise in increasing revenue and building top-selling drugs, offer positive signs for the company and its long-term prospects.
AbbVie's growth prospects may be more mixed; its top-selling drug, Humira, comes off of patent protection in 2023. It's facing biosimilar competition across Europe and other international markets, which CEO Richard Gonzalez noted in 2018 "represent approximately 75% of our international Humira business or approximately 25% of total global Humira revenues." While U.S. Humira sales were $4 billion, up 9.8% from 2018, the drug only posted $948 million in sales internationally, a decrease in revenue of 27.3% year-over-year, in Q4 2019. The effect of biosimilars has a significant effect on AbbVie's business. In 2018, Humira accounted for roughly 61% of the business; over the past year, it only made up about 45%.
AbbVie brought six new assets to market in 2019 in the fields of immunology, oncology, dermatology, HCV, and women's health; collectively, these brought in about $9 billion in sales, and they can be expected to drive growth for the company in the long term. But questions remain on whether these assets and potential new drugs can fill the void that Humira will leave in 2023 -- can all of them combined make up for the 45% to 60% of company revenue currently generated by its blockbuster? Only time will tell, so investors should proceed with caution when considering AbbVie as a long-term investment.
Valuation
Gilead's forward price-to-earnings (P/E) ratio, a measure of share price relative to per-share earnings, is 10.8. Compared with AbbVie's 9.7, this shows that analysts expect Gilead to achieve higher earnings in the future. Looking further, AbbVie's price-to-sales (P/S) ratio of 4.1 is slightly higher than Gilead Sciences' 4.0. The P/S ratio is a useful measure of whether an investment is an attractive valuation; less than 1 is considered favorable, and greater than 4 is unfavorable. Both companies look overvalued by this measure -- but there's another method to further understand their valuation.
Biotechnology companies are difficult to value with only a few simple metrics because of the amount of debt they carry. EV/EBITDA (enterprise value / earnings before interest, taxes, depreciation, and amortization) can provide a more accurate measure of a biotech's true value (experts often use discounted cash flow (DCF) as another measure, as well). EV/EBIDTA is useful compared with P/E and P/S because it considers a company's debt and cash as well as the stock price relative to its cash profitability. A ratio of less than 10 is considered favorable. At 10.4, AbbVie has a lower EV/EBITDA ratio than Gilead Sciences' 14, which implies that the former stock is closer to fair value than the latter.
Dividend yield is also worth considering; there, AbbVie's 5.4% bests Gilead's 4%, meaning the former company may be more focused on the needs of its shareholders.
Going with Gilead
Despite that, Gilead Sciences offers the best option for long-term investment. The company's focus on transformative therapies over the next 10 years shows that it is positioning itself for long-term success, and its strategies can be very creative, as seen with its HCV drugs. CEO O'Day's experience at Roche and Gilead's current pile of cash are promising signs for future opportunities for new acquisitions. Its small portfolio may outpace AbbVie's larger one in the long run, especially with Humira due to expire in three years -- a risk for long-term investors, as the drug brought in roughly 45% of the company's revenue in 2019.
AbbVie may provide a better short-term option with its six new assets, attractive valuation, and higher dividend yield, but the mixed results from Humira will mean ongoing uncertainty over the long term. Gilead, meanwhile, should be able to follow the success of its medicines for HIV, HCV, and RA to reach new heights once again.
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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 small portfolio may outpace AbbVie's larger one in the long run, especially with Humira due to expire in three years -- a risk for long-term investors, as the drug brought in roughly 45% of the company's revenue in 2019. AbbVie may provide a better short-term option with its six new assets, attractive valuation, and higher dividend yield, but the mixed results from Humira will mean ongoing uncertainty over the long term. Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) are two of the world's largest pharmaceutical stocks by market capitalization. | Both companies expect declining sales of HCV products, with AbbVie looking for a global total of about $2.5 billion in 2020 and Gilead sustaining its current sales. Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) are two of the world's largest pharmaceutical stocks by market capitalization. AbbVie is the bigger of the two, at $139 billion to Gilead's $86 billion, and its stock value has grown significantly over the past year. | Sales of Gilead's products began to decline when AbbVie's HCV drug, Mavyret, was approved in 2017; changes to insurance coverage also reduced usage of HCV drugs, making them less lucrative overall. AbbVie's rise in the HCV market led Gilead to take the unexpected step of developing its own HCV generic drug, Epclusa, which would allow it to compete with AbbVie's Mavyret at a lower price and under similar indications to treat six different forms of HCV. Full-year HCV product sales for both companies were tied at $2.9 billion in 2019, lower than in 2018, when AbbVie hit $3.6 billion and Gilead notched $3.7 billion. | Both companies expect declining sales of HCV products, with AbbVie looking for a global total of about $2.5 billion in 2020 and Gilead sustaining its current sales. Gilead Sciences (NASDAQ: GILD) and AbbVie (NYSE: ABBV) are two of the world's largest pharmaceutical stocks by market capitalization. AbbVie is the bigger of the two, at $139 billion to Gilead's $86 billion, and its stock value has grown significantly over the past year. |
24701.0 | 2020-02-12 00:00:00 UTC | AbbVie Is a Dividend Growth Stock at a Bargain Price | ABBV | https://www.nasdaq.com/articles/abbvie-is-a-dividend-growth-stock-at-a-bargain-price-2020-02-12 | nan | nan | AbbVie (NYSE: ABBV) reported fourth-quarter earnings on Friday that were above consensus and the company raised its guidance for 2020. The results suggested that there was life after Humira, its mainstay immunology product, which is the world's best-selling drug.
On a day when the market was down 1%, AbbVie's shares rose 5%. With the stock still trading at a discount to the market multiple and a dividend yield of 4.6%, AbbVie still has plenty of appeal for the long-term investor.
Image source: Getty Images.
AbbVie beat expectations and raised its guidance
AbbVie's results were resoundingly positive. Worldwide revenues rose 5.3% operationally to $8.7 billion despite international Humira sales declining 25% -- excluding this, revenues were up 11%. Adjusted earnings per share (EPS) grew 16% year over year and came in a penny ahead of consensus. And next year's guidance was raised to a range of $9.61 to $9.71 per share, with the midpoint representing an increase of 8.1%.
It's no small wonder, then, that the stock rose as much as it did. For much of last year, AbbVie's shares lagged the overall market. Much of this had to do with concern about Humira, which accounted for up to 60% of AbbVie's sales and a higher percentage of its profits, and which was scheduled to go off-patent in 2023 in the U.S. The company's fourth-quarter results went a long way in mitigating these fears.
Concerns about Humira are exaggerated
Although Humira still accounted for a hefty 56% of sales in the fourth quarter, stronger growth was seen in the company's other drugs. Sales of AbbVie's hematological oncology drugs grew 39% to over $1.5 billion, driven by Imbruvica and Venclexta which combined for $5.5 billion in sales in 2019. In the immunology area, Skyrizi and Rinvoq exceeded expectations and sales are expected to more than triple next year to $1.7 billion. This highlights the company's R&D efforts which, as CEO Richard A. Gonzalez points out, over the last seven years has led to the development of drugs generating $9 billion in sales in 2019.
To further wean its dependency off Humira, AbbVie will soon complete its acquisition of Allergan. Allergan brings with it $16 billion in annual revenue in mostly unrelated therapeutic markets, and is expected to be immediately accretive, contributing 10% to adjusted EPS in the first year. The combined AbbVie/Allergan entity will rank fourth in overall revenues and third in operating cash flow, creating significant scale in an industry where the costs of delivering a new drug to the market is in excess of $2 billion and rising.
This cash flow should suffice in funding further dividend increases. Having grown its dividend 195% since separating from Abbott Laboratories in 2013, AbbVie still has plenty of room to grow it further. And at current yield of 4.6%, the company's dividend is among the highest in the healthcare sector. With the stock trading at half the market price-to-earnings ratio, AbbVie represents a rare bargain in the healthcare sector that is too good to miss.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The combined AbbVie/Allergan entity will rank fourth in overall revenues and third in operating cash flow, creating significant scale in an industry where the costs of delivering a new drug to the market is in excess of $2 billion and rising. With the stock trading at half the market price-to-earnings ratio, AbbVie represents a rare bargain in the healthcare sector that is too good to miss. AbbVie (NYSE: ABBV) reported fourth-quarter earnings on Friday that were above consensus and the company raised its guidance for 2020. | AbbVie beat expectations and raised its guidance AbbVie's results were resoundingly positive. AbbVie (NYSE: ABBV) reported fourth-quarter earnings on Friday that were above consensus and the company raised its guidance for 2020. On a day when the market was down 1%, AbbVie's shares rose 5%. | With the stock still trading at a discount to the market multiple and a dividend yield of 4.6%, AbbVie still has plenty of appeal for the long-term investor. Sales of AbbVie's hematological oncology drugs grew 39% to over $1.5 billion, driven by Imbruvica and Venclexta which combined for $5.5 billion in sales in 2019. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Greg Jones owns shares of AbbVie. | With the stock still trading at a discount to the market multiple and a dividend yield of 4.6%, AbbVie still has plenty of appeal for the long-term investor. AbbVie (NYSE: ABBV) reported fourth-quarter earnings on Friday that were above consensus and the company raised its guidance for 2020. On a day when the market was down 1%, AbbVie's shares rose 5%. |
24702.0 | 2020-02-11 00:00:00 UTC | Tuesday's ETF with Unusual Volume: PPH | ABBV | https://www.nasdaq.com/articles/tuesdays-etf-with-unusual-volume%3A-pph-2020-02-11 | nan | nan | The Pharmaceutical ETF is seeing unusually high volume in afternoon trading Tuesday, with over 80,000 shares traded versus three month average volume of about 50,000. Shares of PPH were up about 0.3% on the day.
Components of that ETF with the highest volume on Tuesday were Teva Pharmaceutical, trading up about 1.6% with over 10.6 million shares changing hands so far this session, and Pfizer, up about 0.5% on volume of over 6.4 million shares. Abbvie is the component faring the best Tuesday, higher by about 2% on the day, while Mylan is lagging other components of the Pharmaceutical ETF, trading lower by about 1.4%.
VIDEO: Tuesday's ETF with Unusual Volume: PPH
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie is the component faring the best Tuesday, higher by about 2% on the day, while Mylan is lagging other components of the Pharmaceutical ETF, trading lower by about 1.4%. The Pharmaceutical ETF is seeing unusually high volume in afternoon trading Tuesday, with over 80,000 shares traded versus three month average volume of about 50,000. Components of that ETF with the highest volume on Tuesday were Teva Pharmaceutical, trading up about 1.6% with over 10.6 million shares changing hands so far this session, and Pfizer, up about 0.5% on volume of over 6.4 million shares. | Abbvie is the component faring the best Tuesday, higher by about 2% on the day, while Mylan is lagging other components of the Pharmaceutical ETF, trading lower by about 1.4%. The Pharmaceutical ETF is seeing unusually high volume in afternoon trading Tuesday, with over 80,000 shares traded versus three month average volume of about 50,000. VIDEO: Tuesday's ETF with Unusual Volume: PPH The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Abbvie is the component faring the best Tuesday, higher by about 2% on the day, while Mylan is lagging other components of the Pharmaceutical ETF, trading lower by about 1.4%. The Pharmaceutical ETF is seeing unusually high volume in afternoon trading Tuesday, with over 80,000 shares traded versus three month average volume of about 50,000. Components of that ETF with the highest volume on Tuesday were Teva Pharmaceutical, trading up about 1.6% with over 10.6 million shares changing hands so far this session, and Pfizer, up about 0.5% on volume of over 6.4 million shares. | Abbvie is the component faring the best Tuesday, higher by about 2% on the day, while Mylan is lagging other components of the Pharmaceutical ETF, trading lower by about 1.4%. The Pharmaceutical ETF is seeing unusually high volume in afternoon trading Tuesday, with over 80,000 shares traded versus three month average volume of about 50,000. Shares of PPH were up about 0.3% on the day. |
24703.0 | 2020-02-11 00:00:00 UTC | Better Buy: Pfizer vs. AbbVie | ABBV | https://www.nasdaq.com/articles/better-buy%3A-pfizer-vs.-abbvie-2020-02-11 | nan | nan | Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) are both top-notch dividend stocks. At current levels, Pfizer's shares sport a ginormous yield of 3.99%. AbbVie, on the other hand, is the home of one of the industry's most generous payouts, with a forward-looking annualized yield of 5.11%.
Nonetheless, these two elite income stocks have been headed in drastically different directions over the past half-year. While AbbVie's shares have produced total returns on capital of 48% (when including dividends) over the last six months, Pfizer's stock has generated a far more modest return on capital of only 6% during the same period.
The central issue behind this stark divergence is that Pfizer and AbbVie have taken markedly different approaches toward solving the same problem: namely, the loss of exclusivity for key revenue generators.
Pfizer, for its part, has decided that it needs to slim down by carving out its legacy products business in a planned merger with generic drug giant Mylan. AbbVie, by contrast, intends on bulking up through a merger with Botox maker Allergan. This mega-merger is designed to lower the importance of the biotech's top-selling anti-inflammatory medication Humira, as the drug starts to face biosimilar competition in earnest.
Image source: Getty Images.
Which of these two blue-chip dividend stocks is the better buy as things stand now? Let's check out how Pfizer and AbbVie stack up on several key fronts.
The case for Pfizer
Pfizer's overarching goal is to become a growth-oriented biopharma with keen interests in immunology, oncology, rare diseases, and vaccines. By doing so, it expects to post high single-digit top-line growth for at least the next five years. That kind of revenue growth won't exactly wow anyone on Wall Street, but it is a welcome change from the company's anemic top-line growth over the past decade.
Truth be told, Pfizer's previous decade was really all about financial engineering (huge amounts of share buybacks), rather than solid revenue growth spurred by innovative new products. Pfizer's new lineup of growth products, which includes Ibrance, Xtandi, Eliquis, Xeljanz, and Vyndaqel, should be sufficient to effectively close this dark chapter in the company's history.
But there is a major element of the unknown with Pfizer at the moment. It's no secret that the company is gearing up to pursue one or more bolt-on acquisitions in order to flesh out its pipeline and product portfolio. The good news is that the biopharma landscape is an especially target-rich environment right now. That being said, Pfizer has been one of the worst companies when it comes to creating value from mergers and acquisitions (M&As). So there's no telling how the company's next bout of M&A will ultimately pan out.
The case for AbbVie
Even though Humira's sales have been rapidly declining overseas, AbbVie's top line has only continued to tick higher in recent quarters. In the fourth quarter of 2019, for instance, the biotech's revenue rose by a solid 5% compared with the same period a year ago. While Humira's U.S. sales did play a big part in this healthy year-over-year rise in revenue, the drugmaker's newer immunology medicines, Rinvoq and Skyrizi, and its blood cancer franchise consisting of Imbruvica and Venclexta loomed large as well. Skyrizi, in particular, absolutely crushed Wall Street's forecast for the three-month period, beating the consensus sales estimate by a whopping 51.3%.
What's on tap for AbbVie for the remainder of the year? The seminal event will undoubtedly be AbbVie's forthcoming tie-up with Allergan, which is set to close before the end of the first quarter of 2020. This transformational deal will immediately benefit AbbVie's top line, diversify its product portfolio, and perhaps result in another sizable increase to the drugmaker's dividend.
Having said that, there's also a good chance that the combined AbbVie/Allergan entity will decide to put some of its noncore assets up for sale in the near future. That's not uncommon upon the closing of a biopharma mega-merger, but it does add another moving part to an already complex investing thesis.
Which stock is the better buy?
All things considered, AbbVie appears to have a solid leg up on Pfizer. AbbVie sports a stronger near-term growth outlook, a richer dividend, and a broader array of high-growth products. Pfizer, on the other hand, still needs to round out its pipeline and product portfolios -- a process that could take a few years to complete.
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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. | Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) are both top-notch dividend stocks. AbbVie, on the other hand, is the home of one of the industry's most generous payouts, with a forward-looking annualized yield of 5.11%. While AbbVie's shares have produced total returns on capital of 48% (when including dividends) over the last six months, Pfizer's stock has generated a far more modest return on capital of only 6% during the same period. | This transformational deal will immediately benefit AbbVie's top line, diversify its product portfolio, and perhaps result in another sizable increase to the drugmaker's dividend. Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) are both top-notch dividend stocks. AbbVie, on the other hand, is the home of one of the industry's most generous payouts, with a forward-looking annualized yield of 5.11%. | Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) are both top-notch dividend stocks. While AbbVie's shares have produced total returns on capital of 48% (when including dividends) over the last six months, Pfizer's stock has generated a far more modest return on capital of only 6% during the same period. AbbVie, on the other hand, is the home of one of the industry's most generous payouts, with a forward-looking annualized yield of 5.11%. | Pfizer (NYSE: PFE) and AbbVie (NYSE: ABBV) are both top-notch dividend stocks. AbbVie, on the other hand, is the home of one of the industry's most generous payouts, with a forward-looking annualized yield of 5.11%. While AbbVie's shares have produced total returns on capital of 48% (when including dividends) over the last six months, Pfizer's stock has generated a far more modest return on capital of only 6% during the same period. |
24704.0 | 2020-02-11 00:00:00 UTC | Is Takeda Pharmaceutical Company Stock a Buy? | ABBV | https://www.nasdaq.com/articles/is-takeda-pharmaceutical-company-stock-a-buy-2020-02-11 | nan | nan | There probably aren't too many companies listed on the New York Stock Exchange with an operating history going back over 230 years that are virtually unknown to U.S. investors.
But that's true of Takeda Pharmaceutical Company (NYSE: TAK), Japan's largest pharmaceutical company, which was founded in 1781 and listed its American Depository Shares on the New York Stock Exchange just over a year ago.
Takeda has partnerships with a number of U.S. pharmaceutical companies, and made headlines in 2018 when it announced plans for a massive acquisition of Shire that was completed about a year ago. Is Takeda an overlooked gem that investors should wake up to, or should they avoid it?
Image source: Getty Images.
Takeda's business
Takeda operates in five therapeutic areas that it considers its core businesses. The company's largest segment is gastrointestinal medicines, at 21% of sales in the first three quarters of fiscal 2019, and is delivering healthy sales growth, up 10%.
The big winner in the segment is Entyvio for Crohn's disease and ulcerative colitis (UC). Entyvio sales are growing at 35%, and beat AbbVie's mega-blockbuster Humira in a head-to-head trial in UC last year.
Unfortunately, Takeda's second largest business hasn't been faring so well recently.
The company's rare disease portfolio, 20% of total sales, has declined 11% in fiscal 2019. Takhzyro for hereditary angioedema is growing well, but not enough to overcome losses by older drugs for the same condition. Competition is hurting its drugs for blood diseases, and a recall of Natpara for hypoparathyroidism has the company assuming zero U.S. sales for that drug in 2020.
Takeda is getting about 5% sales growth from its immunoglobulin products and neuroscience portfolios, but one area that has the potential for accelerating growth is oncology, which is growing 7% year-over-year and makes up 13% of sales.
Ninlaro, an oral medication for multiple myeloma, is still in its early days, and is growing sales at 29% this year. A partnership with cancer specialist Seattle Genetics to co-develop and commercialize that company's lead drug, Adcetris, should be a potent growth driver for years.
Growth hopes are pinned on the Shire acquisition
Put those segments together, along with a large part of the company's business (21% of sales) that the company says is outside of its focus areas and is shrinking at a double-digit rate, and the growth picture at the moment looks anemic. Excluding the effect of the Shire acquisition, revenue year-to-date has declined 1.2% and operating profit is down 43%.
Takeda is banking on a reshaping of the company as it integrates Shire to get it on track for long term growth. It plans to take out $2 billion in costs, divest $10 billion in non-core assets that are pulling down its growth rate, and pay off much of the debt it took on to buy Shire.
That effort seems to be progressing faster than the company had expected. The plan has been for the Shire integration to complete by March 2024, but the company surprised the market this month when it said in its third quarter report that it expected to make a small operating profit for the full year after earlier forecasting a $1 billion operating loss.
A successful execution of its plan would help Takeda invest in research and development in its focus areas, where it already has a significant number of drug candidates in the clinic.
The company has six new drugs in trials that it expects to get approved in the next two years, and another eight that could win approvals in fiscal 2023 and 2024. Together, Takeda thinks these drugs have the potential to deliver more than $10 billion in aggregate peak sales, compared with the $30 billion in revenue the company expects to generate this year .
Steer clear for now
Takeda has a long and illustrious past, but it's the company's future that investors need to be wary of. Whereas it has the potential to get on the path for long term growth, most growth stock investors should take a pass for now and wait for the dust to settle.
The integration of Shire is a massive undertaking, and it's not clear what the growth picture will be when the effort completes four years from now. In the meantime, sales growth is flat, and any profit growth will be coming from cost cutting.
Takeda does pay a generous 4.3% dividend yield, but conservative investors can find nice payouts from companies that have more certain growth in their future.
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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. | Entyvio sales are growing at 35%, and beat AbbVie's mega-blockbuster Humira in a head-to-head trial in UC last year. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie and Seattle Genetics. Takeda has partnerships with a number of U.S. pharmaceutical companies, and made headlines in 2018 when it announced plans for a massive acquisition of Shire that was completed about a year ago. | Entyvio sales are growing at 35%, and beat AbbVie's mega-blockbuster Humira in a head-to-head trial in UC last year. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie and Seattle Genetics. But that's true of Takeda Pharmaceutical Company (NYSE: TAK), Japan's largest pharmaceutical company, which was founded in 1781 and listed its American Depository Shares on the New York Stock Exchange just over a year ago. | Entyvio sales are growing at 35%, and beat AbbVie's mega-blockbuster Humira in a head-to-head trial in UC last year. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie and Seattle Genetics. But that's true of Takeda Pharmaceutical Company (NYSE: TAK), Japan's largest pharmaceutical company, which was founded in 1781 and listed its American Depository Shares on the New York Stock Exchange just over a year ago. | Entyvio sales are growing at 35%, and beat AbbVie's mega-blockbuster Humira in a head-to-head trial in UC last year. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie and Seattle Genetics. Takeda has partnerships with a number of U.S. pharmaceutical companies, and made headlines in 2018 when it announced plans for a massive acquisition of Shire that was completed about a year ago. |
24705.0 | 2020-02-10 00:00:00 UTC | Allergan Reports Fourth-Quarter 2019 Results That Plow Past Expectations | ABBV | https://www.nasdaq.com/articles/allergan-reports-fourth-quarter-2019-results-that-plow-past-expectations-2020-02-10 | nan | nan | Shares of Allergan (NYSE: AGN) received a slight bump on Monday morning in response to a fourth-quarter earnings report that exceeded expectations on the top and bottom lines. Shares of AbbVie (NYSE: ABBV), a larger drugmaker with plans to buy Allergan in the first quarter, also ticked up slightly.
Allergan's total revenue climbed 6.6% to $4.35 billion, which was 6% more than analysts' average expectation. On the bottom line, adjusted earnings exceeded consensus estimates by 13% and reached $5.22 per share.
Image source: Getty Images.
Ups and downs
During the last three months of 2019, sales of Botox for cosmetic purposes rose 19.8% if you exclude the impact of fluctuating foreign exchange rates. As reported, sales of the entire botulinum toxin franchise rose 7.9% year over year to reach $1.02 billion.
Sales of the company's second-best-selling product, Restasis for dry eye disease, fell 4% to $327.7 million. As the company's ability to maintain market exclusivity for cyclosporine-containing eye drops erodes, AbbVie can probably expect the Restasis brand to decline further.
Looking ahead
AbbVie already received conditional approval from European regulators to acquire Ireland-domiciled Allergan. To assuage concerns that the deal will be anticompetitive, the pair will divest some minor assets, which should pave the way for them to complete the acquisition before the end of March.
Unfortunately for AbbVie, it looks like the Botox brand could face new competition in the cosmetic services arena before the end of 2020. Less than a week ago, Revance Therapeutics (NASDAQ: RVNC) took a step toward taking a bite out of Allergan's largest revenue stream when the FDA agreed to review its application for DAXI, another botulinum toxin injection, for the treatment of frown lines.
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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. | As the company's ability to maintain market exclusivity for cyclosporine-containing eye drops erodes, AbbVie can probably expect the Restasis brand to decline further. Shares of AbbVie (NYSE: ABBV), a larger drugmaker with plans to buy Allergan in the first quarter, also ticked up slightly. Looking ahead AbbVie already received conditional approval from European regulators to acquire Ireland-domiciled Allergan. | Shares of AbbVie (NYSE: ABBV), a larger drugmaker with plans to buy Allergan in the first quarter, also ticked up slightly. As the company's ability to maintain market exclusivity for cyclosporine-containing eye drops erodes, AbbVie can probably expect the Restasis brand to decline further. Looking ahead AbbVie already received conditional approval from European regulators to acquire Ireland-domiciled Allergan. | Shares of AbbVie (NYSE: ABBV), a larger drugmaker with plans to buy Allergan in the first quarter, also ticked up slightly. As the company's ability to maintain market exclusivity for cyclosporine-containing eye drops erodes, AbbVie can probably expect the Restasis brand to decline further. Looking ahead AbbVie already received conditional approval from European regulators to acquire Ireland-domiciled Allergan. | Shares of AbbVie (NYSE: ABBV), a larger drugmaker with plans to buy Allergan in the first quarter, also ticked up slightly. As the company's ability to maintain market exclusivity for cyclosporine-containing eye drops erodes, AbbVie can probably expect the Restasis brand to decline further. Looking ahead AbbVie already received conditional approval from European regulators to acquire Ireland-domiciled Allergan. |
24706.0 | 2020-02-10 00:00:00 UTC | How Allergan Beat Estimates in What's Likely Its Last Quarterly Update | ABBV | https://www.nasdaq.com/articles/how-allergan-beat-estimates-in-whats-likely-its-last-quarterly-update-2020-02-10 | nan | nan | Allergan (NYSE: AGN) entered 2020 with a lot of momentum. AbbVie's (NYSE: ABBV) announcement of its plans to acquire Allergan gave the stock a big boost. That news was so great that investors didn't care that Allergan delivered less-than-exciting third-quarter results in November.
But there were some things to energize investors in Allergan's 2019 fourth-quarter results, announced before the market opened on Monday. Here are the highlights from the company's Q4 update.
Image source: Getty Images.
By the numbers
Allergan reported revenue in the fourth quarter of $4.4 billion. This reflected a 6.6% increase from revenue of $4.08 billion generated in the prior-year period. The consensus Wall Street estimate projected Q4 revenue of $4.09 billion.
The company announced a net loss of $317.3 million, or $0.97 per share, based on generally accepted accounting principles (GAAP). However, this result showed significant improvement from the GAAP net loss of $4.3 billion, or $12.83 per share, posted in the same period in 2018.
Allergan recorded adjusted earnings of $5.22 per share in the fourth quarter. This represented a 21.7% increase from adjusted earnings of $4.29 per share reported in the same quarter of 2019. Analysts were anticipating Q4 adjusted earnings of $4.57 per share.
Behind the numbers
The most important factor behind Allergan's revenue growth was the performance of its top-selling drug, Botox. Fourth-quarter sales for Botox jumped 7.9% year over year to $1.02 billion.
But Allergan's fastest-rising star is definitely Vraylar. Sales for the antipsychotic drug skyrocketed 88.1% year over year in the fourth quarter to $283.1 million.
Several of Allergan's other key drugs also generated solid sales growth. The company reported that Q4 sales of gastrointestinal drug Linzess/Constella rose by 12.5% to $238 million. Sales of Juvederm dermal fillers increased 4.5% year over year to $347.3 million.
The most notable weakness for Allergan in the fourth quarter was with chronic dry eye drug Restasis, with sales slipping 4.1% from the prior-year period to $327.7 million. In addition, several of the company's other products experienced significant sales declines, including Alphagan/Combigan, Asacol/Delzicol, and CoolSculpting.
Allergan's marked improvement in its GAAP bottom line stemmed mainly from the negative impact of a huge goodwill impairment in the fourth quarter of 2018. The company's non-GAAP adjusted earnings in the recent quarter were boosted by lower income tax adjustments than in the prior-year period.
Looking ahead
By far the main thing to look forward to with Allergan is the anticipated close of AbbVie's acquisition of the company later in the first quarter of 2020. This deal will make current Allergan shareholders owners in AbbVie, arguably one of the most attractive dividend stocks on the market right now.
However, there are also some pipeline milestones on the way in the near future. Allergan expects the FDA to make an approval decision in the first half of this year for sustained-release bimatoprost (Lumigan). An FDA decision on abicipar pegol in treating wet age-related macular degeneration is also expected in mid-2020, with European approval anticipated in the second half of the year.
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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 (NYSE: ABBV) announcement of its plans to acquire Allergan gave the stock a big boost. Looking ahead By far the main thing to look forward to with Allergan is the anticipated close of AbbVie's acquisition of the company later in the first quarter of 2020. This deal will make current Allergan shareholders owners in AbbVie, arguably one of the most attractive dividend stocks on the market right now. | AbbVie's (NYSE: ABBV) announcement of its plans to acquire Allergan gave the stock a big boost. Looking ahead By far the main thing to look forward to with Allergan is the anticipated close of AbbVie's acquisition of the company later in the first quarter of 2020. This deal will make current Allergan shareholders owners in AbbVie, arguably one of the most attractive dividend stocks on the market right now. | AbbVie's (NYSE: ABBV) announcement of its plans to acquire Allergan gave the stock a big boost. Looking ahead By far the main thing to look forward to with Allergan is the anticipated close of AbbVie's acquisition of the company later in the first quarter of 2020. This deal will make current Allergan shareholders owners in AbbVie, arguably one of the most attractive dividend stocks on the market right now. | AbbVie's (NYSE: ABBV) announcement of its plans to acquire Allergan gave the stock a big boost. Looking ahead By far the main thing to look forward to with Allergan is the anticipated close of AbbVie's acquisition of the company later in the first quarter of 2020. This deal will make current Allergan shareholders owners in AbbVie, arguably one of the most attractive dividend stocks on the market right now. |
24707.0 | 2020-02-10 00:00:00 UTC | AbbVie Reaches Analyst Target Price | ABBV | https://www.nasdaq.com/articles/abbvie-reaches-analyst-target-price-2020-02-10 | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.88, changing hands for $92.29/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 8 different analyst targets contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $74.00. And then on the other side of the spectrum one analyst has a target as high as $98.00. The standard deviation is $8.675.
But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $90.88/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $90.88 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AbbVie Inc:
RECENT ABBV ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 6 5 5 5
Buy ratings: 0 0 0 0
Hold ratings: 5 5 4 4
Sell ratings: 0 0 0 0
Strong sell ratings: 0 0 0 0
Average rating: 1.91 2.0 1.89 1.89
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABBV — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.88, changing hands for $92.29/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $90.88/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $90.88 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.88, changing hands for $92.29/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. There are 8 different analyst targets contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. | And so with ABBV crossing above that average target price of $90.88/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $90.88 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.88, changing hands for $92.29/share. There are 8 different analyst targets contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. | There are 8 different analyst targets contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.88, changing hands for $92.29/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. |
24708.0 | 2020-02-10 00:00:00 UTC | Monday's ETF with Unusual Volume: PJP | ABBV | https://www.nasdaq.com/articles/mondays-etf-with-unusual-volume%3A-pjp-2020-02-10 | nan | nan | The Invesco Dynamic Pharmaceuticals ETF is seeing unusually high volume in afternoon trading Monday, with over 75,000 shares traded versus three month average volume of about 36,000. Shares of PJP were up about 0.5% on the day.
Components of that ETF with the highest volume on Monday were Gilead Sciences, trading down about 1.4% with over 7.8 million shares changing hands so far this session, and Abbvie, up about 2.4% on volume of over 7.4 million shares. Pacira Biosciences is the component faring the best Monday, up by about 5.2% on the day, while Prestige Consumer Healthcare is lagging other components of the Invesco Dynamic Pharmaceuticals ETF, trading lower by about 4.3%.
VIDEO: Monday's ETF with Unusual Volume: PJP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Components of that ETF with the highest volume on Monday were Gilead Sciences, trading down about 1.4% with over 7.8 million shares changing hands so far this session, and Abbvie, up about 2.4% on volume of over 7.4 million shares. The Invesco Dynamic Pharmaceuticals ETF is seeing unusually high volume in afternoon trading Monday, with over 75,000 shares traded versus three month average volume of about 36,000. Pacira Biosciences is the component faring the best Monday, up by about 5.2% on the day, while Prestige Consumer Healthcare is lagging other components of the Invesco Dynamic Pharmaceuticals ETF, trading lower by about 4.3%. | Components of that ETF with the highest volume on Monday were Gilead Sciences, trading down about 1.4% with over 7.8 million shares changing hands so far this session, and Abbvie, up about 2.4% on volume of over 7.4 million shares. The Invesco Dynamic Pharmaceuticals ETF is seeing unusually high volume in afternoon trading Monday, with over 75,000 shares traded versus three month average volume of about 36,000. Pacira Biosciences is the component faring the best Monday, up by about 5.2% on the day, while Prestige Consumer Healthcare is lagging other components of the Invesco Dynamic Pharmaceuticals ETF, trading lower by about 4.3%. | Components of that ETF with the highest volume on Monday were Gilead Sciences, trading down about 1.4% with over 7.8 million shares changing hands so far this session, and Abbvie, up about 2.4% on volume of over 7.4 million shares. The Invesco Dynamic Pharmaceuticals ETF is seeing unusually high volume in afternoon trading Monday, with over 75,000 shares traded versus three month average volume of about 36,000. Pacira Biosciences is the component faring the best Monday, up by about 5.2% on the day, while Prestige Consumer Healthcare is lagging other components of the Invesco Dynamic Pharmaceuticals ETF, trading lower by about 4.3%. | Components of that ETF with the highest volume on Monday were Gilead Sciences, trading down about 1.4% with over 7.8 million shares changing hands so far this session, and Abbvie, up about 2.4% on volume of over 7.4 million shares. Pacira Biosciences is the component faring the best Monday, up by about 5.2% on the day, while Prestige Consumer Healthcare is lagging other components of the Invesco Dynamic Pharmaceuticals ETF, trading lower by about 4.3%. VIDEO: Monday's ETF with Unusual Volume: PJP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24709.0 | 2020-02-07 00:00:00 UTC | AbbVie Inc (ABBV) Q4 2019 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-q4-2019-earnings-call-transcript-2020-02-07 | nan | nan | Image source: The Motley Fool.
AbbVie Inc (NYSE: ABBV)
Q4 2019 Earnings Call
Feb 7, 2020, 9:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning and thank you for standing by. Welcome to the AbbVie Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions] I would now like to introduce Ms. Liz Shea, Vice President of Investor Relations.
Liz Shea -- Vice President of 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; and Rob Michael, Executive Vice President and Chief Financial Officer.
Before we get started, I remind you that 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 2018 Annual Report and on Form 10-K, and in our other SEC filings. AbbVie undertakes no obligation to update these forward-looking statements, except as required by law.
On today's conference call, as in the past, non-GAAP financial measures will be used to help investors understand AbbVie's ongoing 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. Please note that we have also posted a set of slides to our website to supplement some of the content we'll be covering this morning. Following our prepared remarks, we'll take your questions.
So with that, I'll now turn call over to Rick.
Richard A. 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 fourth quarter and full year 2019 performance as well as our 2020 expectations for AbbVie on a stand-alone basis. We will provide combined AbbVie and Allergan guidance after the close of the planned transaction. Mike will then provide an update on recent advancements across our R&D programs, and Rob will discuss last year's performance and our 2020 guidance in more detail. Following our remarks, we will take your questions.
We delivered another strong quarter with adjusted earnings per share exceeding the midpoint of our guidance. Our adjusted EPS of $2.21 represents growth of more than 16% versus the fourth quarter of 2018. Total adjusted operational sales growth of 5.3% was also ahead of our expectations for the quarter, driven by continued strong performance in both immunology and hematological oncology.
Our performance this quarter tops off another strong year for AbbVie. For the full year 2019, we delivered adjusted earnings-per-share growth of 13%. We have driven strong commercial, operational and R&D execution, which has allowed us to substantially grow through the impact of international biosimilar competition. We saw excellent performance in our hematological oncology business, which drove operational growth of more than 39% in the year.
We have built a substantial franchise with IMBRUVICA and VENCLEXTA, which combined nearly $5.5 billion in combined revenue with strong double-digit growth expected once again in 2020. IMBRUVICA remains the clear market share leader across all lines of therapy in CLL with a largest body of clinical evidence, a robust survival benefit and the highest category rating in treatment guidelines today, we remain confident that IMBRUVICA will be a significant growth contributor for many years to come. VENCLEXTA will also contribute substantially to our growth in 2020 with continued share expansion expected in both the broad relapsed/refractory and front-line CLL segments as well as continued penetration in front-line AML.
In our immunology business, the launches of SKYRIZI and RINVOQ are going exceptionally well. Both SKYRIZI and RINVOQ have demonstrated strong differentiated efficacy in their initial indications and we are making considerable progress to expand their uses in several additional immune-mediated diseases. SKYRIZI is already having an impact on AbbVie's growth with sales of approximately $215 [Phonetic] million in the fourth quarter, which already equates to an annualized run rate approaching $900 million, and we expect robust growth in 2020. The launch execution has been nothing short of exceptional.
In a very short time frame, SKYRIZI has established the leading in-play psoriasis patient share, which includes both new and switch-in patients at roughly 25%. SKYRIZI is redefining the standard for efficacy and safety in the psoriasis market, where it's not only demonstrated superiority to HUMIRA, the gold standard of care, but also outperformed other novel agents, including Cosentyx. SKYRIZI's commercial access is now at parity to HUMIRA and above 95%.
While it's still early in the launch, we're also seeing robust demand trends for RINVOQ, which is performing well ahead of comparable analogs in the RA segment. In the first full quarter RINVOQ was on the market, we estimate more than 7,600 prescriptions were filled, including both paid prescriptions and those who received RINVOQ through our bridge access program. Based on this level of prescription volume, RINVOQ is currently capturing approximately 9% of in-play RA patients and has surpassed the in-play's share for several other established brands. The cannibalization of HUMIRA market share in this segment remains very low thus far. Feedback from prescribing physicians has been very positive. And the strong benefit risk profile RINVOQ has demonstrated across our registrational trials has supported very rapid and broad formulary coverage for RINVOQ. Commercial access for RINVOQ is now at more than 95% and we expect paid prescription volume to increase significantly throughout 2020 as a result.
HUMIRA in the US continues to generate strong revenue, driving more than $1 billion of growth in 2019, and will remain a significant contributor to growth again in 2020. The international HUMIRA dynamics remain consistent with our expectations with 2019 revenues down roughly 28% on an operational basis.
Overall, I'm extremely pleased with the performance and the outlook for our immunology franchise. We had previously commented that SKYRIZI and RINVOQ would deliver more than $1 billion of revenue combined in 2020. Our 2020 guidance now contemplates that these two products will contribute approximately $1.7 billion in revenue together this year.
Since our inception, we have focused on building a robust pipeline and adding growth platforms that will allow AbbVie to absorb the eventual impact of biosimilar competition in US and maintain a strong and growing business. We continue to make excellent progress against that objective. As I just highlighted, the better-than-expected launch trajectories of SKYRIZI and RINVOQ, and the continued strong performance of our hematological oncology franchise has further increased our level of confidence that these platforms will drive significant growth over the long term.
Our R&D productivity over the past seven years has resulted in numerous new products, which collectively contributed approximately $9 billion in revenue in 2019. And our R&D pipeline continues to develop nicely with multiple programs well under way to expand the breadth of indications for SKYRIZI and RINVOQ, as well as the advancement of a significant number of early and mid-stage programs, six of which will have proof of concept data readouts in 2020.
AbbVie's R&D pipeline has been phase gated from the time we launched as an independent company back in 2013. Our initial priority was to develop next-generation assets that would be superior to HUMIRA and other competitive alternatives within our key immunology disease areas. And as you have seen, SKYRIZI and RINVOQ have demonstrated that type of performance across multiple clinical trials. Their successful launch trajectories demonstrate the value of these assets in two very large segments of immunology, which combined represent approximately 40% of US HUMIRA revenues today. We continue to rapidly progress the development of these assets in the remaining key HUMIRA disease areas as well as new indications, such as atopic dermatitis.
Our second priority was to build our hematological oncology franchise into a major growth engine for the Company. IMBRUVICA and VENCLEXTA have become roughly a $5.5 billion franchise, and growing rapidly. And we continue to expand these medicines into important new disease areas, such as multiple myeloma with VENCLEXTA in t(11;14) biomarker-defined patient population, and combination therapy with IMBRUVICA and VENCLEXTA, which have the potential to provide even deeper and more durable responses.
The third priority was the development of a robust early and mid-stage pipeline, which now has nearly 40 clinical programs ongoing, including novel new mechanisms developed by AbbVie scientists as well as assets we are advancing across our many collaborations, such as Calico. The most advanced programs in our mid- to late-stage pipeline, which we expect to be approved by 2022, include navitoclax for myelofibrosis, ABBV-951 for the treatment of advanced Parkinson's disease, and veliparib for the treatment of ovarian cancer and BRCA breast cancer. These approvals are on top of the numerous new opportunities expected for RINVOQ, SKYRIZI and VENCLEXTA. Over the same period of time, we anticipate approximately 30 proof of concept readouts from novel programs in our early stage pipeline, which Mike will discuss momentarily. It is truly an exciting time for AbbVie science.
Another exciting aspect of our business is the planned acquisition of Allergan, which has significant strategic and financial merit. Allergan will provide AbbVie with highly valuable on-market assets with leadership positions across additional attractive growth segments, including new growth platforms in aesthetics and CNS neuroscience. The acquisition will further diversify AbbVie's revenue and payer mix, and immediately accelerates the stand-alone scale of our non-HUMIRA business, the AbbVie growth platform, which is expected to drive high-single-digit annual growth revenue over the next decade and beyond.
The proposed acquisition is proceeding well. We recently received conditional approval from the European Commission. The FTC review continues to advance following the divestiture announcements for both Zenpep and Allergan's IL-23. And we have completed the integration planning process, including confirmation of our synergy objectives. We remain on track for closing the Allergan transaction as expected in the first quarter of 2020.
We've entered 2020 with very strong momentum and we're committed to delivering strong results, which is reflected in our guidance. We expect full year 2020 adjusted earnings per share of $9.61 to $9.71, representing growth of 8.1% at the midpoint. As I mentioned earlier, this guidance reflects AbbVie on a stand-alone basis. We will provide pro forma guidance for 2020, following the close of the Allergan transaction.
So in summary, as you can see from our 2019 results and our 2020 guidance, the performance of AbbVie's business remains very strong. That performance combined with the late-stage pipeline, which includes more than 20 new medicines and major new disease indications as well as a robust early stage pipeline gives us significant confidence in the future outlook of our Company. The AbbVie business will be even stronger and more diverse with the Allergan transaction. We look forward to another successful year and to welcoming our Allergan colleagues to the new AbbVie in the near future.
With that, I'll turn the call over to Mike for additional comments on our R&D programs. Mike?
Michael E. Severino -- Vice Chairman and President
Thank you, Rick. When we set out as an independent company, we knew that building a productive R&D engine was an essential part of our success and we're proud of the progress we've made over the past seven years. We've built one of the strongest late-stage pipelines in our industry and brought to market six new assets, RINVOQ, SKYRIZI, IMBRUVICA, VENCLEXTA, MAVIRET and ORILISSA, which collectively delivered approximately $9 billion in sales in 2019. These assets are performing very well in their lead indications, and will drive significant growth for AbbVie over the long term, as we continue to build the body of evidence supporting their differentiated clinical profiles.
In immunology, both RINVOQ and SKYRIZI are off to a very strong start in rheumatoid arthritis and psoriasis, respectively. And we continue to generate clinical data sets that set them apart from competitive offerings. For example, we recently announced positive top line results from a Phase 3 head-to-head trial comparing SKYRIZI to Cosentyx in psoriasis. In this study, SKYRIZI demonstrated superiority to Cosentyx at week 52, with 87% of SKYRIZI patients achieving PASI 90 compared to 57% for Cosentyx.
SKYRIZI also demonstrated superiority to Cosentyx on all ranked secondary endpoints, including PASI 100, PASI 75 and sPGA clear or almost clear at week 52. These results underscore two critical components of SKYRIZI's profile, the ability to drive high levels of response and the durability of that response at long-term endpoints.
In oncology, we will also continue to support our hem/onc franchise with important regulatory milestones and additional Phase 3 data readouts for our approved indications in 2020. We recently received a positive CHMP opinion for VENCLEXTA in previously untreated CLL. And we expect to receive an important label update for IMBRUVICA in the first half of this year based on results from the ECOG study, which demonstrated the superiority of IMBRUVICA to FCR in front-line fit patients with CLL.
When we think about sources of growth beyond the current indications for our recently approved assets, it's important to consider two components of our late-stage pipeline. The first is a large number of programs that will allow us to drive our core assets into important new disease areas that represent large and attractive markets. And the second is a set of new assets that will help support additional growth in the future.
If we look first at our opportunity to move into new disease areas with our existing therapies, we see a number of commercially attractive programs that have been derisked based on strong data. For example, we recently announced top line results from the second Phase 3 study for RINVOQ in psoriatic arthritis which compared RINVOQ to both placebo and HUMIRA in patients who had an inadequate response to at least one non-biologic DMARD. In this study, both doses of RINVOQ met all primary and key secondary endpoints, demonstrating a significant impact on both joint and skin endpoints, as well as radiographic inhibition of damage to joint structure.
RINVOQ also demonstrated superiority to HUMIRA on ACR20 response at week 12 with the high dose and non-inferiority with the low dose. These data follow the positive results from our first registrational trial reported late last year. Detailed data from both pivotal studies will be presented at an upcoming medical meeting and we expect to submit our regulatory applications for RINVOQ in psoriatic arthritis in the second quarter with commercialization expected in 2021.
Following discussions with global regulators, our approval submissions in ankylosing spondylitis are planned for the second half of 2020 based on positive data already presented at ACR last November. In this study, RINVOQ demonstrated significantly greater improvements in signs and symptoms, as well as physical function and imaging endpoints compared to placebo. Together, psoriatic arthritis and ankylosing spondylitis make up an important segment of the rheumatology market withglobal marketsales of approximately $14 billion.
The dermatology segment will also be an important area of growth for RINVOQ. Moderate to severe atopic dermatitis is a large market that we do not participate in today. And in the middle of this year, we expect to see Phase 3 data for RINVOQ in this indication. In our Phase 2b study, RINVOQ demonstrated a very strong effect on the easy composite endpoint and had a prominent impact on itch, which is one of the most troublesome symptoms of this disease.
Following the pivotal data readouts, we plan to submit global regulatory submissions later this year. We are also nearing completion of the registrational programs for SKYRIZI in several new disease areas. In the second half of this year, we expect to see data from Phase 3 studies in both psoriatic arthritis and Crohn's disease with regulatory submissions for both indications expected in 2021.
The IBD segment, including both Crohn's disease and ulcerative colitis, represents a significant opportunity withglobal marketsales of approximately $18 billion. IBD is a growing segment, where there continues to be significant unmet need. And based on the efficacy demonstrated in our mid-stage studies, we believe both SKYRIZI and RINVOQ have the potential to drive higher levels of performance than other therapeutic alternatives. Together, we expect SKYRIZI and RINVOQ to have full coverage across the major disease areas for which HUMIRA is currently approved, plus new areas such as atopic dermatitis. With these two new medicines, AbbVie is well positioned to maintain its strong leadership in the $70 billion global immunology market.
Another growth asset that we expect to expand into important new areas is VENCLEXTA. CANOVA, our Phase 3 study in relapsed-refractory multiple myeloma patients with t(11;14) genetic mutation, is now well under way. And toward the end of this year, we plan to initiate a second Phase 3 study in the relapse/refractory t(11;14) population.
VENCLEXTA has the potential to become an important biomarker-driven treatment option in multiple myeloma. The transformed cells in t(11;14) patients have a B-cell-like phenotype and express high levels of BCL-2. We've seen very promising results in this population in early and mid-stage trials with VENCLEXTA showing high overall response rates and prolonged progression-free survival. The level of efficacy that we've seen suggests that t(11;14) patients may be particularly responsive to VENCLEXTA. This biomarker-defined population makes up approximately 20% of the $18 billion multiple myeloma market, representing an important new opportunity for VENCLEXTA.
In addition to multiple myeloma, we will begin Phase 3 studies in two additional BCL-2 driven diseases in 2020. The first is AML. Building on our experience in the transplant and eligible population, we are initiating a study in fit patients with AML who have received stem cell transplant, but remain at high risk for recurrence.
The second is higher risk myelodysplastic syndrome or MDS. MDS is a malignant disease of bone marrow stem cells that is associated with significant morbidity and mortality due to the risk of bleeding, infection and transformation to acute leukemia. Some patients with MDS undergo stem cell transplant but many cannot, and these patients have very few treatment options. Pre-clinical and early clinical studies support a role for BCL-2 inhibition in these patients, and our Phase 3 studies with VENCLEXTA will begin later this year.
The second component of value in our late-stage pipeline includes important new therapies that we expect to launch in 2021 and 2022, including navitoclax, veliparib and ABBV-951. Navitoclax will be entering Phase 3 studies in the first half of this year in front-line and second-line myelofibrosis. Myelofibrosis is a malignant disease in which the bone marrow is replaced with fibrotic tissue leading to bone marrow failure. Currently, JAK-2 inhibition is the only approved therapeutic option. But despite treatment, many patients progress, and experience significant morbidity and mortality. Navitoclax is a first-in-class BCL-XL inhibitor with the potential to transform the treatment of myelofibrosis by deleting the clone that causes the disease.
At ASH last year, we presented encouraging data from a Phase 2 study, which demonstrated that up to 43% of patients who had failed JAK-2 inhibition responded to navitoclax based on a 35% reduction in spleen volume. In addition, responses deepened over time and we continue to follow these patients. Navitoclax treated patients also showed reductions in the number of malignant cells and decreases in bone marrow fibrosis, supporting the potential for disease modification.
In the area of solid tumors, we previously presented positive Phase 3 data from two veliparib studies in front-line ovarian cancer and BRCA breast cancer. Data from these two studies demonstrated significant prolongation of progression-free survival and support the use of PARP inhibition in combination with chemotherapy earlier in the course of treatment.
In ovarian cancer, veliparib will be the only PARP inhibitor to combine with front-line chemotherapy and treat a broader population that is not restricted to biomarker status or chemo responsiveness. In BRCA positive breast cancer, veliparib will also be the only PARP inhibitor to combined with platinum-based chemotherapy, giving these patients a valuable new treatment option.
Based on feedback from global regulatory authorities, we plan to submit our applications for veliparib in the first half of this year. Veliparib will be an important new treatment option for women with ovarian cancer and BRCA breast cancer, offering the potential to provide better outcomes. And in our late-stage neuroscience pipeline, we are making good progress with the Phase 3 program for ABBV-951, our innovative approach to delivering Duopa-like efficacy to our subcutaneous delivery system for advanced Parkinson's disease. This approach is enabled by novel levodopa and carbidopa pro drugs, and would be a transformative improvement to current treatment options.
With a less invasive non-surgical delivery system, 951 has the potential to significantly expand the patient population currently addressed by Duopa or other more invasive therapies for advanced Parkinson's, such as deep brain stimulation. We'll see data from the pivotal program in 2021 with commercialization anticipated in 2022.
In addition to advancing our late-stage programs, we've also made tremendous progress building our early stage pipeline. Following several years of investment, we're beginning to see these efforts pay off. And over the next three years, we're planning for prudent concept data readouts in approximately 30 programs. Our early pipeline is designed to include a mix of highly novel targets supported by strong underlying science and clinically validated targets, where we think an opportunity exists to improve on current agents.
In the area of the immunology, I'll highlight our TNF-steroid conjugate, ABBV-3373, which is novel technology that delivers a proprietary high potency steroid directly to activated immune cells by TNF-mediated uptake. We've shown in model systems that this approach has the potential to drive transformational efficacy. And our early clinical work has demonstrated that we can deliver 3373 at its anticipated therapeutic dose without systemic steroid effects. We will see efficacy data from this study later this year. If our clinical data reproduce what we have seen pre-clinically, our steroid conjugate technology has the potential to serve as a platform across a wide range of diseases, including RA, IBD and lupus.
We will also see proof of concept data this year from several other early stage assets in our immunology portfolio, including data for ABBV-599, our JAK/BTK program, and ABBV-323, our CD40 antagonist program, which are both targeting multiple pathogenic nodes that are thought to play important roles in diseases such as RA, IBD, lupus and scleroderma, allowing us to restate standard of care in our core disease areas and move into new ones where no effective therapy exists today.
In oncology, we are building on what we have learned with venetoclax and navitoclax to advance a number of promising apoptosis programs. The most advanced of these are ABBV-155, which uses a B7-H3 targeting antibody to deliver a novel high potency BCL-XL warhead to solid tumors, and ABBV-621, which is designed to induce apoptosis by clustering trail and apoptosis-inducing ligand on the surface of cancer cells. We will see monotherapy data for ABBV-155 in 2020 and combination data in 2021. We expect to see proof-of-concept data for ABBV-621 in 2021 as well.
In immuno-oncology, we have a number of very promising T cell redirecting bi-specifics in the clinic and several more in pre-clinical development. The most advanced of these are BCMA bi-specifics in multiple myeloma, TNB-338B [Phonetic] and HPN217. These programs allow us to explore different epitope specificities and binding affinities to optimize the benefit risk of our candidates in this very promising area.
We are also pursuing several novel approaches designed to modify the tumor immunosuppressive environment. Here, I would highlight ABBV-151, our monoclonal antibody targeting GARP. Through its effect on GARP, ABBV-151 reduces TGF-beta-mediated signaling within tumors. TGF-beta is thought to be an important driver of tumor immune evasion and TGF-beta signaling is correlated with a lack of tumor immune infiltrate and PD-1 unresponsiveness.
In addition, I would highlight our CD39 inhibitor, TTX-030. Recently emerging data suggests that CD39 plays an important role in tumor immune evasion by converting pro-inflammatory ATP to anti-inflammatory ADP and adenosine in the extra cellular environment. TTX-030 is designed to restore this important pro-inflammatory signal and reduce tumor immunosuppression.
Lastly, in our early neuroscience pipeline, we have several promising disease-modifying candidates in the clinic for Alzheimer's and Parkinson's disease. In addition to our tau-directed programs, we have programs aimed at important regulators of the neuroinflammatory response, TREM2 and CD33, as well as a core driver of pathology in Parkinson's disease, alpha-synuclein.
So, in summary, we've continued to see significant evolution of our early and late-stage development programs. We have a late-stage pipeline that includes more than 20 programs in registrational studies and have nearly 40 programs in early to mid-stage development that will mature over the next few years.
With that, I'll turn the call over to Rob for additional comments on our 2019 performance and our 2020 guidance. Rob?
Robert A. Michael -- Executive Vice President and Chief Financial Officer
Thank you, Mike. Today, I'll review our performance for the fourth quarter and full year 2019, and then walk through our 2020 outlook. We had another year of strong execution. We reported adjusted earnings per share of $8.94, reflecting growth of 13% compared to prior year and beating our initial guidance midpoint by $0.24.
For the full year, net revenues were $33.3 billion, up 2.7% on an operational basis, excluding a 1.1% unfavorable impact from foreign exchange. Strong growth from several key products and newly launched assets more than offset the impact of international biosimilar competition. For the fourth quarter, net revenues were $8.7 billion, up 5.3% on an operational basis, excluding a 0.5% unfavorable impact from foreign exchange.
US HUMIRA sales were $4 billion, up 9.8% compared to prior year, reflecting high-single-digit volume growth plus price. Wholesaler inventory levels remained below half a month in the quarter. Full year sales of HUMIRA in US were $14.9 billion, up 8.6% versus prior year. International HUMIRA sales were approximately $950 million in the quarter, down 25.4% operationally, reflecting biosimilar competition across Europe and other international markets, and in line with our expectations.
SKYRIZI continues to perform extremely well with global sales of $216 million in the quarter. RINVOQ is also demonstrating strong uptake with sales of $33 million in the first full quarter following the US launch in late August. For the full year, the combined revenues of SKYRIZI and RINVOQ were $402 million and above our initial expectations.
Hematologic oncology global sales were more than $1.5 billion in the quarter, up 37.2% on an operational basis, driven by the continued strong performance of both IMBRUVICA and VENCLEXTA. IMBRUVICA global net revenues were approximately $1.3 billion in the quarter, up 28.9%, driven by strong share in all lines of therapy and CLL. VENCLEXTA revenues were $251 million in the quarter, driven by continued share gains across all approved indications.
For the full year, our hem/onc global revenues were $5.5 billion, up 39.3% on an operational basis. Global HCV sales were $632 million in the quarter. For the full year, HCV sales were $2.9 billion, down 17.7% on an operational basis, driven by lower treated patient volumes in select international markets and increased competition within the US managed Medicaid segment. We also saw continued strong operational sales growth for Creon and Duodopa.
Turning now to the P&L profile for the fourth quarter. Adjusted gross margin was 81.6% of sales, up 180 basis points compared to the prior year, including the year-over-year benefit related to the expiration of HUMIRA royalties. Adjusted R&D investment was 15.3% of sales, supporting our pipeline programs on oncology, immunology and other areas.
Adjusted SG&A expense was 21.6% of sales, reflecting continued investment in our on-market products and newly launched assets. The adjusted operating margin ratio was 44.6% of sales, an improvement of 290 basis points versus the prior year. Adjusted net interest expense was $282 million and the adjusted tax rate was 8.8%. Fourth quarter adjusted earnings per share, excluding specified items, was $2.21, up 16.3% versus prior year.
As we look ahead to 2020, our full year adjusted earnings per share guidance is between $9.61 to $9.71, reflecting growth of 8.1% at the midpoint. Excluded from this guidance is $1.95 of known intangible amortization and specified items. On the top line in 2020, we expect revenue growth approaching 8% on an operational basis.
At current rates, we expect foreign exchange to have a minimal impact on reported sales growth. This forecast comprehends the following assumptions for our key products. In 2020, we expect US HUMIRA to deliver revenue growth of approximately 9%. We expect international HUMIRA to approach $3.4 billion at current exchange rates. As Rick noted, we expect global sales of our newly launched immunology products to reach approximately $1.7 billion in 2020. This includes SKYRIZI global revenues of approximately $1.2 billion and RINVOQ global revenues of approximately $500 million.
We expect our hem/onc franchise to grow 24% on an operational basis with IMBRUVICA global revenues of approximately $5.5 billion and VENCLEXTA global sales of approximately $1.3 billion. We expect HCV global sales of approximately $2.5 billion. For Creon, we expect revenue growth of approximately 10%. For Duodopa, we expect sales of approximately $500 million. For Lupron, Synthroid and Synagis, we expect sales to be roughly flat year-over-year. And we expect approximately $200 million in combined revenue from ORILISSA in endometriosis and elagolix in uterine fibroids.
Looking at the P&L for 2020. We are forecasting adjusted gross margin of approximately 81.5% of sales. We are forecasting adjusted R&D expense just above 14% of sales, reflecting continued investment across all stages of our pipeline. We are forecasting adjusted SG&A expense to be just above 19% of sales, including funding to maximize the sales potential of new products. We are forecasting an adjusted operating margin ratio of approximately 48% of sales, an improvement of roughly 70 basis points versus 2019. We expect adjusted net interest expense of approximately $1.2 billion and we model a non-GAAP tax rate of approximately 10%. Finally, our share count for 2020 will be roughly flat.
Regarding our first quarter outlook. We expect adjusted earnings per share between $2.28 and $2.30, excluding approximately $0.53 of known intangible amortization and specified items. We anticipate first quarter operational sales growth of approximately 7%. At current rates, we expect a modest unfavorable foreign exchange impact. For US HUMIRA, we expect sales of approximately $3.5 billion. We expect international HUMIRA sales of approximately $900 million, assuming current exchange rates. For SKYRIZI, we expect global sales of approximately $250 million. And for IMBRUVICA, we expect global sales approaching $1.2 billion.
Moving now to the P&L for the first quarter. We are forecasting an adjusted operating margin ratio of approximately 48.5% of sales. As a reminder, the 2020 guidance provided today reflects AbbVie on a stand-alone basis. We will provide combined AbbVie and Allergan guidance after the close of the transaction.
In closing, AbbVie has once again delivered outstanding results. And with our strong track record, combined with the momentum of our business, we are well positioned for strong growth in 2020.
With that, I'll turn the call back over to Liz.
Liz Shea -- Vice President of Investor Relations
Thanks, Rob. We will now open the call for questions. Operator, first question please.
Questions and Answers:
Operator
[Operator Instructions] Our first question today is from Geoffrey Porges from SVB Leerink.
Geoffrey Porges -- SVB Leerink -- Analyst
Thank you very much for the question and congratulations on the quarter. Rick, I just wanted to ask you, it's been a while since you gave the kind of initial overview of the basis for the Allergan transaction. Could you talk about how the business performance of AbbVie and, frankly, also Allergan has been trending compared to the assumptions that you had going into the transaction? And then as you get close to closing, how confident are you about the $2 billion in synergies and how soon might they be realized? Thanks.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Hey, Jeff. I think you obviously seen the stand-alone AbbVie performance and we're coming off of another very good year. And our projection, our guidance, obviously, is projecting from a stand-alone basis, another strong year for the Company. And I think, in particular, we're very impressed with what we're seeing out of our immunology franchise and what we're seeing out of our hem/onc franchise and so we feel good.
We've been watching the Allergan performance. They reported two quarters that we've seen. They will be reporting another quarter here soon, probably sometime early next week. And I would say, at least for the two that have been reported, overall, the business is tracking, I'd say, slightly ahead of what our deal model had projected. As I mentioned, I think, a number of times, our deal model that we put together was a fairly conservative deal model, so that's not too surprising. But I think as you look at the key products that are critical products for their business, they're all performing in line or ahead of what our projections were.
As it relates to the synergies, as I mentioned in my formal comments, we have gone through all of the integration planning process with Allergan. Part of that process is to validate the synergies and so, we're comfortable that the synergy target that we had communicated, which was $2 billion or greater than $2 billion, is an achievable number. Obviously, any time you do a transaction like this, you're trying to maximize the synergies and obviously, maintain the business to perform at the level that you would expect it to perform. So, I feel good about the synergy projections.
We will provide final gating for those projections when we do the combined pro forma guidance and -- but I feel great about the overall target over the first three years meeting or exceeding what we had projected. The timing close, everything is progressing as we had planned. And we still anticipate that we will see closure by the end of the first quarter.
The other thing I'd say is, as we step back and we look at what we're trying to accomplish with the Allergan transaction, it was basically to try to build the business that ultimately would be even stronger than the AbbVie business over the long term. And I think one of the things as investors start to think about the business, it's important to sort of put that in perspective. We want a business that's more diversified, both from a revenue standpoint as well as a payer mix standpoint. We want a business that has durable positions. This business, the combined business, will have durable growth positions in eight different franchises and be able to drive strong growth. There'll be four franchises for the new company that will be the major growth franchises for us. Obviously, immunology, hematological oncology, medical aesthetics and CNS neuro will be the four franchises.
This is a business that will have excellent payer diversity and payer mix. If you look at it as a percent of the global revenues, Medicare Part B will be about 2%, Medicare Part D will be about 16%, Medicaid will be about 3% and cash pay will be about 10%. So a nice balance and security along the payer base. It will be a business that's driven by volume, not by price, and so that's important. It will be a company that has a strong growing dividend. It's underpinned by tremendous cash flow, which provide security to deliver a growing dividend over the long term and through the loss of exclusivity in 2023 in the US.
It will also have a number of recently launched products and growth products, in fact, there will be six of them if you think about it. You look at SKYRIZI, RINVOQ, VENCLEXTA, IMBRUVICA, those all have significant growth opportunities ahead of them on the AbbVie side. And then you look at the Allergan side, you have Vraylar, this is a product that has -- it's about $850 million product. I think the last numbers I saw showed it was growing about 70% and you have their recently launched oral CGRP that we haven't seen any data on yet as far as their revenue performance because they just launched it, but I think that will be an important product over the long term.
So -- and then that's underpinned by our late-stage pipeline that has 20 new drugs and new major indications, and an early stage pipeline that Mike outlined in his remarks, that's a pretty impressive profile of a company in our industry. And that's the kind of company we're trying to build by combining these two companies together. So I think that's how we think about it.
Geoffrey Porges -- SVB Leerink -- Analyst
Great, thanks very much, Rick.
Liz Shea -- Vice President of Investor Relations
Thanks, Geoffrey. Operator, next question please?
Operator
Thank you. Our next question is from Steve Scala from Cowen.
Steve Scala -- Cowen -- Analyst
Thank you and let me add my congratulations on another well executed quarter. I have two questions. First, SKYRIZI and RINVOQ are obviously off to great starts and the raised guidance for them in 2020 is impressive. Previously AbbVie had provided 2025 the guidance of $10 billion for these two products. And I'm just wondering how you are thinking about that number now?
And then secondly, the Company had given 2020 revenue guidance in 2015 of $37 billion. And then in 2017, said that that would be exceeded. I realize that in complicated businesses, there are always pushes and pulls. But it appears today's 2020 revenue guidance implies a $36 billion revenue number in 2020. So I'm just curious for the reason for the delta. Thank you very much.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Well, I mean if you look at SKYRIZI and RINVOQ, obviously, they're off to a very strong start. When you look at the $10 billion guidance that we had, that still had some level of risk adjustment for the follow-on indications associated with it. And obviously, as we move along, then those risk adjustments will come down probability of success will go up. So by definition, by the way, we look at things, you would expect SKYRIZI and RINVOQ to be able to exceed that level of performance, assuming all those follow-on indications perform at the level that we would expect and everything that we know would clearly indicate that that is the case. We're not in a position where we're going to up the guidance.
Now, in any complicated business like ours, on the $37 billion, obviously, there are things like SKYRIZI and RINVOQ that are ultimately performing better. Certainly, when you look at our hematological oncology business, that's performing at a level that we would expect to deliver at least what we had expected back in that point in time, probably a little bit higher.
Now, you also have puts and takes. International biosimilars were more aggressive than we had anticipated. But net-net, I think we're comfortable with that level of performance and more importantly, we're comfortable with being able to deliver the kind of earnings that we would expect. And so I think we feel very good about how the Company is performing, and our ability to deliver on those long-term expectations.
The other thing I'd say is, as you look at the biosimilar -- obviously biosimilars are important aspect of our particular business. And we're now at a point where we're basically lapping the first year of biosimilar experience in the international markets. And it gives us the ability to be able to look back and say, did our strategy work that we had put in place? And I think, we've obviously been able to learn from what that strategy has been able to do.
In general, I would tell you that I'm feeling pretty good about how the strategy played out. On the aggressive side, obviously, the biosimilar competitors before they entered the market, priced more aggressively than we had seen with the analogs, and so the shape of the curve was different, which we've talked about a number of different times.
Having said that, our strategy was to make sure that we could maintain as much share as possible of HUMIRA and maintain it as profitable as possible. And we can now step back and look at what does that look like. Well, what it basically looks like is, we have maintained about two-thirds of the volume. If you look specifically at the countries that went biosimilar and you look at what the erosion level is in those countries, it's about 44%, 45% within those countries. So what that means is, we've obviously maintained a tail of about 55% of the HUMIRA volume, which is a pretty -- the HUMIRA revenue, which is a pretty significant tail when you think about a product of the size of HUMIRA.
So I think overall, we feel good about how our strategy played out. Despite the fact that the biosimilar players were more aggressive. I think as we look at the US, there are some things that we can translate out of that experience and it gives us some feel for how the US will evolve as we enter that biosimilar phase in 2023.
Obviously, we have products like RINVOQ and SKYRIZI that are growing rapidly. We have a number of years to be able to drive that and we're making very good progress on the follow-on indications and therefore, we should have a broad set of indications, approved indications, for those assets, which should drive very significant growth leading into that LOE event. The strategy that we'll put in place is the exact same strategy that we did in the international markets. Our goal is to maintain as much share as we can and as profitable above [Phonetic] as we can.
There is no market exactly like the US market outside the US. But what I would say is, we would expect it to be competitive, like the international markets, we'll have as -- we'll have more competitors entering the US market. So I think the shape of the curve will be similar to what we saw in the international markets. But I'd say, as far as our ability to maintain share, we certainly in the US have at least the same competitive position that we have in the international markets. And in all likelihood, we have a stronger competitive position in the US market.
So I would say, we would expect to fare at least as well or better from a standpoint of maintaining that tail over time. And so we're feeling better about where we stand both the progress that we're making against the assets that will allow us to be able to drive growth over the long term and the experience we're getting with dealing with biosimilar competition in these markets.
Steve Scala -- Cowen -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thank you, Steve. Operator, next question please?
Operator
Thank you. Our next question is from Navin Jacob from UBS.
Navin Jacob -- UBS -- Analyst
Hello. Thanks for taking my question. A couple on RINVOQ and SKYRIZI. Number one, on SKYRIZI, wondering what the feedback from physicians and patients are regarding -- I realize, it's very early, but regarding average duration of therapy? How should we be thinking about that relative to your experience with HUMIRA?
And then on RINVOQ, wondering about the Q4 sales number, which came in a little bit lighter relative to how we were thinking about it based on the scripts. Wondering what the dynamic is from a $1 per prescription standpoint, how the couponing and sampling is affecting that? There was some commentary from Pfizer on Zelgen's pricing that's brought up some questions about pricing in this space. Obviously very early on, but would love any color there?
And as a corollary to that, with regards to the differences in the channel mix for RINVOQ versus SKYRIZI, any kind of color there would be appreciated, particularly as you said that, you have very good access in the commercial setting for RINVOQ, wondering about the access in the other parts of the channel as well? Thank you so much.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Okay. So on the first question, this is Rick. Average duration of therapy, obviously, SKYRIZI is a quarterly dosed product as a loading dose that occurs in the first phase. So we don't have a tremendous amount of experience yet, but I'd say the experience that we have thus far is consistent with what our original launch assumptions would be, and that is the duration of therapy would be very high at HUMIRA levels or above. Obviously, it's more convenient to have quarterly dosing. And so we're not seeing anything there that is different than what we would have anticipated, albeit it's early on.
As far as RINVOQ in the fourth quarter, I'd say RINVOQ is tracking well. It's continuing to gain in-play share. Now, it didn't get its significant uptick in market access until January. There was a fairly significant jump from December to January. So there was still a fair amount of prescriptions that were being driven through the -- our access program, where we provide patients -- if they don't have access, we provide them with free product through our bridge program.
But now, as I mentioned, we're over 95%. And our policy is, once we've achieved access in an account, we no longer allow bridge access for those products, in other words, from a compliance standpoint. And so, you should start to see those paid prescriptions ramping in line with what we would expect the access to be. SKYRIZI has very similar kinds of access.
As far as the channel mix is concerned, [Indecipherable] Rob to cover that.
Robert A. Michael -- Executive Vice President and Chief Financial Officer
Hi, Navin, it's Rob. So if you think about the difference in the patient profile with RA versus psoriasis, obviously, we have older patient population, so you'd expect RINVOQ to be higher in terms of Medicare Part D. To give it just a range, it's around 20% of the RINVOQ channel mix as Part D, whereas with SKYRIZI, it's closer to 10%.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
And the only other thing I'd mention is, the one thing that is very encouraging to us is, if you take SKYRIZI, about half, 49%, of the patients are naive patients and the other 51% are, obviously, second line and beyond. If we look at RINVOQ, it's about 40% -- 38%, 39% are naive patients, which, at this phase of the launch, is higher than what we had originally modeled. And the remaining are second line and beyond.
The other thing I'd say is, we obviously track how we're doing against various competitors. It's now -- RINVOQ now has an in-play share that's the equivalent of about 70% of of Xeljanz and, obviously, growing at a pretty rapid pace. And so I think, that's an encouraging sign as well.
Liz Shea -- Vice President of Investor Relations
Thank you, Navin. Operator, next question please.
Operator
Thank you. Our next question is from Terence Flynn from Goldman Sachs.
Terence Flynn -- Goldman Sachs -- Analyst
Hi, thanks for taking the questions. Congrats on the quarter from me as well. One more on the guidance front, when you do give the pro forma guidance post deal close, I was just wondering if we should expect new longer-term guidance on that front as well? And then again, appreciate all the detail on the pipeline. In the slides you listed six proof of concept readouts this year. Just wondering, of those assets, what did you view as most transformational? Thank you.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Okay. On the pro forma guidance, we haven't made a final decision. Obviously, we'll be providing for calendar year '20. We haven't made a decision whether we'll go out any further than that. So I'd say that's a decision that we'll make as we get closer to the close and, ultimately, announcing what the combined guidance is.
Mike, do you want to cover number two?
Michael E. Severino -- Vice Chairman and President
Sure. So as you mentioned, we have six proof of concept readouts this year in our early to mid-stage pipeline. And if I wanted to pick some examples of the most transformational, I think I would point to ABBV-3373, our TNF-steroid conjugate. If you look at the basic biology, the ability to drive to deliver this very, very high potency steroid directly to the activated immune cells that are dealing the damage in these diseases, really has tremendous potential.
In our pre-clinical work and our model systems, we see results that are really unlike anything we've ever seen with other sorts of agents. And we can deliver that kind of impact in those systems without systemic steroid effects. So if that plays out in the clinic, in the same way, it has in those model systems, that would really be transformational across a wide range of diseases, across a range of TNF-mediated diseases like RA, other rheumatologic conditions, inflammatory bowel diseases and many others. And you could also use that same technology with different targeting warheads to get into areas where there really aren't effective therapies today, like lupus for example. So that really has transformational potential.
Maybe I would point to one other program on the onc side. If you look at our work in apoptosis, there really is a tremendous opportunity, I believe, in the future to get into solid tumors with our apoptosis programs. And one program that will have a readout, at least from the monotherapy component this year, is ABBV-155, our B7-H3 targeted XL delivery.
Liz Shea -- Vice President of Investor Relations
Thank you, Terence. Operator, next question please.
Operator
Thank you. Our next question is from Vamil Divan from Mizuho.
Vamil Divan -- Mizuho -- Analyst
Hi, great, thanks for taking my questions. I just wanted to actually follow up on the comments Rick made regarding HUMIRA US erosion and Phase 1 biosimilars arrive. And I think you said, the overall shape of the curve, you think, will be similar to what we've seen outside the US. And I think you also previously mentioned that, part of the reason for the Allergan deal was to kind of give you the ability to address the various scenarios of HUMIRA erosion. So I'm just trying to get a sense as you think about the scenarios and how this might evolve in 2023, 2024. Do you expect that you will be continuing to grow sales and earnings right through those years, or do you think that if it is a somewhat rapid erosion, so there might still be a little bit of a decline during that time period?
And then my second question is just around pricing. And it sounds like you got maybe 1 percentage point or 2 percentage points of pricing growth for HUMIRA this year. Just wondering if that's sort of a reasonable expectation for 2020 for HUMIRA? And also maybe just for the next couple of years, do you think you'll still be able to get sort of a low-single-digit amount of price? Thanks.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Okay. Vamil, this is Rick. So I'll take the first question and then Rob will cover the second question for you. We're obviously not in a position where we're going to give 2023 guidance at this point. What I was referring to is, if you look at consensus, today what it shows for HUMIRA is that it basically is a stair step down over the course of three or four years.
I would say our experience in international markets, by the way, multiple biosimilar competitors coming into the market simultaneously, created a sharper decline, a deeper decline in year one, and then it's pretty much stabilized at that level. It might be some slight erosion after that, but relatively minor or moderate after that.
When I described the shape of the curve, I think that's a more reasonable shape of a curve that we would expect in the US market based on the fact there will be probably seven competitors that enter the marketplace in 2023. As far as growth, it is our obvious objective to make sure that we're in a position that we can grow over the long term, that's an important objective for us and, certainly, an objective that we have been able to deliver on throughout our history as a company and it's an important objective for us.
Now that doesn't mean that in 2023 there couldn't be some step down in 2023 and then return quickly to growth thereafter, but ultimately, as we get closer, I think we can provide more accurate guidance. But I have a high level of confidence that we are building an engine that will allow us to be able to grow through it over a long period of time, over the longer period of time. Allergan plays an important part of making sure that we can maintain the investment profile that we want to maintain in R&D and SG&A, to make sure we have the levels of cash flow to continue to support the dividend and grow the dividend. It plays a very important role in a number of aspects of how we manage the business over the long term.
Mike or -- I'm sorry, Rob?
Robert A. Michael -- Executive Vice President and Chief Financial Officer
So Vamil, it's Rob. So I'll take your question on US HUMIRA. So of the approximate 9% growth we've guided, volume is going to be mid-single digits and price will be low-single digits. I think for modeling purposes, it's fair to model low-single digits going forward. We'll obviously provide that guidance at the appropriate time. But that's the best way to think about it.
Vamil Divan -- Mizuho -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thank you, Vamil. Operator, next question please.
Operator
Thank you. Our next question is from Randall Stanicky from RBC Capital Markets.
Randall Stanicky -- RBC Capital Markets -- Analyst
Great. Thanks, Rick. There has been a trend in large biopharma toward divesting legacy products. AbbVie has legacy products, you're getting more from Allergan. How are you thinking about potential divestitures from the combined entity?
And then just secondly on ORILISSA, you've talked about the need to build awareness for activation. Is that still a $2 billion opportunity? And how are you thinking about the potential to inflect that back up? Thanks.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
I mean, every company in our industry for the most part has some level of the legacy products. We do as well as others. I think many people want to divest those products typically not because those products aren't profitable and provide significant earnings, but because they depress their overall growth if they are too large as it relates to their overall base of business.
I would say, as we look at our profile and our ability to be able to grow, we don't believe that that's a significant issue for us. It doesn't mean that at some point in the future we might not reevaluate it, if we thought that was in the best interest of the Company overall. But I'd say, that's not something that we have any plans for at this point in time.
ORILISSA, the point you raised is an accurate point, the challenge that we've had with ORILISSA in endometriosis has been activation of those patients at the rate that we would have expected. We have made some changes in the fourth quarter to our go-to-market strategy. We'll have to see how those play out. And also we'll have the launch of the uterine fibroid indication in 2020, that's a different patient population. And so, I think it will have a different activation profile.
And -- but I think we have to see how endometriosis whether or not we get an inflection point here that's different than what we've seen thus far before we make any predictions about how we will change the long-term projections. We fundamentally believe this is a good drug. Everything we know about it says, it's a good drug and it ultimately fits an important need. But we're obviously going to have to change that activation curve to get to the level of expectation that we have had for that -- for the drug.
Liz Shea -- Vice President of Investor Relations
Thanks, Randall. Operator, next question please?
Operator
Thank you. Our next question is from Tim Anderson from Wolfe Research.
Tim Anderson -- Wolfe Research -- Analyst
Thank you. A couple of questions please. Just to round out the discussion on prior 2025 guidance for certain products, and asked about three of them so far. VENCLEXTA and IMBRUVICA, maybe you can just talk about how those are trending today relative to those projections? IMBRUVICA seems like it's doing great, but you set really high 2025 guidance, I think it was $11.5 billion. And then VENCLEXTA, I think you guided for $6 billion and I think it finished out the year here at $800 million. So any comments on those two products?
And then a second question, just on, in the context of FTC being more unpredictable, with the brazikumab divestiture, a person could argue for different reasons FTC might raise an eyebrow about Astra taking back an asset that they got rid of originally. I think back then, it wasn't core to their business. And frankly, when you look at Astra and what they're concentrated now, it's hard to see where it fits. So FTC could potentially question whether Astra is really a committed competitive developer of that asset. Just wondering if you can share thoughts on that. Thank you.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Sure. As far as VENCLEXTA and IMBRUVICA are concerned in the long-term guidance, we feel very comfortable with our long-term guidance for those two assets. If you look at this year for VENCLEXTA, it will be an important inflection year for VENCLEXTA and we would expect it to continue to grow quite nicely over time. Obviously, the multiple myeloma in t(11;14) is a significant opportunity for VENCLEXTA. I think that represents roughly 20% of the myeloma patients, and myeloma is, obviously, a very big market. So we feel good about that.
As far as the FTC is concerned, the way this process normally works is, you bring in the players that you're considering to acquire a product, which we and Allergan did. And so, the FTC has had an opportunity to interact with both of the players and give us feedback around those players. So I think you can conclude from that that we will move forward with a player that the FTC told us they were uncomfortable with.
Tim Anderson -- Wolfe Research -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thank you, Tim. Operator, next question please.
Operator
Thank you. Our next question is from Andrew Baum from Citi.
Andrew Baum -- Citi -- Analyst
Thank you. Just in the psoriasis segment, you run a very impressive trial versus the leading IL-17 seemingly [Phonetic] taking away all that key selling points, both in terms of tax [Phonetic] as well as speed of onset and [Phonetic] response. To what extent do you think you're going to accelerate eating into the IL-17 segment by leveraging that trial in the psoriasis setting?
And then secondly, back on CLL, could you just talk to how you see the near-term competitive risk from the introduction of Calquence among the patients who are struggling with IMBRUVICA tolerant? I realize it's only a minority of those patients as they tolerate the first year therapy but whether we are going to see any patient shift across as it comes to market. And then second, longer term, now that you have the covalent -- the non-covalent inhibitors coming on to the scene with ArQule, Lilly and others? Thank you.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
So Mike, why don't you cover one and three, and I'll come back and cover the Calquence question.
Michael E. Severino -- Vice Chairman and President
Sure, this is Mike. With respect to the head-to-head data we just released in the last several weeks against Cosentyx, really was a very strong result. And what I would say is, it highlights a number of the things that we said. One, we drive very, very high levels of response. That response is very durable over time. Although all the data haven't been presented, they will be at an upcoming medical meeting. We said that we had across all of the ranked secondary endpoints, so it was very sort of broad-based result. And we had very good data at 16 weeks, as you said. So we think that that's going to continue to drive the momentum of SKYRIZI into this space. Now having said that, SKYRIZI is already performing extremely well and we would expect that to continue.
So with the -- for your third question on the competitive space for BTK inhibitors, we feel very, very good about the package of data that we have delivered around IMBRUVICA, it's very broad. We have five large scale randomized readouts, we have a robust survival benefit. And that's a data advantage that's very hard to overcome.
If you look at the launch of some of the follow-on covalent BTK inhibitors, our data package still is the broadest and we believe this is the strongest in terms of showing the overall benefits. And the points of differentiation that folks had talked about in the past haven't really materialized. So we feel good about our competitive position there. They'll take some share as you've seen in MCL, but it's nothing that that would change our ability to grow IMBRUVICA.
With respect to the non-covalent inhibitors, I think that the place for those is less clear. As I've said, we have many large scale Phase 3 data readouts, including survival benefits. So until those molecules really have an equivalent data set, it's going to be very, very difficult for them to compete in this space where IMBRUVICA plays.
Now, there are a small number of patients who have [Indecipherable] mutations that lose response to covalent BTK inhibitors because of that. One might expect a non-covalent inhibitor to work there, but that's really a much smaller opportunity and that follows the use of the covalent inhibitors. And we would say, in that space, that VENCLEXTA-based regimens are probably the best option and, certainly, have the most data today.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
And then to your second question, as it relates to whether or not we'll see patients being moved off of IMBRUVICA and on to Calquence based on side effect profiles, we don't believe that will be the case. I mean, I think, as Mike pointed out, when you look at the body of data around IMBRUVICA and particularly the survival benefit that we see with IMBRUVICA, physicians are reluctant to move a patient off of a drug that gives them the opportunity to be able to have that level of survival benefit to something that has less data to be able to support that. The guidelines reflect that as well.
And most physicians know that when they have a side effect profile that they are having difficulty managing through that they routinely -- prior to Calquence being on the market, what they would typically do is, take the patient off of therapy for a short period of time until it resolved and then put them back on therapy and many patients will ultimately be fine when they are put back on therapy. So moving to another non-differentiated product, we don't think will have a fundamental impact.
We're obviously watching the share data. It's early on because the latest share data that we have is still November. And as you know, they were approved in November. Now they run guidelines for most of 2019 in CLL, but the share is very low. They have about 1% share in first-line, 2% share in second-line, about 6% share in third-line, but most of those patients in third-line, about half of them, are BTK failures, IMBRUVICA failures. So thus far, we don't see anything that would suggest that it's having a significant negative impact on our performance.
Andrew Baum -- Citi -- Analyst
Thank you.
Liz Shea -- Vice President of Investor Relations
Thank you, Andrew. Operator, we have time for one final question.
Operator
Thank you. Our final question today is from David Risinger from Morgan Stanley.
David Risinger -- Morgan Stanley -- Analyst
Thanks very much and I wanted to add my congrats as well. I have two questions for you, Rick and the team. So with respect to looking at analogs, branded ex-US REMICADE has stair step down 30% annually over the past five years since biosimilars first launched and the 2019 sales are less than 20% of the 2014 sales. So could you discuss the considerations for AbbVie when your team has evaluated it as a potential analog for HUMIRA decline prospects?
And then second, with respect to ORILISSA, could you discuss efforts to change the mindset of younger women who may be hesitant to take hormonal therapies? Thank you.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Yes. So, David, this is Rick. For your first question, I think the difference between REMICADE and Enbrel as well actually, and the experience that we had with HUMIRA was in most of those cases only one or two competitors came in at a time. And so, what you're seeing is, essentially the way we had originally modeled HUMIRA was that at year three, we would get to the levels that we're at now, because it would stair step down. But I think what we learned in that process is when four competitors entered the market at one time, that the competitive dynamics between them to try to get share created an environment where they became far more aggressive early on. So I don't think the curve will look as -- it won't look as if the same as REMICADE. Now, that doesn't mean that over time, we won't see some moderate continued erosion, but it's -- for a business of our size and with the growth prospects of our business, that's not something that would inhibit our ability to be able to grow. I think you can see, we grew through, we ultimately had positive revenue growth in 2019, despite the fact that we had a very significant portion of our international business [Indecipherable] biosimilar in 2019.
The second question is, part of the activity that we're working on now to try to drive activation at a faster rate in women on ORILISSA, that is one component. I wouldn't say it's the most significant component, but it is one component to better educate women on what this therapy is all about, what the side effect profile of this therapy really looks like, the safety profile of it and make sure that we do that in a way that it's easily accessible for women in that age group. Meaning, it has a social media aspect to it that allows them to be able to access accurate information about ORILISSA and the benefits of it and the appropriate use of it. And so, that is part of the changes that we made in the fourth quarter, and we're just going to have to see how those changes -- the impact those changes have over time.
Liz Shea -- Vice President of Investor Relations
Thank you, David. That concludes today's conference call. If you'd like to listen to a replay of the call, please visit our website, at investors.abbvie.com. Thanks again for joining us.
Operator
[Operator Closing Remarks]
Duration: 80 minutes
Call participants:
Liz Shea -- Vice President of Investor Relations
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Michael E. Severino -- Vice Chairman and President
Robert A. Michael -- Executive Vice President and Chief Financial Officer
Geoffrey Porges -- SVB Leerink -- Analyst
Steve Scala -- Cowen -- Analyst
Navin Jacob -- UBS -- Analyst
Terence Flynn -- Goldman Sachs -- Analyst
Vamil Divan -- Mizuho -- Analyst
Randall Stanicky -- RBC Capital Markets -- Analyst
Tim Anderson -- Wolfe Research -- Analyst
Andrew Baum -- Citi -- Analyst
David Risinger -- Morgan Stanley -- 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. | The most advanced of these are ABBV-155, which uses a B7-H3 targeting antibody to deliver a novel high potency BCL-XL warhead to solid tumors, and ABBV-621, which is designed to induce apoptosis by clustering trail and apoptosis-inducing ligand on the surface of cancer cells. AbbVie Inc (NYSE: ABBV) Q4 2019 Earnings Call Feb 7, 2020, 9:00 a.m. Welcome to the AbbVie Fourth Quarter 2019 Earnings Conference Call. | Allergan will provide AbbVie with highly valuable on-market assets with leadership positions across additional attractive growth segments, including new growth platforms in aesthetics and CNS neuroscience. Operator [Operator Closing Remarks] Duration: 80 minutes Call participants: Liz Shea -- Vice President of Investor Relations Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer Michael E. Severino -- Vice Chairman and President Robert A. Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Steve Scala -- Cowen -- Analyst Navin Jacob -- UBS -- Analyst Terence Flynn -- Goldman Sachs -- Analyst Vamil Divan -- Mizuho -- Analyst Randall Stanicky -- RBC Capital Markets -- Analyst Tim Anderson -- Wolfe Research -- Analyst Andrew Baum -- Citi -- Analyst David Risinger -- Morgan Stanley -- Analyst More ABBV analysis All earnings call transcripts 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. AbbVie Inc (NYSE: ABBV) Q4 2019 Earnings Call Feb 7, 2020, 9:00 a.m. | We will also see proof of concept data this year from several other early stage assets in our immunology portfolio, including data for ABBV-599, our JAK/BTK program, and ABBV-323, our CD40 antagonist program, which are both targeting multiple pathogenic nodes that are thought to play important roles in diseases such as RA, IBD, lupus and scleroderma, allowing us to restate standard of care in our core disease areas and move into new ones where no effective therapy exists today. Operator [Operator Closing Remarks] Duration: 80 minutes Call participants: Liz Shea -- Vice President of Investor Relations Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer Michael E. Severino -- Vice Chairman and President Robert A. Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Steve Scala -- Cowen -- Analyst Navin Jacob -- UBS -- Analyst Terence Flynn -- Goldman Sachs -- Analyst Vamil Divan -- Mizuho -- Analyst Randall Stanicky -- RBC Capital Markets -- Analyst Tim Anderson -- Wolfe Research -- Analyst Andrew Baum -- Citi -- Analyst David Risinger -- Morgan Stanley -- Analyst More ABBV analysis All earnings call transcripts 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. AbbVie Inc (NYSE: ABBV) Q4 2019 Earnings Call Feb 7, 2020, 9:00 a.m. | Operator [Operator Closing Remarks] Duration: 80 minutes Call participants: Liz Shea -- Vice President of Investor Relations Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer Michael E. Severino -- Vice Chairman and President Robert A. Michael -- Executive Vice President and Chief Financial Officer Geoffrey Porges -- SVB Leerink -- Analyst Steve Scala -- Cowen -- Analyst Navin Jacob -- UBS -- Analyst Terence Flynn -- Goldman Sachs -- Analyst Vamil Divan -- Mizuho -- Analyst Randall Stanicky -- RBC Capital Markets -- Analyst Tim Anderson -- Wolfe Research -- Analyst Andrew Baum -- Citi -- Analyst David Risinger -- Morgan Stanley -- Analyst More ABBV analysis All earnings call transcripts 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. AbbVie Inc (NYSE: ABBV) Q4 2019 Earnings Call Feb 7, 2020, 9:00 a.m. Welcome to the AbbVie Fourth Quarter 2019 Earnings Conference Call. |
24710.0 | 2020-02-07 00:00:00 UTC | AbbVie Q4 19 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q4-19-earnings-conference-call-at-9%3A00-am-et-2020-02-07-0 | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result.
To access the live webcast, log on at https://investors.abbvie.com/investor-overview
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 Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result. To access the live webcast, log on at https://investors.abbvie.com/investor-overview 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 Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result. To access the live webcast, log on at https://investors.abbvie.com/investor-overview 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 Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result. To access the live webcast, log on at https://investors.abbvie.com/investor-overview 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 Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result. To access the live webcast, log on at https://investors.abbvie.com/investor-overview The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24711.0 | 2020-02-07 00:00:00 UTC | AbbVie Q4 19 Earnings Conference Call At 9:00 AM ET | ABBV | https://www.nasdaq.com/articles/abbvie-q4-19-earnings-conference-call-at-9%3A00-am-et-2020-02-07 | nan | nan | (RTTNews) - AbbVie Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result.
To access the live webcast, log on at https://investors.abbvie.com/investor-overview
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 Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result. To access the live webcast, log on at https://investors.abbvie.com/investor-overview 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 Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result. To access the live webcast, log on at https://investors.abbvie.com/investor-overview 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 Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result. To access the live webcast, log on at https://investors.abbvie.com/investor-overview 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 Inc. (ABBV) will host a conference call at 9:00 AM ET on Feb. 7, 2020, to discuss its Q4 19 earnings result. To access the live webcast, log on at https://investors.abbvie.com/investor-overview The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
24712.0 | 2020-02-07 00:00:00 UTC | AbbVie Q4 adjusted earnings Beat Estimates | ABBV | https://www.nasdaq.com/articles/abbvie-q4-adjusted-earnings-beat-estimates-2020-02-07 | nan | nan | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV):
-Earnings: $2.80 billion in Q4 vs. -$1.83 billion in the same period last year. -EPS: $1.88 in Q4 vs. -$1.23 in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $3.29 billion or $2.21 per share for the period. -Analysts projected $2.19 per share -Revenue: $8.70 billion in Q4 vs. $8.31 billion in the same period last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $2.80 billion in Q4 vs. -$1.83 billion in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $3.29 billion or $2.21 per share for the period. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $2.80 billion in Q4 vs. -$1.83 billion in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $3.29 billion or $2.21 per share for the period. -Analysts projected $2.19 per share -Revenue: $8.70 billion in Q4 vs. $8.31 billion in the same period last year. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $2.80 billion in Q4 vs. -$1.83 billion in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $3.29 billion or $2.21 per share for the period. -Analysts projected $2.19 per share -Revenue: $8.70 billion in Q4 vs. $8.31 billion in the same period last year. | (RTTNews) - Below are the earnings highlights for AbbVie (ABBV): -Earnings: $2.80 billion in Q4 vs. -$1.83 billion in the same period last year. -Excluding items, AbbVie reported adjusted earnings of $3.29 billion or $2.21 per share for the period. -Analysts projected $2.19 per share -Revenue: $8.70 billion in Q4 vs. $8.31 billion in the same period last year. |
24713.0 | 2020-02-07 00:00:00 UTC | AbbVie Reports Estimate-Beating Fourth-Quarter Earnings Results | ABBV | https://www.nasdaq.com/articles/abbvie-reports-estimate-beating-fourth-quarter-earnings-results-2020-02-07 | nan | nan | AbbVie (NYSE: ABBV) recently delivered an encouraging earnings report for the last three months of 2019. Revenue that grew 2% year over year to $8.7 billion surpassed consensus estimates by $20 million. On the bottom line, adjusted earnings grew 13% to $2.21 per share which was $0.02 more than the average Wall Street analyst had predicted.
Mixed results for Humira
International sales of Humira fell 27% year over year as a result of biosimilar competition for the extremely successful rheumatoid arthritis injection. In the U.S., where biosimilar versions have been approved by the Food and Drug Administration but still remain unaccessible, Humira sales grew 10% year over year.
Image source: Getty Images.
Total Humira sales fell 4% in 2019 to $19.6 billion, but the losses appear to have stabilized. During the last three months of 2019, total Humira sales were in line with the previous-year period.
Successful new drug launches
Several of the investments AbbVie has made to offset Humira sales have been so successful the company expects 8% growth in 2020 on the top and bottom lines, before factoring in the impending acquisition of Allergan (NYSE: AGN).
Sales of Skyrizi, a new psoriasis injection that launched last April, reached $216 million in the fourth quarter. The company's new rheumatoid arthritis tablet, Rinvoq launched in August and fourth-quarter sales reached an impressive $33 million.
In the fourth quarter, AbbVie still leaned on Humira for 56% of total revenue but Skyrizi and Rinvoq will lower the company's reliance on the aging blockbuster much further in 2020. For the full year, AbbVie's predicting combined sales of $1.7 billion from the pair of rookies.
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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. | In the fourth quarter, AbbVie still leaned on Humira for 56% of total revenue but Skyrizi and Rinvoq will lower the company's reliance on the aging blockbuster much further in 2020. AbbVie (NYSE: ABBV) recently delivered an encouraging earnings report for the last three months of 2019. Successful new drug launches Several of the investments AbbVie has made to offset Humira sales have been so successful the company expects 8% growth in 2020 on the top and bottom lines, before factoring in the impending acquisition of Allergan (NYSE: AGN). | In the fourth quarter, AbbVie still leaned on Humira for 56% of total revenue but Skyrizi and Rinvoq will lower the company's reliance on the aging blockbuster much further in 2020. AbbVie (NYSE: ABBV) recently delivered an encouraging earnings report for the last three months of 2019. Successful new drug launches Several of the investments AbbVie has made to offset Humira sales have been so successful the company expects 8% growth in 2020 on the top and bottom lines, before factoring in the impending acquisition of Allergan (NYSE: AGN). | Successful new drug launches Several of the investments AbbVie has made to offset Humira sales have been so successful the company expects 8% growth in 2020 on the top and bottom lines, before factoring in the impending acquisition of Allergan (NYSE: AGN). AbbVie (NYSE: ABBV) recently delivered an encouraging earnings report for the last three months of 2019. In the fourth quarter, AbbVie still leaned on Humira for 56% of total revenue but Skyrizi and Rinvoq will lower the company's reliance on the aging blockbuster much further in 2020. | In the fourth quarter, AbbVie still leaned on Humira for 56% of total revenue but Skyrizi and Rinvoq will lower the company's reliance on the aging blockbuster much further in 2020. AbbVie (NYSE: ABBV) recently delivered an encouraging earnings report for the last three months of 2019. Successful new drug launches Several of the investments AbbVie has made to offset Humira sales have been so successful the company expects 8% growth in 2020 on the top and bottom lines, before factoring in the impending acquisition of Allergan (NYSE: AGN). |
24714.0 | 2020-02-07 00:00:00 UTC | AbbVie Issues FY20 Outlook - Quick Facts | ABBV | https://www.nasdaq.com/articles/abbvie-issues-fy20-outlook-quick-facts-2020-02-07 | nan | nan | (RTTNews) - AbbVie (ABBV) said, for fiscal 2020, the company projects standalone adjusted EPS of $9.61 to $9.71, a growth of 8.1 percent at the midpoint. The company noted that its standalone guidance excludes $1.95 per share of intangible asset amortization expense, non-cash charges for contingent consideration adjustments and other specified items. The company expects standalone revenue growth approaching 8.0 percent on an operational basis. Analysts polled by Thomson Reuters expect the company to report profit per share of $9.48. Analysts' estimates typically exclude special items.
Fourth-quarter adjusted earnings per share was $2.21 compared to $1.90, a year ago. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $2.19, for the quarter.
Fourth-quarter worldwide net revenues were $8.704 billion, an increase of 4.8 percent on a reported basis, or 5.3 percent operationally. Excluding the unfavorable impact of international HUMIRA net revenues due to biosimilar competition, fourth-quarter net revenues grew 11.0 percent operationally. Analysts expected revenue of $8.69 billion for the quarter.
Shares of AbbVie were up 3% in pre-market trade on Friday.
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, for fiscal 2020, the company projects standalone adjusted EPS of $9.61 to $9.71, a growth of 8.1 percent at the midpoint. Shares of AbbVie were up 3% in pre-market trade on Friday. The company noted that its standalone guidance excludes $1.95 per share of intangible asset amortization expense, non-cash charges for contingent consideration adjustments and other specified items. | (RTTNews) - AbbVie (ABBV) said, for fiscal 2020, the company projects standalone adjusted EPS of $9.61 to $9.71, a growth of 8.1 percent at the midpoint. Shares of AbbVie were up 3% in pre-market trade on Friday. The company expects standalone revenue growth approaching 8.0 percent on an operational basis. | (RTTNews) - AbbVie (ABBV) said, for fiscal 2020, the company projects standalone adjusted EPS of $9.61 to $9.71, a growth of 8.1 percent at the midpoint. Shares of AbbVie were up 3% in pre-market trade on Friday. Analysts polled by Thomson Reuters expect the company to report profit per share of $9.48. | (RTTNews) - AbbVie (ABBV) said, for fiscal 2020, the company projects standalone adjusted EPS of $9.61 to $9.71, a growth of 8.1 percent at the midpoint. Shares of AbbVie were up 3% in pre-market trade on Friday. The company expects standalone revenue growth approaching 8.0 percent on an operational basis. |
24715.0 | 2020-02-07 00:00:00 UTC | Stock Alert: AbbVie Ascends 5% | ABBV | https://www.nasdaq.com/articles/stock-alert%3A-abbvie-ascends-5-2020-02-07 | nan | nan | (RTTNews) - Shares of drugmaker AbbVie Inc. (ABBV) are climbing more than 5% on Friday morning after the company reported better-than-expected fourth-quarter earnings and a strong full-year 2020 outlook. The stock is currently trading at $91.93, nearing its 52-week high of $92.19.
Net income in the fourth quarter was $2.801 billion or $1.88 per share compared with prior-year quarter net loss of $1.826 billion or $1.23 per share. Last year, earnings were affected by higher research and development expenses. Adjusted EPS in the quarter jumped to $2.21, form $1.90. Analysts polled by Thomson Reuters were expecting $2.19 per share.
Net Revenues increased 4.8 percent year-over-year to $8.704 Billion, helped by solid growth in new drugs sales. The consensus estimate was $8.69 billion.
For the full-year, AbbVie expects to deliver standalone adjusted EPS in the range of $9.61 to $9.71 and standalone revenue growth of approximately 8.0 percent. Analysts see earnings of $9.48 per share on revenue growth of 5.30%.
The company is planning to issue 2020 proforma guidance following the close of Allergan acquisition, announced in June last year. The deal is scheduled to be completed in the first quarter of 2020.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Shares of drugmaker AbbVie Inc. (ABBV) are climbing more than 5% on Friday morning after the company reported better-than-expected fourth-quarter earnings and a strong full-year 2020 outlook. For the full-year, AbbVie expects to deliver standalone adjusted EPS in the range of $9.61 to $9.71 and standalone revenue growth of approximately 8.0 percent. Net Revenues increased 4.8 percent year-over-year to $8.704 Billion, helped by solid growth in new drugs sales. | For the full-year, AbbVie expects to deliver standalone adjusted EPS in the range of $9.61 to $9.71 and standalone revenue growth of approximately 8.0 percent. (RTTNews) - Shares of drugmaker AbbVie Inc. (ABBV) are climbing more than 5% on Friday morning after the company reported better-than-expected fourth-quarter earnings and a strong full-year 2020 outlook. Net income in the fourth quarter was $2.801 billion or $1.88 per share compared with prior-year quarter net loss of $1.826 billion or $1.23 per share. | (RTTNews) - Shares of drugmaker AbbVie Inc. (ABBV) are climbing more than 5% on Friday morning after the company reported better-than-expected fourth-quarter earnings and a strong full-year 2020 outlook. For the full-year, AbbVie expects to deliver standalone adjusted EPS in the range of $9.61 to $9.71 and standalone revenue growth of approximately 8.0 percent. Net income in the fourth quarter was $2.801 billion or $1.88 per share compared with prior-year quarter net loss of $1.826 billion or $1.23 per share. | (RTTNews) - Shares of drugmaker AbbVie Inc. (ABBV) are climbing more than 5% on Friday morning after the company reported better-than-expected fourth-quarter earnings and a strong full-year 2020 outlook. For the full-year, AbbVie expects to deliver standalone adjusted EPS in the range of $9.61 to $9.71 and standalone revenue growth of approximately 8.0 percent. Net income in the fourth quarter was $2.801 billion or $1.88 per share compared with prior-year quarter net loss of $1.826 billion or $1.23 per share. |
24716.0 | 2020-02-06 00:00:00 UTC | 5 Total Yield Dividend Stocks That Offer Attractive Returns | ABBV | https://www.nasdaq.com/articles/5-total-yield-dividend-stocks-that-offer-attractive-returns-2020-02-06 | nan | nan | I like high-yield dividend stocks that also have the ability to buy back their shares. These are called total yield dividend stocks. They offer investors attractive total returns.
Source: Shutterstock
The amount of share buybacks (also referred to as ) during the year divided by the market value equals the buyback yield. By adding the dividend yield and the buyback yield, one can determine the total yield of a stock.
Together the dividends paid and stock repurchases represent the total amount of capital that returned to shareholders. Why is that?
The buyback yield represents a return of capital to shareholders just like the dividend yield. So combining the two is the total yield or return of capital to shareholders.
Some people balk at this notion that buybacks represent a return of capital to shareholders. But there are several reasons why share repurchases do represent a legitimate return to shareholders, just like dividends.
Benefits of a Total Yield Approach to Dividend Stocks
First, the amount of buybacks reduces the number of shares outstanding at a company. This has several beneficial effects. For one, it allows the company to pay higher dividends per share over time to the remaining shareholders. This is because the dollars spent on dividends is spread across a fewer number of shareholders.
In fact in most cases, companies that buy back shares over a period of years have faster dividend per share growth than their dividend outlay growth. Over time the per-share dividend growth can compounds faster this way.
Buybacks help the earnings per share to grow faster than otherwise. This grows the valuation of the stock.
Buybacks also push up the price of a stock, or at a minimum help it from falling. If the buyback program is continuous, it tends to act as a sort of price buffer.
I decided to look for companies with dividends and buybacks which, when added together, represent at least 8% of the market value of the stock. This means the stock has at least an 8% total yield. Some of these stocks have higher dividend yields and some have higher buyback yields. But when added together, that sum is greater than 8%.
High Total Yield Dividend Stocks: AbbVie (ABBV)
Dividend Yield: 5.45%
Source: Mark R. Hake, CFA
Buyback Yield: 2.87%
Total Yield: 8.32%
AbbVie (NYSE:) is a drug company. Its purchase of Allergan, expected to close shortly, will boost earnings and dividends and push AbbVieâÂÂs stock higher. Allergan is well known for its Botox and other beauty products. Analysts suggest that it will only take a few more months.
AbbVie is losing its patent protection on Humira, a rheumatoid arthritis treatment that accounts for more than half of AbbVieâÂÂs revenue.
But the company has indicated that there will be $2 billion in synergies with Allergan. Moreover, theÃÂ .
ABBV has enjoyed consistent earnings and regular dividend growth, as can be seen in the chart above.
AbbVie also has a strong buyback program. In the last two years alone, of its present market cap. Buybacks in 2019 alone are estimated at $3.58 billion. This represents 2.87% of its market value.
So combined with the ABBV dividend yield, the total yield for the stock is 8.32%.
AT&T (T)
Dividend Yield: 5.50%
Source: Mark R. Hake, CFA
Buyback Yield: 2.94%
Total Yield: 8.44%
AT&T (NYSE:) has stated very publically that it plans to pay out 8.5% annually over the next three years ending 2022 in both dividends and buybacks. In Q4 2019, the company started up on that program.
AT&T has made it clear that it wants it used for the purchase of TimeWarner from its share buybacks over the next three years (plus one quarter â Q4 2019).
This past quarter (Q4 2019), AT&T bought back $2 billion worth of shares and paid $3.7 billion in dividends. That equals $5.7 billion in shareholder return payments.
Based on its market value of $276.421 billion at the beginning of Q4 (i.e. $37.84 x 7305 million shares), the $5.7 billion in shareholder return payments represents a âÂÂyieldâ of 2.06% for the quarter.àThat works out to an 8.5% total yield on a quarterly compounded basis.
As I pointed out in on T, the stock is on track to deliver this annual 8.5% total yield for shareholders.
Delta Air Lines (DAL)
Dividend Yield: 2.73%
Source: Mark R. Hake, CFA
Buyback Yield: 5.43%
Total Yield: 8.16%
Delta Air Lines (NYSE:) stock offers great value to investors. DAL stock has a great 2.73% dividend yield and a buyback yield of 5.3%. This represents an 8.16% total yield for investors.
Moreover, based on its latest financials, the company is likely to continue reducing its shares outstanding by over 5% annually. DeltaâÂÂs buyback program is over $2 billion annually. That represents 5.43% of its present $37.3 billion market value.
This works because Delta generates very powerful free cash flow. For example, in the last 12 months ending December, DAL produced over $4.2 billion in FCF. That was an increase of over 128% from a year earlier.
In a recent article , I show that DAL stock is likely to produce a 13% annualized total return for investors. This is due to its expected valuation gain from its buybacks and dividends.
Lam Research Corp (LRCX)
Dividend Yield: 1.41%
Source: Mark R. Hake, CFA
Buyback Yield: 8.63%
Total Yield: 10.04%
Lam Research (NASDAQ:) makes semiconductor processing and fabrication equipment. It turns out that LRCX stock benefits from the companyâÂÂs very strong buyback program.
For example, in the past quarter, LRCX completed $1 billion in stock buybacks. On an annualized basis, that is a $4 billion buyback program. This works out to 8.63% of LRCXâÂÂs $46.3 billion market value.
So combined with LRCXâÂÂs 1.41% dividend yield, the total yield for shareholders is just over 10% per annum.
The company has made it clear that it will continue to complete its present $5 billion share buyback program. It has already done $3 billion so far. I expect that the Lam Research will announce a follow-on buyback program later this year.
In fact, based on my assumptions, I expect that LRCX stock is significantly undervalued. that the stock is worth $361 per share, or almost 11% more than todayâÂÂs price.
Medifast (MED)
Dividend Yield: 4.41%
Source: Mark R. Hake, CFA
Buyback Yield: 3.99%
Total Yield: 8.40%
Medifast (NYSE:), the weight loss and nutritional products company, is both very profitable and committed to returning capital.
MED stock is cheap, trading with a 4.41% dividend yield and a 3.99% buyback yield. This gives it an 8.40% total yield for shareholders.
, up 60.5% from its present price of $102.06 over the next three years. That represents an average annual price gain of 17.1% for the next three years.
For example, if you include the 4.41% dividend yield, assuming the yield stays at that level, MED stockâÂÂs total expected return is 21.5% per annum. That is a very attractive potential total return for shareholders.
This is possible because MED stock produces huge amounts of free cash flow. For example, in 2019 MED generated $69.5 million in FCF, up 24% over the prior year. I estimate that FCF will be up over 14% this year as well.
As a result, MEDâÂÂs dividends have grown over 52% in the past three years. I expect MED will continue to have huge dividend growth in the coming years as a result of its FCF growth and buybacks.
Summary of These Total Yield Stocks
Here is a summary of the dividend, buyback and total yields of each of these stocks.
These five stocks provide an average total yield of 8.67%. ThatâÂÂs a very attractive potential return for shareholders.
As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs theÃÂ ÃÂ which you can reviewÃÂ here.ÃÂ TheÃÂ GuideÃÂ focuses on high total yield value stocks. Subscribers a two-week free trial.
The post 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. | Its purchase of Allergan, expected to close shortly, will boost earnings and dividends and push AbbVieâÂÂs stock higher. AbbVie is losing its patent protection on Humira, a rheumatoid arthritis treatment that accounts for more than half of AbbVieâÂÂs revenue. High Total Yield Dividend Stocks: AbbVie (ABBV) Dividend Yield: 5.45% Source: Mark R. Hake, CFA Buyback Yield: 2.87% Total Yield: 8.32% AbbVie (NYSE:) is a drug company. | High Total Yield Dividend Stocks: AbbVie (ABBV) Dividend Yield: 5.45% Source: Mark R. Hake, CFA Buyback Yield: 2.87% Total Yield: 8.32% AbbVie (NYSE:) is a drug company. Its purchase of Allergan, expected to close shortly, will boost earnings and dividends and push AbbVieâÂÂs stock higher. AbbVie is losing its patent protection on Humira, a rheumatoid arthritis treatment that accounts for more than half of AbbVieâÂÂs revenue. | High Total Yield Dividend Stocks: AbbVie (ABBV) Dividend Yield: 5.45% Source: Mark R. Hake, CFA Buyback Yield: 2.87% Total Yield: 8.32% AbbVie (NYSE:) is a drug company. Its purchase of Allergan, expected to close shortly, will boost earnings and dividends and push AbbVieâÂÂs stock higher. AbbVie is losing its patent protection on Humira, a rheumatoid arthritis treatment that accounts for more than half of AbbVieâÂÂs revenue. | High Total Yield Dividend Stocks: AbbVie (ABBV) Dividend Yield: 5.45% Source: Mark R. Hake, CFA Buyback Yield: 2.87% Total Yield: 8.32% AbbVie (NYSE:) is a drug company. Its purchase of Allergan, expected to close shortly, will boost earnings and dividends and push AbbVieâÂÂs stock higher. AbbVie is losing its patent protection on Humira, a rheumatoid arthritis treatment that accounts for more than half of AbbVieâÂÂs revenue. |
24717.0 | 2020-02-06 00:00:00 UTC | Merck’s Spinoff Plans Place a Big Bet on Cancer-Fighting Keytruda | ABBV | https://www.nasdaq.com/articles/mercks-spinoff-plans-place-a-big-bet-on-cancer-fighting-keytruda-2020-02-06 | nan | nan | When it comes to cancer, immunology is the story of the decade.
Source: JHVEPhoto / Shutterstock.com
James Allison and Tasuku Honjo shared the for their discovery that the immune system could be tuned up to fight cancer. MerckâÂÂs (NYSE:) Keytruda became a blockbuster drug on the strength of that science.
KeytrudaâÂÂs 2019 sales of $11.1 billion are expected to double in five years, , so Merck CEO Ken Frazier thinks it makes sense to spin out slower growing Merck units and spend the resulting cash on expanding the cancer franchise.
The , however, came inside an earnings release that drew a thumbs-down from analysts. Net income of $2.4 billion, 92 cents per share, on revenue of $11.9 billion sent shares down 3%.
The Keytruda Plan
Merck shares opened for trade Feb. 6 at $86 each, a price-to-earnings ratio of 24, but the 61 cent per share dividend yields almost 2.8%. The market capitalization is $221 billion. With 30-year government bonds yielding just 2%, that looks like a bargain, especially if Frazier can also deliver top-line growth.
ThatâÂÂs what Keytruda, the companyâÂÂs anti-cancer blockbuster, has been doing. Sales for the drug rose 55% for all of 2019, reaching $11.1 billion. During the fourth quarter, Keytruda represented 26% of MerckâÂÂs sales. It is expected to soon become the best-selling drug in the world, topping , the immunosuppressant from AbbVie (NYSE:) often used to treat arthritis.
Among the products being spun out into a new company, under veteran Merck executive Kevin Ali, are its womenâÂÂs health line, cholesterol drugs like Vytorin and Zetia, vaccines like Gardasil and . The new company will put between $8 billion and $9 billion back into Merck, with which it will use to expand Keytruda sales.
For now, Keytruda is going from strength to strength. ItâÂÂs now a first-line treatment for and forms of bladder cancer. It competes with other PD-1 inhibitors from Bristol-Myers (NYSE:) and Regeneron (NASDAQ:), and there are other such drugs coming.
Thus, Frazier thinks Merck needs to focus on expanding the range of conditions Keytruda . He also wants to find other, similar compounds. The products being spun out represented sales of $6.5 billion in 2019.
The Risks
Keytruda is the best-known drug in its field thanks to patients like former President Jimmy Carter, whose cancer has been in remission since taking the drug. Merck has over 1,000 trials underway, some using Keytruda alone, others using it in conjunction with chemotherapy or surgery.
But there is a lot of competition in the space. Bristol-Myersâ Opdivo, new compounds still being tested and even off-label drugs made in China .
Frazier, 65, says he is staying on during the transition. He is considered , but a reputation is no guarantee when it comes to science, either.
The Bottom Line on Merck Stock
Doubling down on Keytruda makes strategic sense, because it is the fastest-growing part of MerckâÂÂs business.
That doesnâÂÂt mean sales will double in five years, as Merck expects. It not only faces increased competition in its space, but there remains the rising specter of healthcare reform. Action against drug prices could hit even leading-edge therapy makers hard.
The company being spun out, meanwhile, has low-cost therapies with established niches. Frazier is taking off MerckâÂÂs seat belt and betting its oncology line can continue to beat cancer, the competition and efforts to contain drug costs.
ItâÂÂs a reasonable risk for income investors, but it still is a risk.
is a financial and technology journalist. He is the author of the environmental thriller Bridget OâÂÂFlynn and the Bear, available at the Amazon Kindle store. Write him at àor follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story.ÃÂ
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It is expected to soon become the best-selling drug in the world, topping , the immunosuppressant from AbbVie (NYSE:) often used to treat arthritis. Source: JHVEPhoto / Shutterstock.com James Allison and Tasuku Honjo shared the for their discovery that the immune system could be tuned up to fight cancer. Among the products being spun out into a new company, under veteran Merck executive Kevin Ali, are its womenâÂÂs health line, cholesterol drugs like Vytorin and Zetia, vaccines like Gardasil and . | It is expected to soon become the best-selling drug in the world, topping , the immunosuppressant from AbbVie (NYSE:) often used to treat arthritis. KeytrudaâÂÂs 2019 sales of $11.1 billion are expected to double in five years, , so Merck CEO Ken Frazier thinks it makes sense to spin out slower growing Merck units and spend the resulting cash on expanding the cancer franchise. The products being spun out represented sales of $6.5 billion in 2019. | It is expected to soon become the best-selling drug in the world, topping , the immunosuppressant from AbbVie (NYSE:) often used to treat arthritis. KeytrudaâÂÂs 2019 sales of $11.1 billion are expected to double in five years, , so Merck CEO Ken Frazier thinks it makes sense to spin out slower growing Merck units and spend the resulting cash on expanding the cancer franchise. The new company will put between $8 billion and $9 billion back into Merck, with which it will use to expand Keytruda sales. | It is expected to soon become the best-selling drug in the world, topping , the immunosuppressant from AbbVie (NYSE:) often used to treat arthritis. MerckâÂÂs (NYSE:) Keytruda became a blockbuster drug on the strength of that science. Net income of $2.4 billion, 92 cents per share, on revenue of $11.9 billion sent shares down 3%. |
24718.0 | 2020-02-05 00:00:00 UTC | AbbVie: RINVOQ Meets Endpoints In Phase 3 Study In Psoriatic Arthritis | ABBV | https://www.nasdaq.com/articles/abbvie%3A-rinvoq-meets-endpoints-in-phase-3-study-in-psoriatic-arthritis-2020-02-05 | nan | nan | (RTTNews) - AbbVie (ABBV) said, in a phase 3 SELECT-PsA 1 clinical trial, both doses of RINVOQTM (upadacitinib; 15 mg and 30 mg) met the primary endpoint of ACR20 response at week 12 versus placebo in adult patients with active psoriatic arthritis. The 30 mg dose of RINVOQ recorded superiority to adalimumab in terms of ACR20 response at week 12, whereas both doses achieved non-inferiority versus adalimumab. The safety profile of RINVOQ was consistent with that observed in prior studies, with no new safety risks detected.
RAbbVie will present the results from the SELECT-PsA 1 study at a future medical meeting and publish in a peer-reviewed publication.
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, in a phase 3 SELECT-PsA 1 clinical trial, both doses of RINVOQTM (upadacitinib; 15 mg and 30 mg) met the primary endpoint of ACR20 response at week 12 versus placebo in adult patients with active psoriatic arthritis. RAbbVie will present the results from the SELECT-PsA 1 study at a future medical meeting and publish in a peer-reviewed publication. The 30 mg dose of RINVOQ recorded superiority to adalimumab in terms of ACR20 response at week 12, whereas both doses achieved non-inferiority versus adalimumab. | (RTTNews) - AbbVie (ABBV) said, in a phase 3 SELECT-PsA 1 clinical trial, both doses of RINVOQTM (upadacitinib; 15 mg and 30 mg) met the primary endpoint of ACR20 response at week 12 versus placebo in adult patients with active psoriatic arthritis. RAbbVie will present the results from the SELECT-PsA 1 study at a future medical meeting and publish in a peer-reviewed publication. The 30 mg dose of RINVOQ recorded superiority to adalimumab in terms of ACR20 response at week 12, whereas both doses achieved non-inferiority versus adalimumab. | (RTTNews) - AbbVie (ABBV) said, in a phase 3 SELECT-PsA 1 clinical trial, both doses of RINVOQTM (upadacitinib; 15 mg and 30 mg) met the primary endpoint of ACR20 response at week 12 versus placebo in adult patients with active psoriatic arthritis. RAbbVie will present the results from the SELECT-PsA 1 study at a future medical meeting and publish in a peer-reviewed publication. The 30 mg dose of RINVOQ recorded superiority to adalimumab in terms of ACR20 response at week 12, whereas both doses achieved non-inferiority versus adalimumab. | (RTTNews) - AbbVie (ABBV) said, in a phase 3 SELECT-PsA 1 clinical trial, both doses of RINVOQTM (upadacitinib; 15 mg and 30 mg) met the primary endpoint of ACR20 response at week 12 versus placebo in adult patients with active psoriatic arthritis. RAbbVie will present the results from the SELECT-PsA 1 study at a future medical meeting and publish in a peer-reviewed publication. The 30 mg dose of RINVOQ recorded superiority to adalimumab in terms of ACR20 response at week 12, whereas both doses achieved non-inferiority versus adalimumab. |
24719.0 | 2020-02-05 00:00:00 UTC | How Neurocrine Biosciences Crushed It in Q4 | ABBV | https://www.nasdaq.com/articles/how-neurocrine-biosciences-crushed-it-in-q4-2020-02-05 | nan | nan | No one can complain about Neurocrine Biosciences' (NASDAQ: NBIX) stock performance in 2019. The biotech's shares skyrocketed more than 50% last year. So far in 2020, though, Neurocrine hasn't given investors many reasons to cheer. Until now.
Neurocrine announced its 2019 fourth-quarter and full-year results after the market closed on Tuesday, and there was nothing but good news for investors. Here are the highlights of the biotech's Q4 update.
Image source: Getty Images.
By the numbers
Fourth-quarter revenue was $244.1 billion, a strong 86% year-over-year jump. This also came in well above the average analyst estimate of $230.9 million.
The company announced net income of $34 million, or $0.35 per share, based on generally accepted accounting principles (GAAP). This reflected a significant improvement from GAAP earnings of $18 million, or $0.19 per share, recorded in the same quarter of 2018.
Neurocrine posted Q4 adjusted net income of $102.2 million, or $1.05 per share. This blew away the biotech's adjusted earnings of $38.4 million, or $0.40 per share, in the prior-year period. It also trounced the consensus analyst estimate for adjusted earnings of $0.75 per share.
Behind the numbers
Q4 was all about Ingrezza, Neurocrine's tardive dyskinesia drug. Sales skyrocketed in the fourth quarter to account for roughly 97.5% of the company's total revenue. The remaining sliver came from collaboration revenue.
The company did get a boost from the timing of quarter-end purchases of Ingrezza. It said that its days-on-hand channel inventory at the end of the fourth quarter of 2019 increased from the third quarter because of these purchases. This resulted in higher net product sales of around $11 million.
It's always nice when sales rise at a faster rate than expenses. That's exactly what happened in the fourth quarter. The company's operating expenses rose 78% year over year to $195.3 million. But with revenue soaring by an even greater percentage, the bottom-line improvement was impressive.
Looking ahead
There's a lot to look forward to with Neurocrine in the coming months. CEO Kevin Gorman said, "By mid-2020, our activities position us to have three approved treatments in four indications and three additional ongoing pivotal studies."
Those three approved treatments referred to by Gorman include Ingrezza and Orilissa, which Neurocrine licensed to AbbVie. In addition, Neurocrine anticipates winning Food and Drug Administration approval by early April for opicapone in treating Parkinson's disease.
Biotech stocks could be rattled by the 2020 political campaign. Lawmakers from both major parties could support changes that would hurt drugmakers. But with multiple catalysts potentially on the way, the future looks pretty bright for Neurocrine.
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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. | Those three approved treatments referred to by Gorman include Ingrezza and Orilissa, which Neurocrine licensed to AbbVie. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie. The company announced net income of $34 million, or $0.35 per share, based on generally accepted accounting principles (GAAP). | Those three approved treatments referred to by Gorman include Ingrezza and Orilissa, which Neurocrine licensed to AbbVie. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie. No one can complain about Neurocrine Biosciences' (NASDAQ: NBIX) stock performance in 2019. | Those three approved treatments referred to by Gorman include Ingrezza and Orilissa, which Neurocrine licensed to AbbVie. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie. Neurocrine posted Q4 adjusted net income of $102.2 million, or $1.05 per share. | Those three approved treatments referred to by Gorman include Ingrezza and Orilissa, which Neurocrine licensed to AbbVie. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie. This reflected a significant improvement from GAAP earnings of $18 million, or $0.19 per share, recorded in the same quarter of 2018. |
24720.0 | 2020-02-05 00:00:00 UTC | AbbVie Reports Successful Trial Results for Arthritis Drug | ABBV | https://www.nasdaq.com/articles/abbvie-reports-successful-trial-results-for-arthritis-drug-2020-02-05 | nan | nan | AbbVie (NYSE: ABBV) reported that its new immunology drug Rinvoq (upadacitinib) successfully met primary and secondary endpoints in a registrational trial for treatment of psoriatic arthritis, clearing the way for the company to file a new drug application (NDA) for the indication later this year.
In the study of 1,705 adults who had previously been treated unsuccessfully with non-biologic arthritis drugs, 79% of the group taking the highest of two tested doses of Rinvoq had at least a 20% improvement in disease symptoms after 12 weeks compared with 36% of the placebo group. After 16 weeks, 62% of the group achieved a 75% improvement in skin symptoms, compared with 21% of the patients on a placebo. And at the 24-week mark, 45% of the high-dose group achieved minimal disease activity, the goal in treating arthritis, versus 12% in the placebo group.
Image source: Getty Images.
The trial also compared Rinvoq to AbbVie's Humira, the world's top-selling drug that's under threat from biosimilars, and those results may not be as conclusive as the company was hoping. Rinvoq was superior to Humira in producing a 20% symptom improvement after 12 weeks only at the higher dose and was shown only to be non-inferior at the lower dose. The company didn't release comparative results for Humira on the other efficacy measures.
The study confirmed results from an earlier, smaller study that read out in October, and AbbVie said in the last conference call that positive results from this trial would lead to regulatory submission in mid-2020 and commercialization in 2021. Rinvoq is already approved in the U.S. for rheumatoid arthritis and the company has the drug in trials for six other diseases.
AbbVie will report fourth-quarter earnings on Friday, Feb. 7.
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Jim Crumly 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. | AbbVie (NYSE: ABBV) reported that its new immunology drug Rinvoq (upadacitinib) successfully met primary and secondary endpoints in a registrational trial for treatment of psoriatic arthritis, clearing the way for the company to file a new drug application (NDA) for the indication later this year. The trial also compared Rinvoq to AbbVie's Humira, the world's top-selling drug that's under threat from biosimilars, and those results may not be as conclusive as the company was hoping. The study confirmed results from an earlier, smaller study that read out in October, and AbbVie said in the last conference call that positive results from this trial would lead to regulatory submission in mid-2020 and commercialization in 2021. | AbbVie (NYSE: ABBV) reported that its new immunology drug Rinvoq (upadacitinib) successfully met primary and secondary endpoints in a registrational trial for treatment of psoriatic arthritis, clearing the way for the company to file a new drug application (NDA) for the indication later this year. The trial also compared Rinvoq to AbbVie's Humira, the world's top-selling drug that's under threat from biosimilars, and those results may not be as conclusive as the company was hoping. The study confirmed results from an earlier, smaller study that read out in October, and AbbVie said in the last conference call that positive results from this trial would lead to regulatory submission in mid-2020 and commercialization in 2021. | AbbVie (NYSE: ABBV) reported that its new immunology drug Rinvoq (upadacitinib) successfully met primary and secondary endpoints in a registrational trial for treatment of psoriatic arthritis, clearing the way for the company to file a new drug application (NDA) for the indication later this year. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The trial also compared Rinvoq to AbbVie's Humira, the world's top-selling drug that's under threat from biosimilars, and those results may not be as conclusive as the company was hoping. | The trial also compared Rinvoq to AbbVie's Humira, the world's top-selling drug that's under threat from biosimilars, and those results may not be as conclusive as the company was hoping. AbbVie (NYSE: ABBV) reported that its new immunology drug Rinvoq (upadacitinib) successfully met primary and secondary endpoints in a registrational trial for treatment of psoriatic arthritis, clearing the way for the company to file a new drug application (NDA) for the indication later this year. The study confirmed results from an earlier, smaller study that read out in October, and AbbVie said in the last conference call that positive results from this trial would lead to regulatory submission in mid-2020 and commercialization in 2021. |
24721.0 | 2020-02-04 00:00:00 UTC | FDA Approves Emergency Use of Coronavirus Test | ABBV | https://www.nasdaq.com/articles/fda-approves-emergency-use-of-coronavirus-test-2020-02-05 | nan | nan | The U.S. Food and Drug Administration (FDA) released a press release Tuesday afternoon in which it approved the emergency use of a coronavirus test.
Developed by the Centers for Disease Control and Prevention (CDC), the 2019-nCoV Real-Time RT-PCR diagnostic panel is a test that has been limited only to CDC laboratories. However, this authorization from the FDA will allow any lab in the country that's CDC-qualified to test for the coronavirus themselves.
Although the threat of an epidemic in the U.S. remains low according to the FDA, it was still declared a public health emergency by the Trump administration last week.
While the CDC test, which requires either a nasal or oral swab from a patient, is capable of detecting the coronavirus, it's not 100% foolproof. The FDA warns that negative results don't necessarily preclude an infection, and that the test should be used as a tool alongside direct patient observation.
Image source: Getty Images.
At the moment, there are 11 identified cases of coronavirus in the United States. Approximately 23,892 patients have been diagnosed worldwide, with there being 492 deaths so far.
A race to find a treatment
Companies are working around the clock to develop and test a potential treatment for the coronavirus. Gilead (NASDAQ: GILD) announced yesterday that a patient who was given remdesivir (the company's Ebola drug) saw their symptoms almost disappear. Trials in China are expected to begin as early as next week.
Smaller specialty vaccine developers are working on a potential treatment as well. Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie.
10 stocks we like better than Gilead Sciences
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Mark Prvulovic has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. 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. | Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie. Although the threat of an epidemic in the U.S. remains low according to the FDA, it was still declared a public health emergency by the Trump administration last week. The FDA warns that negative results don't necessarily preclude an infection, and that the test should be used as a tool alongside direct patient observation. | Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie. The U.S. Food and Drug Administration (FDA) released a press release Tuesday afternoon in which it approved the emergency use of a coronavirus test. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie. The U.S. Food and Drug Administration (FDA) released a press release Tuesday afternoon in which it approved the emergency use of a coronavirus test. A race to find a treatment Companies are working around the clock to develop and test a potential treatment for the coronavirus. | Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie. The U.S. Food and Drug Administration (FDA) released a press release Tuesday afternoon in which it approved the emergency use of a coronavirus test. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
24722.0 | 2020-02-04 00:00:00 UTC | FDA Approves Emergency Use of Coronavirus Test | ABBV | https://www.nasdaq.com/articles/fda-approves-emergency-use-of-coronavirus-test-2020-02-05-0 | nan | nan | The U.S. Food and Drug Administration (FDA) released a press release Tuesday afternoon in which it approved the emergency use of a coronavirus test.
Developed by the Centers for Disease Control and Prevention (CDC), the 2019-nCoV Real-Time RT-PCR diagnostic panel is a test that has been limited only to CDC laboratories. However, this authorization from the FDA will allow any lab in the country that's CDC-qualified to test for the coronavirus themselves.
Although the threat of an epidemic in the U.S. remains low according to the FDA, it was still declared a public health emergency by the Trump administration last week.
While the CDC test, which requires either a nasal or oral swab from a patient, is capable of detecting the coronavirus, it's not 100% foolproof. The FDA warns that negative results don't necessarily preclude an infection, and that the test should be used as a tool alongside direct patient observation.
Image source: Getty Images.
At the moment, there are 11 identified cases of coronavirus in the United States. Approximately 23,892 patients have been diagnosed worldwide, with there being 492 deaths so far.
A race to find a treatment
Companies are working around the clock to develop and test a potential treatment for the coronavirus. Gilead (NASDAQ: GILD) announced yesterday that a patient who was given remdesivir (the company's Ebola drug) saw their symptoms almost disappear. Trials in China are expected to begin as early as next week.
Smaller specialty vaccine developers are working on a potential treatment as well. Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie.
10 stocks we like better than Gilead Sciences
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Gilead Sciences wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2019
Mark Prvulovic has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. 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. | Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie. Although the threat of an epidemic in the U.S. remains low according to the FDA, it was still declared a public health emergency by the Trump administration last week. The FDA warns that negative results don't necessarily preclude an infection, and that the test should be used as a tool alongside direct patient observation. | Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie. The U.S. Food and Drug Administration (FDA) released a press release Tuesday afternoon in which it approved the emergency use of a coronavirus test. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie. The U.S. Food and Drug Administration (FDA) released a press release Tuesday afternoon in which it approved the emergency use of a coronavirus test. A race to find a treatment Companies are working around the clock to develop and test a potential treatment for the coronavirus. | Inovio Pharmaceuticals and Moderna are two companies competing with not just the likes of Gilead, but also against other healthcare giants such as Johnson & Johnson and AbbVie. The U.S. Food and Drug Administration (FDA) released a press release Tuesday afternoon in which it approved the emergency use of a coronavirus test. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
24723.0 | 2020-02-03 00:00:00 UTC | Gilead's Ebola Drug Shows Positive Signs in Treating Coronavirus | ABBV | https://www.nasdaq.com/articles/gileads-ebola-drug-shows-positive-signs-in-treating-coronavirus-2020-02-03 | nan | nan | Gilead Sciences (NASDAQ: GILD) shot up as much as 13% on the news that its failed Ebola drug, remdesivir, showed promising initial signs of helping patients with the coronavirus. In an official statement before the weekend, the company announced it was working together with U.S. and Chinese health regulators to see whether remdesivir could improve patient symptoms.
The company stated that remdesivir saw some success in treating patients with SARS and MERS, two other viruses with similarities with the coronavirus when tested in animals. Remdesivir was also tested on one U.S. coronavirus patient prior to the weekend, who showed an impressive improvement in symptoms following a single dose.
Image source: Getty Images.
The New England Journal of Medicine reported that a U.S. patient received a dose of remdesivir from doctors on a compassionate use basis. Whereas the patient had been showing signs of pneumonia, fever, and required supplemental oxygen, after remdesivir was given, all symptoms disappeared except for a cough and mucus buildup in the nasal cavity (rhinorrhea).
Further details
While impressive, further clinical tests need to be performed before Gilead's remdesivir can be recommended for widespread coronavirus treatment. Other pharmaceutical giants are also hoping to develop a treatment, with Johnson & Johnson and GlaxoSmithKline working on their own vaccines. AbbVie stated it saw positive results by mixing two HIV medications with another drug called Tamiflu.
However, the biggest winners over the past few weeks have been small-cap specialty vaccine producers. Moderna and Inovio Pharmaceuticals have seen substantial swings in their stock prices as the coronavirus continues to spread. There are now 362 confirmed deaths from the outbreak so far.
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Mark Prvulovic has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. 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. | AbbVie stated it saw positive results by mixing two HIV medications with another drug called Tamiflu. Gilead Sciences (NASDAQ: GILD) shot up as much as 13% on the news that its failed Ebola drug, remdesivir, showed promising initial signs of helping patients with the coronavirus. In an official statement before the weekend, the company announced it was working together with U.S. and Chinese health regulators to see whether remdesivir could improve patient symptoms. | AbbVie stated it saw positive results by mixing two HIV medications with another drug called Tamiflu. Remdesivir was also tested on one U.S. coronavirus patient prior to the weekend, who showed an impressive improvement in symptoms following a single dose. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | AbbVie stated it saw positive results by mixing two HIV medications with another drug called Tamiflu. Gilead Sciences (NASDAQ: GILD) shot up as much as 13% on the news that its failed Ebola drug, remdesivir, showed promising initial signs of helping patients with the coronavirus. 10 stocks we like better than Gilead Sciences When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | AbbVie stated it saw positive results by mixing two HIV medications with another drug called Tamiflu. Remdesivir was also tested on one U.S. coronavirus patient prior to the weekend, who showed an impressive improvement in symptoms following a single dose. The Motley Fool owns shares of and recommends Gilead Sciences. |
24724.0 | 2020-02-03 00:00:00 UTC | Invesco S&P Ultra Dividend Revenue ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/invesco-sp-ultra-dividend-revenue-etf-experiences-big-inflow-2020-02-03 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P Ultra Dividend Revenue ETF (Symbol: RDIV) where we have detected an approximate $208.2 million dollar inflow -- that's a 13.6% increase week over week in outstanding units (from 41,150,000 to 46,750,000). Among the largest underlying components of RDIV, in trading today Cardinal Health, Inc. (Symbol: CAH) is up about 1.6%, International Business Machines Corp (Symbol: IBM) is up about 2.3%, and AbbVie Inc (Symbol: ABBV) is up by about 1.7%. For a complete list of holdings, visit the RDIV Holdings page » The chart below shows the one year price performance of RDIV, versus its 200 day moving average:
Looking at the chart above, RDIV's low point in its 52 week range is $34.1701 per share, with $40.1066 as the 52 week high point — that compares with a last trade of $37.51. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of RDIV, in trading today Cardinal Health, Inc. (Symbol: CAH) is up about 1.6%, International Business Machines Corp (Symbol: IBM) is up about 2.3%, and AbbVie Inc (Symbol: ABBV) is up by about 1.7%. For a complete list of holdings, visit the RDIV Holdings page » The chart below shows the one year price performance of RDIV, versus its 200 day moving average: Looking at the chart above, RDIV's low point in its 52 week range is $34.1701 per share, with $40.1066 as the 52 week high point — that compares with a last trade of $37.51. 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 RDIV, in trading today Cardinal Health, Inc. (Symbol: CAH) is up about 1.6%, International Business Machines Corp (Symbol: IBM) is up about 2.3%, and AbbVie Inc (Symbol: ABBV) is up by about 1.7%. For a complete list of holdings, visit the RDIV Holdings page » The chart below shows the one year price performance of RDIV, versus its 200 day moving average: Looking at the chart above, RDIV's low point in its 52 week range is $34.1701 per share, with $40.1066 as the 52 week high point — that compares with a last trade of $37.51. 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 RDIV, in trading today Cardinal Health, Inc. (Symbol: CAH) is up about 1.6%, International Business Machines Corp (Symbol: IBM) is up about 2.3%, and AbbVie Inc (Symbol: ABBV) is up by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P Ultra Dividend Revenue ETF (Symbol: RDIV) where we have detected an approximate $208.2 million dollar inflow -- that's a 13.6% increase week over week in outstanding units (from 41,150,000 to 46,750,000). For a complete list of holdings, visit the RDIV Holdings page » The chart below shows the one year price performance of RDIV, versus its 200 day moving average: Looking at the chart above, RDIV's low point in its 52 week range is $34.1701 per share, with $40.1066 as the 52 week high point — that compares with a last trade of $37.51. | Among the largest underlying components of RDIV, in trading today Cardinal Health, Inc. (Symbol: CAH) is up about 1.6%, International Business Machines Corp (Symbol: IBM) is up about 2.3%, and AbbVie Inc (Symbol: ABBV) is up by about 1.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P Ultra Dividend Revenue ETF (Symbol: RDIV) where we have detected an approximate $208.2 million dollar inflow -- that's a 13.6% increase week over week in outstanding units (from 41,150,000 to 46,750,000). For a complete list of holdings, visit the RDIV Holdings page » The chart below shows the one year price performance of RDIV, versus its 200 day moving average: Looking at the chart above, RDIV's low point in its 52 week range is $34.1701 per share, with $40.1066 as the 52 week high point — that compares with a last trade of $37.51. |
24725.0 | 2020-02-03 00:00:00 UTC | 3 Growth Stocks for Low Risk Investors | ABBV | https://www.nasdaq.com/articles/3-growth-stocks-for-low-risk-investors-2020-02-03 | nan | nan | Major market benchmarks hit new highs in early 2020 as a wave of optimism swept over the market. But sentiment can turn sharply at any moment, as investors are seeing recently with worries about the coronavirus outbreak, and conservative investors may be wondering whether it's worth the risk to own growth stocks right now.
Fortunately, there are stocks that give investors ways to profit from strong growth trends with less risk than what comes with other companies that tend to be considered growth stocks. SVB Financial Group (NASDAQ: SIVB), AbbVie (NYSE: ABBV), and NextEra Energy (NYSE: NEE) all offer opportunities for low-risk investors to get long-term growth in their portfolios without losing sleep.
Image source: Getty Images.
SVB Financial Group
Despite a run in the latter half of 2019, bank stocks continue to be valued well below the market as a whole. The financial sector sells at the lowest multiple of forward earnings of any of the S&P market sectors: 13.2 times compared with 18.8 times for the S&P 500 overall, according to Yardeni Research. Investors may be skeptical of the ability of banks to grow earnings in an environment with a flat or inverted yield curve, but SVB Financial, the parent company of Silicon Valley Bank, has growth opportunities fueled by the technology industries it serves.
Image source: Getty Images.
SVB provides banking and financial services to entrepreneurs and clients, chiefly in the technology and healthcare sectors. The company has a private banking business primarily for wealthy individuals and a commercial banking business that extends loans to companies and serves private equity. This lets it take advantage of its access to the vibrant tech ecosystem in Silicon Valley. It also has a venture capital arm that invests in early-stage companies and profits from initial public offerings and mergers and acquisitions.
SVB's earnings per share grew 20% in 2019. The company had the same challenges with net interest margin that other banks had, but it still managed to grow net interest income by 11%, thanks largely to 17% growth in its loan portfolio. SVB grew its average client funds by 19% and increased core fee income 24% during the year. It's also been very successful in acquiring new clients, growing its client base at a 16% annualized rate over the last five years.
Despite the rapid growth and a 20% return on equity, which is twice the performance of some big money-center banks, shares of SVB Financial sell for under 13 times analyst estimates for 2020 EPS. This underappreciated, high-quality bank stock is a good way for risk-adverse investors to profit from growth of technology and life sciences without placing risky bets on individual emerging companies.
AbbVie
The healthcare sector is a good place for conservative investors to find stocks that have growth that holds up in economic downturns along with dividends. One stock that was kicked to the curb by the market last year but is still growing and making hefty dividend payouts is pharmaceutical giant AbbVie.
Image source: Getty Images.
AbbVie is the maker of the top-selling drug in the world, Humira, but that tremendous positive has turned into a negative for investors as competition from biosimilars has started to eat away at sales. In the most recent quarter, revenue from Humira made up 58% of the company's total but fell 3.7%. The quarter was still viewed as a success by investors, though, as other winners in the company's portfolio put up big gains. Total revenue grew 3% to $8.5 billion, and adjusted earnings per share increased 9% to $2.33. For the first nine months of 2019, EPS was up 12% from the period a year before.
Also weighing on shares is investor concern about AbbVie's pending acquisition of Allergan (NYSE: AGN). The deal had a huge $63 billion price tag, and Allergan (the maker of Botox) has had growth challenges of its own. But the deal makes sense as a way to dilute the effects of competition for Humira while the company works on next-generation immunology drugs to replace Humira and its biosimilars with more-effective treatments.
If you're thinking AbbVie is a dividend stock, you're right. The company recently hiked its payout by 10% to give the stock a 5.8% yield, a move that indicates confidence in continued strong cash flow and helps support the stock price.
But AbbVie is also a growth stock that's very cheap right now. Growth from the Allergan acquisition, next-generation immunology drugs, continued success of its blood cancer drugs, and a strong development pipeline will make up for portfolio losses and keep the company growing, albeit at a muted pace for a while. Analysts expect earnings to grow 6% in 2020, and shares sell at only 8.5 times the consensus EPS estimate for this year.
NextEra Energy
You wouldn't ordinarily consider utilities to be growth stocks, since they operate in a very heavily regulated industry. But NextEra Energy stands out in the sector as a company that has some of the conservative characteristics of a dividend-paying utility stock along with a strong growth component fueled by the renewable energy trend.
Solar array at Florida Power & Light. Image source: NextEra Energy.
NextEra is made up of three main businesses: Florida Power & Light (FPL), the largest rate-regulated electric utility in the U.S.; Gulf Power, a smaller Florida utility that the company acquired recently; and NextEra Energy Resources (NEER), the world's largest generator of renewable energy from the wind and sun, and a major supplier of utility-scale battery storage. The regulated utilities provide steady and predictable cash flows while NEER is driving most of the growth with wind and solar installations in 36 states, Canada, and Spain.
For 2019, NextEra's adjusted EPS increased 8.7%. The company expects earnings growth for the next three years to be "near the top end" of its long-range growth goal of 6% to 8%. It also recently raised the dividend about 13% for a yield of 1.9%. NextEra's capital investments boosted FPL's contribution to adjusted earnings by about 6%, while new renewable energy projects drove 11% earnings growth from NEER.
NextEra's stock isn't as cheap as the other two picks, selling for 30 times analyst estimates for 2020 EPS, but investors have been virtually unwavering in their willingness to pay up for the company's predictable growth, as the chart below shows.
NextEra Energy 5-year share price by YCharts.
With a growing economy in Florida supporting NextEra's regulated utility businesses, a massive opportunity to build renewable energy installations in the U.S. and internationally, and a rock-solid balance sheet to support acquisitions, NextEra Energy is a nice choice for investors who want growth without drama.
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SVB Financial provides credit and banking services to The Motley Fool. Jim Crumly owns shares of AbbVie, NextEra Energy, and SVB Financial Group. The Motley Fool owns shares of and recommends SVB Financial Group. The Motley Fool recommends NextEra Energy. 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 is the maker of the top-selling drug in the world, Humira, but that tremendous positive has turned into a negative for investors as competition from biosimilars has started to eat away at sales. SVB Financial Group (NASDAQ: SIVB), AbbVie (NYSE: ABBV), and NextEra Energy (NYSE: NEE) all offer opportunities for low-risk investors to get long-term growth in their portfolios without losing sleep. AbbVie The healthcare sector is a good place for conservative investors to find stocks that have growth that holds up in economic downturns along with dividends. | SVB Financial Group (NASDAQ: SIVB), AbbVie (NYSE: ABBV), and NextEra Energy (NYSE: NEE) all offer opportunities for low-risk investors to get long-term growth in their portfolios without losing sleep. AbbVie The healthcare sector is a good place for conservative investors to find stocks that have growth that holds up in economic downturns along with dividends. One stock that was kicked to the curb by the market last year but is still growing and making hefty dividend payouts is pharmaceutical giant AbbVie. | SVB Financial Group (NASDAQ: SIVB), AbbVie (NYSE: ABBV), and NextEra Energy (NYSE: NEE) all offer opportunities for low-risk investors to get long-term growth in their portfolios without losing sleep. AbbVie The healthcare sector is a good place for conservative investors to find stocks that have growth that holds up in economic downturns along with dividends. One stock that was kicked to the curb by the market last year but is still growing and making hefty dividend payouts is pharmaceutical giant AbbVie. | SVB Financial Group (NASDAQ: SIVB), AbbVie (NYSE: ABBV), and NextEra Energy (NYSE: NEE) all offer opportunities for low-risk investors to get long-term growth in their portfolios without losing sleep. AbbVie The healthcare sector is a good place for conservative investors to find stocks that have growth that holds up in economic downturns along with dividends. One stock that was kicked to the curb by the market last year but is still growing and making hefty dividend payouts is pharmaceutical giant AbbVie. |
24726.0 | 2020-02-02 00:00:00 UTC | Where Will Vertex Pharmaceuticals Be in 10 Years? | ABBV | https://www.nasdaq.com/articles/where-will-vertex-pharmaceuticals-be-in-10-years-2020-02-02 | nan | nan | It's easy to grasp how Vertex Pharmaceuticals (NASDAQ: VRTX) got to where it is today. A decade ago, the biotech's market cap hovered around $8 billion. Vertex's lead pipeline candidate was hepatitis C virus (HCV) drug telaprevir, which went on to win FDA approval in 2011. The drug was marketed under the brand name Incivek -- but only briefly. Vertex quit selling the HCV drug in 2014 because Gilead Sciences' HCV franchise was dominating the market.
However, Vertex had another program in development targeting cystic fibrosis (CF). Its first CF drug, Kalydeco, won FDA approval in 2012. The rest is history. Vertex went on to gain FDA approvals for three other CF drugs. It's now highly profitable with annual revenue approaching $4 billion. And its stock has skyrocketed more than 500% over the last 10 years.
Trying to predict where Vertex will be 10 years from now isn't as easy. But there are some clues from the present that point to the prospects for another highly successful decade for the biotech.
Image source: Getty Images.
A reigning juggernaut
The safest prediction of all for Vertex is that it will remain a juggernaut in CF in 2030. Vertex won FDA approval for its most powerful CF drug yet -- Trikafta -- in October 2019. European approval for the drug is likely on the way this year.
Vertex expects that Trikafta will expand the addressable patient population for its CF therapies by more than 50%. The company also has three other CF drugs in its pipeline, including two programs that, like Trikafta, are triple-drug combos.
Currently, there are no other approved drugs that treat the underlying cause of CF. AbbVie is evaluating a triple-drug CF combo that it picked up from Galapagos in a phase 1 clinical study, but it's way behind Vertex. Even if AbbVie's drug proves to be successful, it would at best be several years before the drug could win approval. By that time, Vertex will already have further entrenched itself in the CF market.
Although the patents for Kalydeco, Orkambi, and Symdeko will expire near the end of the decade, Vertex's patents for Trikafta won't expire until 2037. The company could face generic rivals for its older CF drugs, but there's no reason to expect that Vertex's CF franchise won't still be racking up huge sales.
Most likely additions
Vertex doesn't plan on being a one-indication company 10 years from now, though. The biotech has been busy expanding its pipeline and advancing the most promising programs.
The most likely addition to Vertex's lineup in 2030 will be a pain medication. Vertex has already completed phase 2 clinical studies for experimental pain drug VX-150. Chief Medical Officer and soon-to-be CEO Reshma Kewalramani said in Vertex's Q3 conference call in October that the company is "advancing multiple selective NaV1.8 inhibitors through late-stage research and early clinical development."
I think that Vertex and its partner CRISPR Therapeutics also have a good chance of launching a few years from now a gene-editing therapy that effectively cures rare blood disorders beta-thalassemia and sickle cell disease. The two companies are currently evaluating gene-editing therapy CTX001 in phase 1/2 studies targeting both indications and have reported encouraging preliminary results.
Another indication that could be a big winner for Vertex by the end of this decade is alpha-1 antitrypsin deficiency (AATD). Like CF, AATD is a rare genetic disease caused by misfolding proteins. Vertex has two experimental AATD drugs in early stage testing. My hunch is that the company's CF expertise combined with the similarity between AATD and CF could boost the odds of success for this program.
Vertex also has an early stage program targeting APOL-1 mediated kidney diseases. The biotech hopes to advance a drug to phase 2 testing this year. If all goes well, this could be yet another new arena for Vertex to dominate by the end of the decade.
A potential game-changer
Then there's the huge potential game-changer. Vertex acquired privately held Semma Therapeutics for $950 million last year. Semma is developing a drug that could cure type 1 diabetes.
Semma's approach is to turn pluripotent stem cells into islets that produce insulin in the needed amounts to keep blood sugar levels in check. This program is in its very early innings right now. So far, Semma has conducted promising lab tests but hasn't initiated any clinical studies in humans.
Curing type 1 diabetes presents an enormous opportunity for Vertex. Over 1.5 million people have type 1 diabetes in the U.S. alone. Vertex has had its eye on several companies in recent years that have made progress in addressing issues related to islet transplantation to treat type 1 diabetes. The big biotech thinks that Semma has a solution and is confident enough about its prospects to write a really big check to acquire the small drugmaker.
The future looks bright
Will Vertex really have successful drugs on the market that target five or more rare genetic diseases in addition to more common indications like pain and type 1 diabetes 10 years from now? There's no way to know for sure. Many promising early stage programs fail along the way.
However, there are some things we can be certain about with Vertex. It claims a commanding lead in CF. It has the expertise needed to develop therapies targeting other rare genetic diseases. It has plenty of money to continue investing in research and development and acquisitions. And it has multiple shots on goal. Not all of them have to pan out for Vertex to win.
My view is that Vertex is the best biotech stock on the market right now. I think that it's future looks really bright.
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Keith Speights owns shares of AbbVie, Gilead Sciences, and Vertex Pharmaceuticals. The Motley Fool owns shares of and recommends CRISPR Therapeutics and Gilead Sciences. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie is evaluating a triple-drug CF combo that it picked up from Galapagos in a phase 1 clinical study, but it's way behind Vertex. Even if AbbVie's drug proves to be successful, it would at best be several years before the drug could win approval. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Gilead Sciences, and Vertex Pharmaceuticals. | AbbVie is evaluating a triple-drug CF combo that it picked up from Galapagos in a phase 1 clinical study, but it's way behind Vertex. Even if AbbVie's drug proves to be successful, it would at best be several years before the drug could win approval. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Gilead Sciences, and Vertex Pharmaceuticals. | AbbVie is evaluating a triple-drug CF combo that it picked up from Galapagos in a phase 1 clinical study, but it's way behind Vertex. Even if AbbVie's drug proves to be successful, it would at best be several years before the drug could win approval. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Gilead Sciences, and Vertex Pharmaceuticals. | AbbVie is evaluating a triple-drug CF combo that it picked up from Galapagos in a phase 1 clinical study, but it's way behind Vertex. Even if AbbVie's drug proves to be successful, it would at best be several years before the drug could win approval. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Gilead Sciences, and Vertex Pharmaceuticals. |
24727.0 | 2020-01-31 00:00:00 UTC | Eli Lilly Launches a New Migraine Drug | ABBV | https://www.nasdaq.com/articles/eli-lilly-launches-a-new-migraine-drug-2020-01-31 | nan | nan | Eli Lilly (NYSE: LLY) launched its new pill for the acute treatment of migraines Friday after the Drug Enforcement Administration completed its review of the drug and classified it as having a low potential for abuse or dependence. Reyvow is the first drug of a new class, and treats not only pain, but sensitivity to light, sensitivity to sound, and nausea. It's the first new type of acute migraine drug to come to market in more than two decades.
Reyvow was approved by the Food and Drug Administration in October, but a DEA review was required because it acts on the central nervous system. Now that it has received a favorable decision on the scheduling of the drug, Lilly said it will be available for prescription immediately and will be in pharmacies in the next few days.
Image source: Getty Images.
The new migraine drug joins Emgality in Lilly's portfolio, the company's relatively new monthly injection for the prevention of migraines. Sales of Emgality have been ramping up quickly -- it generated $66 million in revenue in the fourth quarter. Lilly thinks it'll be able to leverage the infrastructure and experience from the Emgality launch to strengthen its position with Reyvow.
However, Reyvow will soon have additional competition. Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. That drug is expected to become available this quarter.
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Jim Crumly 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. | Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie. Reyvow was approved by the Food and Drug Administration in October, but a DEA review was required because it acts on the central nervous system. | Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie. Eli Lilly (NYSE: LLY) launched its new pill for the acute treatment of migraines Friday after the Drug Enforcement Administration completed its review of the drug and classified it as having a low potential for abuse or dependence. | Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie. Eli Lilly (NYSE: LLY) launched its new pill for the acute treatment of migraines Friday after the Drug Enforcement Administration completed its review of the drug and classified it as having a low potential for abuse or dependence. | Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie. Eli Lilly (NYSE: LLY) launched its new pill for the acute treatment of migraines Friday after the Drug Enforcement Administration completed its review of the drug and classified it as having a low potential for abuse or dependence. |
24728.0 | 2020-01-31 00:00:00 UTC | AbbVie Gets Good News on 2 Drugs from EU Committee | ABBV | https://www.nasdaq.com/articles/abbvie-gets-good-news-on-2-drugs-from-eu-committee-2020-01-31 | nan | nan | The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has recommended that the agency expand its marketing authorization for two drugs from AbbVie (NYSE: ABBV): chronic lymphocytic leukemia (CLL) treatment Venclyxto and hepatitis C drug Maviret.
Venclyxto, which targets a protein called B-cell lymphoma-2, is already approved in Europe to treat CLL patients for whom previous medications have failed, with or without Roche (OTC: RHHBY) and Biogen's Rituxan.
The new approval, if given, would allow Venclyxto to be used with Roche's Gazyva in CLL patients who haven't previously been treated, expanding the drug's potential market size. The positive opinion was based on data from the CLL14 clinical trial, which showed Venclyxto plus Gazyva helped patients live longer without their cancers progressing compared to Gazyva plus a chemotherapy called chlorambucil.
Image source: Getty Images.
Shorter treatment
Maviret is currently approved as a 12-week treatment regimen for patients infected with genotype 3 chronic hepatitis C virus with compensated cirrhosis of the liver, but the approval being sought would shorten the treatment to just eight weeks.
In the Expedition-8 clinical trial, Maviret, which is already approved for an 8-week regimen when treating the other 5 hepatitis C genotypes, cured 95.2% of patients with genotype 3 infections. The approval would make Maviret the only drug approved in the EU for 8-week treatment for all genotypes in patients without cirrhosis or with compensated cirrhosis. That would help Abbvie compete against Gilead Sciences' rival hepatitis C drugs Harvoni and Epclusa.
The European Commission is expected to make its final decisions on those CHMP recommendations in the first half of this year.
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Brian Orelli has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Biogen and Gilead Sciences. 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 European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has recommended that the agency expand its marketing authorization for two drugs from AbbVie (NYSE: ABBV): chronic lymphocytic leukemia (CLL) treatment Venclyxto and hepatitis C drug Maviret. That would help Abbvie compete against Gilead Sciences' rival hepatitis C drugs Harvoni and Epclusa. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has recommended that the agency expand its marketing authorization for two drugs from AbbVie (NYSE: ABBV): chronic lymphocytic leukemia (CLL) treatment Venclyxto and hepatitis C drug Maviret. That would help Abbvie compete against Gilead Sciences' rival hepatitis C drugs Harvoni and Epclusa. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has recommended that the agency expand its marketing authorization for two drugs from AbbVie (NYSE: ABBV): chronic lymphocytic leukemia (CLL) treatment Venclyxto and hepatitis C drug Maviret. That would help Abbvie compete against Gilead Sciences' rival hepatitis C drugs Harvoni and Epclusa. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | The European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) has recommended that the agency expand its marketing authorization for two drugs from AbbVie (NYSE: ABBV): chronic lymphocytic leukemia (CLL) treatment Venclyxto and hepatitis C drug Maviret. That would help Abbvie compete against Gilead Sciences' rival hepatitis C drugs Harvoni and Epclusa. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. |
24729.0 | 2020-01-31 00:00:00 UTC | AbbVie Reports CHMP Positive Opinion For VENCLYXTO - Quick Facts | ABBV | https://www.nasdaq.com/articles/abbvie-reports-chmp-positive-opinion-for-venclyxto-quick-facts-2020-01-31 | nan | nan | (RTTNews) - AbbVie (ABBV) said CHMP, the Committee of the European Medicines Agency, has granted a positive opinion for VENCLYXTO (venetoclax) in combination with obinutuzumab for the treatment of patients with chronic lymphocytic leukemia who were previously untreated. The final decision by European Commission is expected in the first half of 2020.
Neil Gallagher, chief medical officer and vice president of development, said: "If approved by the EC, the venetoclax and obinutuzumab combination would be the first chemotherapy-free option for treatment-naïve patients with chronic lymphocytic leukemia where dosing can be completed in one year."
VENCLYXTO is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) said CHMP, the Committee of the European Medicines Agency, has granted a positive opinion for VENCLYXTO (venetoclax) in combination with obinutuzumab for the treatment of patients with chronic lymphocytic leukemia who were previously untreated. VENCLYXTO is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) said CHMP, the Committee of the European Medicines Agency, has granted a positive opinion for VENCLYXTO (venetoclax) in combination with obinutuzumab for the treatment of patients with chronic lymphocytic leukemia who were previously untreated. VENCLYXTO is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. | (RTTNews) - AbbVie (ABBV) said CHMP, the Committee of the European Medicines Agency, has granted a positive opinion for VENCLYXTO (venetoclax) in combination with obinutuzumab for the treatment of patients with chronic lymphocytic leukemia who were previously untreated. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. VENCLYXTO is being developed by AbbVie and Roche. | (RTTNews) - AbbVie (ABBV) said CHMP, the Committee of the European Medicines Agency, has granted a positive opinion for VENCLYXTO (venetoclax) in combination with obinutuzumab for the treatment of patients with chronic lymphocytic leukemia who were previously untreated. VENCLYXTO is being developed by AbbVie and Roche. It is jointly commercialized by AbbVie and Genentech, a member of the Roche Group, in the U.S. and by AbbVie outside of the U.S. |
24730.0 | 2020-01-31 00:00:00 UTC | Eli Lilly Launches a New Migraine Drug | ABBV | https://www.nasdaq.com/articles/eli-lilly-launches-a-new-migraine-drug-2020-01-31-0 | nan | nan | Eli Lilly (NYSE: LLY) launched its new pill for the acute treatment of migraines Friday after the Drug Enforcement Administration completed its review of the drug and classified it as having a low potential for abuse or dependence. Reyvow is the first drug of a new class, and treats not only pain, but sensitivity to light, sensitivity to sound, and nausea. It's the first new type of acute migraine drug to come to market in more than two decades.
Reyvow was approved by the Food and Drug Administration in October, but a DEA review was required because it acts on the central nervous system. Now that it has received a favorable decision on the scheduling of the drug, Lilly said it will be available for prescription immediately and will be in pharmacies in the next few days.
Image source: Getty Images.
The new migraine drug joins Emgality in Lilly's portfolio, the company's relatively new monthly injection for the prevention of migraines. Sales of Emgality have been ramping up quickly -- it generated $66 million in revenue in the fourth quarter. Lilly thinks it'll be able to leverage the infrastructure and experience from the Emgality launch to strengthen its position with Reyvow.
However, Reyvow will soon have additional competition. Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. That drug is expected to become available this quarter.
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Jim Crumly 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. | Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie. Reyvow was approved by the Food and Drug Administration in October, but a DEA review was required because it acts on the central nervous system. | Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie. Eli Lilly (NYSE: LLY) launched its new pill for the acute treatment of migraines Friday after the Drug Enforcement Administration completed its review of the drug and classified it as having a low potential for abuse or dependence. | Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie. Eli Lilly (NYSE: LLY) launched its new pill for the acute treatment of migraines Friday after the Drug Enforcement Administration completed its review of the drug and classified it as having a low potential for abuse or dependence. | Allergan (NYSE: AGN), which is seeking to merge with AbbVie (NYSE: ABBV), received approval in December for Ugality, an oral acute treatment of migraines that's in the same drug class as Emgality. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jim Crumly owns shares of AbbVie. Eli Lilly (NYSE: LLY) launched its new pill for the acute treatment of migraines Friday after the Drug Enforcement Administration completed its review of the drug and classified it as having a low potential for abuse or dependence. |
24731.0 | 2020-01-30 00:00:00 UTC | Relative Strength Alert For AbbVie | ABBV | https://www.nasdaq.com/articles/relative-strength-alert-for-abbvie-2020-01-30 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $81.18 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 49.9. A bullish investor could look at ABBV's 28.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABBV shares:
Looking at the chart above, ABBV's low point in its 52 week range is $62.66 per share, with $91.99 as the 52 week high point — that compares with a last trade of $81.52.
Find out what 9 other oversold stocks you need to know about »
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) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $81.18 per share. A bullish investor could look at ABBV's 28.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $62.66 per share, with $91.99 as the 52 week high point — that compares with a last trade of $81.52. | A bullish investor could look at ABBV's 28.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $62.66 per share, with $91.99 as the 52 week high point — that compares with a last trade of $81.52. In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $81.18 per share. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $81.18 per share. A bullish investor could look at ABBV's 28.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $62.66 per share, with $91.99 as the 52 week high point — that compares with a last trade of $81.52. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 28.2, after changing hands as low as $81.18 per share. A bullish investor could look at ABBV's 28.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $62.66 per share, with $91.99 as the 52 week high point — that compares with a last trade of $81.52. |
24732.0 | 2020-01-30 00:00:00 UTC | March 13th Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/march-13th-options-now-available-for-abbvie-abbv-2020-01-30 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 13th contracts and identified one put and one call contract of particular interest.
The put contract at the $78.00 strike price has a current bid of 2 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $78.00, but will also collect the premium, putting the cost basis of the shares at $77.98 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $81.42/share today.
Because the $78.00 strike represents an approximate 4% 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 68%. 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 0.03% return on the cash commitment, or 0.22% 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 $78.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $82.00 strike price has a current bid of 50 cents. If an investor was to purchase shares of ABBV stock at the current price level of $81.42/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $82.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 1.33% if the stock gets called away at the March 13th 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 $82.00 strike highlighted in red:
Considering the fact that the $82.00 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 53%. 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 0.61% boost of extra return to the investor, or 5.22% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 48%, while the implied volatility in the call contract example is 44%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $81.42) to be 26%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of Stocks Conducting Buybacks »
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 $82.00 strike highlighted in red: Considering the fact that the $82.00 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 begin trading today, for the March 13th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $82.00 strike highlighted in red: Considering the fact that the $82.00 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 begin trading today, for the March 13th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 13th 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 $78.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $82.00 strike price has a current bid of 50 cents. Below is a chart showing ABBV's trailing twelve month trading history, with the $82.00 strike highlighted in red: Considering the fact that the $82.00 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 begin trading today, for the March 13th expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new March 13th 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 $82.00 strike highlighted in red: Considering the fact that the $82.00 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 begin trading today, for the March 13th expiration. |
24733.0 | 2020-01-29 00:00:00 UTC | IWM, RNDV: Big ETF Outflows | ABBV | https://www.nasdaq.com/articles/iwm-rndv%3A-big-etf-outflows-2020-01-29 | nan | nan | Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Russell 2000 ETF, where 7,250,000 units were destroyed, or a 2.6% decrease week over week. Among the largest underlying components of IWM, in morning trading today Novocure is up about 0.1%, and Teladoc Health is higher by about 1.2%.
And on a percentage change basis, the ETF with the biggest outflow was the US Equity Dividend Select ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. Among the largest underlying components of RNDV, in morning trading today Intelsat is down about 21.9%, and Abbvie is lower by about 0.3%.
VIDEO: IWM, RNDV: Big ETF 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 RNDV, in morning trading today Intelsat is down about 21.9%, and Abbvie is lower by about 0.3%. Among the largest underlying components of IWM, in morning trading today Novocure is up about 0.1%, and Teladoc Health is higher by about 1.2%. And on a percentage change basis, the ETF with the biggest outflow was the US Equity Dividend Select ETF, which lost 100,000 of its units, representing a 33.3% decline in outstanding units compared to the week prior. | Among the largest underlying components of RNDV, in morning trading today Intelsat is down about 21.9%, and Abbvie is lower by about 0.3%. Among the largest underlying components of IWM, in morning trading today Novocure is up about 0.1%, and Teladoc Health is higher by about 1.2%. VIDEO: IWM, RNDV: Big ETF 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 RNDV, in morning trading today Intelsat is down about 21.9%, and Abbvie is lower by about 0.3%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Russell 2000 ETF, where 7,250,000 units were destroyed, or a 2.6% decrease week over week. Among the largest underlying components of IWM, in morning trading today Novocure is up about 0.1%, and Teladoc Health is higher by about 1.2%. | Among the largest underlying components of RNDV, in morning trading today Intelsat is down about 21.9%, and Abbvie is lower by about 0.3%. Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the iShares Russell 2000 ETF, where 7,250,000 units were destroyed, or a 2.6% decrease week over week. Among the largest underlying components of IWM, in morning trading today Novocure is up about 0.1%, and Teladoc Health is higher by about 1.2%. |
24734.0 | 2020-01-29 00:00:00 UTC | 2 of the Best Healthcare Stocks to Buy Today | ABBV | https://www.nasdaq.com/articles/2-of-the-best-healthcare-stocks-to-buy-today-2020-01-29 | nan | nan | The healthcare industry is a great place to invest because it can give investors some safe stocks to buy and hold. Health stocks are normally not very volatile and they can be profitable investments to put in your portfolio for many years.
One criticism is that they may lack growth opportunities. However, that's not the case with the two stocks below, which have been growing sales and are still attractive value buys today.
1. Biogen
Biogen's (NASDAQ: BIIB) top line reflected more than $14.2 billion in sales over the past 12 months as it looks to be on track for another improved year. In 2018, sales of $13.5 billion rose 9.6% from the prior year and 2017's revenue of $12.3 billion increased by 7.2% from 2016. Those aren't the sky-high growth numbers you'll find with the latest and greatest tech stocks, but they're still solid revenue figures in an industry where growth can be hard to come by.
One area where Biogen can see a lot more growth is with aducanumab, its Alzheimer's drug. Analysts are expecting the company to submit it to the Food and Drug Administration (FDA) for approval "within weeks." If approved, the drug can significantly improve Biogen's sales. Analysts are projecting that aducanumab could generate close to $4 billion in revenue annually as early as 2024.
Image source: Getty Images.
However, it's still a bit of a question mark as the company had mixed results from the drug in 2019 and even looked to abandon it at one point. But it is going ahead with seeking approval for the drug after discussions with the FDA.
From a value standpoint, the stock ticks a lot of the boxes for price-conscious investors. With a forward price-to-earnings multiple of less than nine and a PEG ratio of one, the stock is a very good buy when factoring in the future growth of the company.
2. AbbVie
AbbVie (NYSE: ABBV) is another stock that's been showing nice growth of late, with sales up 16% in 2018 and 10% the year before that. That growth has largely come through acquisitions, which AbbVie doesn't always have a great track record with. One of its more high-profile acquisitions, of Botox-maker Allergan, is due to close early this year. And while that will certainly diversify the company's sales and inject more growth, its execution will be heavily scrutinized by investors given its hefty $63 billion price tag.
But there's reason to be positive: Despite all the noise and acquisitions, AbbVie has found a way to make it all work, consistently reporting net income of more than $5 billion in each of the past three years. And with $12.8 billion in free cash flow in 2018, the company can afford to be acquiring companies and looking for ways to add growth.
AbbVie trades at a forward P/E of nine although its PEG ratio is a bit high, coming in around 2.7. However, if the integration of Allergan goes smoothly, those numbers can improve very quickly. And with AbbVie also paying its shareholders a dividend of 5.5% annually, there's at least some incentive to hold on to the stock besides share growth.
Good healthcare stocks to build your portfolio around
These stocks have struggled in recent years, with AbbVie falling 26% in two years and Biogen falling 17%, while the Health Care Select Sector SPDR Fund has risen 20% over the same period. But that has made their valuations relatively low and it could be an opportune time to buy for the long-term.
The companies are generating strong profits and they continue to have good free cash flow. Given their growth opportunities, these healthcare stocks could be underrated buys for bargain hunters willing to hang onto shares for years to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But there's reason to be positive: Despite all the noise and acquisitions, AbbVie has found a way to make it all work, consistently reporting net income of more than $5 billion in each of the past three years. AbbVie AbbVie (NYSE: ABBV) is another stock that's been showing nice growth of late, with sales up 16% in 2018 and 10% the year before that. That growth has largely come through acquisitions, which AbbVie doesn't always have a great track record with. | AbbVie AbbVie (NYSE: ABBV) is another stock that's been showing nice growth of late, with sales up 16% in 2018 and 10% the year before that. That growth has largely come through acquisitions, which AbbVie doesn't always have a great track record with. But there's reason to be positive: Despite all the noise and acquisitions, AbbVie has found a way to make it all work, consistently reporting net income of more than $5 billion in each of the past three years. | AbbVie AbbVie (NYSE: ABBV) is another stock that's been showing nice growth of late, with sales up 16% in 2018 and 10% the year before that. Good healthcare stocks to build your portfolio around These stocks have struggled in recent years, with AbbVie falling 26% in two years and Biogen falling 17%, while the Health Care Select Sector SPDR Fund has risen 20% over the same period. That growth has largely come through acquisitions, which AbbVie doesn't always have a great track record with. | That growth has largely come through acquisitions, which AbbVie doesn't always have a great track record with. AbbVie AbbVie (NYSE: ABBV) is another stock that's been showing nice growth of late, with sales up 16% in 2018 and 10% the year before that. But there's reason to be positive: Despite all the noise and acquisitions, AbbVie has found a way to make it all work, consistently reporting net income of more than $5 billion in each of the past three years. |
24735.0 | 2020-01-28 00:00:00 UTC | 3 Dividend Stocks Perfect for Retirees | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-perfect-for-retirees-2020-01-28 | nan | nan | A well-constructed dividend portfolio can help pave the way to greater financial flexibility in retirement and help you enjoy your later years in style. Many retirees rely on dividend-paying stocks for extra income, but not every stock that offers a substantial yield will wind up pulling its weight in a retirement portfolio.
Retirees have to strike a balance among stocks that offer big enough yields to create a meaningful stream of income, trade at valuations that protect the principal of the investment, and have business strengths that will allow them to navigate some twists and turns and keep the dividends flowing. For investors seeking big, dependable dividends, these three stocks offer yields north of 5% and are backed by sturdy businesses that should power long-term performance.
Image source: Getty Images.
1. ExxonMobil
DIVIDEND YIELD ANNUAL PAYOUT GROWTH STREAK PAYOUT GROWTH OVER THE LAST 10 YEARS FCF PAYOUT RATIO
5.2% 37 years 107.1% 98%
FCF = free cash flow. Sources: ExxonMobil, Yahoo! Finance.
ExxonMobil (NYSE: XOM) has a top position in the oil and gas industry that's unlikely to be disrupted, along with underappreciated growth prospects and a great dividend. The company has returned a whopping $14.44 billion to shareholders through dividends over the trailing 12-month period, which is second only to AT&T in terms of the total amount of dividends paid across the period.
Exxon's roughly 98% payout ratio might look concerning, but the company has been in the midst of a big spending push that has elevated expenses and pressured earnings. It is investing in new drilling and production operations that are projected to boost its 2025 earnings roughly 140% over 2017 levels (assuming an oil price of $60 per barrel). But the market has been tepid on the stock because this big investment to increase production is taking place when oil prices are already relatively low.
The market's hesitance to embrace the production push has resulted in the stock trading at an opportune valuation, sporting a fantastic dividend yield. Even if renewable energy technologies see significant advances, expansion for the global population and economy will mean increased fossil-fuel demand for the foreseeable future, and retirees are getting a great dividend and a sturdy business with Exxon.
2. AT&T
DIVIDEND YIELD ANNUAL PAYOUT GROWTH STREAK PAYOUT GROWTH OVER THE LAST 10 YEARS FCF PAYOUT RATIO
5.4% 36 years 23.8% 52%
Sources: AT&T, Yahoo! Finance.
AT&T's (NYSE: T) dividend growth has been slow over the last decade, but the company already offers a great yield, and it's generating plenty of cash flow to fund its distribution. The company's mobile wireless business is sturdy and poised to benefit from 5G tailwinds, its Time Warner has a runway for growth amid growing global demand for entertainment content, and its DirecTV satellite television subsidiary is still generating substantial free cash flow (even though it's losing subscribers due to cord-cutting).
Acquiring DirecTV and Time Warner left AT&T with a big debt load, and it seems clear that the company overpaid for the former, but it's making progress paying down the debt while still investing in the business. The company is on track to generate $28 billion in free cash flow this year and reduce its debt from $166 billion to $146 billion. It has returned $14.8 billion in dividends to shareholders over the trailing 12-month period.
The chances of mobile internet service seeing reduced demand are very slim. And AT&T's large existing subscriber base and network infrastructure put it in position to bridge subscribers over to faster 5G network service and new subscription packages for wearables, smart cars, and other Internet of Things (IoT) devices. The company will also have an opportunity to provide 5G services for enterprises and their IoT applications and cloud-computing needs. With a strong dividend and tailwinds on the horizon for its mobile wireless business, AT&T stands out as a great retirement stock.
3. AbbVie
DIVIDEND YIELD *ANNUAL PAYOUT GROWTH STREAK PAYOUT GROWTH OVER THE LAST 10 YEARS FCF PAYOUT RATIO
5.7% 47 years 195% 54.3%
*Payout growth streak includes AbbVie's time as part of Abbott Laboratories. Sources: AbbVie, Yahoo! Finance.
AbbVie (NYSE: ABBV) has a great yield and looks ideally suited for a retirement portfolio. While the S&P 500 index climbed nearly 29% in 2019, AbbVie stock dipped roughly 4%, with the sell-off stemming from declining sales for its Humira arthritis drug in Europe and other international markets. The biopharmaceutical company's shares now trade at roughly 8.5 times this year's expected earnings and look attractively valued for retirees seeking high yield stocks.
Humira is still the world's top-selling drug by revenue, but the launch of biosimilars have tamped down sales outside the U.S. (where the drug is still protected thanks to patents on its manufacturing and formulation), and protections on its marquee product will start to slip in 2023. Increasing competition for the drug prompted the company to make a $63 billion bid to acquire pharmaceutical company Allergan, which is mostly known for its Botox.
While the market balked at the price of the Allergan acquisition, the deal will significantly boost AbbVie's cash flow and put it in even better position to continue delivering substantial payout growth over the next decade and beyond. Humira sales will likely continue to be pressured by competition, but the company has received 14 new-product and major-treatment approvals over the last five years, and it has other new treatments in the pipeline that should strengthen the business. The company has also been delivering stellar payout growth over the last decade, and that trend looks poised to continue.
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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 5.7% 47 years 195% 54.3% *Payout growth streak includes AbbVie's time as part of Abbott Laboratories. Sources: AbbVie, Yahoo! | 5.7% 47 years 195% 54.3% *Payout growth streak includes AbbVie's time as part of Abbott Laboratories. AbbVie Sources: AbbVie, Yahoo! | AbbVie 5.7% 47 years 195% 54.3% *Payout growth streak includes AbbVie's time as part of Abbott Laboratories. Sources: AbbVie, Yahoo! | While the market balked at the price of the Allergan acquisition, the deal will significantly boost AbbVie's cash flow and put it in even better position to continue delivering substantial payout growth over the next decade and beyond. AbbVie 5.7% 47 years 195% 54.3% *Payout growth streak includes AbbVie's time as part of Abbott Laboratories. |
24736.0 | 2020-01-27 00:00:00 UTC | AbbVie's Acquisition of Allergan Gets Help From Nestle and AstraZeneca | ABBV | https://www.nasdaq.com/articles/abbvies-acquisition-of-allergan-gets-help-from-nestle-and-astrazeneca-2020-01-27 | nan | nan | Some unlikely good Samaritans are going out of their way to help AbbVie (NYSE: ABBV) and Allergan (NYSE: AGN) complete the $63 billion merger deal the giant drugmakers announced last June. To appease antitrust regulators, AstraZeneca (NYSE: AZN) will take back control of an experimental psoriasis drug, and Nestle will acquire a gastrointestinal medication from Allergan.
Hello again
Allergan was developing a monoclonal antibody that inhibits interleukin 23 (IL-23) called brazikumab for the treatment of Crohn's disease and ulcerative colitis. AbbVie recently launched its own IL-23 inhibitor, risankizumab, under the brand name Skyrizi for the treatment of psoriasis.
Image source: Getty Images.
Allergan had licensed brazikumab from AstraZeneca; now, it will return the antibody to the big British pharmaceutical company. At the moment, brazikumab and Skyrizi are both in late-stage clinical trials for the treatment of Crohn's disease and ulcerative colitis.
More than just cocoa
You're probably more familiar with the Swiss food conglomerate's packaged food brands, but Nestle is also a leading player in the growing medical nutrition space.
Nestle will acquire Zenpep from Allergan for an undisclosed sum, adding it to its growing line of nutritional therapies designed for specific medical conditions. Zenprep is a collection of pancreatic enzymes that is especially useful for cystic fibrosis (CF) patients. Since Nestle already markets nutritional therapies for CF and a wide range of other disorders, Zenprep should fit comfortably in its portfolio.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some unlikely good Samaritans are going out of their way to help AbbVie (NYSE: ABBV) and Allergan (NYSE: AGN) complete the $63 billion merger deal the giant drugmakers announced last June. AbbVie recently launched its own IL-23 inhibitor, risankizumab, under the brand name Skyrizi for the treatment of psoriasis. To appease antitrust regulators, AstraZeneca (NYSE: AZN) will take back control of an experimental psoriasis drug, and Nestle will acquire a gastrointestinal medication from Allergan. | Some unlikely good Samaritans are going out of their way to help AbbVie (NYSE: ABBV) and Allergan (NYSE: AGN) complete the $63 billion merger deal the giant drugmakers announced last June. AbbVie recently launched its own IL-23 inhibitor, risankizumab, under the brand name Skyrizi for the treatment of psoriasis. Hello again Allergan was developing a monoclonal antibody that inhibits interleukin 23 (IL-23) called brazikumab for the treatment of Crohn's disease and ulcerative colitis. | Some unlikely good Samaritans are going out of their way to help AbbVie (NYSE: ABBV) and Allergan (NYSE: AGN) complete the $63 billion merger deal the giant drugmakers announced last June. AbbVie recently launched its own IL-23 inhibitor, risankizumab, under the brand name Skyrizi for the treatment of psoriasis. To appease antitrust regulators, AstraZeneca (NYSE: AZN) will take back control of an experimental psoriasis drug, and Nestle will acquire a gastrointestinal medication from Allergan. | Some unlikely good Samaritans are going out of their way to help AbbVie (NYSE: ABBV) and Allergan (NYSE: AGN) complete the $63 billion merger deal the giant drugmakers announced last June. AbbVie recently launched its own IL-23 inhibitor, risankizumab, under the brand name Skyrizi for the treatment of psoriasis. Nestle will acquire Zenpep from Allergan for an undisclosed sum, adding it to its growing line of nutritional therapies designed for specific medical conditions. |
24737.0 | 2020-01-27 00:00:00 UTC | Allergan To Sell Brazikumab To AstraZeneca, Zenpep To Nestle Under AbbVie Merger | ABBV | https://www.nasdaq.com/articles/allergan-to-sell-brazikumab-to-astrazeneca-zenpep-to-nestle-under-abbvie-merger-2020-01-27 | nan | nan | (RTTNews) - Allergan plc (AGN), which is in deal to be bought by AbbVie (ABBV), announced Monday that it has entered into definitive agreements to divest brazikumab (IL-23 inhibitor) and Zenpep (pancrelipase) to AstraZeneca (AZN, AZN.L) and Nestle SA (NSRGY.PK, NSTR.L), respectively.
The companies did not disclose the financial details of the transactions.
The agreements are in conjunction with the ongoing regulatory approval process for AbbVie's acquisition of Allergan to create Allergan Aesthetics.
The closings of the acquisitions of brazikumab and Zenpep are contingent upon receipt of U.S. Federal Trade Commission and European Commission approval, closing of AbbVie's pending acquisition of Allergan and the satisfaction of other customary closing conditions.
AstraZeneca will acquire brazikumab, an investigational IL-23 inhibitor in Phase 2b/3 development for Crohn's Disease and in Phase 2 development for ulcerative colitis, including global development and commercial rights.
Further, Swiss food giant Nestle will acquire and take full operational ownership of gastrointestinal medication Zenpep upon closing the transaction with customary transition support from Allergan.
Zenpep is a treatment, which is available in the United States, for exocrine pancreatic insufficiency due to cystic fibrosis and other conditions. Zenpep's 2018 net sales were $237 million.
Nestle also will acquire Viokace, another pancreatic enzyme preparation, as part of the same transaction.
On January 10, AbbVie and Allergan received conditional approval of the transaction by the European Commission, subject to the approved divestiture of brazikumab and other conditions.
AbbVie and Allergan continue to expect to close the deal in the first quarter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - Allergan plc (AGN), which is in deal to be bought by AbbVie (ABBV), announced Monday that it has entered into definitive agreements to divest brazikumab (IL-23 inhibitor) and Zenpep (pancrelipase) to AstraZeneca (AZN, AZN.L) and Nestle SA (NSRGY.PK, NSTR.L), respectively. The agreements are in conjunction with the ongoing regulatory approval process for AbbVie's acquisition of Allergan to create Allergan Aesthetics. The closings of the acquisitions of brazikumab and Zenpep are contingent upon receipt of U.S. Federal Trade Commission and European Commission approval, closing of AbbVie's pending acquisition of Allergan and the satisfaction of other customary closing conditions. | The closings of the acquisitions of brazikumab and Zenpep are contingent upon receipt of U.S. Federal Trade Commission and European Commission approval, closing of AbbVie's pending acquisition of Allergan and the satisfaction of other customary closing conditions. On January 10, AbbVie and Allergan received conditional approval of the transaction by the European Commission, subject to the approved divestiture of brazikumab and other conditions. (RTTNews) - Allergan plc (AGN), which is in deal to be bought by AbbVie (ABBV), announced Monday that it has entered into definitive agreements to divest brazikumab (IL-23 inhibitor) and Zenpep (pancrelipase) to AstraZeneca (AZN, AZN.L) and Nestle SA (NSRGY.PK, NSTR.L), respectively. | (RTTNews) - Allergan plc (AGN), which is in deal to be bought by AbbVie (ABBV), announced Monday that it has entered into definitive agreements to divest brazikumab (IL-23 inhibitor) and Zenpep (pancrelipase) to AstraZeneca (AZN, AZN.L) and Nestle SA (NSRGY.PK, NSTR.L), respectively. The closings of the acquisitions of brazikumab and Zenpep are contingent upon receipt of U.S. Federal Trade Commission and European Commission approval, closing of AbbVie's pending acquisition of Allergan and the satisfaction of other customary closing conditions. On January 10, AbbVie and Allergan received conditional approval of the transaction by the European Commission, subject to the approved divestiture of brazikumab and other conditions. | The closings of the acquisitions of brazikumab and Zenpep are contingent upon receipt of U.S. Federal Trade Commission and European Commission approval, closing of AbbVie's pending acquisition of Allergan and the satisfaction of other customary closing conditions. AbbVie and Allergan continue to expect to close the deal in the first quarter. (RTTNews) - Allergan plc (AGN), which is in deal to be bought by AbbVie (ABBV), announced Monday that it has entered into definitive agreements to divest brazikumab (IL-23 inhibitor) and Zenpep (pancrelipase) to AstraZeneca (AZN, AZN.L) and Nestle SA (NSRGY.PK, NSTR.L), respectively. |
24738.0 | 2020-01-24 00:00:00 UTC | Fitch Ratings Says Impeachment Trial Won't Hurt Healthcare Investment in 2020 | ABBV | https://www.nasdaq.com/articles/fitch-ratings-says-impeachment-trial-wont-hurt-healthcare-investment-in-2020-2020-01-25 | nan | nan | Healthcare markets in the U.S. have a lot to be anxious about in 2020, with federal elections looming while the impeachment trial of President Trump continues to develop. In spite of this, however, top credit agency Fitch Ratings predicts that U.S. healthcare investment will remain strong.
Although healthcare megamergers are likely to slow down a little in 2020, more midsize acquisitions are likely to continue without losing too much steam, according to Fitch. However, M&A activity is likely to be weighted more toward the first six months of the year as opposed to the second half, when the election takes place, the agency says.
Image source: Getty Images.
Despite the fact that "policy-making activity is important to the long-term outlook for sector cash flow ... we do not expect current uncertainty to upend strategic investment," Fitch analysts wrote in a recently released report.
A strong year for healthcare mergers
The past year has seen a number of significant mergers in the healthcare space. AbbVie's (NYSE: ABBV) whopping $63 billion deal with Allergan, CVS Health's (NYSE: CVS) $69 billion acquisition of Aetna, and Bristol-Myers' (NYSE: BMY) even larger $74 billion deal with Celgene are three of the largest deals made last year.
Healthcare reform has remained a top subject for political candidates. In particular, lowering the cost of drugs was one of the key topics in the previous Democratic debate. Many candidates, such as Sen. Elizabeth Warren, have vowed to use executive action to make it easier for generic drugmakers to compete.
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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 (NYSE: ABBV) whopping $63 billion deal with Allergan, CVS Health's (NYSE: CVS) $69 billion acquisition of Aetna, and Bristol-Myers' (NYSE: BMY) even larger $74 billion deal with Celgene are three of the largest deals made last year. Healthcare markets in the U.S. have a lot to be anxious about in 2020, with federal elections looming while the impeachment trial of President Trump continues to develop. In spite of this, however, top credit agency Fitch Ratings predicts that U.S. healthcare investment will remain strong. | AbbVie's (NYSE: ABBV) whopping $63 billion deal with Allergan, CVS Health's (NYSE: CVS) $69 billion acquisition of Aetna, and Bristol-Myers' (NYSE: BMY) even larger $74 billion deal with Celgene are three of the largest deals made last year. In spite of this, however, top credit agency Fitch Ratings predicts that U.S. healthcare investment will remain strong. The Motley Fool recommends CVS Health. | AbbVie's (NYSE: ABBV) whopping $63 billion deal with Allergan, CVS Health's (NYSE: CVS) $69 billion acquisition of Aetna, and Bristol-Myers' (NYSE: BMY) even larger $74 billion deal with Celgene are three of the largest deals made last year. A strong year for healthcare mergers The past year has seen a number of significant mergers in the healthcare space. 10 stocks we like better than Bristol-Myers Squibb When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | AbbVie's (NYSE: ABBV) whopping $63 billion deal with Allergan, CVS Health's (NYSE: CVS) $69 billion acquisition of Aetna, and Bristol-Myers' (NYSE: BMY) even larger $74 billion deal with Celgene are three of the largest deals made last year. In spite of this, however, top credit agency Fitch Ratings predicts that U.S. healthcare investment will remain strong. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. |
24739.0 | 2020-01-24 00:00:00 UTC | Better Buy: AbbVie vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy%3A-abbvie-vs.-johnson-johnson-2020-01-24 | nan | nan | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are two of the largest pharmaceutical companies in the world. However, big doesn't mean buy, and both of these juggernauts currently face headwinds that may scare many investors away. AbbVie is dealing with Humira's declining international sales caused by competition from biosimilars in Europe.
Johnson & Johnson is facing thousands of different product liability lawsuits. New Mexico just filed a lawsuit against Johnson & Johnson alleging that the company's claims about the safety of its baby powder were misleading. In October, Johnson & Johnson settled a lawsuit for $10 million with two Ohio counties that removed the company from the first federal lawsuit against opioid manufacturers. In addition to mounting legal troubles, Johnson & Johnson's competitive advantage is under pressure.
With that said, these pharma giants are hardly dead in the water, and there are several good reasons to consider purchasing shares of each. But which of the two should you buy today? Let's dig in a little deeper and find out.
The case for AbbVie
Despite Humira's declining prospects in Europe, the drug is still racking up strong -- and growing -- sales in the U.S. During the third quarter, U.S. sales of Humira were $3.9 billion, a 9.6% increase year over year. In other words, Humira is still contributing significantly to AbbVie's top line, and according to the research firm EvaluatePharma, Humira will remain the top-selling drug in the world until 2024. In the meantime, AbbVie can look for other products to replace its crown jewel.
Image source: Getty Images.
The company boasts several drugs with fast-growing sales. Most notably, cancer drugs Imbruvica and Venclexta have combined sales for the third quarter of $1.5 billion, a 38% increase compared to the prior-year quarter. Further, Humira made a big move last year when it acquired Allergan (NYSE: AGN) in a cash-and-stock deal valued at $63 billion.
This acquisition will help AbbVie become a leader in the medical aesthetic market and further diversify its product line. Finally, AbbVie is a great dividend stock: The company offers a dividend yield of 5.3%, and its quarterly dividend payout has increased by 141% over the past five years. For all those reasons, AbbVie still looks like an attractive stock.
The case for Johnson & Johnson
One of the most attractive features Johnson & Johnson offers investors is its diversification across several business lines within the healthcare sector. There's the company's pharmaceutical business, which boasts several products with blistering sales growth. For instance, Johnson & Johnson's plaque psoriasis drug Stelara recorded sales of $1.7 billion during the third quarter, 30% higher than the same quarter the prior year. Also, sales of Tremfya, a treatment for moderate to severe psoriasis, were $290 million, representing a 69% year-over-year increase.
While sales of many of the company's drugs are declining -- such as Remicade, which saw its sales for the third quarter decline by 17.6% year over year to $1.1 billion -- Johnson & Johnson has enough products to pick up the slack. Revenue from Johnson & Johnson's pharmaceuticals segment during the third quarter was $10.9 billion, a 5.1% year-over-year increase. Johnson & Johnson's pharmaceutical segment generates the bulk of its revenue (about 52% during the third quarter), but the company also has its consumer and medical devices segments to fall back on.
During the third quarter, revenue from Johnson & Johnson's consumer business (which offers over-the-counter medical products) was $3.5 billion and increased by 1.6%, while its medical devices segment recorded a revenue figure of $6.4 billion, a 3.1% year-over-year decrease.
Johnson & Johnson is also a dream come true for income-seeking investors. The company offers a 2.6% dividend yield and has raised its dividends every year for 57 years in a row. Johnson & Johnson will likely remain a top player in the healthcare sector for many years to come. Given its diversified business and its secure dividends, the company is worth serious consideration.
Profitability and valuation
During the third quarter, AbbVie posted net earnings of $1.9 billion, a 31.4% decrease year over year; the company also recorded an earnings per share (EPS) of $1.26, down from $1.81 compared to the year-ago period. By comparison, Johnson & Johnson's net earnings were $1.8 billion, a 55.4% decrease compared to the prior-year quarter, and its EPS was $0.66, down by 54% year over year.
With both companies posting less than stellar bottom lines, let's turn to their respective price-to-earnings (PE) and price-to-earnings growth (PEG) ratios. In this department, AbbVie's 9.27 forward P/E, and its 2.72 PEG compares favorably to Johnson & Johnson's 16.41 forward P/E and 2.91 PEG.
The verdict
Johnson & Johnson's shares rose by 13% last year, which isn't outstanding considering the S&P 500 gained almost 30% during 2019, but it is still better than AbbVie's stock, which slid by 3.96%.
I think Johnson & Johnson is a better buy today, and here's why: Johnson & Johnson isn't likely to produce double digits top-line growth routinely, but the company's diversified business is a major strength that can help keep the company afloat even in times of economic downturns. Also, Johnson & Johnson's dividend is one of the most secure out there.
While the company is facing some legal issues, this is nothing new for Johnson & Johson which has faced scores of lawsuits before, and the company has always managed to come out of them in one piece. In other words, Johnson & Johnson's current wave of lawsuits is unlikely to make a serious dent in the company's long-term thesis, if past history is any indication.
By contrast, AbbVie's acquisition of Allergan has yet to close, and there's still some uncertainty as to how this move will affect the company's financial performance in the future. With its top-selling product gradually losing more and more steam over the next few years, AbbVie has yet to show that other products will fill Humira's shoes definitively. With its future still being a bit murky, I think AbbVie loses this matchup.
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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. | By contrast, AbbVie's acquisition of Allergan has yet to close, and there's still some uncertainty as to how this move will affect the company's financial performance in the future. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are two of the largest pharmaceutical companies in the world. AbbVie is dealing with Humira's declining international sales caused by competition from biosimilars in Europe. | Profitability and valuation During the third quarter, AbbVie posted net earnings of $1.9 billion, a 31.4% decrease year over year; the company also recorded an earnings per share (EPS) of $1.26, down from $1.81 compared to the year-ago period. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are two of the largest pharmaceutical companies in the world. AbbVie is dealing with Humira's declining international sales caused by competition from biosimilars in Europe. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are two of the largest pharmaceutical companies in the world. AbbVie is dealing with Humira's declining international sales caused by competition from biosimilars in Europe. The case for AbbVie Despite Humira's declining prospects in Europe, the drug is still racking up strong -- and growing -- sales in the U.S. During the third quarter, U.S. sales of Humira were $3.9 billion, a 9.6% increase year over year. | The case for AbbVie Despite Humira's declining prospects in Europe, the drug is still racking up strong -- and growing -- sales in the U.S. During the third quarter, U.S. sales of Humira were $3.9 billion, a 9.6% increase year over year. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are two of the largest pharmaceutical companies in the world. AbbVie is dealing with Humira's declining international sales caused by competition from biosimilars in Europe. |
24740.0 | 2020-01-23 00:00:00 UTC | Notable Thursday Option Activity: ABBV, EBAY, MED | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-abbv-ebay-med-2020-01-23 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 30,912 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.9% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Particularly high volume was seen for the $100 strike call option expiring January 15, 2021, with 2,262 contracts trading so far today, representing approximately 226,200 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange:
eBay Inc. (Symbol: EBAY) saw options trading volume of 29,818 contracts, representing approximately 3.0 million underlying shares or approximately 43.7% of EBAY's average daily trading volume over the past month, of 6.8 million shares. Especially high volume was seen for the $35.50 strike call option expiring January 24, 2020, with 7,606 contracts trading so far today, representing approximately 760,600 underlying shares of EBAY. Below is a chart showing EBAY's trailing twelve month trading history, with the $35.50 strike highlighted in orange:
And Medifast Inc (Symbol: MED) options are showing a volume of 981 contracts thus far today. That number of contracts represents approximately 98,100 underlying shares, working out to a sizeable 42.8% of MED's average daily trading volume over the past month, of 229,430 shares. Especially high volume was seen for the $115 strike put option expiring March 20, 2020, with 400 contracts trading so far today, representing approximately 40,000 underlying shares of MED. Below is a chart showing MED's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for ABBV options, EBAY options, or MED 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 $100 strike call option expiring January 15, 2021, with 2,262 contracts trading so far today, representing approximately 226,200 underlying shares of ABBV. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 30,912 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 43.9% of ABBV's average daily trading volume over the past month, of 7.0 million shares. | Particularly high volume was seen for the $100 strike call option expiring January 15, 2021, with 2,262 contracts trading so far today, representing approximately 226,200 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: eBay Inc. (Symbol: EBAY) saw options trading volume of 29,818 contracts, representing approximately 3.0 million underlying shares or approximately 43.7% of EBAY's average daily trading volume over the past month, of 6.8 million shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 30,912 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 30,912 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: eBay Inc. (Symbol: EBAY) saw options trading volume of 29,818 contracts, representing approximately 3.0 million underlying shares or approximately 43.7% of EBAY's average daily trading volume over the past month, of 6.8 million shares. That number works out to 43.9% of ABBV's average daily trading volume over the past month, of 7.0 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: eBay Inc. (Symbol: EBAY) saw options trading volume of 29,818 contracts, representing approximately 3.0 million underlying shares or approximately 43.7% of EBAY's average daily trading volume over the past month, of 6.8 million shares. Below is a chart showing MED's trailing twelve month trading history, with the $115 strike highlighted in orange: For the various different available expirations for ABBV options, EBAY options, or MED options, visit StockOptionsChannel.com. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 30,912 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). |
24741.0 | 2020-01-23 00:00:00 UTC | 2 Dividend-Paying Biotech Stocks Worth Owning in 2020 | ABBV | https://www.nasdaq.com/articles/2-dividend-paying-biotech-stocks-worth-owning-in-2020-2020-01-23 | nan | nan | Dividend stocks are a powerful way to boost the return on capital of any portfolio. That being said, it can be a chore to unearth income stocks worth owning for long periods of time. The fundamental problem is that most companies simply can't maintain their status as a top dog for lengthy periods of time. Moreover, the few publicly traded companies that can maintain a dominant competitive position -- especially those that pay attractive dividends -- tend to come with unsightly price tags.
The blue-chip biotechs AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are unique in this regard. Although both companies are smack dab in the middle of periods of transformation, they have been able to maintain -- and even grow -- their share of key disease markets. Nonetheless, the moody market has still seen fit to reward AbbVie and Gilead with clearance-rack valuations. AbbVie, for instance, is presently trading at a rock-bottom 9.19 times forward-looking earnings, and Gilead's stock is even cheaper at 9.09 times next year's projected earnings. Here's why income investors may want to scoop up some shares of these grossly undervalued dividend stocks soon.
Image source: Getty Images.
AbbVie: The hard part is over
AbbVie's stock hasn't gotten a whole lot of love from the market over the past year due to concerns over Humira's patent cliff. Humira is a popular anti-inflammatory medicine that also happens to be the best-selling drug in the world right now. However, the drug is widely expected to lose that title soon, thanks to the introduction of copycat medicines in key territories abroad. But this risk factor has arguably been blown out of proportion by investors over the prior 12 months.
There are two reasons to believe this is the case. First up, AbbVie's immunology pipeline struck gold last year with the regulatory approvals for Skyrizi and Rinvoq. Both of these drugs are expected to quickly attain blockbuster status. Second, the biotech also inked a merger agreement with Allergan in 2019 -- a move that markedly lowers Humira's overall importance in terms of top-line growth and revenue generation. These recent developments essentially assure that AbbVie will continue to be a major cash cow for dividend and growth investors alike for years to come.
What does AbbVie offer on the dividend front? At current levels, AbbVie's stock is paying a forward-looking yield of 5.36%. That type of sky-high yield is extremely uncommon among large cap biopharmas. Now, the drugmaker's trailing payout ratio of 183% is on the high side. But AbbVie's proven ability to grow its top line at industry leading levels should comfort risk-averse income investors.
In all, AbbVie's bottom of the barrel valuation, junk-bond-like dividend yield, and strong track record as a top growth play make this stock an outstanding buy this year.
Gilead: Safety, innovation, and financial firepower all in one package
Like AbbVie, Gilead hasn't exactly been a popular name among investors of late. Over the past three years, in fact, the biotech's shares have shed almost 40% of their value. Gilead's troubles stem from the fact that the company simply never found a viable replacement for its fading hepatitis C franchise as a source of top-line growth. Outside of HIV, Gilead's organic pipeline has woefully underperformed over the past five years. The good news is that an end to Gilead's trough period is within sight.
Gilead's anti-inflammatory medicine, filgotinib, is widely expected to quickly reach blockbuster status, and the biotech's anti-cancer cell therapy franchise is also starting to gain ground with KTE-X19 likely to gain a key regulatory approval for mantle cell lymphoma later this year. Gilead also sports one of the highest cash positions in the industry, as well as exceptional free cash flows. Thus, the biotech has an immense amount of financial firepower for value-creating business development activities.
How about the dividend? Gilead's shares sport an annualized yield of 4% right now. That is outstanding for a large-cap healthcare stock. Although Gilead does have a fairly high payout ratio of 116% at current levels, this issue shouldn't overly concern income investors. The biotech's top line should pick up in a big way soon. In other words, Gilead won't have any problem covering -- and perhaps growing -- its dividend.
All told, Gilead's days as an out-of-favor biotech stock seem close to an end. Income investors, in kind, may want to get in ahead of the crowd to take advantage of the biotech's rather generous yield and improving outlook.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In all, AbbVie's bottom of the barrel valuation, junk-bond-like dividend yield, and strong track record as a top growth play make this stock an outstanding buy this year. The blue-chip biotechs AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are unique in this regard. Nonetheless, the moody market has still seen fit to reward AbbVie and Gilead with clearance-rack valuations. | At current levels, AbbVie's stock is paying a forward-looking yield of 5.36%. The blue-chip biotechs AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are unique in this regard. Nonetheless, the moody market has still seen fit to reward AbbVie and Gilead with clearance-rack valuations. | AbbVie, for instance, is presently trading at a rock-bottom 9.19 times forward-looking earnings, and Gilead's stock is even cheaper at 9.09 times next year's projected earnings. Gilead: Safety, innovation, and financial firepower all in one package Like AbbVie, Gilead hasn't exactly been a popular name among investors of late. The blue-chip biotechs AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are unique in this regard. | The blue-chip biotechs AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are unique in this regard. Nonetheless, the moody market has still seen fit to reward AbbVie and Gilead with clearance-rack valuations. AbbVie, for instance, is presently trading at a rock-bottom 9.19 times forward-looking earnings, and Gilead's stock is even cheaper at 9.09 times next year's projected earnings. |
24742.0 | 2020-01-21 00:00:00 UTC | Buffett Owns Teva Stock, But Should You? | ABBV | https://www.nasdaq.com/articles/buffett-owns-teva-stock-but-should-you-2020-01-21 | nan | nan | What a tough ride it has been for Teva Pharmaceutical (NYSE:). Four years ago â which feels like a lifetime in the stock market â Teva stock was a $60-plus stock. Now? After a 16% rally last week, the stock is finally back over ⦠$10.
Source: JHVEPhoto / Shutterstock.com
Yeah, thatâÂÂs the kind of ride itâÂÂs been. It also highlights the danger of following other investors blindly. Not often does following Warren Buffett deal a blow to investorsâ portfolios, but in this instance, it most certainly did.
Plain and simple, Berkshire Hathaway (NYSE:, NYSE:BRK.B) got Teva stock wrong, and those that bought simply because Buffett was long made a mistake. Proper risk management could have prevented a bulk of the losses, and should serve as a reminder for others in the future. A good situation can always turn bad, and a bad situation can always turn worse.
With all that said, itâÂÂs worth acknowledging that the financials are starting to improve for Teva stock.
Trading Teva Stock
Source: Chart courtesy of
There are obviously some flaws when a stock goes from $60 to $6 in just a few years. But despite declining more than 90% from its highs, Teva stock is actually looking better. At least, from the technical side.
Teva shares jumped 9.5% on Tuesday and climbed another 5% on Wednesday. While shares were rallying on Thursday too, they had some trouble holding onto gains after such a lofty move.
Teva stock put in a bottom near $6.50, a rough area where buyers continually stepped in and scooped up the stock. After rallying to a high of $10.99 in November, shares found resistance from the declining 200-day moving average. This was the start of a new downtrend mark (blue line), too.
However, Teva shares burst over both the 200-day moving average and downtrend resistance last week, as shares are now over all of the stockâÂÂs major moving averages. Some investors may view the setup as a cup-and-handle formation, looking for Teva to continue higher.
A move over $11 will kick start that continuation. If it can find some momentum, $13 isnâÂÂt out of the question. If it gets there, it will need to climb over $14 to fill the gap from May.
On a pullback, look to see that support steps up in the $9.50 to $10 area. ThatâÂÂs where the 20-day, 50-day and 100-day moving averages are, along with prior downtrend resistance. A decline below $8.77 would be a negative development and squash the long trade.
Bottom Line on Teva
Was 2019 the bottom for Teva stock? ThatâÂÂs what investors are hoping for. Analysts expect earnings of $2.39 per share on revenue of $17.3 billion. In-line results will represent a decline of 18.2% and 8.4%, respectively.
Unlike some other big rebounders in 2020, TevaâÂÂs business wonâÂÂt be among the winning crowd. At least, according to current estimates. Consensus expectations call for earnings growth of just 2.5% in 2020, while revenue is forecast to fall another 80 basis points.
From a balance sheet perspective, Teva isnâÂÂt in the strongest shape, either. Current assets of $12.5 billion are outweighed by $14.1 billion in current liabilities. Total assets are a bit better, weighing in at $57.2 billion against total liabilities of $42.3 billion. And while many healthcare stocks have big balance sheets due to mergers and acquisitions â such as Bristol-Myers Squibb (NYSE:) buying Celgene or AbbVie (NYSE:) buying Allergan (NYSE:) â Teva just canâÂÂt get out of its own way.
The only thing steady has been its losses, with net income and free cash flow diving lower.
With all that said, traders are looking for a bottom. The stock has carved out a low and formed a new uptrend. Earnings per share and revenue are stabilizing. If management can deliver on that front, the stock has a chance to maintain momentum.
For those that are looking for that type of play, Teva stock may have a role in their portfolio. Those looking for a company with consistent growth and strong fundamentals will want to look elsewhere, though. If the trend in Teva breaks, stay clear.
Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long BMY.
The post 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. | And while many healthcare stocks have big balance sheets due to mergers and acquisitions â such as Bristol-Myers Squibb (NYSE:) buying Celgene or AbbVie (NYSE:) buying Allergan (NYSE:) â Teva just canâÂÂt get out of its own way. Proper risk management could have prevented a bulk of the losses, and should serve as a reminder for others in the future. Consensus expectations call for earnings growth of just 2.5% in 2020, while revenue is forecast to fall another 80 basis points. | And while many healthcare stocks have big balance sheets due to mergers and acquisitions â such as Bristol-Myers Squibb (NYSE:) buying Celgene or AbbVie (NYSE:) buying Allergan (NYSE:) â Teva just canâÂÂt get out of its own way. Trading Teva Stock Source: Chart courtesy of There are obviously some flaws when a stock goes from $60 to $6 in just a few years. However, Teva shares burst over both the 200-day moving average and downtrend resistance last week, as shares are now over all of the stockâÂÂs major moving averages. | And while many healthcare stocks have big balance sheets due to mergers and acquisitions â such as Bristol-Myers Squibb (NYSE:) buying Celgene or AbbVie (NYSE:) buying Allergan (NYSE:) â Teva just canâÂÂt get out of its own way. Four years ago â which feels like a lifetime in the stock market â Teva stock was a $60-plus stock. However, Teva shares burst over both the 200-day moving average and downtrend resistance last week, as shares are now over all of the stockâÂÂs major moving averages. | And while many healthcare stocks have big balance sheets due to mergers and acquisitions â such as Bristol-Myers Squibb (NYSE:) buying Celgene or AbbVie (NYSE:) buying Allergan (NYSE:) â Teva just canâÂÂt get out of its own way. Four years ago â which feels like a lifetime in the stock market â Teva stock was a $60-plus stock. But despite declining more than 90% from its highs, Teva stock is actually looking better. |
24743.0 | 2020-01-19 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On Joel Greenblatt - 1/19/2020 | ABBV | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-joel-greenblatt-1-19-2020-2020-01-19 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
AMERISOURCEBERGEN CORP. (ABC) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company's segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers. Servicing healthcare providers in the pharmaceutical supply channel, the Pharmaceutical Distribution segment's operations provide drug distribution and related services. The Other segment consists of the operations of various segments, including the AmerisourceBergen Consulting Services (ABCS), the World Courier Group, Inc. and the MWI Veterinary Supply, Inc. ABSG operates distribution facilities that focus primarily on complex disease treatment regimens.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BIOGEN INC (BIIB) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Biogen Inc. is a biopharmaceutical company. The Company focuses on discovering, developing, manufacturing and delivering therapies to people living with serious neurological, rare and autoimmune diseases. The Company markets products, including TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA and FAMPYRA for multiple sclerosis (MS), FUMADERM for the treatment of severe plaque psoriasis and SPINRAZA for the treatment of spinal muscular atrophy (SMA). It also has a collaboration agreement with Genentech, Inc. (Genentech), a member of the Roche Group, with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL) and other conditions, GAZYVA indicated for the treatment of CLL and follicular lymphoma, and other anti-CD20 therapies. The Company's product candidate includes OCREVUS; Biosimilar adalimumab; Aducanumab; E2609; BIIB074; BAN2401; Opicinumab; CIRARA; BIIB061; BIIB054; BIIB067, and BIIB068.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BELLRING BRANDS INC (BRBR) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: BellRing Brands, Inc. provides nutrition products. The Company offers its products under various brands, such as Premier Protein, Dymatize and PowerBar. It offers products in various forms, including ready to drink (RTD) protein shakes, powders and nutrition bars. Its secondary brands include Joint Juice and Supreme Protein. Its Premier Protein's product portfolio consists of RTD protein shakes, protein beverages, nutrition bars and protein powders. Dymatize brand's portfolio includes an assortment of sports nutrition products, including primarily protein powders as well as protein bars and nutritional supplements. Its PowerBar's product portfolio ranges from protein and energy snacks for fitness enthusiasts to functional and technical energy products for competitive athletes' in-game usage. Joint Juice is a line of joint health liquid supplements. Supreme Protein is a line of multi-layered protein bars.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MOLINA HEALTHCARE, INC. (MOH) is a mid-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Joel Greenblatt is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Molina Healthcare, Inc. offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. The Company operates through two segments: Health Plans and Other, which includes its Pathways Health and Community Support LLC (Pathways) business. It arranges healthcare services for persons served by Medicaid, Medicare, the Children's Health Insurance Program (CHIP) and the Marketplace, and products to assist government agencies in their administration of the Medicaid program. As of December 31, 2016, the Company's Health Plans segment consisted of health plans in 12 states and the Commonwealth of Puerto Rico, and its direct delivery business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt is 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson's disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Joel Greenblatt has returned 98.43% vs. 159.37% for the S&P 500. For more details on this strategy, click here
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The following are the top rated Healthcare stocks according to Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. Dymatize brand's portfolio includes an assortment of sports nutrition products, including primarily protein powders as well as protein bars and nutritional supplements. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The following are the top rated Healthcare stocks according to Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. |
24744.0 | 2020-01-19 00:00:00 UTC | 2 Biotechs Battling Immune Diseases | ABBV | https://www.nasdaq.com/articles/2-biotechs-battling-immune-diseases-2020-01-19 | nan | nan | On some levels, Rigel Pharmaceuticals (NASDAQ: RIGL) and Momenta Pharmaceuticals (NASDAQ: MNTA) are complete opposites. Rigel, based in South San Francisco, focuses on small molecule drugs while Momenta, headquartered in Cambridge, Massachusetts, tackles disease using large molecules called biologics.
Rigel, with a drug approved in the U.S. and Europe, sports a market cap of roughly $475 million compared to Momenta's $2.6 billion valuation. Momenta updated investors this week that it should end 2019 with $545.1 million in cash, an amount greater than Rigel's entire market cap. Rigel expects to end 2019 with $98 million in cash.
Image source: Getty Images.
Why the disparity?
From their inceptions, both companies set off down different paths. Rigel, formed in 1996, focuses on small molecule drugs. You may recognize these as traditional pharmaceuticals, including oral medicines. Momenta, incorporated in 2001, leveraged new protein engineering technologies to pursue the research and development of large, injectable biologic therapies, like proteins and antibodies.
It has not been smooth sailing. Rigel spent its early years developing several drugs that didn't pan out, including an asthma drug that both Pfizer and AstraZeneca took turns developing before it ultimately failed in clinical trials. Tavalisse, Rigel's approved drug, was returned to Rigel from AstraZeneca following a phase 2b clinical trial that did not show superiority to AbbVie's Humira.
Momenta originally set out to make improved versions of existing biologic drugs and biosimilars, which are biologic drugs that can be substituted for the original but are not true generic versions due to the nature of biologics. A 2018 restructuring pivoted the R&D focus away from biosimilars to novel therapies for immune-related diseases. The company axed 110 people, including one of its founders, in the shakeup.
Rigel and Momenta tackle rare immune diseases
Despite hailing from opposite coasts and using different R&D approaches, the two companies overlap when it comes to which diseases they are trying to attack.
Immune thrombocytopenia purpura (ITP), a potential $1 billion global opportunity according to Rigel, causes the immune system to destroy blood platelets. This results in severe bleeding, bruising, and, in severe cases, can even cause brain hemorrhages. More than 68,000 ITP U.S. patients cycle on and off drugs throughout their lives, often jumping from one drug to the next to get the disease under control.
Rigel markets the oral drug Tavalisse for adult ITP. Meanwhile, ITP is the lead indication for Momenta's M254 program. A phase 1/2 clinical trial is ongoing with additional data expected next quarter. Both face several formidable competitors with entrenched ITP drugs, including NPlate from Amgen and Novartis' Promacta.
A second key indication for both companies is warm autoimmune hemolytic anemia, a disease where the body destroys its own blood cells. Currently, the Food and Drug Administration has not approved any therapy for the 45,000 patients in the U.S. with wAIHA. Rigel commenced a pivotal clinical trial last year with Tavalisse and expects to complete enrollment by mid-2020. Similarly, Momenta started its phase 3 clinical trial in wAIHA in the third quarter of 2019. It expects to present top-line results from the trial testing of the therapeutic antibody nipocalimab toward the end of 2021.
Biotech investors should keep an eye on this race to develop the first FDA-approved drug for wAIHA patients. Following close behind lurks competitor ALXN1830, a drug in phase 1/2 clinical trial that Alexion picked up in its 2018 acquisition of Syntimmune.
Each company has other products in development. Rigel has two oral treatments in early human testing in addition to several early-stage programs in oncology, dermatology, and asthma where the research is being conducted by strategic partners. Momenta plans to seek more than one indication for its lead molecules. Besides wAIHA, nipocalimab is entering late-stage clinical trials as a treatment for myasthenia gravis (an autoimmune disease that weakens the skeletal muscles) and hemolytic disease of fetus and newborn, which occurs when a baby's red blood cells break down too fast. For M254, Momenta plans to expand the program beyond ITP by kicking off a clinical trial in the fourth quarter of 2020 in chronic inflammatory demyelinating polyneuropathy, which is a neurological disorder characterized by weakness and impaired limb function and feeling. Momenta has earlier stage programs that should start clinical trials in 2020 and 2021.
What about sales?
Following decades of R&D, the FDA approved Rigel's first product, Tavalisse, for adult immune thrombocytopenia, in April 2018. Tavalisse revenues continue to ramp up. It racked up $57.8 million in sales over the first seven quarters on the market, with $43.8 million coming in 2019.
Rigel markets Tavalisse in the U.S. and is partnered in other geographies. Following European regulatory approval, Rigel expects to receive a $20 million milestones payment from its partner Grifols (NASDAQ: GRFS) this quarter, with royalties starting in the second half of 2020. Kissei Pharmaceuticals, Rigel's partner in Asia, is currently running a phase 3 clinical trial in Japan. Lastly, Rigel licensed the rights to Tavalisse in Canada and Israel to Medison Pharmaceuticals. Medison filed its submission for approval in Canada at the end of 2019.
Momenta expects to earn $20 million in 2019 revenues from a legacy program marketed by Sandoz, a division of Novartis. That's nearly a 50% haircut from $39.7 million it generated for Momenta in 2018. Separately, Momenta's partner Mylan (NASDAQ: MYL) took over the development duties on a biosimilar version of the blockbuster drug Eylea from Regeneron Pharmaceuticals and Bayer. The companies will split costs and profits and expect to file for approval in 2021. Any additional revenues for Momenta will need to come from licensing or partnership deals.
The verdict
Risk-tolerant biotech investors should dig deeper into Rigel. Tavalisse's commercial launch in the U.S. continues to gain steam, and the drug just received European approval. While not making hand-over-fist amounts of money yet, Tavalisse appears to be gaining market share, particularly with its convenience for patients as an oral treatment option. Institutional investors own 92% of the stock, so you'll be in good company.
Momenta still needs to prove itself. Updated ITP data in the second quarter and results from nipocalimab's phase 3 trial in myasthenia gravis in the third quarter can bolster the stock. Even so, Momenta's latest presentation puts commercialization in myasthenia gravis in 2023. Projecting to spend $220 million to $240 million in 2020, Momenta will likely need additional capital before that or any other potential drug launch.
10 stocks we like better than Momenta Pharmaceuticals
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David Haen owns shares of Pfizer. The Motley Fool recommends Amgen, Momenta Pharmaceuticals, and Mylan. 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. | Tavalisse, Rigel's approved drug, was returned to Rigel from AstraZeneca following a phase 2b clinical trial that did not show superiority to AbbVie's Humira. Rigel has two oral treatments in early human testing in addition to several early-stage programs in oncology, dermatology, and asthma where the research is being conducted by strategic partners. For M254, Momenta plans to expand the program beyond ITP by kicking off a clinical trial in the fourth quarter of 2020 in chronic inflammatory demyelinating polyneuropathy, which is a neurological disorder characterized by weakness and impaired limb function and feeling. | Tavalisse, Rigel's approved drug, was returned to Rigel from AstraZeneca following a phase 2b clinical trial that did not show superiority to AbbVie's Humira. Rigel spent its early years developing several drugs that didn't pan out, including an asthma drug that both Pfizer and AstraZeneca took turns developing before it ultimately failed in clinical trials. Updated ITP data in the second quarter and results from nipocalimab's phase 3 trial in myasthenia gravis in the third quarter can bolster the stock. | Tavalisse, Rigel's approved drug, was returned to Rigel from AstraZeneca following a phase 2b clinical trial that did not show superiority to AbbVie's Humira. Rigel, with a drug approved in the U.S. and Europe, sports a market cap of roughly $475 million compared to Momenta's $2.6 billion valuation. Rigel spent its early years developing several drugs that didn't pan out, including an asthma drug that both Pfizer and AstraZeneca took turns developing before it ultimately failed in clinical trials. | Tavalisse, Rigel's approved drug, was returned to Rigel from AstraZeneca following a phase 2b clinical trial that did not show superiority to AbbVie's Humira. On some levels, Rigel Pharmaceuticals (NASDAQ: RIGL) and Momenta Pharmaceuticals (NASDAQ: MNTA) are complete opposites. Rigel markets the oral drug Tavalisse for adult ITP. |
24745.0 | 2020-01-18 00:00:00 UTC | Where Will Abbott Laboratories Be in 5 Years? | ABBV | https://www.nasdaq.com/articles/where-will-abbott-laboratories-be-in-5-years-2020-01-18 | nan | nan | Abbott Laboratories (NYSE: ABT) has been one of the better performing large-cap healthcare stocks on the market, although many years ago the company was going through a major change. Back in 2013, Abbott's drug business ended up splitting off from the firm to form a separate company called AbbVie. In this split, AbbVie maintained ownership of a number of blockbuster drugs, the most notable being Humira.
Despite the loss of these blockbuster drugs and their impressive revenue figures, Abbott has grown at a steady rate. With the company's market cap more than doubling over the past few years and now reaching $154.5 billion, how much more room does Abbott Laboratories have to grow? Most would agree that the company's future remains bright, although growth might slow down.
To get an idea of where Abbott will be in five years, let's look into what's fueled its impressive growth over the past few years and what's going on now.
Image source: Getty Images.
Abbott's track record of success
The history of Abbott Laboratories goes back to 1888, when Wallace Calvin Abbott started it as a one-man operation. Forty-one years later, the company went public on the Chicago Stock Exchange in 1929. Since then, it has become one of the top dividend stocks in the country, with a 95-year history of paying out dividends and a 47-year period of consecutively increasing its payouts.
Abbott's largest business is its medical device segment, which includes medical devices for patients with cardiovascular disease and diabetes. This division accounted for 37% of the company's 2018 revenue, approximately $11.4 billion in total.
What's particularly impressive is that the annual growth rate of Abbott's medical device business has consistently hovered near the 10% mark, thanks to some of Abbott's recent acquisitions. The most notable one was the $25 billion St. Jude Medical acquisition in 2016, another medical device maker that created devices in the cardiovascular and diabetes markets.
Abbott's next two drivers of revenue are its diagnostics segment and nutrition business, which accounted for 25% and 24%, respectively, of its 2018 revenue. However, Abbott has its own established pharmaceutical business, as well, selling branded generic drugs that, while not as exciting, still remain a lucrative market. This segment accounted for 14% of Abbott's 2018 revenues.
Recent financial results
Looking at Abbott's Q3 2019 quarterly results, there aren't any major warning signs to be found. Total third-quarter revenue came in at $8.1 billion, with $5.2 billion coming from international markets. The best single business segment for Abbott has been its international medical device business, which reported an impressive 14.3% increase in organic sales, compared to Q3 2018.
Overall, all of Abbott's business segments have been doing well, with net income increasing by 70.3% over the past year from $563 million in Q3 2018 to $960 million as of the current quarter. Medical device sales rose by 10.6% compared to Q3 2018, while established pharmaceuticals, diagnostics, and nutrition all rose by 7.9%, 6.6%, and 3.8%, respectively. All these results are pretty much in line with analyst estimates, and Abbott's management expects to hit the upper end of its guidance target for the end of the year.
As for specific product lines that are doing well, Abbott's Freestyle Libre continuous glucose monitoring (CGM) technology, which helps manage glucose levels for people with diabetes, saw sales jump by 67.6% over the past year, making it one of the fastest-growing products in Abbott's lineup. The company also has a new MitraClip product, which is used by heart surgeons in repairing the mitral valve, which plays a crucial role in moving blood in and out of the heart. Sales have gone up by 31.9% since Q3 2018.
Abbott made a couple of major acquisitions over the past few years. In 2017, it paid a sum of $30 billion to buy St. Jude Medical and diagnostic test-maker Alere. Since then, however, the company has continually paid off much of its long-term debt, which has decreased from $27.2 billion in Q4 2017 to $17.6 billion as of Q3 2019.
Specific predictions for 2025
One thing to note is the planned departure of Abbott's longtime CEO Miles White. With 21 years under his belt as the chief executive for the company, it's reasonable to attribute a good portion of Abbott's steady success to his leadership. Replacing him will be Robert Ford, Abbott's current Chief Operating Officer, who was named by White as his top pick for who to replace him. Ford is only 48 so it wouldn't be surprising if he stays in this role well into 2025 and beyond.
In terms of specific segment predictions, medical device sales will remain Abbott's bread and butter, and will likely continue to grow at a faster rate than major competitors. Johnson & Johnson and Medtronic both have larger medical device businesses than Abbott. However, both of these company's businesses are growing at a slower rate. Johnson & Johnson saw 5.3% growth in its medical device business over the past year (excluding acquisitions and divestitures), less than half of Abbott's 10.6% growth rate. Medtronic grew even less, only a 4.1% increase in organic sales.
By 2025, I predict that Abbott will continue to gobble up market share from its larger competitors thanks to its faster growth rate, but still won't eclipse either Johnson & Johnson or Medtronic in this area just yet. Annual medical device sales of as much as $22 billion is possible by the end of 2025, but even a more conservative $17 billion would be impressive
As for its second-biggest segment, established pharmaceuticals, Abbott falls quite a bit short when compared to the size of other company's established pharmaceutical businesses, such as Sanofi and Pfizer. Considering that Abbott is a medical device maker first and foremost, this isn't really surprising. What is impressive, however, is that Abbott's business is growing where others are shrinking. Sanofi's established pharmaceuticals business revenue shrank from $13.5 billion to $12.2 billion between 2016 and 2018, while Pfizer's fell from $11.2 billion to $10.5 billion over the same period. Abbott's, on the other hand, grew from $3.9 billion to $4.4 billion between those two years.
Abbott won't eclipse these drugmakers any time soon, but by 2025, it will have grown by a fair bit assuming its current growth rate stays the same. It wouldn't be surprising if revenues from this business segment cracks $7 billion annually.
What's the verdict on Abbott?
There's not much to say that's negative about Abbott. It's a large-cap healthcare stock that's been around for many decades, so it's impressive that the company is growing its revenues this quickly while providing a consistent dividend.
Over the next five years, I expect the company to continue to increase sales, pay off debt, and widen its net margin. While the stock doubled between 2014 and 2019, I'm not sure if it's going to do so again by 2025 or if growth will slow down a little, especially since doubling again would put the company's market cap at a whopping $300 billion. What is clear, however, is that this healthcare giant shows no sign that it will stop growing anytime soon.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Back in 2013, Abbott's drug business ended up splitting off from the firm to form a separate company called AbbVie. In this split, AbbVie maintained ownership of a number of blockbuster drugs, the most notable being Humira. Abbott Laboratories (NYSE: ABT) has been one of the better performing large-cap healthcare stocks on the market, although many years ago the company was going through a major change. | Back in 2013, Abbott's drug business ended up splitting off from the firm to form a separate company called AbbVie. In this split, AbbVie maintained ownership of a number of blockbuster drugs, the most notable being Humira. The best single business segment for Abbott has been its international medical device business, which reported an impressive 14.3% increase in organic sales, compared to Q3 2018. | Back in 2013, Abbott's drug business ended up splitting off from the firm to form a separate company called AbbVie. In this split, AbbVie maintained ownership of a number of blockbuster drugs, the most notable being Humira. What's particularly impressive is that the annual growth rate of Abbott's medical device business has consistently hovered near the 10% mark, thanks to some of Abbott's recent acquisitions. | Back in 2013, Abbott's drug business ended up splitting off from the firm to form a separate company called AbbVie. In this split, AbbVie maintained ownership of a number of blockbuster drugs, the most notable being Humira. Despite the loss of these blockbuster drugs and their impressive revenue figures, Abbott has grown at a steady rate. |
24746.0 | 2020-01-16 00:00:00 UTC | Why AbbVie Stock Dipped in 2019 | ABBV | https://www.nasdaq.com/articles/why-abbvie-stock-dipped-in-2019-2020-01-16 | nan | nan | What happened
Shares of pharma giant AbbVie (NYSE: ABBV) dipped by 3.96% over the course of 2019, according to data from S&P Global Market Intelligence. The drugmaker's stock slipped last year for two fundamental reasons:
International sales of AbbVie's flagship arthritis medicine, Humira, dropped markedly in 2019 due to the launch of biosimilars in key territories.
AbbVie's decision to offset Humira's fading star by merging with Botox maker Allergan (NYSE: AGN) later in the year wasn't exactly a big hit with investors for a number of reasons.
So what
Prior to 2019, AbbVie's shares had appreciated by a whopping 163% since the company's debut as an independent entity in 2013, making it one of the best-performing large-cap pharma stocks over this period. The company's early success, however, was due in large part to Humira's skyrocketing sales.
Image source: Getty Images.
Unfortunately, AbbVie wasn't able to significantly diversify its revenue stream ahead of Humira's date with the patent cliff -- despite the company's ultra-aggressive approach to business development. So, given that Humira has consistently made up around 60% of the company's annual sales, it's not altogether surprising that investors shied away from this biopharma stock last year.
Now what
The good news is that this Allergan tie-up will immediately dilute Humira's overall importance as a source of top-line growth. Moreover, AbbVie also got the green light from the Food and Drug Administration for two new immunology meds -- Skyrizi and Rinvoq -- last year. These two drugs are widely expected to become blockbuster-level products in short order, which should help the company smoothly transition into the next stage of its life cycle.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The drugmaker's stock slipped last year for two fundamental reasons: International sales of AbbVie's flagship arthritis medicine, Humira, dropped markedly in 2019 due to the launch of biosimilars in key territories. AbbVie's decision to offset Humira's fading star by merging with Botox maker Allergan (NYSE: AGN) later in the year wasn't exactly a big hit with investors for a number of reasons. Unfortunately, AbbVie wasn't able to significantly diversify its revenue stream ahead of Humira's date with the patent cliff -- despite the company's ultra-aggressive approach to business development. | What happened Shares of pharma giant AbbVie (NYSE: ABBV) dipped by 3.96% over the course of 2019, according to data from S&P Global Market Intelligence. The drugmaker's stock slipped last year for two fundamental reasons: International sales of AbbVie's flagship arthritis medicine, Humira, dropped markedly in 2019 due to the launch of biosimilars in key territories. AbbVie's decision to offset Humira's fading star by merging with Botox maker Allergan (NYSE: AGN) later in the year wasn't exactly a big hit with investors for a number of reasons. | The drugmaker's stock slipped last year for two fundamental reasons: International sales of AbbVie's flagship arthritis medicine, Humira, dropped markedly in 2019 due to the launch of biosimilars in key territories. What happened Shares of pharma giant AbbVie (NYSE: ABBV) dipped by 3.96% over the course of 2019, according to data from S&P Global Market Intelligence. AbbVie's decision to offset Humira's fading star by merging with Botox maker Allergan (NYSE: AGN) later in the year wasn't exactly a big hit with investors for a number of reasons. | What happened Shares of pharma giant AbbVie (NYSE: ABBV) dipped by 3.96% over the course of 2019, according to data from S&P Global Market Intelligence. The drugmaker's stock slipped last year for two fundamental reasons: International sales of AbbVie's flagship arthritis medicine, Humira, dropped markedly in 2019 due to the launch of biosimilars in key territories. AbbVie's decision to offset Humira's fading star by merging with Botox maker Allergan (NYSE: AGN) later in the year wasn't exactly a big hit with investors for a number of reasons. |
24747.0 | 2020-01-16 00:00:00 UTC | Beyond the Growing Dividend, Abbvie Stock Is a Good Buy Here | ABBV | https://www.nasdaq.com/articles/beyond-the-growing-dividend-abbvie-stock-is-a-good-buy-here-2020-01-16 | nan | nan | Abbvie (NYSE:) is up over 40% since its mid-August 2019 lows, but amazingly Abbvie stock still offers great value to investors.
Source: Piotr Swat / Shutterstock.com
For example, ABBV has a of 4.8% and a prospective price-to-earnings ratio of just 9 times. This is significantly below the averages for the S&P 500.
I have pointed out in previous articles that . For example, the chart below shows that Abbvie has regularly raised its dividend per share in the past five years.
On average, dividends have increased by 21% per year over the past four years. The dividend is expected to rise by 10% this year
Source: Mark R. Hake
Moreover, Abbvie is close to closing on its mid-June 2019 acquisition ofÃÂ Allergan (NYSE:).ÃÂ Allergan is well known for its Botox and other beauty products. Analysts suggest that it will only take a few more months.
This will provide a big boost to the stock price.
For one, the deal is expected to be âÂÂaccretiveâ to earnings. That means earnings per share will be immediately higher.
Abbvie is losing its patent protection on Humira. That is a rheumatoid arthritis treatment that accounts for more than half of AbbvieâÂÂs revenue.
But Abbvie has indicated that there will be $2 billion in synergies with Allergan. Moreover, the .
More Acquisitions Possible
Moreover, AllerganâÂÂs nearly $16 billion in revenue, on top of AbbvieâÂÂs $33.3 billion will give it the flexibility to make further acquisitions. Abbvie says the deal gives it âÂÂnew growth platformsâ and is âÂÂtransformative.âÂÂ
The combined company generated $19 billion in operating cash flow in 2018. You can make a lot of new deals with that kind of cash flow.
Of course, Abbvie will have to pay down the $30 billion in debt taken on for this $63 billion transaction. The bottom line is that the deal will boost dividend growth, allow further R&D and cut debt.
Valuing Abbvie Stock
Assuming the deal closes and everything works out, Abbvie should be able to continue to raise its dividend. LetâÂÂs assume that the dividend per share (DPS) continues to rise 10% per year for the next three years.
That would increase the $4.72 DPS rate by 33.1%. So the new DPS would be $6.28 per share.
Now letâÂÂs also assume that AbbvieâÂÂs dividend yield falls a bit to an average of its peers. For example, Eli Lilly (NYSE:) has a 2.10% dividend yield. Merck (NYSE:) has a 2.7% yield, and the Pfizer (NYSE:) yield is 3.8%.
So if AbbvieâÂÂs dividend yield improves to say 3.5%, which is still higher than the average, Abbvie will be significantly higher. We can estimate that price by taking DPS and dividing it by the average estimate yield.
For example, the DPS of $6.28 in three years divided by 3.5% results in an expected price of $170.43 per share. That is over twice the present price. Even if we use a 4% dividend yield, the resulting expected price is $157 per share.
Now the present value of $157 using a 5% discount rate for three years means that the stock is now worth $135.62 per share. So that means ABBV stock is worth 54% higher than todayâÂÂs price.
The Abbvie Stock Takeaway
Abbvie has a great track record raising its dividend. Abbvie sells for less than 9 times forward earnings. I have shown that if the dividend hike trends continue Abbvie is likely worth at least $135.62 per share. This assumes only a slightly better dividend yield of 4% versus its present 4.8% yield.
That sounds like a pretty good deal for investors. The closing of the Allergan deal in the next few months is likely to act as a catalyst for higher earnings and cash flow.
Even though the stock has risen in the past few months, it is probably worth buying now.
As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs theÃÂ ÃÂ which you can reviewÃÂ here.ÃÂ TheÃÂ GuideÃÂ focuses on high total yield value stocks. Subscribers a two-week free trial.
The post 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, the chart below shows that Abbvie has regularly raised its dividend per share in the past five years. Abbvie says the deal gives it âÂÂnew growth platformsâ and is âÂÂtransformative.â The combined company generated $19 billion in operating cash flow in 2018. Abbvie (NYSE:) is up over 40% since its mid-August 2019 lows, but amazingly Abbvie stock still offers great value to investors. | The dividend is expected to rise by 10% this year Source: Mark R. Hake Moreover, Abbvie is close to closing on its mid-June 2019 acquisition ofàAllergan (NYSE:).àAllergan is well known for its Botox and other beauty products. Valuing Abbvie Stock Assuming the deal closes and everything works out, Abbvie should be able to continue to raise its dividend. So that means ABBV stock is worth 54% higher than todayâÂÂs price. | The dividend is expected to rise by 10% this year Source: Mark R. Hake Moreover, Abbvie is close to closing on its mid-June 2019 acquisition ofàAllergan (NYSE:).àAllergan is well known for its Botox and other beauty products. Valuing Abbvie Stock Assuming the deal closes and everything works out, Abbvie should be able to continue to raise its dividend. So if AbbvieâÂÂs dividend yield improves to say 3.5%, which is still higher than the average, Abbvie will be significantly higher. | The dividend is expected to rise by 10% this year Source: Mark R. Hake Moreover, Abbvie is close to closing on its mid-June 2019 acquisition ofàAllergan (NYSE:).àAllergan is well known for its Botox and other beauty products. Abbvie (NYSE:) is up over 40% since its mid-August 2019 lows, but amazingly Abbvie stock still offers great value to investors. Source: Piotr Swat / Shutterstock.com For example, ABBV has a of 4.8% and a prospective price-to-earnings ratio of just 9 times. |
24748.0 | 2020-01-16 00:00:00 UTC | 5 Key Things Investors Should Look Forward to With AbbVie in 2020 | ABBV | https://www.nasdaq.com/articles/5-key-things-investors-should-look-forward-to-with-abbvie-in-2020-2020-01-16 | nan | nan | AbbVie (NYSE: ABBV) shareholders didn't have a lot to get excited about last year. The stock finished 2019 down 4%, while the S&P 500 surged 29%. But the big drugmaker's future is a lot more important than its past.
Rick Gonzalez, AbbVie's CEO, along with a couple of other top executives had an opportunity to talk about AbbVie's future on Wednesday at the J.P. Morgan Healthcare Conference in San Francisco. Here are five key things that investors should look forward to in 2020 for AbbVie, according to the company's management team.
Image source: Getty Images.
1. Close of the Allergan acquisition
Probably the most significant near-term event for AbbVie is the close of its pending acquisition of Allergan (NYSE: AGN). Gonzalez said that the company expects the deal to close in the first quarter of 2020. And he thinks that acquiring Allergan will allow AbbVie to "reposition the business in a way that's even stronger" than its historical track record of success.
AbbVie recently announced plans to set up Allergan's medical-aesthetics business as a stand-alone unit with its own research and development team. Gonzalez said at the J. P. Morgan conference that this approach is similar to what the company did when it first acquired Pharmacyclics. He thinks doing so will "accelerate the advance of innovation" with Allergan's aesthetics business.
2. Humira rocking along (for now)
Most of the recent attention for Humira has centered on sinking international sales for the drug in the wake of competition from biosimilars in Europe. But Gonzalez said that Humira should continue to grow in the huge U.S. market in 2020.
It will be a different story beginning in 2022, though. Gonzalez expects U.S. sales growth for Humira will begin to slow even before biosimilars hit the U.S. market in 2023. He also predicts that the sales decline will be steep initially before stabilizing somewhat.
3. Strong momentum for new immunology drugs
Two new immunology drugs should go a long way toward offsetting the inevitable sales decline for Humira. Gonzalez said that both Rinvoq and Skyrizi are doing very well in the early stages of their launches. He also noted that Skyrizi already claims 25% of its "in-play market" (which includes treatment-naive patients, newly diagnosed patients, and patients switching from other drugs) in treating psoriasis. Rinvoq claims a 9% market share in its in-play market of treating rheumatoid arthritis, and Gonzalez said the drug is gaining around one point of additional market share each month.
Look for both drugs to pick up momentum in 2020. Earlier this week, AbbVie announced encouraging results from a late-stage study evaluating Skyrizi in a head-to-head matchup with Novartis' Cosentyx. This data should help motivate physicians to prescribe Skyrizi. The company also fully expects that Rinvoq will continue to deliver strong growth and eventually challenge the top leaders in the rheumatoid arthritis market.
4. Lots of pipeline updates
AbbVie president Mike Severino provided an update on the company's pipeline programs. There are quite a few milestones on the way this year.
Severino especially highlighted the results from the second of two late-stage studies of upadacitinib (Rinvoq) in treating psoriatic arthritis expected to read out in 2020. These results should support a regulatory filing in the additional indication. Results from a late-stage study of Skyrizi in treating Crohn's disease are expected this year, as well.
On the hematology/oncology front, AbbVie should announce results from a late-stage study of Imbruvica as a first-line treatment for graft-versus-host disease (GVHD) and from a late-stage study of a combination of Imbruvica and Venclexta. Severino also said there will be "a steady cadence of readouts" from early-stage programs this year and into 2021 and 2022.
5. Dividend growth (but at a slower pace)
AbbVie ranks as one of the most attractive dividend stocks on the market right now. Its yield stands at nearly 5.4%, and the company increased its dividend payout by 10.3% in November.
CFO Rob Michael stated that AbbVie remains "committed to a strong and growing dividend." But the rate of its dividend hikes could slow somewhat beginning in 2020. Michael said that the dividend growth won't necessarily grow at the rate of earnings growth.
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Keith Speights 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. | AbbVie recently announced plans to set up Allergan's medical-aesthetics business as a stand-alone unit with its own research and development team. Earlier this week, AbbVie announced encouraging results from a late-stage study evaluating Skyrizi in a head-to-head matchup with Novartis' Cosentyx. AbbVie (NYSE: ABBV) shareholders didn't have a lot to get excited about last year. | Lots of pipeline updates AbbVie president Mike Severino provided an update on the company's pipeline programs. AbbVie (NYSE: ABBV) shareholders didn't have a lot to get excited about last year. Rick Gonzalez, AbbVie's CEO, along with a couple of other top executives had an opportunity to talk about AbbVie's future on Wednesday at the J.P. Morgan Healthcare Conference in San Francisco. | Rick Gonzalez, AbbVie's CEO, along with a couple of other top executives had an opportunity to talk about AbbVie's future on Wednesday at the J.P. Morgan Healthcare Conference in San Francisco. 5. Dividend growth (but at a slower pace) AbbVie ranks as one of the most attractive dividend stocks on the market right now. AbbVie (NYSE: ABBV) shareholders didn't have a lot to get excited about last year. | AbbVie (NYSE: ABBV) shareholders didn't have a lot to get excited about last year. Rick Gonzalez, AbbVie's CEO, along with a couple of other top executives had an opportunity to talk about AbbVie's future on Wednesday at the J.P. Morgan Healthcare Conference in San Francisco. Here are five key things that investors should look forward to in 2020 for AbbVie, according to the company's management team. |
24749.0 | 2020-01-16 00:00:00 UTC | The Best Large-Cap ETFs to Buy in 2020 | ABBV | https://www.nasdaq.com/articles/the-best-large-cap-etfs-to-buy-in-2020-2020-01-16 | nan | nan | If you're just beginning to learn how to invest in stocks, it can be wise to start building your portfolio around exchange-traded funds (ETFs), which offer an easy passive path to diversified holdings. To be clear, ETFs aim to essentially track the market, rather than beat it.
My preference when it comes to ETFs is to avoid overexposure to foreign markets. In Europe, economic trouble is being staved off by negative interest rates. China has shown some weakness, only partially due to its trade war with the U.S., and it's not clear that Asia is out of the woods yet. As the 2020 U.S. election heats up (and perhaps depending on how it turns out), China could well be in for more economic headwinds.
Given all that, it appears that the greatest strength right now economically is in the domestic market -- and that's where my list of top ETFs to buy largely focuses.
Schwab US Large-Cap Growth ETF
The Schwab US Large-Cap Growth ETF (NYSEMKT: SCHG) offers domestic exposure to some of the best growth companies. The funds top 10 holdings include names like Apple, Microsoft, and Amazon, while also carrying exposure to the investment prowess of Berkshire Hathaway, as well as steady stocks like Visa and Mastercard. Some rank this as the best large-cap growth fund.
Overall, the fund has 29.20% of its holdings in technology, with its second-largest sector being defensive stocks at 16.94%. Over a 10-year period, it has averaged returns of 14.83% per year. Through the past three years, the fund has outpaced the S&P 500, but has generally closely tracked the index. It has been favored as a cheap play on domestic growth for years.
One reason for caution here would be the fund's 1.89% stake in UnitedHealth Group. As the 2020 election gets into full swing, healthcare stocks could face some bearish pressure from the rhetoric of democratic candidates, despite sound financials.
Vanguard Mega Cap Growth ETF
Since its launch in 2008, the Vanguard Mega Cap Growth ETF (NYSEMKT: MGK) has been an excellent tracker of the S&P 500, and over the last three years, it has beaten the index annually. With an average risk rating from Morningstar, the fund tracks the CRSP US Mega Cap Growth Index. Once again, this is an easy, cost-efficient way to gain exposure to U.S. economic growth.
Its portfolio includes similar names to the Schwab US Large-Cap Growth ETF -- the difference between them lies largely in their asset allocations. Microsoft accounts for 10.47% of the Vanguard fund's holdings, followed closely by Apple at 9.84%. Other names include Amazon, Facebook, Alphabet, Home Depot, and the major credit card networks Mastercard and Visa.
Image Source: Getty Images
SPDR S&P Dividend ETF
With an annualized rate of return of 9.29%, the SPDR S&P Dividend ETF (NYSEMKT: SDY) obviously underperforms the market, but for the low-risk type of fund it is, it offers a good risk-reward scenario. The fund tracks the S&P High Yield Dividend Aristocrats Index, and has delivered an average annual dividend yield of 2.47%. Its portfolio is primarily focused on industrials, consumer defensives, consumer cyclicals, and financial services. Top names include AbbVie, AT&T, IBM, and ExxonMobil. Allocating to dividend based funds is never a bad move, and five-star rating from Morningstar demonstrates confidence in the ETF. It also carries a low expense ratio of 0.35.
Vanguard S&P 500 ETF
A diversified take on the S&P 500, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is an excellent way to match the market, as the five-year chart shows it does almost exactly. It averages 14.54% per year, carries a 1.86% dividend yield, and provides all that for a quite cheap 0.03 expense ratio.
While it's certainly a great ETF for investors seeking a passively managed fund, it is worth noting that its largest holdings are in technology -- a common area of high exposure these days. It also has a 16.11% stake in financial services and a 14.38% stake in healthcare. I like the healthcare industry, but again, companies in that sector could face some turbulence if Democrats gain more leverage in their quest for universal healthcare.
Vanguard Consumer Staples ETF
I love this ETF. Offering a dividend that currently yields 2.46%, and with a three-year trend of beating the S&P 500, the Vanguard Consumer Staples ETF (NYSEMKT: VDC) invests in defensive equities to track the MSCI US Investable Market Index. Top holdings include names like Procter & Gamble, which is heavily weighted at 14.69% of the fund, Coca-Cola at 10.17%, and PepsiCo at 9.02%. With Walmart as the fourth-largest holding at 8.05%, you can see this ETF is focused on enduring leaders over the long term.
The one name that I don't like among its top 10 holdings is Altria Group. Though it offers a strong dividend, the share price has given up a lot of ground in the last three years. The tobacco giant is in an evolving industry with an unclear future, especially given the rise of legal cannabis.
This fund offers a more stable approach than highly growth-oriented funds. It's a good stable piece for a portfolio.
iShares U.S. Dividend and Buyback ETF
This ETF has only been around since the second half of 2017. Investing in equities that offer dividends and/or value returns through share buybacks, the iShares U.S. Dividend and Buyback ETF (NYSEMKT: DIVB) offers a different approach than most ETF's that simply chase the S&P 500, instead placing a heavy emphasis on financial services, technology ,and healthcare. Its dividend has yielded 2%, and it has averaged a 12.67% return.
While the fund has trailed the S&P 500 through most of its short existence, 2019 was a different story. The ETF kept up with the S&P throughout the year, all while investing in quality dividend stocks like Apple, JPMorgan, and Johnson & Johnson, while offering a low expense ratio of 0.25. The story of the markets remains in growth oriented names, but dividends offer the beauty of compound interest.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. David Butler has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Facebook, Mastercard, Microsoft, and Visa. The Motley Fool owns shares of Vanguard S&P 500 ETF. The Motley Fool recommends Home Depot and Johnson & Johnson and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $120 calls on Home Depot, long January 2021 $85 calls on Microsoft, short February 2020 $205 calls on Home Depot, short January 2020 $220 calls on Berkshire Hathaway (B shares), and short January 2021 $115 calls on Microsoft. 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. | Top names include AbbVie, AT&T, IBM, and ExxonMobil. If you're just beginning to learn how to invest in stocks, it can be wise to start building your portfolio around exchange-traded funds (ETFs), which offer an easy passive path to diversified holdings. The funds top 10 holdings include names like Apple, Microsoft, and Amazon, while also carrying exposure to the investment prowess of Berkshire Hathaway, as well as steady stocks like Visa and Mastercard. | Top names include AbbVie, AT&T, IBM, and ExxonMobil. Schwab US Large-Cap Growth ETF The Schwab US Large-Cap Growth ETF (NYSEMKT: SCHG) offers domestic exposure to some of the best growth companies. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), Facebook, Mastercard, Microsoft, and Visa. | Top names include AbbVie, AT&T, IBM, and ExxonMobil. Image Source: Getty Images SPDR S&P Dividend ETF With an annualized rate of return of 9.29%, the SPDR S&P Dividend ETF (NYSEMKT: SDY) obviously underperforms the market, but for the low-risk type of fund it is, it offers a good risk-reward scenario. Investing in equities that offer dividends and/or value returns through share buybacks, the iShares U.S. Dividend and Buyback ETF (NYSEMKT: DIVB) offers a different approach than most ETF's that simply chase the S&P 500, instead placing a heavy emphasis on financial services, technology ,and healthcare. | Top names include AbbVie, AT&T, IBM, and ExxonMobil. The funds top 10 holdings include names like Apple, Microsoft, and Amazon, while also carrying exposure to the investment prowess of Berkshire Hathaway, as well as steady stocks like Visa and Mastercard. Offering a dividend that currently yields 2.46%, and with a three-year trend of beating the S&P 500, the Vanguard Consumer Staples ETF (NYSEMKT: VDC) invests in defensive equities to track the MSCI US Investable Market Index. |
24750.0 | 2020-01-15 00:00:00 UTC | High Drug Prices Remains a Top Issue in Democratic Debates | ABBV | https://www.nasdaq.com/articles/high-drug-prices-remains-a-top-issue-in-democratic-debates-2020-01-15 | nan | nan | One of the top issues discussed at Tuesday's Democratic debate in Iowa was healthcare. Specifically, how to lower drug prices which have been ballooning over the past few years.
Sen. Elizabeth Warren has promised to use executive action to make it easier for generic drug manufacturers to compete with branded drugs, especially if they received funding from federal sources. She went on to mention Insulin specifically, AIDS/HIV drugs, as well as EpiPens (epinephrine autoinjectors).
Image source: Getty Images.
While drug costs have always been a major issue for Democrats, healthcare questions in previous debates have revolved more around improving Medicare access. Sen. Bernie Sanders, has also made comments regarding the nature of major pharmaceutical companies, singling out firms that charge more in the U.S. than in other nations.
Why are drug costs so high?
With healthcare issues remaining a popular subject among voters, even Republicans have taken steps to combat this issue. A recent press release issued by the Trump administration mentions a plan to import prescription drugs from Canada, which are cheaper than in the U.S.
Earlier in 2019, CEOs of major drugmakers were invited to testify before a Senate Committee on the topic of drug prices. This included the chief executives from AbbVie, AstraZeneca, and six other top pharmaceutical companies. When asked why drugs cost so much in the U.S., the response from drugmakers is that America carries most of the R&D costs for the rest of the world. The idea is that without paying these higher prices, investment in new treatments would dry up.
Regardless, Democrats seem to broadly agree with changing how intellectual property works for big pharmaceuticals to allow greater competition from generic drugmakers.
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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. | This included the chief executives from AbbVie, AstraZeneca, and six other top pharmaceutical companies. While drug costs have always been a major issue for Democrats, healthcare questions in previous debates have revolved more around improving Medicare access. A recent press release issued by the Trump administration mentions a plan to import prescription drugs from Canada, which are cheaper than in the U.S. | This included the chief executives from AbbVie, AstraZeneca, and six other top pharmaceutical companies. Sen. Bernie Sanders, has also made comments regarding the nature of major pharmaceutical companies, singling out firms that charge more in the U.S. than in other nations. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | This included the chief executives from AbbVie, AstraZeneca, and six other top pharmaceutical companies. Sen. Elizabeth Warren has promised to use executive action to make it easier for generic drug manufacturers to compete with branded drugs, especially if they received funding from federal sources. While drug costs have always been a major issue for Democrats, healthcare questions in previous debates have revolved more around improving Medicare access. | This included the chief executives from AbbVie, AstraZeneca, and six other top pharmaceutical companies. While drug costs have always been a major issue for Democrats, healthcare questions in previous debates have revolved more around improving Medicare access. 10 stocks we like better than AstraZeneca When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. |
24751.0 | 2020-01-14 00:00:00 UTC | Notable Tuesday Option Activity: COF, ABBV, HBI | ABBV | https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-cof-abbv-hbi-2020-01-14 | nan | nan | Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Capital One Financial Corp (Symbol: COF), where a total volume of 25,170 contracts has been traded thus far today, a contract volume which is representative of approximately 2.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 153.8% of COF's average daily trading volume over the past month, of 1.6 million shares. Particularly high volume was seen for the $103 strike call option expiring January 17, 2020, with 13,043 contracts trading so far today, representing approximately 1.3 million underlying shares of COF. Below is a chart showing COF's trailing twelve month trading history, with the $103 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 99,605 contracts thus far today. That number of contracts represents approximately 10.0 million underlying shares, working out to a sizeable 143.5% of ABBV's average daily trading volume over the past month, of 6.9 million shares. Particularly high volume was seen for the $77.50 strike call option expiring January 17, 2020, with 39,263 contracts trading so far today, representing approximately 3.9 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
And HanesBrands Inc (Symbol: HBI) saw options trading volume of 61,777 contracts, representing approximately 6.2 million underlying shares or approximately 107.3% of HBI's average daily trading volume over the past month, of 5.8 million shares. Especially high volume was seen for the $16 strike put option expiring February 21, 2020, with 29,160 contracts trading so far today, representing approximately 2.9 million underlying shares of HBI. Below is a chart showing HBI's trailing twelve month trading history, with the $16 strike highlighted in orange:
For the various different available expirations for COF options, ABBV options, or HBI 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 $77.50 strike call option expiring January 17, 2020, with 39,263 contracts trading so far today, representing approximately 3.9 million underlying shares of ABBV. Below is a chart showing COF's trailing twelve month trading history, with the $103 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 99,605 contracts thus far today. That number of contracts represents approximately 10.0 million underlying shares, working out to a sizeable 143.5% of ABBV's average daily trading volume over the past month, of 6.9 million shares. | Below is a chart showing COF's trailing twelve month trading history, with the $103 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 99,605 contracts thus far today. Below is a chart showing ABBV's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And HanesBrands Inc (Symbol: HBI) saw options trading volume of 61,777 contracts, representing approximately 6.2 million underlying shares or approximately 107.3% of HBI's average daily trading volume over the past month, of 5.8 million shares. That number of contracts represents approximately 10.0 million underlying shares, working out to a sizeable 143.5% of ABBV's average daily trading volume over the past month, of 6.9 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And HanesBrands Inc (Symbol: HBI) saw options trading volume of 61,777 contracts, representing approximately 6.2 million underlying shares or approximately 107.3% of HBI's average daily trading volume over the past month, of 5.8 million shares. Below is a chart showing COF's trailing twelve month trading history, with the $103 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 99,605 contracts thus far today. That number of contracts represents approximately 10.0 million underlying shares, working out to a sizeable 143.5% of ABBV's average daily trading volume over the past month, of 6.9 million shares. | Particularly high volume was seen for the $77.50 strike call option expiring January 17, 2020, with 39,263 contracts trading so far today, representing approximately 3.9 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $77.50 strike highlighted in orange: And HanesBrands Inc (Symbol: HBI) saw options trading volume of 61,777 contracts, representing approximately 6.2 million underlying shares or approximately 107.3% of HBI's average daily trading volume over the past month, of 5.8 million shares. Below is a chart showing COF's trailing twelve month trading history, with the $103 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 99,605 contracts thus far today. |
24752.0 | 2020-01-14 00:00:00 UTC | AbbVie : Late-stage Plaque Psoriasis Study Meets Primary & Secondary Endpoints | ABBV | https://www.nasdaq.com/articles/abbvie-%3A-late-stage-plaque-psoriasis-study-meets-primary-secondary-endpoints-2020-01-14 | nan | nan | (RTTNews) - AbbVie (ABBV) said that new head-to-head phase 3 data show skyrizi superior to cosentyx across primary and all ranked secondary endpoints in adults with moderate to severe plaque psoriasis at 52 weeks.
Of patients treated with skyrizi, 87 percent achieved PASI 90 compared to 57 percent of Cosentyx-treated patients at 52 weeks. At week 16, skyrizi also met the other primary endpoint of non-inferiority to Cosentyx with 74 percent of skyrizi patients achieving PASI 90 compared to 66 percent of Cosentyx patients.
Skyrizi is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally.
Skyrizi is indicated for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy.
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 new head-to-head phase 3 data show skyrizi superior to cosentyx across primary and all ranked secondary endpoints in adults with moderate to severe plaque psoriasis at 52 weeks. Skyrizi is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. At week 16, skyrizi also met the other primary endpoint of non-inferiority to Cosentyx with 74 percent of skyrizi patients achieving PASI 90 compared to 66 percent of Cosentyx patients. | (RTTNews) - AbbVie (ABBV) said that new head-to-head phase 3 data show skyrizi superior to cosentyx across primary and all ranked secondary endpoints in adults with moderate to severe plaque psoriasis at 52 weeks. Skyrizi is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. Of patients treated with skyrizi, 87 percent achieved PASI 90 compared to 57 percent of Cosentyx-treated patients at 52 weeks. | (RTTNews) - AbbVie (ABBV) said that new head-to-head phase 3 data show skyrizi superior to cosentyx across primary and all ranked secondary endpoints in adults with moderate to severe plaque psoriasis at 52 weeks. Skyrizi is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. Of patients treated with skyrizi, 87 percent achieved PASI 90 compared to 57 percent of Cosentyx-treated patients at 52 weeks. | (RTTNews) - AbbVie (ABBV) said that new head-to-head phase 3 data show skyrizi superior to cosentyx across primary and all ranked secondary endpoints in adults with moderate to severe plaque psoriasis at 52 weeks. Skyrizi is part of a collaboration between Boehringer Ingelheim and AbbVie, with AbbVie leading development and commercialization globally. At week 16, skyrizi also met the other primary endpoint of non-inferiority to Cosentyx with 74 percent of skyrizi patients achieving PASI 90 compared to 66 percent of Cosentyx patients. |
24753.0 | 2020-01-13 00:00:00 UTC | 2020 J.P. Morgan Healthcare Conference Roundup | ABBV | https://www.nasdaq.com/articles/2020-j.p.-morgan-healthcare-conference-roundup-2020-01-13 | nan | nan | The 38th annual J.P. Morgan (NYSE: JPM) Healthcare Conference kicks off on Monday, Jan. 13, 2020 in San Francisco and healthcare investors are closely listening to presentations by executives leading the world's most powerful drug and biotech companies.
More than 450 companies will be presenting, including AbbVie (NYSE: ABBV), Amarin (NASDAQ: AMRN), and Bristol-Myers Squibb (NYSE: BMY) to more than 9,000 attendees. The Motley Fool's healthcare team will keep you informed about the most important announcements and offer our expert analysis. Check back daily for updates!
Image Source: Getty Images
All the 2020 Pre-JPM News Healthcare Investors Need to Know
3 Top Biotech Stocks to Buy in January
3 Things We Might Hear From Illumina Next Week
Eli Lilly to Boost Its Dermatology Pipeline with $1.1 Billion Dermira Acquisition
Sorrento Therapeutics Received Buyout Offer From Private Equity Firm
Medtronic Buys Spinal Cord Therapy Company, Adding To Its Chronic Pain Management Platform
Teladoc Health Plans to Acquire InTouch Health for $600 Million
P.S. If you're interested in checking out how much things have changed since this time in 2019, here's last year's landing page.
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Corinne Cardina has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Bristol-Myers Squibb. 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. | More than 450 companies will be presenting, including AbbVie (NYSE: ABBV), Amarin (NASDAQ: AMRN), and Bristol-Myers Squibb (NYSE: BMY) to more than 9,000 attendees. The Motley Fool's healthcare team will keep you informed about the most important announcements and offer our expert analysis. Image Source: Getty Images All the 2020 Pre-JPM News Healthcare Investors Need to Know 3 Top Biotech Stocks to Buy in January 3 Things We Might Hear From Illumina Next Week Eli Lilly to Boost Its Dermatology Pipeline with $1.1 Billion Dermira Acquisition Sorrento Therapeutics Received Buyout Offer From Private Equity Firm Medtronic Buys Spinal Cord Therapy Company, Adding To Its Chronic Pain Management Platform Teladoc Health Plans to Acquire InTouch Health for $600 Million P.S. | More than 450 companies will be presenting, including AbbVie (NYSE: ABBV), Amarin (NASDAQ: AMRN), and Bristol-Myers Squibb (NYSE: BMY) to more than 9,000 attendees. The Motley Fool's healthcare team will keep you informed about the most important announcements and offer our expert analysis. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. | More than 450 companies will be presenting, including AbbVie (NYSE: ABBV), Amarin (NASDAQ: AMRN), and Bristol-Myers Squibb (NYSE: BMY) to more than 9,000 attendees. Image Source: Getty Images All the 2020 Pre-JPM News Healthcare Investors Need to Know 3 Top Biotech Stocks to Buy in January 3 Things We Might Hear From Illumina Next Week Eli Lilly to Boost Its Dermatology Pipeline with $1.1 Billion Dermira Acquisition Sorrento Therapeutics Received Buyout Offer From Private Equity Firm Medtronic Buys Spinal Cord Therapy Company, Adding To Its Chronic Pain Management Platform Teladoc Health Plans to Acquire InTouch Health for $600 Million P.S. 10 stocks we like better than JPMorgan Chase When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | More than 450 companies will be presenting, including AbbVie (NYSE: ABBV), Amarin (NASDAQ: AMRN), and Bristol-Myers Squibb (NYSE: BMY) to more than 9,000 attendees. That's right -- they think these 10 stocks are even better buys. The Motley Fool has a disclosure policy. |
24754.0 | 2020-01-13 00:00:00 UTC | 7 Great High-Yield Stocks With Payouts Over 5% | ABBV | https://www.nasdaq.com/articles/7-great-high-yield-stocks-with-payouts-over-5-2020-01-13 | nan | nan | EditorâÂÂs note: This story was previouslyàpublished in November 2019. It has since been updated and republished.
ItâÂÂs not as easy as it looks to pick high-yield dividend stocks because theyâÂÂre often yielding more than 5% for a reason. Something about the company or industry has broken down, pushing the stock price lower and the yield higher.ÃÂ
However, that doesnâÂÂt mean good buys arenâÂÂt out there. It just means you have to be a little more selective about the ones you do choose to buy.
To keep things interesting, IâÂÂll do my best to include one stock from seven different sectors.
High-Yield Stocks to Buy: Rio Tinto (RIO)
Source: Shutterstock
In 2018, Rio Tinto (NYSE:) paid total dividends of $3.08 a share, 30% higher than the $2.37 it paid out a year earlier. In April, it paid out $1.80 in regular dividends and $2.43 in special dividends. In September, it paid $1.51 in regular dividends and 61 cents in special dividends. The special dividends were the result of in 2019.
Rio Tinto CEO Jean-Sebastian JacquesÃÂ told a roomful of miners in October that the industry needed to step up its environmental, social and governance (ESG) game in a world where climates are changing at a drastic pace.ÃÂ
âÂÂLots of people are talking about it, but IâÂÂm not sure there is action,â Jacques told the London audience.
ThatâÂÂs courageous talk from the leader of one of the companies that will shape how the industry operates 20-30 years from now.ÃÂ
One possibility Rio TintoâÂÂs CEO mentioned at the London conference was the creation of an app that would allow its customers to see how much carbon dioxide emitted from the products they buy.ÃÂ
The mining industry isnâÂÂt known for full disclosure. Jacquesâ approach suggests his company will play a big part in that changing.ÃÂ
In the meantime, enjoy the attractive dividend yield.ÃÂ
Tapestry (TPR)
Source: Hi-Point / Shutterstock.com
Tapestry (NYSE:) stock is down 24% over the last year, excluding dividends.
The company was once known as Coach. Then it in July 2017 for $2.4 billion, changed its name to Tapestry to reflect the holding company nature of its business, and all hell has broken loose.
Since Tapestry closed the deal, TPR stock has lost more than 40% of its value. Talk about value destruction.
However, as Tapestry CEO Jide Zeitlin commented in its Q1earnings conference callon Nov. 5, of its stock in the first quarter. Combined with the annual dividend of $1.35 a share, it plans to return $700 million to its shareholders in the coming fiscal year.
Tapestry is currently yielding 4.9%,
While its first-quarter results werenâÂÂt anything to write home about â a excluding currency and a 10.4% decline in non-GAAP operating income â its legacy Coach business continues to provide the profits necessary to allow Zeitlin to do whatâÂÂs needed to revive the Kate Spade brand, which, to date, has been an abject failure.
Financially sound, Tapestry remains a strong value play for those with patience, not to mention the stomach, to ride out the turnaround.
Gaming and Leisure Properties (GLPI)
Source: Shutterstock
Gaming and Leisure Properties (NASDAQ:) is a real estate investment trust (REIT) based in Wyomissing, Pennsylvania. It owns 46 properties in 16 states that encompass 23.5 million square feet and 12,520 hotel rooms.ÃÂ
As for the dividend, it currently pays $2.80 per share annually, yielding 6.4%. It pays out approximately 80% of its adjusted funds from operations (AFFO), leaving it with plenty of financial flexibility and, more importantly, the cash flow necessary to keep growing the dividend per share at 5% or more per year.ÃÂ
It reported its Q3 2019 earnings on Oct. 31. Its to $287.6 million, while its AFFO rose a healthy 13.6% during the quarter. For all of 2019, it expects $1.15 billion in revenue (9.2% growth) and $741.5 million in AFFO (8.5%).
GLPI has its real estate assets invested across several different casino operators. No single property generates more than 5.3% of the 2018 pro forma gross gaming revenues. Its top three tenants have a combined enterprise value of $26.3 billion.ÃÂ
With a conservative balance sheet, GLPIâÂÂs 6.4% yield is worth biting into for income investors.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
If you happened to buy AbbVie (NYSE:) in mid-August, youâÂÂre looking like a regular genius right about now. Up 42% from its 52-week low of $62.66, ABBV stock is still yielding an attractive 5.27%.ÃÂ
How did AbbVie drop so far after starting 2019 around $90?
The companyâÂÂs of Allergan (NYSE:AGN), the manufacturer of Botox, adds a considerable amount of debt to its balance sheet. In addition, Allergan doesnâÂÂt bring to the table any blockbuster drugs like AbbVieâÂÂs Humira, which itself seems to be in Europe, but is still doing fine in the U.S.ààÃÂ
The big reason AbbVie management bit the bullet on Allergan was to give itself time to find for Humira. In recent years it had leaned far too heavily on the arthritis drug. By diversifying its portfolio, AbbVie wonâÂÂt be nearly as reliant on Humira in the future.
ThatâÂÂs great news for investors.
Outfront Media (OUT)
Source: Shutterstock
Over the past five years, Outfront MediaâÂÂs (NYSE:) stock has been in a $10 range between $20 and $30. Currently yielding 5.2%, its stock is near its 52-week high of $28.42.ÃÂ
IâÂÂve been a fan of the REIT for several years. I love the simplicity of its business. It secures prime real estate through long-term leases and then rents out its billboards and bus shelters to advertisers who sell their products to the masses.ÃÂ
To change with the times, youâÂÂve probably noticed that bus shelters and billboards are often digitized these days, which makes the cost of maintaining and changing the ads even less labor-intensive, increasing its margins.
I didnâÂÂt recommend Outfront as one of my high-yielding dividend stocks in May, but now that there are fewer good deals available, IâÂÂm righting a wrong.
However, while I like the consistency of its business, both in terms of revenue growth and earnings growth, itâÂÂs important to remember that this is a business that tends to sag a little when the economy slows as companies cut back on advertising.ÃÂ
That said, its latest earnings report suggests that the in the U.S. are doing just fine.ÃÂ
Buy some stock, enjoy the dividend, and keep some cash in reserve for when it corrects below $20.
Owl Rock Capital (ORCC)
Source: Shutterstock
Owl Rock Capital Corporation (NYSE:) is a business development company (BDC) that went public in July at $15.30 a share. Like all BDCs that qualify as a regulated investment company (RIC), it must payout at least and 90% of its tax-exempt income.
Owl Rock was established in October 2015 as a specialty lender to middle-market businesses in the U.S. The middle-market is defined as businesses with EBITDA between $10 million and $250 million and revenue between $50 million and $2.5 billion at the time of investment.
However, as of March 31, 2019, Owl RockâÂÂs 81 portfolio companies had average annual revenues of $455 million with $80 million EBITDA and an average investment of $84.3 million yielding 9.4%, which explains how itâÂÂs able to pay out a 7.1% distribution to its shareholders.
It will pay a on the last day of each quarter in fiscal 2020, which increases the current yield on a forward basis to 7.25%.
ItâÂÂs a company to watch.
Ready Capital (RC)
Source: Shutterstock
Ready Capital (NYSE:) is a New York City-based commercial mortgage REIT that specializes in lending to small and medium-sized businesses. ItâÂÂs the only nationwide specialty finance company focused on the SBC market.
SBC loans are those where the appraised value is less than $5 million and 50,000 square feet or less. Small balance loans account for approximately 15% of the $4.4 trillion in commercial mortgage debt outstanding.
It reported its third-quarter results on Nov. 6. Although they didnâÂÂt live up to analyst expectations â at 40 cents while revenues were $20.33 million, 2.3% shy of the consensus â itâÂÂs still an attractive high-yield dividend stock generating a robust 9.9% yield.
On Oct. 31, Ready announced that it acquired Knight Capital LLC, a technology-driven to small- and medium-sized businesses in all 50 states. The deal gives Ready access to smaller companies without having to build it to scale.
Of the seven high-yield dividend stocks listed in this article, Ready Capital would be considered the riskiest of the bunch.
That said, Ready Capital has originated more than since the REITâÂÂs inception in 2012. Furthermore, its external asset manager, Waterfall Asset Management, has more than 75 investment professionals with experience in small-balance commercial loans.
At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.
The post 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. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com If you happened to buy AbbVie (NYSE:) in mid-August, youâÂÂre looking like a regular genius right about now. Up 42% from its 52-week low of $62.66, ABBV stock is still yielding an attractive 5.27%.àHow did AbbVie drop so far after starting 2019 around $90? In addition, Allergan doesnâÂÂt bring to the table any blockbuster drugs like AbbVieâÂÂs Humira, which itself seems to be in Europe, but is still doing fine in the U.S.àààThe big reason AbbVie management bit the bullet on Allergan was to give itself time to find for Humira. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com If you happened to buy AbbVie (NYSE:) in mid-August, youâÂÂre looking like a regular genius right about now. Up 42% from its 52-week low of $62.66, ABBV stock is still yielding an attractive 5.27%.àHow did AbbVie drop so far after starting 2019 around $90? In addition, Allergan doesnâÂÂt bring to the table any blockbuster drugs like AbbVieâÂÂs Humira, which itself seems to be in Europe, but is still doing fine in the U.S.àààThe big reason AbbVie management bit the bullet on Allergan was to give itself time to find for Humira. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com If you happened to buy AbbVie (NYSE:) in mid-August, youâÂÂre looking like a regular genius right about now. Up 42% from its 52-week low of $62.66, ABBV stock is still yielding an attractive 5.27%.àHow did AbbVie drop so far after starting 2019 around $90? In addition, Allergan doesnâÂÂt bring to the table any blockbuster drugs like AbbVieâÂÂs Humira, which itself seems to be in Europe, but is still doing fine in the U.S.àààThe big reason AbbVie management bit the bullet on Allergan was to give itself time to find for Humira. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com If you happened to buy AbbVie (NYSE:) in mid-August, youâÂÂre looking like a regular genius right about now. Up 42% from its 52-week low of $62.66, ABBV stock is still yielding an attractive 5.27%.àHow did AbbVie drop so far after starting 2019 around $90? In addition, Allergan doesnâÂÂt bring to the table any blockbuster drugs like AbbVieâÂÂs Humira, which itself seems to be in Europe, but is still doing fine in the U.S.àààThe big reason AbbVie management bit the bullet on Allergan was to give itself time to find for Humira. |
24755.0 | 2020-01-13 00:00:00 UTC | Why AbbVie Could Be a Great Buy in 2020 | ABBV | https://www.nasdaq.com/articles/why-abbvie-could-be-a-great-buy-in-2020-2020-01-13 | nan | nan | AbbVie (NYSE: ABBV) could be poised for a great year. The company will close its acquisition of drug manufacturer Allergan (NYSE: AGN) early this year, which will help pad AbbVie's results, add more products into its portfolio, and diversify its revenue stream by adding more brands.
There's one drug in particular that investors should be excited about, because of its potential to drive significant growth for the company: Ubrelvy.
FDA approves Ubrelvy for migraines
In December, the U.S. Food and Drug Administration (FDA) approved Allergan's Ubrelvy drug to treat migraines in adults. Patients can take Ubrelvy orally, and unlike other migraine drugs in the market, they can take it after the migraine has begun, rather than beforehand.
It's an exciting development for the company. In its release, the FDA noted that "Ubrelvy represents an important new option for the acute treatment of migraine in adults, as it is the first drug in its class approved for this indication."
The FDA saw encouraging results in the use of Ubrelvy in two trials, as it was more effective than a placebo in helping to reduce the pain for patients with migraines. Many patients saw relief after just two hours. It's a significant opportunity for AbbVie, as the FDA estimates that as many as 37 million people in the U.S. experience migraines.
IMAGE SOURCE: GETTY IMAGES.
Allergan to have product ready to go in the first quarter
As a result of the approval, the company announced that Ubrelvy will be available for sale as early as the first quarter of 2020. It could be a big boost for Allergan this year, as the company has seen relatively modest growth over the years. In 2018, sales of $15.8 billion were down from the prior-year tally of $15.9 billion and grew just 8% over the course of two years.
Some estimates have global sales for Ubrelvy reaching $486 million by 2025. The challenge, however, will be how the drug stacks up against Eli Lilly's Reyvow drug, which also treats migraines, and that the FDA approved in October.
Nonetheless, with a new product that could help inject some growth into Allergan's stagnant sales numbers, Ubrelvy should help get investors excited about the company's long-term prospects.
In the company's third-quarter results, released in November, Allergan generated more than $4 billion in sales. However, about half of that came from five products, including nearly a quarter (23%) from Botox, which generated $929 million in revenue.
Allergan needs diversification, as does AbbVie. Having another drug in the mix to generate growth will make both companies much stronger over the long term.
Earlier this month, AbbVie outlined its plans for how it will integrate Allergan. Aside from Allergan Aesthetics, which will operate as an individual unit, AbbVie will integrate the remainder of the business into its operations. Botox, however, will be split with AbbVie taking the therapeutics part of the business while Allergan Aesthetics will include the cosmetic piece.
Strong contributions from Allergan could help AbbVie's stock soar
Any time there's a big acquisition, especially one that's worth $63 billion, there will be questions and plenty of skeptics wondering if it's a good move for the company. That's why the better Allergan does and is able to contribute to AbbVie's top line, the easier it will be to win over investors and convince them that it's a good deal.
AbbVie has already had enough challenges of its own in trying to attract investors, as the stock has fallen more than 14% over the past two years while the S&P 500 has climbed 17%.
Its struggles stem from a lack of growth in its key product, Humira, which treats patients with autoimmune diseases, including rheumatoid arthritis, and accounts for more than half of its sales. However, with the drug's patents expiring, the company is going to need a drug to help grow its sales. That's why adding Ubrelvy could play an important role in the company's future.
With AbbVie's acquisition of Allergan expected to close early this year and the potential benefits of Ubrelvy sales, 2020 could be a good year for the healthcare stock, and its top and bottom lines could come in better than expected.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company will close its acquisition of drug manufacturer Allergan (NYSE: AGN) early this year, which will help pad AbbVie's results, add more products into its portfolio, and diversify its revenue stream by adding more brands. Strong contributions from Allergan could help AbbVie's stock soar Any time there's a big acquisition, especially one that's worth $63 billion, there will be questions and plenty of skeptics wondering if it's a good move for the company. AbbVie (NYSE: ABBV) could be poised for a great year. | The company will close its acquisition of drug manufacturer Allergan (NYSE: AGN) early this year, which will help pad AbbVie's results, add more products into its portfolio, and diversify its revenue stream by adding more brands. With AbbVie's acquisition of Allergan expected to close early this year and the potential benefits of Ubrelvy sales, 2020 could be a good year for the healthcare stock, and its top and bottom lines could come in better than expected. AbbVie (NYSE: ABBV) could be poised for a great year. | The company will close its acquisition of drug manufacturer Allergan (NYSE: AGN) early this year, which will help pad AbbVie's results, add more products into its portfolio, and diversify its revenue stream by adding more brands. With AbbVie's acquisition of Allergan expected to close early this year and the potential benefits of Ubrelvy sales, 2020 could be a good year for the healthcare stock, and its top and bottom lines could come in better than expected. AbbVie (NYSE: ABBV) could be poised for a great year. | With AbbVie's acquisition of Allergan expected to close early this year and the potential benefits of Ubrelvy sales, 2020 could be a good year for the healthcare stock, and its top and bottom lines could come in better than expected. AbbVie (NYSE: ABBV) could be poised for a great year. The company will close its acquisition of drug manufacturer Allergan (NYSE: AGN) early this year, which will help pad AbbVie's results, add more products into its portfolio, and diversify its revenue stream by adding more brands. |
24756.0 | 2020-01-12 00:00:00 UTC | 3 High-Yield Dividend Stocks I'd Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-high-yield-dividend-stocks-id-buy-right-now-2020-01-12 | nan | nan | There are plenty of high-yield dividend stocks that I wouldn't touch with a 10-foot pole. Their business models are shaky. The dividend is in jeopardy of being slashed. Many high-yield dividend stocks simply aren't good picks for long-term investors.
But there are also quite a few stocks with high dividend yields that are attractive. Three such stocks that I'd buy right now are AbbVie (NYSE: ABBV), Brookfield Infrastructure Partners (NYSE: BIP), and Innovative Industrial Partners (NYSE: IIPR). Here's what makes these three stocks stand out.
Image source: Getty Images.
1. AbbVie
AbbVie's dividend currently yields a mouthwatering 5.3%. The company claims an impressive track record of dividend hikes, recently increasing its dividend payout for the 47th consecutive year (including the time it was part of Abbott Labs).
The drugmaker does have some challenges. Sales for its best-selling drug, Humira, are under pressure as it loses market share in Europe to biosimilar rivals. That pressure will intensify in just a few years when biosimilars hit the U.S. market.
However, I think that AbbVie has a pretty good strategy to handle Humira's inevitable decline. The company's blockbuster cancer drugs Imbruvica and Venclexta continue to perform very well. AbbVie launched two new immunology drugs last year, Rinvoq and Skyrizi, that should be huge winners.
The company also is nearing closure of its pending acquisition of Allergan. This deal will bring massively successful Botox and fast-rising star Vraylar plus several other drugs into AbbVie's lineup. Acquiring Allergan will help reduce AbbVie's dependence on Humira but shouldn't impact its dividend. I already own AbbVie stock and continue to see it as a great pick for dividend-seeking investors.
2. Brookfield Infrastructure Partners
Brookfield Infrastructure Partners' dividend yield stands at 4% right now. Although the company doesn't have the long history of dividend hikes that AbbVie does, it has boosted its dividend by 42% over the last five years, which isn't shabby at all.
Think of a kind of infrastructure asset, and there's a good chance Brookfield owns it. Cell towers, data centers, electricity transmission systems, natural gas pipelines, ports, railroads, toll roads, and more are among the company's portfolio of assets. The great thing is that they provide steady revenue streams regardless of what's going on with the economy.
Although it's a utility stock, Brookfield delivers a level of growth that's rare for utilities. It has increased funds from operations (FFO) per unit by 17% annually over the last couple of years and is on track to boost that growth to 25% heading into 2020. Brookfield expects to increase cash flow by 9% next year.
The key for Brookfield's solid growth is its strategy to continually evaluate its assets, selling the lower-performing ones and reinvesting to buy assets with higher potential for growth. For example, Brookfield made deals to sell off five assets in 2019 for $1.1 billion and is buying telecom company Cincinnati Bell plus some communications towers in India. I think Brookfield's dealmaking and its array of solid assets should keep the dividends flowing for a long time to come, and I recently scooped up shares of the company.
3. Innovative Industrial Properties
Last, but not least, is Innovative Industrial Properties (IIP). The real estate investment trust (REIT) currently pays a dividend that yields north of 5.4%. And its dividend growth is sizzling hot, with IIP more than doubling its dividend payout since the beginning of 2019.
IIP ranks as the leading REIT that focuses exclusively on the cannabis industry. The company invests in properties then leases them to medical cannabis operators, usually in a leaseback transaction where the medical cannabis operator sells its property to IIP.
Unlike most marijuana stocks, IIP has been consistently profitable for a while. Its revenue and earnings continue to soar as the company gobbles up more properties to lease out.
Future growth shouldn't be a problem, either. IIP currently owns 46 properties in 14 U.S. states. The cannabis markets in several of those states are still in their early stages. There are also another 19 states with legal medical cannabis markets -- and more could be on the way.
10 stocks we like better than Innovative Industrial Properties
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Keith Speights owns shares of AbbVie and Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners and Innovative Industrial Properties. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Three such stocks that I'd buy right now are AbbVie (NYSE: ABBV), Brookfield Infrastructure Partners (NYSE: BIP), and Innovative Industrial Partners (NYSE: IIPR). AbbVie AbbVie's dividend currently yields a mouthwatering 5.3%. However, I think that AbbVie has a pretty good strategy to handle Humira's inevitable decline. | Three such stocks that I'd buy right now are AbbVie (NYSE: ABBV), Brookfield Infrastructure Partners (NYSE: BIP), and Innovative Industrial Partners (NYSE: IIPR). AbbVie AbbVie's dividend currently yields a mouthwatering 5.3%. However, I think that AbbVie has a pretty good strategy to handle Humira's inevitable decline. | Three such stocks that I'd buy right now are AbbVie (NYSE: ABBV), Brookfield Infrastructure Partners (NYSE: BIP), and Innovative Industrial Partners (NYSE: IIPR). Although the company doesn't have the long history of dividend hikes that AbbVie does, it has boosted its dividend by 42% over the last five years, which isn't shabby at all. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie and Brookfield Infrastructure Partners. | AbbVie AbbVie's dividend currently yields a mouthwatering 5.3%. Although the company doesn't have the long history of dividend hikes that AbbVie does, it has boosted its dividend by 42% over the last five years, which isn't shabby at all. Three such stocks that I'd buy right now are AbbVie (NYSE: ABBV), Brookfield Infrastructure Partners (NYSE: BIP), and Innovative Industrial Partners (NYSE: IIPR). |
24757.0 | 2020-01-10 00:00:00 UTC | 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount | ABBV | https://www.nasdaq.com/articles/7-healthcare-stocks-to-buy-or-sell-as-pricing-pressures-mount-2020-01-10 | nan | nan | There has been a great deal of discussion about how drug prices will change in coming years. The fact that this is an election year surely sticks in tradersâ minds. If you remember back to the 2016 election cycle, biotech shares went into a brutal downturn after Hillary Clinton castigated the pharma industry for its pricing practices. Shares of healthcare stocks eventually recovered as it became clear that the Trump Administration had bigger fish to fry than going after drug prices.
But now the cycle has begun again. Several Democratic candidates are proposing dramatic changes to the American healthcare industry to try to curb runaway drug prices. It seems likely that if re-elected, President Trump would probably need to tackle the issue again as well, as the system left in place from the Affordable Care Act needs modifications. This is a problem for investors. ItâÂÂs hard to forecast future profits when itâÂÂs not clear what the playing field will look like within a couple years.
As such, itâÂÂs a good time to take stock of your personal exposure to the healthcare industry before the presidential election heats up and potential market-moving headlines start pouring in. To that end, in general, companies with diversified revenue streams will fare better, while ones relying on a few high-priced drugs face more risk. Here are the outlooks for seven leading biotech, pharma and healthcare stocks in light of the potential pressures on drug prices going forward.
Healthcare Stocks to Watch: Amarin (AMRN)
Source: Pavel Kapysh / Shutterstock.com
Amarin (NASDAQ:) offers a great example of the questions around drug pricing going forward. It recently scored Food and Drug Administration approval to market its fish oil product, Vascepa, to a much wider range of adults with high triglycerides. That should be a huge win for Amarin, right? The stock initially popped to multi-year highs, but slumped back to prior levels quickly.
This week, Amarin stock dropped even farther, and itâÂÂs now down 25% from its recent highs. The latest catalyst is that leading health insurance firm UnitedHealth (NYSE:) reportedly dropped AmarinâÂÂs Vascepa from its preferred authorization list. UnitedHealth offers Lovaza, the fish oil product initially commercialized by GlaxoSmithKline (NYSE:), instead. Lovaza also aims to improve heart condition outcomes by lowering triglycerides. Unlike Vascepa, however, Lovaza doesnâÂÂt have such a wide body of clinical trials supporting its efficacy.
Nonetheless, insurance companies like UnitedHealth might think that one fish oil product is similar to another, and may pick the cheaper one for its customers. It shows the difficulty pharma companies are having as more attention turns to price. With increased attention to drug prices from both the private sector and the government, companies that offer a slightly better version of an existing drug should be careful.
Amarin is a great example of how FDA approval doesnâÂÂt necessarily translate into strong demand or profits in the current economic environment. AMRN stock still has plenty of potential upside, particularly in a buyout scenario. But it isnâÂÂt the slam dunk winner it might have been five or ten years ago.
Novo Nordisk (NVO)
Source: joreks / Shutterstock.com
Unlike the previous example, Novo NordiskÃÂ (NYSE:) has a safer route to profits in this regulatory environment. That is to produce drugs that are clearly best-in-class, and sell lots of them at affordable prices. Novo Nordisk does this by selling insulin and other diabetes treatments.
Given the growing diabetes epidemic around the world, Novo Nordisk is riding a huge demographic tide. And itâÂÂs significantly harder for health insurers to say no to Novo Nordisk with its vitally important medications. Novo stock has traded up recently; however, itâÂÂs still at a reasonable 21x forward earnings given its historic near-double digit earnings-per-share growth rate.
On top of that, Novo Nordisk stock is still only trading at where it previously peaked back in 2015. While earnings and dividends have grown nicely over the past five years, the companyâÂÂs stock hasnâÂÂt yet caught up to its recent growth. Once the stock breaks out over $60 and hits all-time highs, however, it should pick up more momentum.
Johnson & Johnson (JNJ)
Source: Alexander Tolstykh / Shutterstock.com
One way to lower your political risk, as it comes to drug prices is to run a supremely diversified business. Johnson & Johnson (NYSE:) manages to do that by having three different operations within the parent corporation. These include consumer products, medical devices and pharmaceutical drugs.
Consumer products generally donâÂÂt fall under the FDAâÂÂs purview and arenâÂÂt hurt by pressure on drug prices. Insurance efforts to crack down healthcare pricing could hurt medical device margins, but itâÂÂs a bit of a different animal than drugs.
J&J still has drug pricing exposure to be certain, pharmaceuticals are its large division by a wide margin when it comes to profit. But the two other embedded lines of business lower risk; meanwhile, J&JâÂÂs drug portfolio is one of the most broadly diversified ones out there. JNJ stock has traded up a bit recently, but itâÂÂs still selling for just 16x forward earnings. Combine that with its unparalleled record of dividend growth, and J&J is a conservative way to get your dose of healthcare exposure.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NASDAQ:) is the pharma spin-off from healthcare and medical devices leader Abbott (NYSE:). Abbott seems to have made a wise move in spinning off AbbVie. Since the companies parted ways, AbbottâÂÂs stock has more than doubled, while AbbVie has had a more difficult road.
This makes sense. AbbVie inherited a complicated situation. Its blockbuster drug, Humira, currently makes up two-thirds of its overall revenues. However, Humira is set to face generic competition shortly, with its profits likely to head off the patent cliff by 2023. ItâÂÂs unclear if AbbVie will be able to make up the revenue gap that it will soon face.
It intends to do so via its upcoming mega-merger withàAllergan (NYSE:). Allergan is famous for Botox, and it has numerous other products in the aesthetics space, along with other drugs for things such as eye care and womensâ health. AbbVie hopes that merging with Allergan will diversify its revenue stream enough to withstand the loss of Humira revenues. However, it is taking on a ton of debt to do this deal. And itâÂÂs not clear that Allergan, which had a similar business model to the now infamous Valeant, will fare well in a world with more drug pricing pressure.
A lot of folks own AbbVie for the generous 5.3% dividend yield. But itâÂÂs far from certain whether the Allergan purchase will be enough to sustain the dividend at that elevated level. Particularly if drug pricing pressures increase, that dividend could be on the chopping block in coming years. IâÂÂm a seller of ABBV stock here.
Gilead Sciences (GILD)
Source: Casimiro PT / Shutterstock.com
Gilead Sciences (NASDAQ:) could fare better than most other biotech companies in a challenging drug pricing market. There are several reasons for that. For one, GILD stock has already been one of the biggest losers of the past few years within biotech, so expectations are already low.
Second, Gilead has seen its profits fall because its Hepatitis C products actually cure patients, rather than merely treat symptoms. A Bloombergàarticle noted the unfortunate situation, saying that . The author concluded that Gilead had a âÂÂbad business modelâ because curing diseases âÂÂjust doesnâÂÂt pay.â That is, unfortunately, a seemingly accurate assessment of the current healthcare system.
With an increased focus on pricing and getting the most bang for the buck, however, companies like Gilead should be more attractive to insurers and other end payers. Folks are increasingly sick of pharma companies jacking up prices for drugs that are only fractionally better than the previous version. Gilead hasnâÂÂt played the same milking their patents for the most bucks game, and instead brought revolutionary products to market. After years of sorry stock price performance, however, Gilead may finally get its chance to shine in 2020.
Thermo-Fisher Scientific (TMO)
Source: Shutterstock
Thermo-Fisher ScientificÃÂ (NYSE:) has quietly become one of the largest healthcare companies in the U.S., with its market capitalization now exceeding $125 billion. It has also been one of the strongest performers in the Health Care Select Sector SPDR ETF (NYSEARCA:). With minimal volatility along the way, Thermo-Fisher shares have nearly tripled since early 2016.
Their secret is that they are the proverbial company selling shovels to the gold miners. ThatâÂÂs to say that Thermo Fisher sells lab equipment, pharmaceutical components, diagnostic tools and the like. Companies that want to create new pharma drugs, along with many other healthcare applications, have to buy raw materials from Thermo Fisher.
Lower drug prices might smack profits for biotech companies. But a firm like Thermo Fisher is insulated. Its components are a small portion of the overall price of healthcare products and services. Additionally, it has other customers, such as governments and academic institutions, that buy from it as well. As long as the world continues to spend more on healthcare research and diagnostics in the coming years, Thermo Fisher should be a safe bet to keep on rallying. The stock isnâÂÂt dirt cheap at 24x forward earnings, but itâÂÂs not a bad deal for a company that has much less regulatory/pricing risk than most biotech and pharma companies.
Cardinal Health (CAH)
Source: Shutterstock
Finally, we have the drug distribution companies. While there are various firms in this category, letâÂÂs use Cardinal Health (NYSE:) as our representative stock, as Cardinal has been a popular dividend play and turnaround pick for 2020. And, to be sure, Cardinal has a great track record, including being a Dividend Aristocrat, which means that it has hiked its dividend more than 25 years in a row.
I canâÂÂt get on board with the bullish sentiment for this stock now, however. If you were looking for firms directly in the crosshairs of upcoming changes in drug prices, drug distributors would be right there. ItâÂÂs not clear what role, if any, these companies would even have in a Medicare For All world where the government controlled the supply chain.
For the longest-time, the thesis on these companies has been that U.S. healthcare spending will inevitably rise as the population ages. ThatâÂÂs been a good bet so far. But now U.S. spending per capita is far above levels seen in just about every other developed country. It seems healthcare and in particular drug prices are reaching a limit, and betting on middlemen like Cardinal to keep getting more profits over time might not be a wise move anymore. People have been buying the stock on expectations that the drug distributors will be able to handle their opoiod lawsuit obligations at a modest cost. That may be true, but even if it is, donâÂÂt overlook the existential risk to this business model going forward. CAH stock is cheap for a good reason, it has the classic look of a value trap.
At the time of this writing, Ian Bezek owned JNJ, NVO, and GILD stock. You can reach him on Twitter at @irbezek.
The post 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. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NASDAQ:) is the pharma spin-off from healthcare and medical devices leader Abbott (NYSE:). Abbott seems to have made a wise move in spinning off AbbVie. Since the companies parted ways, AbbottâÂÂs stock has more than doubled, while AbbVie has had a more difficult road. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NASDAQ:) is the pharma spin-off from healthcare and medical devices leader Abbott (NYSE:). Abbott seems to have made a wise move in spinning off AbbVie. Since the companies parted ways, AbbottâÂÂs stock has more than doubled, while AbbVie has had a more difficult road. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NASDAQ:) is the pharma spin-off from healthcare and medical devices leader Abbott (NYSE:). Abbott seems to have made a wise move in spinning off AbbVie. Since the companies parted ways, AbbottâÂÂs stock has more than doubled, while AbbVie has had a more difficult road. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NASDAQ:) is the pharma spin-off from healthcare and medical devices leader Abbott (NYSE:). Abbott seems to have made a wise move in spinning off AbbVie. Since the companies parted ways, AbbottâÂÂs stock has more than doubled, while AbbVie has had a more difficult road. |
24758.0 | 2020-01-10 00:00:00 UTC | Noteworthy ETF Outflows: IWF, ABBV, COST, NKE | ABBV | https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-iwf-abbv-cost-nke-2020-01-10 | 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 $235.0 million dollar outflow -- that's a 0.5% decrease week over week (from 281,050,000 to 279,750,000). Among the largest underlying components of IWF, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.3%, and Nike (Symbol: NKE) is lower by about 0.1%. 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 $134.46 per share, with $181.44 as the 52 week high point — that compares with a last trade of $181.24. 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 IWF, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.3%, and Nike (Symbol: NKE) is lower by about 0.1%. 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 $134.46 per share, with $181.44 as the 52 week high point — that compares with a last trade of $181.24. 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 AbbVie Inc (Symbol: ABBV) is down about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.3%, and Nike (Symbol: NKE) is lower by about 0.1%. 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 $134.46 per share, with $181.44 as the 52 week high point — that compares with a last trade of $181.24. 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 IWF, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.3%, and Nike (Symbol: NKE) is lower 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 Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $235.0 million dollar outflow -- that's a 0.5% decrease week over week (from 281,050,000 to 279,750,000). 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 $134.46 per share, with $181.44 as the 52 week high point — that compares with a last trade of $181.24. | Among the largest underlying components of IWF, in trading today AbbVie Inc (Symbol: ABBV) is down about 0.6%, Costco Wholesale Corp (Symbol: COST) is off about 0.3%, and Nike (Symbol: NKE) is lower 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 Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $235.0 million dollar outflow -- that's a 0.5% decrease week over week (from 281,050,000 to 279,750,000). 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 $134.46 per share, with $181.44 as the 52 week high point — that compares with a last trade of $181.24. |
24759.0 | 2020-01-08 00:00:00 UTC | Insiders Buy the Holdings of DHS ETF | ABBV | https://www.nasdaq.com/articles/insiders-buy-the-holdings-of-dhs-etf-2020-01-08 | nan | nan | A look at the weighted underlying holdings of the WisdomTree U.S. High Dividend Fund (Symbol: DHS) shows an impressive 10.9% of holdings on a weighted basis have experienced insider buying within the past six months.
AbbVie Inc (Symbol: ABBV), which makes up 4.29% of the WisdomTree U.S. High Dividend Fund (Symbol: DHS), has seen 5 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $40,752,886 worth of ABBV, making it the #4 largest holding. The table below details the recent insider buying activity observed at ABBV:
ABBV — last trade: $88.89 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
07/30/2019 Roxanne S. Austin Director 10,000 $66.35 $663,500
07/29/2019 Henry O. Gosebruch EVP, Chief Strategy Officer 30,000 $67.28 $2,018,385
08/01/2019 Roxanne S. Austin Director 55,000 $65.86 $3,622,090
08/16/2019 Jeffrey Ryan Stewart SVP, US Commercial Operations 15,552 $64.44 $1,002,169
08/29/2019 Nicholas Donoghoe SVP, Enterprise Innovation 7,525 $66.19 $498,057
09/16/2019 Laura J. Schumacher Vice Chairman 25,000 $70.42 $1,760,522
And HanesBrands Inc (Symbol: HBI), the #135 largest holding among components of the WisdomTree U.S. High Dividend Fund (Symbol: DHS), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $851,227 worth of HBI, which represents approximately 0.09% of the ETF's total assets at last check. The recent insider buying activity observed at HBI is detailed in the table below:
HBI — last trade: $14.57 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
08/07/2019 Gerald Evans Chief Executive Officer 10,000 $14.73 $147,350
08/14/2019 Joia M. Johnson Chief Admin Ofcr, GC&Corp Sec 7,100 $13.97 $99,178
10 ETFs With Stocks That Insiders Are Buying »
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 (Symbol: ABBV), which makes up 4.29% of the WisdomTree U.S. High Dividend Fund (Symbol: DHS), has seen 5 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $40,752,886 worth of ABBV, making it the #4 largest holding. The table below details the recent insider buying activity observed at ABBV: ABBV — last trade: $88.89 — Recent Insider Buys: | AbbVie Inc (Symbol: ABBV), which makes up 4.29% of the WisdomTree U.S. High Dividend Fund (Symbol: DHS), has seen 5 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at ABBV: ABBV — last trade: $88.89 — Recent Insider Buys: The ETF holds a total of $40,752,886 worth of ABBV, making it the #4 largest holding. | The table below details the recent insider buying activity observed at ABBV: ABBV — last trade: $88.89 — Recent Insider Buys: AbbVie Inc (Symbol: ABBV), which makes up 4.29% of the WisdomTree U.S. High Dividend Fund (Symbol: DHS), has seen 5 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $40,752,886 worth of ABBV, making it the #4 largest holding. | AbbVie Inc (Symbol: ABBV), which makes up 4.29% of the WisdomTree U.S. High Dividend Fund (Symbol: DHS), has seen 5 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $40,752,886 worth of ABBV, making it the #4 largest holding. The table below details the recent insider buying activity observed at ABBV: ABBV — last trade: $88.89 — Recent Insider Buys: |
24760.0 | 2020-01-08 00:00:00 UTC | AbbVie To Create New Global Business Upon Completion Of Allergan Acquisition | ABBV | https://www.nasdaq.com/articles/abbvie-to-create-new-global-business-upon-completion-of-allergan-acquisition-2020-01-08 | nan | nan | (RTTNews) - AbbVie (ABBV) said that it will create a new global business, Allergan Aesthetics, and propose leadership team for the combined company, effective upon the expected first-quarter 2020 close of the Allergan acquisition.
Allergan Aesthetics will operate as a new global dedicated business with its own research and development function under the AbbVie umbrella.
The new business will include aesthetic products, including BOTOX Cosmetic, the JUVEDERM collection of dermal fillers and COOLSCULPTING body contouring. The global business, located in Irvine, California, will be led by Carrie Strom, currently Senior Vice President, U.S. Medical Aesthetics, Allergan.
Strom will be named Senior Vice President, AbbVie and President, Global Allergan Aesthetics following completion of the Allergan acquisition. She will oversee the worldwide operations, along with an experienced team of current Allergan leaders, and report directly to Richard Gonzalez, Chairman and Chief Executive Officer, AbbVie. The Eye Care and Specialty businesses - including BOTOX Therapeutics, Central Nervous System, Women's Health and Gastrointestinal Diseases - will be integrated into the existing AbbVie organization.
Richard Gonzalez will be appointed as Chairman and Chief Executive Officer of the combined company:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | She will oversee the worldwide operations, along with an experienced team of current Allergan leaders, and report directly to Richard Gonzalez, Chairman and Chief Executive Officer, AbbVie. The Eye Care and Specialty businesses - including BOTOX Therapeutics, Central Nervous System, Women's Health and Gastrointestinal Diseases - will be integrated into the existing AbbVie organization. (RTTNews) - AbbVie (ABBV) said that it will create a new global business, Allergan Aesthetics, and propose leadership team for the combined company, effective upon the expected first-quarter 2020 close of the Allergan acquisition. | Strom will be named Senior Vice President, AbbVie and President, Global Allergan Aesthetics following completion of the Allergan acquisition. She will oversee the worldwide operations, along with an experienced team of current Allergan leaders, and report directly to Richard Gonzalez, Chairman and Chief Executive Officer, AbbVie. (RTTNews) - AbbVie (ABBV) said that it will create a new global business, Allergan Aesthetics, and propose leadership team for the combined company, effective upon the expected first-quarter 2020 close of the Allergan acquisition. | (RTTNews) - AbbVie (ABBV) said that it will create a new global business, Allergan Aesthetics, and propose leadership team for the combined company, effective upon the expected first-quarter 2020 close of the Allergan acquisition. Strom will be named Senior Vice President, AbbVie and President, Global Allergan Aesthetics following completion of the Allergan acquisition. Allergan Aesthetics will operate as a new global dedicated business with its own research and development function under the AbbVie umbrella. | Allergan Aesthetics will operate as a new global dedicated business with its own research and development function under the AbbVie umbrella. Strom will be named Senior Vice President, AbbVie and President, Global Allergan Aesthetics following completion of the Allergan acquisition. (RTTNews) - AbbVie (ABBV) said that it will create a new global business, Allergan Aesthetics, and propose leadership team for the combined company, effective upon the expected first-quarter 2020 close of the Allergan acquisition. |
24761.0 | 2020-01-08 00:00:00 UTC | Better Buy: AbbVie vs. Biogen | ABBV | https://www.nasdaq.com/articles/better-buy%3A-abbvie-vs.-biogen-2020-01-08 | nan | nan | AbbVie (NYSE: ABBV) and Biogen (NASDAQ: BIIB) are two pharma stocks that haven't performed well lately. Over the last 12 months, AbbVie's shares are down by 2%, while Biogen's stock is down by 10%. By contrast, the pharmaceutical industry -- as measured by the SPDR S&P Pharmaceuticals Index -- is up by 14% over the same period.
However, 2020 could be very different for both companies, as AbbVie is hoping its acquisition of Allergan (NYSE: AGN) pays off, while Biogen is putting its hopes on its potential drug for Alzheimer's disease (AD), aducanumab. With that in mind, let's see which of these two companies is the better buy today.
AbbVie isn't dead in the water yet
Humira remains AbbVie's top-selling drug. However, Humira has been facing stiff competition from biosimilars in Europe, and the international sales of the drug have declined as a result. Beyond Humira, the company can count on such products as cancer drugs Venclexta and Imbruvica, as well as Skyrizi, a medicine for moderate-to-severe plaque psoriasis.
Image source: Getty Images.
AbbVie's revenue growth has been crawling in recent quarters. During the third quarter, the company reported net revenue of $8.5 billion, a meager 3.5% increase year over year. Humira's net revenue was $4.9 billion, a 3.7% decrease compared to the prior-year quarter. This was because Humira's international revenue declined by 33.5% year over year.
And while sales of Imbruvica increased by 29.3% year over year, and sales of Venclexta grew by 130%, revenue from these products is unlikely to be enough to offset Humira's decreasing sales. This is precisely why AbbVie is acquiring Allergan in an all-cash transaction valued at $63 billion. Once this transaction closes -- which is expected to happen in early 2020 -- AbbVie will become a leader in the medical aesthetics market.
AbbVie CEO Richard Gonzalez said:
With the planned acquisition of Allergan, we will be adding highly valuable on-market assets with leadership positions across additional and attractive growth segments including significant new growth platforms in medical aesthetics and CNS [Central Nervous System].
Gonzalez also touted the value of the most important asset the company will be acquiring in this transaction, namely Botox: "[B]ased on the uniqueness of this particular molecule, we have come to the conclusion that it would be extremely difficult to create a biosimilar version of Botox and I would tell you, we looked at this very extensively with a lot of outside expertise and we feel very confident that that's the case." In other words, AbbVie's future after Humira may not look so bleak after all.
Biogen's hopes rest on aducanumab
Biogen's current top-selling product is multiple sclerosis (MS) drug Tecfidera. The company's lineup also includes MS drug Tysabri, a treatment for spinal muscular atrophy, and Flixabi, a biosimilar for rheumatoid arthritis.
Much like AbbVie, Biogen's financial results haven't been particularly impressive recently. During the third quarter, the company's revenue was $3.6 billion, a mediocre 5% increase compared to the year-ago period. Most notably, sales of Tecfidera only increased by 3% year over year. Biogen's bright spot during the quarter was Spinraza, whose sales increased by 17% compared to the prior year quarter. But Biogen's MS segment -- its largest medical segment by revenue -- continues to struggle to generate stellar top-line growth, and the company is looking elsewhere for a boost.
That's where aducanumab comes in. Before investors place their hopes in this potential blockbuster drug for AD, though, it is essential to review its history. Biogen first announced it was abandoning the development of aducanumab in March because monthly doses of the AD drug failed to prove their efficacy in a pivotal late-stage trial. But in October, Biogen argued that a few more monthly doses of aducanumab were shown to be effective in treating AD after all, and the company decided to bring aducanumab back from the dead.
Biogen is hoping to send aducanumab to the U.S. Food and Drug Administration for approval sometime this year, and if all goes well, the company will receive approval for this potential blockbuster medicine later in the year. However, whether things will work out as planned for Biogen is far from being a foregone conclusion.
Which stock is the better buy?
Both AbbVie and Biogen are attractively valued. Biogen's forward price-to-earnings (PE) ratio is 8.87, and its price-to-earnings-to-growth (PEG) ratio is 1.72. AbbVie, with its forward PE of 9.10 and its PEG of 2.74, is slightly less attractive.
However, AbbVie is a more attractive dividend stock. The company currently offers a juicy 5.3% dividend yield, and AbbVie has raised its quarterly dividend payouts by 141% over the past five years. By contrast, Biogen currently does not return cash to its shareholders by way of dividends.
With that said, I think AbbVie looks like the better option right now. While the company's sales of Humira will continue to decline, Humira alone generated more revenue than Biogen's entire lineup during the last quarter ($4.9 billion versus $3.6 billion). Further, AbbVie's acquisition of Allergan will bring more diversification to its revenue stream. By contrast, Biogen's future is hanging on aducanumab, and if the FDA does not approve the AD drug, the company's shares will likely come crashing down (again), and its future will look bleak.
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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) and Biogen (NASDAQ: BIIB) are two pharma stocks that haven't performed well lately. Over the last 12 months, AbbVie's shares are down by 2%, while Biogen's stock is down by 10%. However, 2020 could be very different for both companies, as AbbVie is hoping its acquisition of Allergan (NYSE: AGN) pays off, while Biogen is putting its hopes on its potential drug for Alzheimer's disease (AD), aducanumab. | However, 2020 could be very different for both companies, as AbbVie is hoping its acquisition of Allergan (NYSE: AGN) pays off, while Biogen is putting its hopes on its potential drug for Alzheimer's disease (AD), aducanumab. AbbVie CEO Richard Gonzalez said: With the planned acquisition of Allergan, we will be adding highly valuable on-market assets with leadership positions across additional and attractive growth segments including significant new growth platforms in medical aesthetics and CNS [Central Nervous System]. AbbVie (NYSE: ABBV) and Biogen (NASDAQ: BIIB) are two pharma stocks that haven't performed well lately. | However, 2020 could be very different for both companies, as AbbVie is hoping its acquisition of Allergan (NYSE: AGN) pays off, while Biogen is putting its hopes on its potential drug for Alzheimer's disease (AD), aducanumab. AbbVie (NYSE: ABBV) and Biogen (NASDAQ: BIIB) are two pharma stocks that haven't performed well lately. Over the last 12 months, AbbVie's shares are down by 2%, while Biogen's stock is down by 10%. | Over the last 12 months, AbbVie's shares are down by 2%, while Biogen's stock is down by 10%. However, AbbVie is a more attractive dividend stock. AbbVie (NYSE: ABBV) and Biogen (NASDAQ: BIIB) are two pharma stocks that haven't performed well lately. |
24762.0 | 2020-01-07 00:00:00 UTC | AbbVie's Rheumatoid Arthritis Drug Receives Approval from Health Canada | ABBV | https://www.nasdaq.com/articles/abbvies-rheumatoid-arthritis-drug-receives-approval-from-health-canada-2020-01-07 | nan | nan | Pharmaceutical giant AbbVie (NYSE: ABBV) announced that Health Canada officially approved its rheumatoid arthritis (RA) drug Rinvoq. Canadians with moderate to severe cases of the condition who don't respond well to the more commonly prescribed treatment, methotrexate, can now receive Rinvoq instead.
Rinvoq is a daily oral Janus kinase inhibitor, a compound that works by slowing down a patient's overactive immune system and reducing inflammation in the joints.. While methotrexate is the go-to treatment for rheumatoid arthritis patients, as many as 70% fail to see reduced symptoms or remission from methotrexate alone.
Image source: Getty Images.
This decision was supported by data from the global phase 3 select rheumatoid arthritis clinical program, which tested around 4,400 patients across five different studies. At present, there are approximately 300,000 Canadians who have been diagnosed with the disease.
A blockbuster in the making?
As patent protection for AbbVie's top drug, Humira, is expiring in 2023, the pharmaceutical giant hopes that drugs like Rinvoq will become successful enough to replace any lost revenue from Humira's loss of exclusivity. Earlier in December, Rinvoq also received approval from the EU's top health regulator, the European Commission, for use in RA patients with moderate to severe symptoms as well.
Like most rheumatoid arthritis drugs on the market, Rinvoq is fairly expensive, coming in at $59,000 per year, whereas Humira's price tag comes in at $62,088. Although revenue from the drug is almost non-existent right now, the consensus on Wall Street is that Rinvoq's 2020 sales will come in around $340 million.
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Mark Prvulovic has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Pharmaceutical giant AbbVie (NYSE: ABBV) announced that Health Canada officially approved its rheumatoid arthritis (RA) drug Rinvoq. As patent protection for AbbVie's top drug, Humira, is expiring in 2023, the pharmaceutical giant hopes that drugs like Rinvoq will become successful enough to replace any lost revenue from Humira's loss of exclusivity. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Pharmaceutical giant AbbVie (NYSE: ABBV) announced that Health Canada officially approved its rheumatoid arthritis (RA) drug Rinvoq. As patent protection for AbbVie's top drug, Humira, is expiring in 2023, the pharmaceutical giant hopes that drugs like Rinvoq will become successful enough to replace any lost revenue from Humira's loss of exclusivity. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Pharmaceutical giant AbbVie (NYSE: ABBV) announced that Health Canada officially approved its rheumatoid arthritis (RA) drug Rinvoq. As patent protection for AbbVie's top drug, Humira, is expiring in 2023, the pharmaceutical giant hopes that drugs like Rinvoq will become successful enough to replace any lost revenue from Humira's loss of exclusivity. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | As patent protection for AbbVie's top drug, Humira, is expiring in 2023, the pharmaceutical giant hopes that drugs like Rinvoq will become successful enough to replace any lost revenue from Humira's loss of exclusivity. Pharmaceutical giant AbbVie (NYSE: ABBV) announced that Health Canada officially approved its rheumatoid arthritis (RA) drug Rinvoq. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. |
24763.0 | 2020-01-07 00:00:00 UTC | Why Neurocrine Biosciences Soared 50.5% in 2019 | ABBV | https://www.nasdaq.com/articles/why-neurocrine-biosciences-soared-50.5-in-2019-2020-01-08 | nan | nan | What happened
After shares lost ground following a clinical trial failure in Tourette syndrome in December 2018, Neurocrine Biosciences (NASDAQ: NBIX) bounced back in 2019 with an eye-popping 50.5% return, according to S&P Global Market Intelligence.
The biotech's market-beating performance was supported by growing sales of Neurocrine's lead drug, Ingrezza; the filing for approval by the Food and Drug Administration for a new drug, opicapone, in Parkinson's disease; and the potential for an FDA label expansion for Orilissa, an endometriosis medicine.
So what
Neurocrine Biosciences had hoped it could expand Ingrezza's use beyond tardive dyskinesia -- a movement disorder often occurring in patients taking antipsychotic medicines -- to Tourette syndrome. However, management announced in December 2018 that Ingrezza had failed in that indication, contributing to a 42% drop in its share price during the fourth quarter of 2018.
As it turns out, that sell-off was a great buying opportunity.
IMAGE SOURCE: GETTY IMAGES.
In 2019, Ingrezza delivered significant sales growth. The company filled 34,800 Ingrezza prescriptions in the third quarter, up from 19,400 in Q3 2018, and third-quarter Ingrezza revenue clocked in at $198 million, up from $111 million in the prior-year quarter.
Royalties on Orilissa from AbbVie (NYSE: ABBV) also increased in 2019. The drug was approved for use in August 2018; AbbVie's Orilissa revenue improved 50% sequentially to $27 million in the third quarter, resulting in about $4 million in royalty revenue to Neurocrine in the period. In Q2 2019, Neurocrine pocketed roughly $3 million in Orilissa royalties.
Altogether, Neurocrine's third-quarter 2018 revenue totaled $222 million, including milestone payments, up 46.4% year over year. Its net income totaled $53.8 million, or $0.56 per share, in the period. That's solid progress in both revenue and profit.
NBIX Net Income (Quarterly) data by YCharts.
Investor interest may also have been sparked by the potential approval of Neurocrine's latest drug, opicapone, in the near future. The drug, which may help reduce "off-time" in Parkinson's disease patients taking levodopa (a commonly used drug in the indication), was licensed from Bial in 2017. It's already approved in the EU, and a U.S. decision is expected around April 26.
Now what
There's still plenty of reason for Neurocrine investors to remain optimistic. For instance, Ingrezza's addressable market is around 500,000 patients in the U.S. alone, so there's still a lot of opportunity for prescription growth despite its success so far.
Orilissa also appears to be overcoming a slower-than-expected launch thanks to a new marketing campaign, including direct-to-consumer ads. Additionally, Orilissa's target market could double to about 6 million patients in Q2 2020, if the FDA agrees to expand its label to include patients diagnosed with uterine fibroids.
Finally, opicapone could be a big winner if the FDA green-lights it in April. Roughly two-thirds of the 1 million Parkinson's disease patients in the U.S. take levodopa, and many of them see off-time increase as levodopa loses its efficacy over time.
Overall, there's no shortage of catalysts that could propel Neurocrine's shares higher. For risk-tolerant investors, continuing to own it could be wise.
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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. | Royalties on Orilissa from AbbVie (NYSE: ABBV) also increased in 2019. The drug was approved for use in August 2018; AbbVie's Orilissa revenue improved 50% sequentially to $27 million in the third quarter, resulting in about $4 million in royalty revenue to Neurocrine in the period. What happened After shares lost ground following a clinical trial failure in Tourette syndrome in December 2018, Neurocrine Biosciences (NASDAQ: NBIX) bounced back in 2019 with an eye-popping 50.5% return, according to S&P Global Market Intelligence. | Royalties on Orilissa from AbbVie (NYSE: ABBV) also increased in 2019. The drug was approved for use in August 2018; AbbVie's Orilissa revenue improved 50% sequentially to $27 million in the third quarter, resulting in about $4 million in royalty revenue to Neurocrine in the period. What happened After shares lost ground following a clinical trial failure in Tourette syndrome in December 2018, Neurocrine Biosciences (NASDAQ: NBIX) bounced back in 2019 with an eye-popping 50.5% return, according to S&P Global Market Intelligence. | The drug was approved for use in August 2018; AbbVie's Orilissa revenue improved 50% sequentially to $27 million in the third quarter, resulting in about $4 million in royalty revenue to Neurocrine in the period. Royalties on Orilissa from AbbVie (NYSE: ABBV) also increased in 2019. The biotech's market-beating performance was supported by growing sales of Neurocrine's lead drug, Ingrezza; the filing for approval by the Food and Drug Administration for a new drug, opicapone, in Parkinson's disease; and the potential for an FDA label expansion for Orilissa, an endometriosis medicine. | The drug was approved for use in August 2018; AbbVie's Orilissa revenue improved 50% sequentially to $27 million in the third quarter, resulting in about $4 million in royalty revenue to Neurocrine in the period. Royalties on Orilissa from AbbVie (NYSE: ABBV) also increased in 2019. The company filled 34,800 Ingrezza prescriptions in the third quarter, up from 19,400 in Q3 2018, and third-quarter Ingrezza revenue clocked in at $198 million, up from $111 million in the prior-year quarter. |
24764.0 | 2020-01-07 00:00:00 UTC | Better Buy: Geron vs. Incyte | ABBV | https://www.nasdaq.com/articles/better-buy%3A-geron-vs.-incyte-2020-01-07 | nan | nan | Geron (NASDAQ: GERN) and Incyte (NASDAQ: INCY) live at opposite ends of the biotech spectrum. One company has no approved drug despite its best efforts. The other owns a drug garnering multiple approvals from the Food and Drug Administration (FDA). One biotech earns de minimis revenue and scrapes by through continually raising money to fund operations. The other boasts sales of more than $1.6 billion. Biotech investors can learn lessons from the divergent trajectories these companies endured.
Image Source: Getty Images.
Geron has yet to deliver an approved drug despite nearly 30 years focused on an area of biology called telomeres and telomerase. Telomeres are protective caps on DNA, and each time a cell divides, the telomeres get shorter. Eventually, the telomeres become critically short, preventing cell division and causing cell death. Telomerase, a naturally occurring enzyme, prevents telomeres from shrinking, thus allowing the cells to continue dividing.
Nearly two decades after its founding, three of Geron's academic collaborators won the Nobel Prize in 2009 for research on telomerase and its involvement in cancer, which validated the company's efforts. In 90% of biopsies across a broad range of cancers, telomerase levels were elevated. This makes sense since cancer cells are known to rapidly divide. Inhibiting telomerase could then be an attractive intervention.
Last year, Geron embarked on a three-year pivotal trial for its lead telomerase inhibitor called imetelstat. Geron's market cap currently sits at $270 million, even with $159 million in cash on the balance sheet.
Meanwhile, Incyte's valuation swelled to $20 billion but lost $2 billion in value overnight last week. The success stems from Jakafi, an approved drug for treating intermediate and high-risk myelofibrosis, polycythemia vera, and, most recently, steroid-refractory graft-versus-host disease (GVHD). Myelofibrosis and polycythemia vera are rare blood cancers. GVHD occurs when a bone marrow transplant goes awry and the donated bone marrow or stem cells begin attacking the body. Incyte expects revenue from Jakafi to exceed $1.65 billion in 2019. However, reducing the dependence on Jakafi remains a key concern for investors.
Being big does not mean being infallible
On the heels of Jakafi's May 2019 approval to treat steroid-refractory GVHD -- itacitinib -- a potentially more selective, next-generation version of Jakafi, seemed like a solid candidate for other types of GVHD. Incyte unveiled on Jan. 2 that itacitinib failed to meet the primary endpoint in the phase 3 clinical trial. Patients with acute GVHD receiving itacitinib fared no better than those receiving placebo.
Investors quickly wiped out approximately $2 billion or 10% of the market cap in after-hours trading following the news. Little hope remains for the drug in GVHD, although the company plans to continue with a pivotal trial in chronic GVHD.
Investors have long criticized Incyte for its pipeline. Itacitinib, touted as a potential blockbuster, served as much-needed diversification to the company's dependence on Jakafi. Now, it looks more like Incyte's former cancer drug called epacadostat. A previous blockbuster-in-the-making, the epacadostat program flopped in early 2018. Investors fled the stock, lopping off approximately 25% of the company's valuation.
Geron faces headwinds
Janssen Biotech, a subsidiary of Johnson & Johnson (NYSE: JNJ), pulled the plug at the end of 2018 on a potential $935 million partnership for Geron's lead drug imetelstat. Geron's stock cratered nearly 70% on the news.
When big pharma returns a drug, it's generally not a good thing. It demonstrates the pharma company saw greater value in other drug candidates. However, in some instances, it can work out for the smaller biotech. For instance, Reata Pharmaceuticals successfully regained rights to several drugs from AbbVie just before positive clinical trial data last year. Reata's stock more than doubled from $80 to north of $200 since then. Geron's stock has suffered this past year and needs positive results before it can make yet another comeback. In the long run, full ownership of the imetelstat could be valuable too.
Putting aside the science, Geron faces timing and funding issues. It began a pivotal phase 3 trial with imetelstat in the blood cancer myelodysplastic syndrome (MDS) last year. Data will not be available until mid-2022 -- a three-year undertaking.
Geron also plans to test imetelstat in relapsed or refractory myelofibrosis patients who have received prior treatment with Incyte's Jakafi. On Dec. 18, Geron announced that it met with the FDA to discuss the pivotal trial design. Two comments in the press release stood out.
First, Geron said it "plans to submit several Phase 3 trial design proposals in relapsed/refractory MF and to have further discussions with the FDA regarding potential regulatory approval pathways." I interpret this as no clear buy-in from the FDA as to what patient population needs to be treated and which outcomes to measure. Alternatively, Geron may be exploring a smaller trial that it can more readily afford. This could involve limiting the trial to one or more subgroups of the patient population.
Second, Geron is giving itself wiggle room to not run the myelofibrosis trial at all. The press release's last sentence reads:
"Subsequent to these additional discussions with the FDA, and after considering the timing and resources required, as well as other clinical development opportunities for imetelstat, Geron will make a decision regarding potential late-stage development of imetelstat in relapsed/refractory MF."
That's not much conviction by management and the Board. But, let's not be too critical. It may, actually, be prudent.
Here's why: In the last earnings report, management noted that operating expenses for 2019 will be $80 million to $85 million but include one time charges of $20 million to $25 million due to reacquiring imetelstat. Let's assume operating expenses continue at $65 million annually. Geron expects top-line results from the pivotal trial in MDS in mid-2022. Geron will need to spend roughly $160 million to get to those pivotal results. At Sept. 30, 2019, the company had $159.3 million. Let's not forget this does not include the contemplated phase 3 trial in myelofibrosis.
Do you see the problem? Biotech companies generally try to avoid dipping below one year of cash in the bank. Below that mark, investors, like hedge funds, require more onerous terms in order to provide financing.
Geron has an "At-The-Market" (ATM) offering in place that allows it to raise up to $100 million on a continuous basis by selling stock into the market. It raised $38.4 million between 2018 and 2019 using this method. It also raised from $47.7 million between 2015 and 2018 using a separate ATM.
What does it all mean? Geron will continue to raise money, either through the ATM or more traditional financing methods. Both can weigh on the stock, preventing it from appreciating.
What do analysts say?
Five research analysts gave Geron a buy rating with price targets ranging from $3 to $5. That's roughly a two to four-fold return from its current $1.30 price. However, take price targets with caution. Investment banks jockey for position to lead or join a syndicate to raise capital for companies. Positive research can help win over the management and boards of directors of these capital-intensive biotech companies. And we know Geron needs more money.
Analysts had mixed reactions to Incyte's trial failure. Cantor Fitzgerald and Mizuho lowered price targets to $65 and $79, respectively. Goldman Sachs maintained its buy rating but lowered its price target from $122 to $107. Likewise, Oppenheimer kept its outperform rating and $96 target.
Geron has a greater risk-reward profile that can propel the stock in either direction. Unfortunately, I believe the time and money required will keep Geron's stock depressed unless another partner emerges. Maybe Incyte will step up to partner with Geron on imetelstat for patients that already received Jakafi. That would allow both drugs to leverage Incyte's expertise in the myelofibrosis market.
While Incyte faces its own pipeline challenges, its billions in revenue cover up these blemishes. It can weather the current failed phase 3 trial and focus on its additional pipeline candidates, making it the winner of this battle. Risk tolerant investors can capitalize on the recent stock price drop to acquire shares at a discount.
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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. | For instance, Reata Pharmaceuticals successfully regained rights to several drugs from AbbVie just before positive clinical trial data last year. Nearly two decades after its founding, three of Geron's academic collaborators won the Nobel Prize in 2009 for research on telomerase and its involvement in cancer, which validated the company's efforts. The success stems from Jakafi, an approved drug for treating intermediate and high-risk myelofibrosis, polycythemia vera, and, most recently, steroid-refractory graft-versus-host disease (GVHD). | For instance, Reata Pharmaceuticals successfully regained rights to several drugs from AbbVie just before positive clinical trial data last year. The success stems from Jakafi, an approved drug for treating intermediate and high-risk myelofibrosis, polycythemia vera, and, most recently, steroid-refractory graft-versus-host disease (GVHD). Five research analysts gave Geron a buy rating with price targets ranging from $3 to $5. | For instance, Reata Pharmaceuticals successfully regained rights to several drugs from AbbVie just before positive clinical trial data last year. Last year, Geron embarked on a three-year pivotal trial for its lead telomerase inhibitor called imetelstat. Geron faces headwinds Janssen Biotech, a subsidiary of Johnson & Johnson (NYSE: JNJ), pulled the plug at the end of 2018 on a potential $935 million partnership for Geron's lead drug imetelstat. | For instance, Reata Pharmaceuticals successfully regained rights to several drugs from AbbVie just before positive clinical trial data last year. At Sept. 30, 2019, the company had $159.3 million. Five research analysts gave Geron a buy rating with price targets ranging from $3 to $5. |
24765.0 | 2020-01-07 00:00:00 UTC | AbbVie: Health Canada Approves RINVOQ For Treatment Of Rheumatoid Arthritis | ABBV | https://www.nasdaq.com/articles/abbvie%3A-health-canada-approves-rinvoq-for-treatment-of-rheumatoid-arthritis-2020-01-07 | nan | nan | (RTTNews) - AbbVie (ABBV) announced that Health Canada has approved RINVOQ (upadacitinib) for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to methotrexate. RINVOQ is a 15 mg, once-daily oral medication in an extended-release tablet.
AbbVie said the approval from Health Canada was supported by efficacy and safety data from the pivotal Phase 3 SELECT rheumatoid arthritis program which evaluated nearly 4,400 patients with moderate to severe active rheumatoid arthritis in five pivotal studies.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced that Health Canada has approved RINVOQ (upadacitinib) for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to methotrexate. AbbVie said the approval from Health Canada was supported by efficacy and safety data from the pivotal Phase 3 SELECT rheumatoid arthritis program which evaluated nearly 4,400 patients with moderate to severe active rheumatoid arthritis in five pivotal studies. RINVOQ is a 15 mg, once-daily oral medication in an extended-release tablet. | (RTTNews) - AbbVie (ABBV) announced that Health Canada has approved RINVOQ (upadacitinib) for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to methotrexate. AbbVie said the approval from Health Canada was supported by efficacy and safety data from the pivotal Phase 3 SELECT rheumatoid arthritis program which evaluated nearly 4,400 patients with moderate to severe active rheumatoid arthritis in five pivotal studies. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced that Health Canada has approved RINVOQ (upadacitinib) for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to methotrexate. AbbVie said the approval from Health Canada was supported by efficacy and safety data from the pivotal Phase 3 SELECT rheumatoid arthritis program which evaluated nearly 4,400 patients with moderate to severe active rheumatoid arthritis in five pivotal studies. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - AbbVie (ABBV) announced that Health Canada has approved RINVOQ (upadacitinib) for the treatment of adults with moderately to severely active rheumatoid arthritis who have had an inadequate response or intolerance to methotrexate. AbbVie said the approval from Health Canada was supported by efficacy and safety data from the pivotal Phase 3 SELECT rheumatoid arthritis program which evaluated nearly 4,400 patients with moderate to severe active rheumatoid arthritis in five pivotal studies. RINVOQ is a 15 mg, once-daily oral medication in an extended-release tablet. |
24766.0 | 2020-01-06 00:00:00 UTC | Is Amarin Stock a Top Pick for 2020? | ABBV | https://www.nasdaq.com/articles/is-amarin-stock-a-top-pick-for-2020-2020-01-06 | nan | nan | Amarin (NASDAQ:) has had its share of ups and downs, particularly last month. While the rest of the market has been banging out new high after new high, the same cannot be said for Amarin stock.
Source: Pavel Kapysh / Shutterstock.com
Earlier this month, the stock was halted in midday trading for news pending. That came on Friday December 13th. News was ultimately released after the close, leaving investors, traders and option holders (with weekly expirations on the line) in a frustrating position.
Ultimately, the company released good news though and shares were set to run higher on Monday. They did initially, but bulls suddenly found those gains unwinding. What was supposed to be a day of nice gains ended up being a 5% loss.
It hasnâÂÂt gotten much easier, either. The price of AMRN stock is down about 20% from the Dec. 16 high, when shares began trading again. So what should investors make of Amarin stock?
Valuing Amarin Stock
Circling back to the trade-halting news, the Food and Drug Administration approved a cardiovascular benefit claim for the companyâÂÂs Vascepa treatment. FDA approval followed by a selloff? It makes no sense. Some have the intellectual property of the drug. Others have argued that thereâÂÂs litigation and valuation risk in Amarin stock.
Regarding the latter argument â valuation â one could certainly make a case. Amarin stock commands a $7.7 billion market cap, itâÂÂs not yet profitable and on a trailing basis, has cash burn instead of positive free cash flow.
That said, it also has growth.
Analysts estimate that sales will grow more than 80% this year, to $416 million. In 2020, estimates call for $664.5 million in revenue, representing growth of 64.4%. They also expect the company to generate a profit next year, although only to the tune of 6 cents per share. Still, this leaves the AMRN stock price trading at more than 11.2 times next yearâÂÂs revenue estimates.
With Vascepa, some argue that itâÂÂs being by the market; that the drug could have a peak revenue run rate of $3 billion per year â and thatâÂÂs not including the growth of AmarinâÂÂs other treatments.
Despite the lofty price-to-sales figure, many bulls believe that Amarin stock is actually undervalued and because of its treatments, believe the company could be an M&A target going forward.
ThatâÂÂs a fair takeaway, particularly if Amarin gains traction with its new drug, while becoming profitable and cash-flow positive in the next 12 months. It helps that it has a very lean balance sheet â with long-term debt of just $8.8 million, while current assets roughly quadruple the size of current liabilities.
Finally, biotech companies have shown little fear of large deals. Most notably, Bristol-Myers Squibb (NYSE:) buying Celgene for ~$74 billion and AbbVie (NYSE:) buying Allergan (NYSE:) for ~$63 billion come to mind. So scooping up AMRN for $10-plus billion doesnâÂÂt seem out the realm of possibility.
Trading AMRN Stock Price
Source: Chart courtesy of
If Amarin stock is so good, then why does its stock trade so poorly?
Investors tend to adopt a âÂÂwhat have you done for me latelyâ mindset. Meaning, even if a stock has done well in the past, thatâÂÂs not what matters to them. They care about what the stock has done lately, is doing now or is going to do. And as of right now, the AMRN stock price hasnâÂÂt done much.
Lest we forget shares were trading for about $3 in September 2018, before erupting higher by 314% â in one day! â and closed at $12.40. Within about six weeks, Amarin stock had climbed 677% to $23.34, a level that has ultimately become resistance.
The AMRN stock price has been continually rejected from this mark, although it did penetrate this level twice in the past two months. While AmarinâÂÂs post-trading halt decline is certainly frustrating, the stock is still okay. At least, for now.
Amarin stock is holding up over the 50-day moving average, as well as uptrend support (blue line). Should these marks give way, it likely puts $19 on the table, with the 200-day moving just below that mark.
If shares can reclaim the 20-day moving average, bulls should look for another test of $23. North of $23 and things get pretty orderly. It puts the November high of $24.67 on the table, followed by the December high of $26.12.
Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long BMY.
The post 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. | Most notably, Bristol-Myers Squibb (NYSE:) buying Celgene for ~$74 billion and AbbVie (NYSE:) buying Allergan (NYSE:) for ~$63 billion come to mind. News was ultimately released after the close, leaving investors, traders and option holders (with weekly expirations on the line) in a frustrating position. Valuing Amarin Stock Circling back to the trade-halting news, the Food and Drug Administration approved a cardiovascular benefit claim for the companyâÂÂs Vascepa treatment. | Most notably, Bristol-Myers Squibb (NYSE:) buying Celgene for ~$74 billion and AbbVie (NYSE:) buying Allergan (NYSE:) for ~$63 billion come to mind. Ultimately, the company released good news though and shares were set to run higher on Monday. Still, this leaves the AMRN stock price trading at more than 11.2 times next yearâÂÂs revenue estimates. | Most notably, Bristol-Myers Squibb (NYSE:) buying Celgene for ~$74 billion and AbbVie (NYSE:) buying Allergan (NYSE:) for ~$63 billion come to mind. The price of AMRN stock is down about 20% from the Dec. 16 high, when shares began trading again. So what should investors make of Amarin stock? | Most notably, Bristol-Myers Squibb (NYSE:) buying Celgene for ~$74 billion and AbbVie (NYSE:) buying Allergan (NYSE:) for ~$63 billion come to mind. The price of AMRN stock is down about 20% from the Dec. 16 high, when shares began trading again. So what should investors make of Amarin stock? |
24767.0 | 2020-01-05 00:00:00 UTC | Is Johnson & Johnson Stock a Buy? | ABBV | https://www.nasdaq.com/articles/is-johnson-johnson-stock-a-buy-2020-01-05 | nan | nan | Johnson & Johnson (NYSE: JNJ) didn't have a great year in 2019. Sure, the stock was up 13%. However, that wasn't even half the gain that the S&P 500 index delivered last year. J&J was bogged down by opioid-related litigation, more worries that its talc-based products contain asbestos, and anemic growth.
But it's not a good idea to base an opinion about any stock on one problematic year, especially the stock of a company that's been in business for more than 130 years. Is Johnson & Johnson stock a buy now? The answer: It depends.
Image source: Getty Images.
So-so growth
Investors who prefer strong growth probably won't be attracted to Johnson & Johnson. Wall Street analysts project the company's earnings will grow by an average of less than 6% annually over the next five years. Growth-oriented investors can certainly find quality stocks that deliver much higher growth than that.
One problem for J&J is the continued decline in sales for Remicade. It wasn't too long ago that the immunology drug ranked as the company's top-selling product. With biosimilar rivals on the market, though, J&J can't depend on its former star. But Remicade isn't the only problem spot. Sales for cancer drug Zytiga are also sinking. Several other drugs in J&J's lineup aren't performing very well, including diabetes drug Invokana.
On a positive note, the company still claims multiple big winners. Sales growth for immunology drugs Stelara, Simponi, and Tremfya are offsetting the tanking sales for Remicade. J&J's cancer drugs Imbruvica (which it comarkets with AbbVie) and Darzalex continue to enjoy strong momentum. The company also has another potential blockbuster of the future that's just getting started with depression drug Spravato.
Johnson & Johnson's pharmaceutical segment remains its biggest source of growth, but what about its other segments? The company's consumer unit is at best treading water. However, net of the negative impact of divestitures, J&J's medical device segment is delivering modest revenue growth. Still, the overall story for the company is likely to be only so-so growth over the next several years.
A reasonable valuation
Bargain hunters probably won't jump up and down over Johnson & Johnson's valuation, but some might think that the stock is priced at a relatively attractive level. Shares currently trade at 16 times expected earnings. That's well below J&J's historical price-to-earnings (P/E) level.
On the other hand, Johnson & Johnson's valuation doesn't look as attractive when compared to some of its peers. Merck, for example, has considerably better growth prospects than J&J does but its forward earnings multiple is only a little higher.
My view is that Johnson & Johnson claims a reasonable valuation at current levels. But without the promise of great growth, a reasonable valuation might not be enough to justify the stock as a buy.
The main reason to buy J&J
However, there is one reason that I think does make Johnson & Johnson stock a buy: its dividend. Growth investors and value investors might turn up their noses at the stock, but income-seeking investors should really like J&J.
Investors buy dividend stocks because they want steady and reliable dividend payouts. Johnson & Johnson's dividend currently yields 2.6%, but what's even more appealing is the company's track record. J&J has increased its dividend for 57 consecutive years.
If you're looking for income, that's the kind of history you like to see. It also helps that J&J is well diversified across the healthcare space and operates more than 260 different businesses. This gives the company a broad revenue base that allows it to keep those dividends flowing -- and growing.
10 stocks we like better than Johnson & Johnson
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Keith Speights owns shares of AbbVie. 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. | J&J's cancer drugs Imbruvica (which it comarkets with AbbVie) and Darzalex continue to enjoy strong momentum. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie. Wall Street analysts project the company's earnings will grow by an average of less than 6% annually over the next five years. | J&J's cancer drugs Imbruvica (which it comarkets with AbbVie) and Darzalex continue to enjoy strong momentum. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie. So-so growth Investors who prefer strong growth probably won't be attracted to Johnson & Johnson. | J&J's cancer drugs Imbruvica (which it comarkets with AbbVie) and Darzalex continue to enjoy strong momentum. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie. So-so growth Investors who prefer strong growth probably won't be attracted to Johnson & Johnson. | J&J's cancer drugs Imbruvica (which it comarkets with AbbVie) and Darzalex continue to enjoy strong momentum. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie. But it's not a good idea to base an opinion about any stock on one problematic year, especially the stock of a company that's been in business for more than 130 years. |
24768.0 | 2020-01-02 00:00:00 UTC | NOBL, TGT, ABBV, ADM: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/nobl-tgt-abbv-adm%3A-large-inflows-detected-at-etf-2020-01-02 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares S&P 500 Dividend Aristocrats ETF (Symbol: NOBL) where we have detected an approximate $79.4 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 85,400,000 to 86,450,000). Among the largest underlying components of NOBL, in trading today Target Corp (Symbol: TGT) is off about 0.9%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Archer Daniels Midland Co. (Symbol: ADM) is lower by about 0.5%. For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average:
Looking at the chart above, NOBL's low point in its 52 week range is $58.96 per share, with $76.17 as the 52 week high point — that compares with a last trade of $75.49. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of NOBL, in trading today Target Corp (Symbol: TGT) is off about 0.9%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Archer Daniels Midland Co. (Symbol: ADM) is lower by about 0.5%. For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average: Looking at the chart above, NOBL's low point in its 52 week range is $58.96 per share, with $76.17 as the 52 week high point — that compares with a last trade of $75.49. 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 NOBL, in trading today Target Corp (Symbol: TGT) is off about 0.9%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Archer Daniels Midland Co. (Symbol: ADM) is lower by about 0.5%. For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average: Looking at the chart above, NOBL's low point in its 52 week range is $58.96 per share, with $76.17 as the 52 week high point — that compares with a last trade of $75.49. 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 NOBL, in trading today Target Corp (Symbol: TGT) is off about 0.9%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Archer Daniels Midland Co. (Symbol: ADM) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares S&P 500 Dividend Aristocrats ETF (Symbol: NOBL) where we have detected an approximate $79.4 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 85,400,000 to 86,450,000). For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average: Looking at the chart above, NOBL's low point in its 52 week range is $58.96 per share, with $76.17 as the 52 week high point — that compares with a last trade of $75.49. | Among the largest underlying components of NOBL, in trading today Target Corp (Symbol: TGT) is off about 0.9%, AbbVie Inc (Symbol: ABBV) is up about 0.6%, and Archer Daniels Midland Co. (Symbol: ADM) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares S&P 500 Dividend Aristocrats ETF (Symbol: NOBL) where we have detected an approximate $79.4 million dollar inflow -- that's a 1.2% increase week over week in outstanding units (from 85,400,000 to 86,450,000). For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average: Looking at the chart above, NOBL's low point in its 52 week range is $58.96 per share, with $76.17 as the 52 week high point — that compares with a last trade of $75.49. |
24769.0 | 2020-01-02 00:00:00 UTC | Better Buy: Abbott Laboratories vs. Pfizer | ABBV | https://www.nasdaq.com/articles/better-buy%3A-abbott-laboratories-vs.-pfizer-2020-01-02 | nan | nan | Investors looking for large-cap, dividend-paying healthcare stocks have plenty of options. Whether it's large-scale drug manufacturers or medical technology providers, there's enough choice to suit whatever you're looking for.
Abbott Laboratories (NYSE: ABT) and Pfizer (NYSE: PFE) both have large market valuations, solid dividends, and a strong track record of success. However, they operate in different areas of the healthcare market, with Abbott developing diagnostic equipment while Pfizer focuses on developing new pharmaceutical candidates.
If you had to choose between the two, however, which is the better investment?
Image source: Getty Images.
Big changes for Pfizer on the horizon
The upcoming year is going to bring quite a few changes for Pfizer, and that has many investors on edge. The company's new CEO, Albert Bourla, is implementing a major shift in corporate strategy, focusing on higher-margin products by spinning off well-known drug brands that have been dragging down revenue growth.
Earlier in July, Pfizer announced that it was selling its non-patent drug unit, Upjohn, to Mylan, creating a new company called Viatris in the process. Viatris will be home to a number of well-known drug brands that have been decent revenue drivers, although their growth rates have slowed down.
If shedding its Upjohn drug collection wasn't a big enough change, Pfizer also announced that it will combine its consumer healthcare unit with GlaxoSmithKline's own equivalent business to create a separate entity for over-the-counter products. While Pfizer's consumer healthcare division wasn't that large, and it still will retain a 32% stake in the new joint venture, it will mean the loss of some well-known products, most notably Advil.
Pfizer will be going back to basics, so to speak, focusing on developing new drug candidates as well as marketing its existing lineup of rapidly growing blockbuster candidates. This includes a cancer drug called Inlyta, a rare heart disease treatment called Vyndaqel, and immunology drug Xeljanz. All three drugs have seen very strong growth rates, with Inlyta up 240%, Vyndaqel up 325%, and Xeljanz up 40% year over year in terms of sales.
The company's best drug candidates, an anticoagulant called Eliquis and a breast cancer drug called lbrance, are also still staying with Pfizer. Both drugs are the primary revenue sources for their respective areas -- internal medicine and oncology -- and collectively account for 18% of Pfizer's total revenue.
Overall, Pfizer's facing a big shift, but it's likely to emerge from it as a more focused and efficient drug developer than it's been in many years.
Abbott's consistent growth from a diverse business
In contrast to Pfizer, Abbott has stayed relatively the same for the past few years. Ever since splitting from AbbVie in 2013, the company has done quite well for itself. Doubling in stock price, delivering consecutive double-digit growth rates, and all the while maintaining a consistently increasing dividend is quite an impressive achievement, considering its large size.
Unlike Pfizer, Abbott isn't a new drug developer. Instead, its main revenue source comes from the sale of medical diagnostics equipment and devices, primarily in the realm of cardiovascular disease but also other conditions, such as diabetes. Thanks to some major acquisitions, including a $25 billion buyout of rival medical device maker St. Jude Medical in 2016, Abbott's medical device sales have seen high single-digit growth in what's already the company's largest business segment.
While medical device sales are Abbott's bread and butter, its total revenue is split among four main business areas. One of these is Abbott's nutritionals business, which primarily provides formulas for infants and small children. The company also has its own generic-drug business, which sells branded generic versions of drugs whose patents have expired. These two businesses accounted for 24% and 14% of Abbott's 2018 revenue. In comparison, Abbot's medical device segment accounts for 37% of the company's revenue, while its second largest-business, diagnostics, accounted for 25% of 2018 income.
Comparing financials
Both Pfizer and Abbott are large-cap stocks, with market caps around $216 billion and $154 billion, respectively. As it turns out, both companies have relatively similar financial metrics.
Looking at their price-to-sales (P/S) ratios shows that Pfizer trades at 4.25, while Abbott comes in at 4.93. That's pretty much in line with most other large-cap healthcare stocks, with Johnson & Johnson trading at 4.8 times sales, while Amgen trades at a 6.39 P/S ratio.
While Abbott ended up taking on a significant amount of debt to fund its acquisitions, the company has done a good job paying off its debt since then. Long-term liabilities have fallen from $27 billion in Q4 2017 to $17.6 billion in Q3 2019, a 35% decline in just two years. In comparison, Pfizer's debt has grown a little over that same period, from $31.8 billion to its current $36.0 billion.
What's the verdict?
Pfizer and Abbott have quite a few differences, despite their similarities. Pfizer is undergoing some major changes, spinning off many of its older, stagnating drug brands to focus on developing and marketing its portfolio of high-growth drug candidates. So far, the drug lineup that Pfizer's holding on to right now has seen very impressive growth rates, some even in the triple digits.
On the other hand, Abbott embodies the philosophy of "slow and steady wins the race." The company has maintained a more than reasonable growth rate over a long period and is likely to continue doing what it's already doing.
There's a strong case to be made for both companies, but if I had to choose, I'd lean a bit more toward Pfizer. While Abbott might be a better investment for a hands-off investor looking for a safe and secure stock, Pfizer's move to focus on its high-growth drug segment gives the stock major upside potential in the next year or two. Both companies, however, are good investments and should have a lot going for them in the future.
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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. | Ever since splitting from AbbVie in 2013, the company has done quite well for itself. The company's new CEO, Albert Bourla, is implementing a major shift in corporate strategy, focusing on higher-margin products by spinning off well-known drug brands that have been dragging down revenue growth. If shedding its Upjohn drug collection wasn't a big enough change, Pfizer also announced that it will combine its consumer healthcare unit with GlaxoSmithKline's own equivalent business to create a separate entity for over-the-counter products. | Ever since splitting from AbbVie in 2013, the company has done quite well for itself. However, they operate in different areas of the healthcare market, with Abbott developing diagnostic equipment while Pfizer focuses on developing new pharmaceutical candidates. Earlier in July, Pfizer announced that it was selling its non-patent drug unit, Upjohn, to Mylan, creating a new company called Viatris in the process. | Ever since splitting from AbbVie in 2013, the company has done quite well for itself. The company's best drug candidates, an anticoagulant called Eliquis and a breast cancer drug called lbrance, are also still staying with Pfizer. Thanks to some major acquisitions, including a $25 billion buyout of rival medical device maker St. Jude Medical in 2016, Abbott's medical device sales have seen high single-digit growth in what's already the company's largest business segment. | Ever since splitting from AbbVie in 2013, the company has done quite well for itself. All three drugs have seen very strong growth rates, with Inlyta up 240%, Vyndaqel up 325%, and Xeljanz up 40% year over year in terms of sales. While medical device sales are Abbott's bread and butter, its total revenue is split among four main business areas. |
24770.0 | 2020-01-01 00:00:00 UTC | Is AbbVie's Stock a Buy? | ABBV | https://www.nasdaq.com/articles/is-abbvies-stock-a-buy-2020-01-01 | nan | nan | It's been a tough year for AbbVie (NYSE: ABBV) as the stock is closing 2019 not far from where it finished the year before. Question marks about the future of its business have made investors wary of investing in the company. However, given its poor performance in a year that's seen the Health Care Select SPDR Fund rise by 21% and the S&P 500 index produce returns of around 29%, AbbVie could be an underrated buy for 2020, especially given some exciting opportunities ahead.
Diversification could be key to long-term growth
One of AbbVie's strengths over the years has been its ability to continue to drive revenue growth. From $22.9 billion in sales in 2015 to $32.8 billion in 2018, the company's top line has risen by more than 43% in a span of just three years.
Acquisitions have played a key part of AbbVie's growth. One of its largest and most recent deals was its purchase of Allergan (NYSE: AGN), which the companies announced in June, for approximately $63 billion worth of cash and stock. Although investors didn't initially respond favorably to the deal, over the long term, AbbVie could enjoy significant benefits, the biggest of which is diversification. Although no specific date has been given, the two companies expect the deal to close "early 2020" which is when AbbVie's financials will begin including Allergan's results.
AbbVie is largely dependent on Humira, perhaps so much that it makes the stock slightly risky. According to the company's most recent earnings report, released in November, Humira accounted for 58% of AbbVie's top line over the past nine months. And while that's an improvement from 61% the year prior, it's clear that the company needs to become more diversified, especially with sales from Humira dropping by 5% so far this year.
Image Source: Getty Images.
To make matters worse, the company's Rinvoq drug, which was highly touted by AbbVie executives, received a disappointing review from the Institute for Clinical and Economic Review, which said the drug had only "marginal clinical benefit" compared to Humira. The good news is that AbbVie doesn't have all its eggs in one basket, as it still has Skyrizi, which could be a substitute for Humira, and it's an attractive alternative, as it needs to be injected fewer times. Nonetheless, these are important reminders as to why diversification and the deal with Allergan are vital to ensuring that AbbVie continues to grow and expand its sales mix.
Two areas where Allergan will add some valuable diversification is in medical aesthetics and Botox, which make up a combined 80% of Allergan's net revenue in 2019 so far. Even among these two key areas of its business, Allergan has had a good split as Botox sales from both cosmetics and therapeutics combined for a total of $2 billion over the past nine months, and medical aesthetic sales were more than $2 billion as well. With a good mix of revenue, AbbVie's numbers will not only get stronger as a result of the acquisition, but its product sales will also be much more diverse.
Allergan acquisition may not be the ideal solution
Although the deal for Allergan may provide opportunities for AbbVie, it's also likely to present some challenges. Over the past nine months, Allergan's sales have struggled, generating almost no growth.To make matters worse, Allergan has struggled with profitability, as the company is coming off a Q3 performance in November in which it incurred an operating loss of $596.6 million. Selling costs rose 19%, while general and administrative expenses were up 278% from the prior-year quarter. Despite the added overhead, Allergan's top line grew by just 3.6%.
The danger for AbbVie is that while the acquisition will add more revenue, it could also saddle the company with greater expenses that eat into its bottom line, which has been strong, with AbbVie posting a profit of more than $5.1 billion in each of the past four years.
Is the stock too expensive to own today?
AbbVie is currently trading at more than 40 times its earnings, but its forward price-to-earnings multiple, which factors in the company's future growth, and is expected by analysts to fall to just nine. The company's results this year have been weighed down by other expense items, including goodwill impairment. But with a PEG ratio of 2.7, there may not be enough long-term growth to convince investors that there's enough substance to justify an investment in the company today.
There's a great deal of uncertainty surrounding AbbVie's future, both with the drugs it has in development and its deal with Allergan, and that makes the healthcare stock too risky of a buy today, especially at its current valuation. Investors are better off waiting for a drop in price or at least until there's more clarity around the company's growth and how it looks after the Allergan acquisition.
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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. | However, given its poor performance in a year that's seen the Health Care Select SPDR Fund rise by 21% and the S&P 500 index produce returns of around 29%, AbbVie could be an underrated buy for 2020, especially given some exciting opportunities ahead. AbbVie is currently trading at more than 40 times its earnings, but its forward price-to-earnings multiple, which factors in the company's future growth, and is expected by analysts to fall to just nine. It's been a tough year for AbbVie (NYSE: ABBV) as the stock is closing 2019 not far from where it finished the year before. | According to the company's most recent earnings report, released in November, Humira accounted for 58% of AbbVie's top line over the past nine months. It's been a tough year for AbbVie (NYSE: ABBV) as the stock is closing 2019 not far from where it finished the year before. However, given its poor performance in a year that's seen the Health Care Select SPDR Fund rise by 21% and the S&P 500 index produce returns of around 29%, AbbVie could be an underrated buy for 2020, especially given some exciting opportunities ahead. | The danger for AbbVie is that while the acquisition will add more revenue, it could also saddle the company with greater expenses that eat into its bottom line, which has been strong, with AbbVie posting a profit of more than $5.1 billion in each of the past four years. There's a great deal of uncertainty surrounding AbbVie's future, both with the drugs it has in development and its deal with Allergan, and that makes the healthcare stock too risky of a buy today, especially at its current valuation. It's been a tough year for AbbVie (NYSE: ABBV) as the stock is closing 2019 not far from where it finished the year before. | According to the company's most recent earnings report, released in November, Humira accounted for 58% of AbbVie's top line over the past nine months. It's been a tough year for AbbVie (NYSE: ABBV) as the stock is closing 2019 not far from where it finished the year before. However, given its poor performance in a year that's seen the Health Care Select SPDR Fund rise by 21% and the S&P 500 index produce returns of around 29%, AbbVie could be an underrated buy for 2020, especially given some exciting opportunities ahead. |
24771.0 | 2019-12-30 00:00:00 UTC | Health Care Sector Update for 12/30/2019: SLGL,EARS,XFOR,ABBV,CBMG | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-12-30-2019%3A-slglearsxforabbvcbmg-2019-12-30 | nan | nan | Top Health Care Stocks
JNJ -0.25%
PFE -0.85%
ABT -0.57%
MRK -0.60%
AMGN -0.62%
Health care stocks extended their Monday declines, with the NYSE Health Care Index dropping slightly more than 0.6% while the shares of health care companies in the S&P 500 also were down just over 0.6% as a group. The Nasdaq Biotechnology index was sinking nearly 1.1%.
Among health care stocks moving on news:
(+) Sol-Gel Technologies (SLGL) more than doubled in price Monday, rising 111% in late trade, after the dermatology company reported positive top-line results from a pair of phase III trials of its Twyneo drug candidate, saying patients treated with the prospective treatment for acne vulgaris showed a statistically significant improvement compared with a vehicle cream after 12 weeks. Twyneo was also found to be well-tolerated, the company said.
In other sector news:
(+) Auris Medical Holding (EARS) raced 13% higher after the specialty drugmaker Monday that it has formed Zilentin, a new business unit bundling its keyzilen/AM-101 drug candidate to treat tinnitus and its Sonsuvi/AM-111 prospective therapy for hearing loss.
(+) Cellular Biomedicine Group (CBMG) rose 1% after the genetic therapy company Monday said it retained the Jefferies Group and White & Case to assist with a review of its strategic options, including a Nov. 11 buyout offer led by CEO Bizuo Liu proposing to take the company private for $19.50 per share in cash.
(-) X4 Pharmaceuticals (XFOR) was 1% lower Monday afternoon, giving back an early 3% spike that followed the immuno-oncology company saying it has started phase Ib testing of a combination of its mavorixafor drug candidate with Abbvie's (ABBV) ibrutinib cancer medication for the treatment of Waldenstrom's macroglobulinemia, a rare form of non-Hodgkin's lymphoma.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (-) X4 Pharmaceuticals (XFOR) was 1% lower Monday afternoon, giving back an early 3% spike that followed the immuno-oncology company saying it has started phase Ib testing of a combination of its mavorixafor drug candidate with Abbvie's (ABBV) ibrutinib cancer medication for the treatment of Waldenstrom's macroglobulinemia, a rare form of non-Hodgkin's lymphoma. Among health care stocks moving on news: (+) Sol-Gel Technologies (SLGL) more than doubled in price Monday, rising 111% in late trade, after the dermatology company reported positive top-line results from a pair of phase III trials of its Twyneo drug candidate, saying patients treated with the prospective treatment for acne vulgaris showed a statistically significant improvement compared with a vehicle cream after 12 weeks. In other sector news: (+) Auris Medical Holding (EARS) raced 13% higher after the specialty drugmaker Monday that it has formed Zilentin, a new business unit bundling its keyzilen/AM-101 drug candidate to treat tinnitus and its Sonsuvi/AM-111 prospective therapy for hearing loss. | (-) X4 Pharmaceuticals (XFOR) was 1% lower Monday afternoon, giving back an early 3% spike that followed the immuno-oncology company saying it has started phase Ib testing of a combination of its mavorixafor drug candidate with Abbvie's (ABBV) ibrutinib cancer medication for the treatment of Waldenstrom's macroglobulinemia, a rare form of non-Hodgkin's lymphoma. Top Health Care Stocks Health care stocks extended their Monday declines, with the NYSE Health Care Index dropping slightly more than 0.6% while the shares of health care companies in the S&P 500 also were down just over 0.6% as a group. | (-) X4 Pharmaceuticals (XFOR) was 1% lower Monday afternoon, giving back an early 3% spike that followed the immuno-oncology company saying it has started phase Ib testing of a combination of its mavorixafor drug candidate with Abbvie's (ABBV) ibrutinib cancer medication for the treatment of Waldenstrom's macroglobulinemia, a rare form of non-Hodgkin's lymphoma. Health care stocks extended their Monday declines, with the NYSE Health Care Index dropping slightly more than 0.6% while the shares of health care companies in the S&P 500 also were down just over 0.6% as a group. Among health care stocks moving on news: (+) Sol-Gel Technologies (SLGL) more than doubled in price Monday, rising 111% in late trade, after the dermatology company reported positive top-line results from a pair of phase III trials of its Twyneo drug candidate, saying patients treated with the prospective treatment for acne vulgaris showed a statistically significant improvement compared with a vehicle cream after 12 weeks. | (-) X4 Pharmaceuticals (XFOR) was 1% lower Monday afternoon, giving back an early 3% spike that followed the immuno-oncology company saying it has started phase Ib testing of a combination of its mavorixafor drug candidate with Abbvie's (ABBV) ibrutinib cancer medication for the treatment of Waldenstrom's macroglobulinemia, a rare form of non-Hodgkin's lymphoma. Health care stocks extended their Monday declines, with the NYSE Health Care Index dropping slightly more than 0.6% while the shares of health care companies in the S&P 500 also were down just over 0.6% as a group. The Nasdaq Biotechnology index was sinking nearly 1.1%. |
24772.0 | 2019-12-30 00:00:00 UTC | ABBV: Insiders vs. Shorts | ABBV | https://www.nasdaq.com/articles/abbv%3A-insiders-vs.-shorts-2019-12-30 | nan | nan | The most recent short interest data was recently released for the 04/15/2019 settlement date, and AbbVie Inc (Symbol: ABBV) is the #122 most shorted of the S&P 500 components, based on 5.57 "days to cover." There are a number of ways to look at short data, but one metric that we find particularly useful is the "days to cover" because it considers both the total shares short and the average daily volume of shares typically traded. The number of shares short is then divided by the average daily volume, to express the total number of trading days it would take to close out all of the open short positions if every share traded represented a short position being closed.
In the case of AbbVie Inc (Symbol: ABBV), the total short interest at the 04/15/2019 settlement date was 27,575,807 shares, which compares to the average daily trading volume of just 4,952,645 shares, for a "days to cover" ratio of 5.57.
When short sellers eventually cover their positions, by definition there must be buying activity because a share that is currently sold short must be purchased to be covered. At the present levels of short interest, if from this point forward every single ABBV share traded represented a short position being closed, then at the average daily volume of 4,952,645 shares it would only be during the 6th trading day that every short position would be closed.
So it would stand to reason that should some unexpectedly good news come out, and short sellers did not have 6 days of patience but instead wanted to cover their short positions very suddenly, that situation could result in sending the stock higher until the higher price produces enough sellers to generate the necessary volume to close out those positions quickly.
AbbVie Inc (Symbol: ABBV) has something relatively rare for a stock with this much short interest, that being insiders taking the other side of the trade. Looking back over the trailing six month period, ABBV has seen 5 different instances of insider buying, as summarized by the table below:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
07/30/2019 Roxanne S. Austin Director 10,000 $66.35 $663,500.00
07/29/2019 Henry O. Gosebruch EVP, Chief Strategy Officer 30,000 $67.28 $2,018,385.00
08/01/2019 Roxanne S. Austin Director 55,000 $65.86 $3,622,090.00
08/16/2019 Jeffrey Ryan Stewart SVP, US Commercial Operations 15,552 $64.44 $1,002,169.32
08/29/2019 Nicholas Donoghoe SVP, Enterprise Innovation 7,525 $66.19 $498,057.17
09/16/2019 Laura J. Schumacher Vice Chairman 25,000 $70.42 $1,760,522.50
Below is a chart showing the "days to cover" for ABBV over time:
And looking at the chart below, ABBV's low point in its 52 week range is $62.66 per share, with $92.99 as the 52 week high point — that compares with a last trade of $88.84.
In recent trading, shares of AbbVie Inc (Symbol: ABBV) were changing hands at $88.84/share.
Ten Bargains You Can Buy Cheaper Than The Insiders Did »
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 (Symbol: ABBV) has something relatively rare for a stock with this much short interest, that being insiders taking the other side of the trade. 07/30/2019 Roxanne S. Austin Director 10,000 $66.35 $663,500.00 07/29/2019 Henry O. Gosebruch EVP, Chief Strategy Officer 30,000 $67.28 $2,018,385.00 08/01/2019 Roxanne S. Austin Director 55,000 $65.86 $3,622,090.00 08/16/2019 Jeffrey Ryan Stewart SVP, US Commercial Operations 15,552 $64.44 $1,002,169.32 08/29/2019 Nicholas Donoghoe SVP, Enterprise Innovation 7,525 $66.19 $498,057.17 09/16/2019 Laura J. Schumacher Vice Chairman 25,000 $70.42 $1,760,522.50 Below is a chart showing the "days to cover" for ABBV over time: And looking at the chart below, ABBV's low point in its 52 week range is $62.66 per share, with $92.99 as the 52 week high point — that compares with a last trade of $88.84. The most recent short interest data was recently released for the 04/15/2019 settlement date, and AbbVie Inc (Symbol: ABBV) is the #122 most shorted of the S&P 500 components, based on 5.57 "days to cover." | The most recent short interest data was recently released for the 04/15/2019 settlement date, and AbbVie Inc (Symbol: ABBV) is the #122 most shorted of the S&P 500 components, based on 5.57 "days to cover." In the case of AbbVie Inc (Symbol: ABBV), the total short interest at the 04/15/2019 settlement date was 27,575,807 shares, which compares to the average daily trading volume of just 4,952,645 shares, for a "days to cover" ratio of 5.57. At the present levels of short interest, if from this point forward every single ABBV share traded represented a short position being closed, then at the average daily volume of 4,952,645 shares it would only be during the 6th trading day that every short position would be closed. | In the case of AbbVie Inc (Symbol: ABBV), the total short interest at the 04/15/2019 settlement date was 27,575,807 shares, which compares to the average daily trading volume of just 4,952,645 shares, for a "days to cover" ratio of 5.57. At the present levels of short interest, if from this point forward every single ABBV share traded represented a short position being closed, then at the average daily volume of 4,952,645 shares it would only be during the 6th trading day that every short position would be closed. The most recent short interest data was recently released for the 04/15/2019 settlement date, and AbbVie Inc (Symbol: ABBV) is the #122 most shorted of the S&P 500 components, based on 5.57 "days to cover." | The most recent short interest data was recently released for the 04/15/2019 settlement date, and AbbVie Inc (Symbol: ABBV) is the #122 most shorted of the S&P 500 components, based on 5.57 "days to cover." In the case of AbbVie Inc (Symbol: ABBV), the total short interest at the 04/15/2019 settlement date was 27,575,807 shares, which compares to the average daily trading volume of just 4,952,645 shares, for a "days to cover" ratio of 5.57. At the present levels of short interest, if from this point forward every single ABBV share traded represented a short position being closed, then at the average daily volume of 4,952,645 shares it would only be during the 6th trading day that every short position would be closed. |
24773.0 | 2019-12-30 00:00:00 UTC | 7 High-Yield Dividend Stocks for Growth and Income in the 2020s | ABBV | https://www.nasdaq.com/articles/7-high-yield-dividend-stocks-for-growth-and-income-in-the-2020s-2019-12-30 | nan | nan | In a year where the S&P 500 grew by nearly 30%, dividend stocks often receive less attention. Despite this, with bank depositors often struggling to earn 1% per year in interest income, they remain attractive stocks to buy.
Moreover, anyone who has followed the stock market for any length of time knows that some years bring higher returns than others. In a time where stock price growth lags, dividend stocks can both mitigate losses and provide a more reliable income stream. Furthermore, because of that income stream, investors tend to sell them off less often.
Also, due to the massive returns in 2019, the market could struggle to deliver equivalent returns in 2020. However, dividend stocks could rescue some investors. Furthermore, as we move forward into the 2020s, some of these equities could also produce not only high-yielding payouts, but potentially considerable stock-price gains as well.
AbbVie (ABBV)
Source: Piotr Swat / Shutterstock.com
AbbVie (NYSE:) is one of the dividend stocks that may have finally begun its long-awaited recovery. Investors sold it off throughout most of 2018 and 2019 as patents on Humira started to expire across the world. It fell further when the company issued more shares to finance its purchase of Allergan (NYSE:).
The Allergan buy now appears to have served as the low point of ABBV stock. Since that announcement, it has steadily risen. AbbVie now trades at about $89 per share. This represents a considerable run-up from the summer low of just under $63 per share. However, it remains far below the early 2018 highs of almost $126 per share.
Furthermore, new investors can still profit. Despite recent increases, ABBV trades at a forward price-to-earnings (PE) ratio of 9.1. Also, with clarity as to what will replace revenue from Humira, Wall Street predicts earnings increases of 12.9% in 2019 and 9.2% next year.
Moreover, next yearâÂÂs annual dividend will rise to $4.72 per share, a yield of about 5.3%. Including its time as part of Abbott Laboratories (NYSE:), it has hiked payouts for 46 consecutive years. As the company absorbs Allergan and new drugs replace the revenue from Humira, ABBV stock should continue its march higher.
Altria (MO)
Source: Kristi Blokhin / Shutterstock.com
Despite facing challenges that may have sunk other businesses, Altria (NYSE:) continues to pay off for dividend investors. Those who bought the stock as late as 2003 and reinvested the dividend in more MO stock now earn their initial investment back in payouts alone.
The current payout stands at 6.6%. Since it does not rise every year, it is not a dividend aristocrat. However, it has gone up in most years, and now maintains a ten-year streak of annual increases. Also, at a forward PE ratio of 11.4, it remains reasonably-priced for new investors. This happened partially as a result of the vaping controversy surrounding Juul, which hurt MO stock this year. However, this can also serve as a buying opportunity for new investors.
Moreover, the 20s could see it diversify into a new industry. In 2018, Altria announced that it would invest $1.8 billion in Canadian marijuana producer Cronos (NASDAQ:). This bought Altria a 45% stake in the company.
The cannabis industry continues its March toward legalization. Once the hype in weed stocks dies down, they will likely become slower-growth, dividend-producing equities, similar to tobacco stocks. Hence, as tobacco use continues to fall, this gives Altria a segue into a new industry that should continue to serve as one of the better-paying dividend stocks throughout the 2020s.
AT&T (T)
Source: Lester Balajadia / Shutterstock.com
AT&T (NYSE:) has positioned itself to become one of the more notable beneficiaries of 5G. As only one of three nationwide 5G providers, it will again become one of the few providers of a needed communications service.
AT&T stock suffered for years as customers dropped landlines and cable TV plans. Investors also sold off T stock as heavy debt loads and the massive costs of building a nationwide 5G network weighed on the stock. Now, with smartphone makers releasing 5G phones, the investment will start to pay off soon.
Moreover, AT&TâÂÂs board just passed the 35th annual dividend increase. This means investors will earn $2.08 per share in payouts in 2020, up from $2.04 per share the previous year. Since dividend aristocrats such as T stock tend to suffer for years when they cut payouts, investors can likely expect continued increases in future years.
T stock also enjoyed a prosperous 2019, with the stock rising by close to 30%. However, despite the increase, it remains one of the better-paying dividend stocks. Even with the higher stock price, the dividend still yields over 5.3%. Moreover, the forward PE has only climbed to around 10.8. While it has risen from last year, it remains well below historical averages. At these levels, buying AT&T should not only bring huge payouts but also continued stock price gains.
BP p.l.c. (BP)
Source: JuliusKielaitis / Shutterstock.com
A stagnant stock price and a generous dividend have defined BP (NYSE:) in the 2010s. The Deepwater Horizon oil spill in 2010 hurt BP stock for years. However, with this tragedy nearly ten years behind the company, it has almost worked through the liabilities that came from this accident. Moreover, CEO Bob Dudley, whose tenure began soon after the oil spill, will step down in February.
Throughout Mr. DudleyâÂÂs tenure, BP became a dividend stocks that did not see significant stock price gains. Its yields have remained generous and have seen slow growth since soon after the accident. Today, its payout of $2.46 per share offers investors a return of around 6.5%.
Now with Bernard Looney taking over as CEO, the stock may finally see some gains. Admittedly, fewer regulations and massive output from the Permian Basin have helped to put a lid on oil prices. Despite the state of energy prices, analysts expect profit growth to resume next year. They also believe earnings will increase by 14.6% in 2020.
Over the next five years, Wall Street forecasts profit growth to average 31.5% per year. If this holds, BP stock, and possibly the payout, could see significant increases in the 2020s.
Innovative Industrial Properties (IIPR)
Source: Shutterstock
Innovative Industrial Properties (NYSE:) does not attract the attention of many other dividend stocks. As a real estate investment trust (REIT), payouts can vary since REITs must pay out at least 90% of their net income in dividends. Even among REITs, it stands out for its niche. IIPR specializes in properties designed for the growth of cannabis.
However, since 33 states have legalized medical marijuana, it can operate in most parts of the country. Moreover, since it merely provides property and facilities, it does not have to contend with the Schedule I restrictions on cannabis.
Interestingly, the drop in weed stocks has helped Innovative Industrial Properties. In some cases, struggling marijuana firms have sold their properties and leased them back to keep their doors open. In many cases, IIPR has bought that property. As a result, Wall Street expects profits to grow by 124% this year and 140.5% in fiscal 2020. Even better, the forward PE ratio is now at around 18.3.
This has bolstered the dividend, which now stands at $4 per share, a yield of about 5.4%. Due to REIT rules, this dividend should continue to move substantially higher. As more jurisdictions move toward legalization and more failing cannabis companies sell out to the company, IIPR stock should continue to produce increasing dividends and gains for the foreseeable future.
Omega Healthcare Investors (OHI)
Source: Shutterstock
Omega HealthcareâÂÂs (NYSE:) real estate holdings have and will continue to benefit from demographics. The aging of baby boomers continues to add an estimated 10,000 people per day to the Medicare rolls. Fortunately for Omega, it owns 855 skilled nursing and assisted living facilities in the U.S. (and 55 in the U.K.) that can address the needs of seniors.
Like with IIPR, the dividend requirements of REITs will work in favor of investors. Wall Street forecasts earnings growth of 13.6% this year. On average, they believe these increases will remain in the double-digits over the next five years. At 25 times forward earnings, this growth will not come cheap, but demographics strongly indicate it will happen nonetheless.
The current annual payout of $2.68 per share takes the yield to around 6.4%. Also, thanks to a growing Medicare population and REIT dividend requirements, payouts have increased for nine straight years.
Moreover, stock price gains should add to the returns. OHI stock has risen by more than 23% in 2019, an impressive performance for an equity focused on income. As long as the Medicare population continues this massive growth, OHI should move higher along with it.
Qualcomm Incorporated (QCOM)
Source: Katherine Welles / Shutterstock.com
Most investors know Qualcomm (NASDAQ:) stock best for its chipsets that power smartphones. The upcoming 5G upgrade cycle, as well as the settlement of their long legal battle with Apple (NASDAQ:), have solidified its dominance in this industry.
However, in recent years, Qualcomm has become one of the more noteworthy dividend stocks. At $2.48 per share in payouts, its yield now stands at about 2.8%. Moreover, its streak of annual payout increases has grown to eight years. Even though the legal battle with Apple depressed QCOM stock, it continued hiking the dividend throughout this time.
Now QCOM stock appears set to produce massive price and dividend gains. Thanks to 5G, analysts forecast chipset revenue to grow from $2.12 billion in 2020 to $22.93 billion by 2026. As the dominant maker of chipsets, most of the benefit should accrue to Qualcomm. This likely explains why Wall Street expects profit growth to increase from 18.4% this year to 45.8% in 2020. At a forward PE of around 14.5, the earnings increases also come at a low price.
QCOM stock saw a massive run-up in 2019, rising by more than 57% on the year. Hence, investors might want to wait. However, as consumers and businesses across the world upgrade to 5G, investors should see massive benefits over the next few years.
As of this writing, Will Healy is long ABBV stock. You canÃÂ ÃÂ at @HealyWriting.
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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. | As the company absorbs Allergan and new drugs replace the revenue from Humira, ABBV stock should continue its march higher. AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:) is one of the dividend stocks that may have finally begun its long-awaited recovery. The Allergan buy now appears to have served as the low point of ABBV stock. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:) is one of the dividend stocks that may have finally begun its long-awaited recovery. The Allergan buy now appears to have served as the low point of ABBV stock. AbbVie now trades at about $89 per share. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:) is one of the dividend stocks that may have finally begun its long-awaited recovery. The Allergan buy now appears to have served as the low point of ABBV stock. AbbVie now trades at about $89 per share. | AbbVie (ABBV) Source: Piotr Swat / Shutterstock.com AbbVie (NYSE:) is one of the dividend stocks that may have finally begun its long-awaited recovery. The Allergan buy now appears to have served as the low point of ABBV stock. AbbVie now trades at about $89 per share. |
24774.0 | 2019-12-30 00:00:00 UTC | 5 Cheap High-Yield Dividend Stocks with Growing Dividends | ABBV | https://www.nasdaq.com/articles/5-cheap-high-yield-dividend-stocks-with-growing-dividends-2019-12-30 | nan | nan | When writing this article, my plan was to find an ideal list of high-yield stock that is expected to have a higher dividend next year. To make my list, the stocks would also have to have a very low price-to-earnings ratio. The following is a list of five such stocks that I found.
The average dividend yield of the . So each of these dividend stocks must have a significantly higher dividend yield than that. In addition, we are looking for stocks that I expect to grow their dividend.
The average price-to-earnings ratio of the . But over time, the median P/E ratio has been 14.8 times. So our list of these stocks must have a much lower ratio than 15 times earnings.
Here is what I found: The median dividend growth rate for the five stocks on this list is 10%.
And voila. The stocks on this are cheap, have good dividend growth rates and are high-yield dividend stocks. Moreover, the companies can afford the dividends â the average payout ratio is only 60%.àThis list of stocks is worth investigating further.
Dividend Stocks: AbbVie (ABBV)
Source: Mark R. Hake
Expected Dividend Growth Next Year: +10.3%
Dividend Yield: 4.8%
Forward P/E Ratio: 9x
AbbVie (NYSE:) is a $130 billion market value drug manufacturing company. It has consistently raised its dividend over the past five years. You can see this in the chart I have prepared.
On average, dividends have increased by 21% per year over the past four years. The dividend is expected to rise 10% this year.
In addition, ABBV stock is very cheap. In 2020, expected earnings of $9.91 per share put ABBV stock at a P/E of 9 times.
As it stands, the dividend per share for ABBV stock is well covered by its earnings. The annual $4.72 dividend per share represents just 53% of expected earnings of $8.93 per share.
Abbie made aÃÂ ÃÂ forÃÂ AllerganÃÂ (NYSE:) in late June 2019. AGN is a $61 billion market cap U.K./U.S. drug company. The deal is expected to close in early 2020. AbbVie claims the deal will significantly increase shareholder value.
Dividend Stocks: Ryder System (R)
Source: Mark R. Hake, CFA
Expected Dividend Growth Next Year: +15.6%
Dividend Yield: 4.2%
Forward P/E Ratio: 17.8x
Ryder System (NYSE:) stock is expected to post a 15% higher dividend next year. In addition, the dividend yield is over 4%.
What is also interesting is that Ryder has been increasing its dividend per share every two or three quarters. The standard practice is to do so every four quarters. So this is indicative that Ryder is very shareholder-friendly with its dividend policy. In addition, Ryder has been buying back shares every quarter.
Ryder generates a lot of operating cash flow from its truck leasing operations. However, the residual values of its rental fleet have been declining faster than expected in the past few quarters.ÃÂ That is why Ryder stock has been cheap lately.
However, a close study of the companyâÂÂs helps explain how Ryder takes the long view. For example, Ryder expects to produce over $2.65 billion in operating cash flow this year.
ThatâÂÂs good because the dividend payments cost only about $117 million per year, so Ryder can easily afford it.
Dividend Stocks: Moelis & Company (MC)
Source: investors.Moelis.com
Expected Dividend Increase Next Year: +14%
Dividend Yield: 6.2%
Forward P/E Ratio: 12.6x
Moelis (NYSE:) stock has a very high dividend yield and a high expected dividend growth rate. This investment banking company, with 500 employees and 19 offices worldwide, has a history of annually paying out large special dividends on top of its regular quarterly dividends.
For example, in 2018, Moelis regularly paid a quarterly dividend of 47 cents per share. But two times during the year, it also paid out .
In 2019, Moelis raised its regular quarterly dividend to 50 cents per share. But is also paid out a special dividend of $1.25 per share. It is possible that Moelis will pay out another special dividend at the beginning of next year. Moelis is extremely dedicated to paying out its free cash flow to shareholders.
In fact, a states that Moelis is committed to returning all of its excess cash to its shareholders. This includes a $100 million share repurchase program in 2019.
It also has a picture of how well it has done this in the past through dividends, special dividends, and share repurchases. This picture also shows the very high dividend yield each year.
Moelis does not provide any guidance for its earnings. But given its track record, you can expect that Moelis stock will likely be a very good investment over the coming year, given its huge commitment to return of capital to shareholders.
Dividend Stocks: Artisan Partners Asset Management (APAM)
Source: Mark R. Hake, CFA
Expected Dividend Growth This Year: +7.7%
Dividend Yield: 8.3%
Forward P/E Ratio: 11.5x
Artisan Partners (NYSE:) stock has a high dividend yield and an expected 7.7% higher dividend to be paid next year. Moreover, just like Moelis stock above, Artisan Partners, an asset management company, has a history of paying out large special dividends once a year.
For example, APAM stock normally seems to pay out 60 cents to 65 cents per quarter as a regular dividend. In addition, every February APAM seems to make a special dividend payment, reflecting excess capital generated from the prior year.
For example, in 2018, APAM stock paid out 79 cents in February 2018. In February 2019, APAM paid out $1.03 per share in another special dividend.
I estimate that APAM will likely pay out another $1 per share or higher this coming February 2020. This is likely I believe since the stock market has done quite well this year. APAM makes money from management and performance fees based on its stock market performance.
Dividend Stocks: Carnival Corp (CCL)
Source: Mark R. Hake, CFA
Expected Dividend Increase Next Year: +3%
Dividend Yield: 4.3%
Forward P/E Ratio: 10.6x
Carnival (NYSE:) stock is a high-yield dividend stock with an expected dividend increase of at least 3% next year.ÃÂ You can see from the chart at right that Carnival, the cruise ship company, has consistently increased its dividend per share each year.
CarnivalâÂÂs earnings per share for the quarter ending Aug. 31, 2019, rose 7% year-over-year. Revenue was also 12% higher than the prior year. It seems that Carnival is having a good year. I would expect that this will continue.
Carnival itself will be higher by 4% year-over-year along with a similar increase in its capacity. Carnival also says that it expects revenue to be higher by 7% in 2020 along with a similar increase in capacity.
On Dec. 20, Carnival also announced its earnings for its Q4 ending November. The double beat proves this stock is still in a good position.
As of this writing, Mark Hake, CFA does not hold a position in any of the aforementioned securities. Mark Hake runs theÃÂ ÃÂ which you can reviewÃÂ here.ÃÂ TheÃÂ GuideÃÂ focuses on high total yield value stocks. Subscribers a two-week free trial.
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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. | Dividend Stocks: AbbVie (ABBV) Source: Mark R. Hake Expected Dividend Growth Next Year: +10.3% Dividend Yield: 4.8% Forward P/E Ratio: 9x AbbVie (NYSE:) is a $130 billion market value drug manufacturing company. In addition, ABBV stock is very cheap. In 2020, expected earnings of $9.91 per share put ABBV stock at a P/E of 9 times. | Dividend Stocks: AbbVie (ABBV) Source: Mark R. Hake Expected Dividend Growth Next Year: +10.3% Dividend Yield: 4.8% Forward P/E Ratio: 9x AbbVie (NYSE:) is a $130 billion market value drug manufacturing company. In addition, ABBV stock is very cheap. In 2020, expected earnings of $9.91 per share put ABBV stock at a P/E of 9 times. | Dividend Stocks: AbbVie (ABBV) Source: Mark R. Hake Expected Dividend Growth Next Year: +10.3% Dividend Yield: 4.8% Forward P/E Ratio: 9x AbbVie (NYSE:) is a $130 billion market value drug manufacturing company. In addition, ABBV stock is very cheap. In 2020, expected earnings of $9.91 per share put ABBV stock at a P/E of 9 times. | Dividend Stocks: AbbVie (ABBV) Source: Mark R. Hake Expected Dividend Growth Next Year: +10.3% Dividend Yield: 4.8% Forward P/E Ratio: 9x AbbVie (NYSE:) is a $130 billion market value drug manufacturing company. In addition, ABBV stock is very cheap. In 2020, expected earnings of $9.91 per share put ABBV stock at a P/E of 9 times. |
24775.0 | 2019-12-30 00:00:00 UTC | 5 Stocks to Buy in January | ABBV | https://www.nasdaq.com/articles/5-stocks-to-buy-in-january-2019-12-30 | nan | nan | The stock market was scorching hot in 2019. The S&P 500 gained about 30%, marking its best year since 1997. Several factors helped power the market to new highs, including rate cuts by the Federal Reserve and an easing of trade tensions between the U.S. and China.
This next year, however, likely won't be quite so kind to investors. The U.S. is gearing up for an impeachment trial of President Trump in the spring and a likely contentious election this fall. With those prospects looming, stocks could be much more volatile in 2020.
Despite this backdrop, we still see some excellent opportunities for investors in the coming year. We asked a team of Motley Fool contributors for their top stocks to buy this January. They chose Pinterest (NYSE: PINS), Vertex Pharmaceuticals (NASDAQ: VRTX), CalAmp (NASDAQ: CAMP), Peloton Interactive (NASDAQ: PTON), and Energy Transfer (NYSE: ET).
Image source: Getty Images.
A "broken" IPO
Brian Feroldi (Pinterest): Pinterest, which considers itself to be a "visual search engine," came public earlier this year. While the share price initially popped after its IPO, the stock has since been sold off hard in the last few months along with many other high-growth stocks.
I think that's providing opportunistic investors with a great chance to get it.
But why should investors favor Pinterest over other social media companies such as Facebook, Snap, or Twitter? Consider these interesting statistics about Pinterest's users:
91% of them believe that Pinterest is "filled with positivity."
85% say that they visit Pinterest "to start a new project."
89% of users say they leave the site "feeling empowered."
80% of U.S. moms are users.
More than half of U.S. millennials are on Pinterest.
I think that these numbers are highly attractive to potential advertisers, especially those that don't want their brands associated with the negativity that plagues other social media sites.
Pinterest's third-quarter 2019 financial results suggest that the platform is successfully attracting new users and advertisers. Revenue grew 47% to $280 million, and monthly active users grew 28% to 322 million. The growth was strong enough to allow Pinterest to generate non-GAAP profits.
I think that strong growth can continue for years to come for two main reasons:
First, Pinterest is still growing its user base rapidly, particularly in international markets. While 322 million users sounds like a big number, it's still less than 10% of all the 4.5 billion people who are currently online. I think that the user base can continue to grow rapidly as more people learn about the benefits of becoming a "pinner."
Second, Pinterest's average revenue per user (ARPU) was just $0.90 in the third quarter of 2019. For context, the average Facebook user was monetized at $7.26 during the same period. That tells me that there is lots of room ahead for Pinterest to monetize its current user base.
When these two factors are combined, I think that Pinterest is poised to grow its revenue and profits at a substantial rate over the next decade. If I'm right, Wall Street will eventually catch on, and investors who buy today could earn a multibagger return.
Meanwhile, the recent sell-off has caused Pinterest to trade below its IPO price, which has pulled its valuation down below 10 times trailing sales. While that can't be viewed as classically "cheap," I think that Pinterest is a high-quality growth stock that deserves its premium price tag.
The best biotech stock on the market
Keith Speights (Vertex Pharmaceuticals): Highly profitable. Huge cash stockpile. Tremendous moat. Fantastic growth prospects. Those are the main reasons I think Vertex Pharmaceuticals is the best biotech stock on the market and a top stock to buy in January.
The anchor behind Vertex's success is the company's monopoly in treating the underlying cause of rare genetic disease cystic fibrosis (CF). Vertex now has four CF drugs approved in the U.S. thanks to the FDA giving a thumbs-up to Trikafta in October, several months earlier than expected.
No other company has an approved drug that addresses the underlying cause of CF. The closest major rival is AbbVie (NYSE: ABBV), which is evaluating a triple-drug CF combo in an early-stage clinical study. But Vertex has a massive head start over AbbVie.
Vertex should be able to win approvals in other countries for Trikafta. Assuming it does, the biotech will likely expand its addressable patient population by more than 50% over the next few years.
Thanks to fast-rising sales for its other CF drugs, Vertex sat on a cash stockpile of $4 billion at the end of September. It has used its cash in part to fund partnerships and acquisitions to expand its pipeline. Vertex is partnering with CRISPR Therapeutics (NASDAQ: CRSP) to develop gene-editing therapies targeting rare blood diseases beta thalassemia and sickle cell disease. It also made two key acquisitions in recent months, announcing a $245 million buyout of Exonics Therapeutics in June and a $950 million purchase of Semma Therapeutics in September.
Vertex now claims 10 early- or mid-stage programs in its pipeline. Three of them target CF. Five target other rare genetic diseases. The company also is evaluating a pain drug that it hopes to advance to late-stage clinical testing.
Wall Street analysts think that Vertex will grow its earnings by close to 30% annually over the next five years. But that could just be the beginning of its growth. If some of its pipeline candidates are successful, Vertex could be the best biotech stock for a long time to come.
A cheap tech stock with a long growth runway? Yep, that exists!
Sean Williams (CalAmp): Over the past 25 years, one hot investment trend after another has been overhyped and not given the proper time to mature. In recent years, it's been the Internet of Things (IoT), which is a mammoth long-term opportunity that simply needs time to find its footing. It's this steady maturation process, enormous IoT opportunity, and now realistic view from investors that has me excited about CalAmp.
Over the past year, CalAmp, which supplies mobile and industrial IoT telematics and provides cloud-based software as a service (SaaS), has dealt with a number of issues. For example, the U.S.-China trade war has adversely impacted the telematics segment due to the fact that a majority of its products were sourced from China. Additionally, worldwide vehicle sales are coming off of their highs, which isn't great news for a company that leans on smart vehicle technologies. The good news is that CalAmp's management team isn't sitting on its hands.
Throughout 2019, CalAmp has significantly reduced its reliance on China for its telematics segment. Initially deriving 70% to 80% of its goods from China at the beginning of the year, CalAmp has reduced its sourcing from the No. 2 economy in the world by GDP to around 50%. This should mean fewer trade spat-related disruptions and far more cost certainty.
CalAmp also notes that its biggest customer, heavy-equipment producer Caterpillar (NYSE: CAT), is on the cusp of upgrading its fleet from 3G to LTE connectivity. New orders from CalAmp's top customer will likely help CalAmp surpass Wall Street's expectations at some point in 2020.
But perhaps the biggest catalyst of all is CalAmp's emphasis on SaaS. In the most recent quarter, the company saw SaaS sales grow by 67% year over year, with cloud-based software now accounting for 35% of total sales. Subscription revenue is highly predictable and should help remove the occasional revenue lumpiness that CalAmp contends with as its telematics customers go through technology upgrade cycles.
Long story short, after watching it lose more than 60% of its value over the last two years, I believe we're finally seeing CalAmp's business segments mature. Rising SaaS as a percentage of total sales provides a healthy floor, while less reliance on Chinese goods removes a lot of near-term cost uncertainty.
Image source: Getty Images.
Riding higher for 2020
Dan Caplinger (Peloton Interactive): Health and wellness have been big trends in recent years, and keeping fit is an important part of many people's lifestyles. Peloton Interactive aims to make exercise more accessible and interactive to higher-end customers by introducing home fitness equipment that includes access to professional fitness classes. With the technology that Peloton includes in its stationary bikes and treadmills, you can enjoy an interactive exercise experience in which you're directly competing against other users wherever they are.
Peloton just went public a few months ago, but it's already growing at a solid pace. The company now counts about 563,000 subscribers among its paying customer base, with users of its app bringing its total membership count to more than 1.6 million people. Peloton managed to double its quarterly revenue in just the past 12 months, and it's doing a good job of holding onto the customers it brings in, with retention rates of 94% on a 12-month basis.
Moreover, Peloton users are finding more ways to get value from the service. The number of workouts per subscriber has been on the rise, with year-over-year gains from 8.9 to 11.7 per month in the company's most recent quarterly results.
A controversial ad brought Peloton some grief during the holiday season, but many dismissed the incident as having little impact on its core user base. Meanwhile, Peloton is offering customers the chance to use Peloton equipment on a free 30-day trial basis, giving them an introduction to the service and its benefits. Once people get to use the Peloton interactive platform, it's hard to go back to regular fitness equipment -- and Peloton is banking on that leading to increased customer growth.
Peloton is also aiming to expand its product line. Facing some criticism because of the high price tags for its products -- $2,245 for stationary bikes and $4,295 for treadmills -- Peloton is looking to offer a lower-cost treadmill option as well as a rowing machine alternative. Doing so could help the company break out of the reputation it has for serving only rich customers, and introducing a broader set of exercising users would help support the key interactive workout part of the business, which benefits from having more people on the service. Also, plans to introduce apps for those who have wearable devices could drive more users onto the Peloton platform.
In many investors' eyes, Peloton hasn't been a successful stock, as the share price has had trouble staying above the $29 per share at which it priced its initial public offering. Plenty of skeptics believe that Peloton is doomed to failure, and they're betting aggressively against the stock at its current price. Yet there are a lot of high-end customers who can afford to buy Peloton equipment, and the company's growth shows that many of them see the benefits of the company's interactive experience. As network effects build, it's likely that Peloton will see continued growth heading into 2020 -- and shareholders hope the stock will follow suit.
Deep value in a heated market
Matt DiLallo (Energy Transfer): This past year has been an odd one for the energy market. Crude prices rebounded more than 35% as major producers like OPEC kept a lid on their production, which typically would fuel big gains in energy stocks. However, the average one only managed to generate a 5% return as measured by the Vanguard Energy ETF. That significantly underperformed not only oil but also the S&P 500, which was red hot as it gained about 30% on the year.
While there were several lousy performers in the energy sector, one that stood out was midstream behemoth Energy Transfer. The master limited partnership (MLP) declined by about 2% -- and is now down 30% in the last three years -- even though its earnings have been growing briskly. They're on track to rise by about 16% in 2019 and have expanded by an 18% compound annual rate since 2015.
That fast-paced earnings growth in the face of a slumping stock price has pushed Energy Transfer's valuation down to a ridiculously cheap level. The MLP currently trades at about 8 times earnings, which is low even in the beaten-down energy sector, where most midstream companies sell for more than 10 times earnings. Because it's so cheap, Energy Transfer's dividend yield has risen to more than 9%. While a payout that high is often a warning sign, that's not the case here, since it's generating enough cash to cover it by a comfortable 1.98 times.
That combination of value, yield, and growth -- earnings could rise by double digits again in 2020 -- makes Energy Transfer one of the more compelling opportunities this January. Its yield and earnings growth alone set it up to potentially generate a 20% total return in 2020, making it a great stock to buy to start the year.
10 stocks we like better than Vertex Pharmaceuticals
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*Stock Advisor returns as of December 1, 2019
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Brian Feroldi owns shares of Facebook and Pinterest. Dan Caplinger owns shares of Vanguard Energy ETF. Keith Speights owns shares of AbbVie, Facebook, SPDR S&P 500, and Vertex Pharmaceuticals. Matthew DiLallo owns shares of Facebook, Twitter, and Vertex Pharmaceuticals. Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CRISPR Therapeutics, Facebook, Peloton Interactive, Pinterest, and Twitter. The Motley Fool recommends CalAmp and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The closest major rival is AbbVie (NYSE: ABBV), which is evaluating a triple-drug CF combo in an early-stage clinical study. But Vertex has a massive head start over AbbVie. Keith Speights owns shares of AbbVie, Facebook, SPDR S&P 500, and Vertex Pharmaceuticals. | The closest major rival is AbbVie (NYSE: ABBV), which is evaluating a triple-drug CF combo in an early-stage clinical study. But Vertex has a massive head start over AbbVie. Keith Speights owns shares of AbbVie, Facebook, SPDR S&P 500, and Vertex Pharmaceuticals. | The closest major rival is AbbVie (NYSE: ABBV), which is evaluating a triple-drug CF combo in an early-stage clinical study. But Vertex has a massive head start over AbbVie. Keith Speights owns shares of AbbVie, Facebook, SPDR S&P 500, and Vertex Pharmaceuticals. | The closest major rival is AbbVie (NYSE: ABBV), which is evaluating a triple-drug CF combo in an early-stage clinical study. But Vertex has a massive head start over AbbVie. Keith Speights owns shares of AbbVie, Facebook, SPDR S&P 500, and Vertex Pharmaceuticals. |
24776.0 | 2019-12-30 00:00:00 UTC | 3 Big Pharma Stocks That Pay Big Dividends | ABBV | https://www.nasdaq.com/articles/3-big-pharma-stocks-that-pay-big-dividends-2019-12-30 | nan | nan | The past year has been great for stocks across the board, but that's made it awfully hard to find reliable dividend-paying stocks that offer satisfactory yields. The average dividend yield for stocks in the S&P 500 index has dwindled to just 1.8% at the moment, but there are still a few big pharmaceutical companies with shares that yield more than twice the benchmark average.
Above-average yields come with above-average risks, but there are reasons to suspect these big pharma stocks are worth it. Let's poke around under the hood to see if these three could keep their payouts rising at a steady clip in the years ahead.
COMPANY (SYMBOL) DIVIDEND YIELD CASH DIVIDEND PAYOUT RATIO
AbbVie (NYSE: ABBV) 5.3% 48%
Pfizer (NYSE: PFE) 3.9% 74%
Gilead Sciences (NASDAQ: GILD) 3.8% 39%
Data source: Yahoo! Finance.
1. Gilead Sciences: Making a comeback
Fierce competition from AbbVie for patients with hepatitis C virus (HCV) has been a disaster for Gilead Sciences in recent years, but the pain is nearly over. Now that the company leans on its HCV segment for just 12% of total revenue, soaring sales of HIV drugs are returning the company's top line to growth. During the first nine months of 2019, HIV sales rose 12% year over year to $11.9 billion, and over the same period, total product sales rose 2%.
Although a 2% annual growth rate isn't exciting, we can reasonably expect Gilead's dividend payout to continue rising at a satisfactory pace. The company's cash dividend payout ratio, or its dividend payout as a percentage of free cash flow, is just 39% at the moment. That leaves plenty of room for significant increases above the pace of top-line growth.
In December, the company submitted applications for filgotinib, a potential new rheumatoid arthritis tablet developed in partnership with Galapagos (NASDAQ: GLPG) that could generate peak annual sales between $4 billion and $6 billion, depending on whom you ask.
Less than two years following its launch, Biktarvy has become the most prescribed HIV regimen in the U.S., and it's probably going to retain this title for the foreseeable future. Recently, Gilead's only big competitor in the HIV space, a joint venture between GlaxoSmithKline and Pfizer called ViiV, received a complete response letter instead of approval from the FDA for a monthly injection.
Image source: Getty Images.
2. Pfizer: Big changes ahead
For years, Pfizer has been moving post-exclusivity brands to the operating segment known as Upjohn. In mid-2020, Pfizer will merge Upjohn with Mylan (NASDAQ: MYL), creating a new company called Viatris.
Pfizer shareholders will own 57% of Viatris, and the Pfizer that remains will be a smaller operation strongly focused on the development of innovative new drugs. According to Pfizer, combined dividends from Viatris and the Pfizer that remains should be equal to the dividend Pfizer shareholders receive ahead of the merger.
Distributions from both companies will most likely rise at a steady clip, although the Pfizer that remains will probably grow at a much faster pace than Viatris. Post-merger, Pfizer will still sport annual operating cash flow between $11 billion and $12 billion thanks to a stable of drugs with 10-figure sales that are still growing by leaps and bounds.
During the first nine months of 2019, Eliquis, Ibrance, and Xeljanz added a combined $8.4 billion to Pfizer's top line. That's 25% more than the previous-year period, and there's a slate of potential new drugs with blockbuster potential right around the corner, including a next-generation pneumonia vaccine, a gene therapy for hemophilia, and an experimental tablet for eczema.
Image source: Getty Images.
3. AbbVie: A glutton for punishment
At the moment, AbbVie's essentially the innovation-focused pharmaceutical company that Pfizer wants to become, but it won't stay that way much longer. In early 2020, AbbVie will acquire Allergan (NYSE: AGN) in a $63 billion cash and stock transaction.
AbbVie's lead product, Humira, has lost market exclusivity in the EU, and in 2023 the rheumatoid arthritis drug will face similar pressure in the U.S. market. Humira sales reached $14.4 billion in the first nine months of 2019, which worked out to 59% of net revenue, but adding Allergan's products to AbbVie's lineup should reduce that figure to around 40% of total revenue based on 2019 sales forecasts.
Allergan's a strange acquisition target for a company worried about losing exclusivity for its largest revenue stream. Botox earned its first approval 30 years ago, and it's responsible for 40% of Allergan's top line. Botox already faces some competition from another injectable botulinum toxin, called Myobloc, that the FDA approved in 2000.
Cyclosporine, the active ingredient in Allergan's second most important revenue stream, Restasis, is even older than Botox. Earlier this year, Sun Pharma launched another cyclosporine solution called Cequa, and more competition isn't far behind.
Image source: Getty Images.
Two out of three ain't bad
While dividends from Pfizer and Gilead Sciences will probably continue rising for the foreseeable future, it's probably best to ignore the higher yield that AbbVie offers at the moment. While AbbVie's ability to drag out U.S. exclusivity for Humira has been impressive, betting on the continued growth of Restasis and Botox looks like a terrible idea.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Two out of three ain't bad While dividends from Pfizer and Gilead Sciences will probably continue rising for the foreseeable future, it's probably best to ignore the higher yield that AbbVie offers at the moment. AbbVie (NYSE: ABBV) 5.3% 48% Pfizer (NYSE: PFE) 3.9% 74% Gilead Sciences (NASDAQ: GILD) 3.8% 39% Data source: Yahoo! Gilead Sciences: Making a comeback Fierce competition from AbbVie for patients with hepatitis C virus (HCV) has been a disaster for Gilead Sciences in recent years, but the pain is nearly over. | AbbVie (NYSE: ABBV) 5.3% 48% Pfizer (NYSE: PFE) 3.9% 74% Gilead Sciences (NASDAQ: GILD) 3.8% 39% Data source: Yahoo! Gilead Sciences: Making a comeback Fierce competition from AbbVie for patients with hepatitis C virus (HCV) has been a disaster for Gilead Sciences in recent years, but the pain is nearly over. AbbVie: A glutton for punishment At the moment, AbbVie's essentially the innovation-focused pharmaceutical company that Pfizer wants to become, but it won't stay that way much longer. | Humira sales reached $14.4 billion in the first nine months of 2019, which worked out to 59% of net revenue, but adding Allergan's products to AbbVie's lineup should reduce that figure to around 40% of total revenue based on 2019 sales forecasts. Two out of three ain't bad While dividends from Pfizer and Gilead Sciences will probably continue rising for the foreseeable future, it's probably best to ignore the higher yield that AbbVie offers at the moment. AbbVie (NYSE: ABBV) 5.3% 48% Pfizer (NYSE: PFE) 3.9% 74% Gilead Sciences (NASDAQ: GILD) 3.8% 39% Data source: Yahoo! | Humira sales reached $14.4 billion in the first nine months of 2019, which worked out to 59% of net revenue, but adding Allergan's products to AbbVie's lineup should reduce that figure to around 40% of total revenue based on 2019 sales forecasts. Two out of three ain't bad While dividends from Pfizer and Gilead Sciences will probably continue rising for the foreseeable future, it's probably best to ignore the higher yield that AbbVie offers at the moment. AbbVie (NYSE: ABBV) 5.3% 48% Pfizer (NYSE: PFE) 3.9% 74% Gilead Sciences (NASDAQ: GILD) 3.8% 39% Data source: Yahoo! |
24777.0 | 2019-12-28 00:00:00 UTC | A $20 Billion Sweet Spot in Biotech | ABBV | https://www.nasdaq.com/articles/a-%2420-billion-sweet-spot-in-biotech-2019-12-28 | nan | nan | This past year proved profitable for investors in Incyte (NASDAQ: INCY) and Seattle Genetics (NASDAQ: SGEN). Handily beating broad market and biotech indexes, these two drug manufacturers hit the $20 billion valuation mark and are poised to continue growing in the coming year -- unless, of course, an acquirer emerges.
Image Source: Getty Images
2019 was a solid year for Incyte, with its stock rising approximately 42%. Sales of its lead drug Jakafi exceeded $1.2 billion in the first nine months of the year. The company expects full-year sales of Jakafi to reach $1.65 billion to $1.68 billion. Royalties and sales of leukemia drug Iclusig in Europe added another $283 million over the first three quarters of the year.
Incyte's pipeline remains one of the most extensive in biotech. With nine late-stage drug candidates, seven have two or more phase 2 or phase 3 clinical trials under way. Its early stage portfolio sports another dozen drug candidates.
What does this mean for investors? Expect to see continuous program updates and clinical trial results throughout 2020 and 2021. Also, the breadth of the research and development pipeline coupled with revenues approaching $2 billion in 2020 should be able to absorb any R&D setbacks or failures.
Seattle Genetics hits on all cylinders
Seattle Genetics flourished in 2019 with its stock more than doubling on the heels of positive news. Adcetris, Seattle Genetics' first approved cancer drug, continued to reach record sales levels each quarter, representing growth between 30% and 42% compared to the corresponding periods in 2018. The company expects the total year revenue to range between $625 million to $640 million for Adcetris.
This week the U.S. Food and Drug Administration granted accelerated approval three months ahead of schedule for Seattle Genetics' drug Padcev to treat the most common form of bladder cancer. Earlier this month, the company highlighted promising clinical trials results for a novel breast cancer drug called tucatinib. While Seattle Genetics feverishly readies tucatinib's New Drug Application (NDA) for approval, the FDA designated the drug as a Breakthrough Therapy.
Seattle Genetics is a stock to own for 2020. Padcev's approval means another revenue stream in addition to Adcetris. Importantly, three products could be marketed by the end of 2020. The company's management announced that it expects to file the NDA for tucatinib in the first quarter. This promising breast cancer drug also showed the ability to combat cancer that spread to the brain.
Who will buy them?
Incyte and Seattle Genetics are both perennial M&A targets. However, since both companies boast valuations of $20 billion, any acquirer needs to be able to afford that plus the premium to make a buyout attractive. Only big pharmaceutical companies can afford to shell out $20 billion to $40 billion, assuming a 100% acquisition premium at the top end of the range.
Currently, several big pharmaceutical companies are trying to digest recent or on-going acquisitions, taking them off the table as prospective near-term buyers. In January, Takeda Pharmaceutical closed its $62 billion acquisition of Shire. Bristol-Myers Squibb concluded its $74 billion acquisition of Celgene in November. AbbVie remains in the thick of its $63 billion deal with Allergan. And by mid-2020, Pfizer hopes to complete the Viatris transaction, formed through the spinoff and merger of its Upjohn business unit with Mylan.
Japanese pharma Astellas (OTC: ALPMF) stands out as the natural buyer for Seattle Genetics. The companies enjoy a long-standing partnership dating back to 2007, which yielded Adcetris and now Padcev. However, Astellas' market cap is just $33 billion. Therefore, it would likely need to be a merger instead of an acquisition. Culturally, the existing partnership may be more productive than forcing a cross-border merger. Astellas traces its roots back to 1894 and may prefer smaller, less dilutive acquisitions, like its recent $3 billion buyout of gene therapy company Audentes Therapeutics.
Incyte partners Novartis (NYSE: NVS) and Eli Lilly (NYSE: LLY) seem like the most likely buyers. Even for Eli Lilly, the smaller of the two, an acquisition could be manageable. Earlier this month, Eli Lilly appointed Josh Bilenker and two of his key lieutenants to run oncology R&D. Eli Lilly bought their company Loxo Oncology earlier this year for roughly $8 billion. Could this changing of the guard with a deep background in targeted small molecules look to make a statement by acquiring Incyte?
Since we're speculating, here's another food for thought scenario. What if Incyte and Seattle Genetics merged? It's not so far-fetched...at least, on paper.
Both companies focus on oncology, while Incyte would bring diversification through its R&D in immunology, rheumatology, and dermatology. The merged company would have five marketed drugs. That could easily reach seven if Seattle Genetics' tucatinib and Incyte's pemigatinib gain approval in 2020.
Jakafi and Adcetris combined should generate more than $2.25 billion in sales in 2019. Incyte also sells the leukemia drug Iclusig in Europe. This commercial infrastructure and capability could be leveraged to market tucatinib, assuming approval. Seattle Genetics owns worldwide rights to the drug.
What about the R&D fit? Historically, Incyte discovered and developed small molecule drugs to inhibit specific enzymes called kinases. Through recent partnerships with Agenus and Merus, Incyte expanded into therapeutic antibodies and bispecific antibodies. This allowed it to get into the ultra-hot immuno-oncology field.
Seattle Genetics' platform seeks to develop antibody-drug conjugates, a "smart bomb" cancer therapy that tethers highly potent cancer-killing small molecules to an antibody that recognizes a specific molecular target on a cancer cell. Seattle Genetics' 2018 acquisition of Cascadian Therapeutics gave it tucatinib, a kinase inhibitor for breast cancer that could be FDA-approved next year, and an early stage immuno-oncology program. Thus, the R&D efforts of both companies can be viewed at a high level as complementary.
The biggest potential roadblock in a deal like this comes down to management. Who will run the combined company? Arguably, both management teams have done tremendous jobs at creating shareholder value and delivering new therapies to patients, with more to come.
If the personnel issues can be worked out, and with some additional creative deal-making, I can envision a dynamic entity able to step in to fill the hole left by Celgene. Willing to bet on cutting-edge science, Celgene transformed into one of the most prolific dealmakers sought out by emerging biotech companies as their partner of choice. Can Incyte and Seattle Genetics do the same? If $1 plus $1 can equal $3, will $20 billion plus $20 billion equal $60 billion?
I hope readers fully grasp the speculative nature of my idea. Incyte and Seattle Genetics are great companies in their own right. Creating much-needed therapies for patients remains the backbone of their businesses. The two companies benefit from approved drugs providing attractive cash flow to support the additional promising R&D. Will either or both companies get acquired? Nobody knows for sure. However, the stock prices should be higher this time next year making them each a worthy investment opportunity 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 remains in the thick of its $63 billion deal with Allergan. Handily beating broad market and biotech indexes, these two drug manufacturers hit the $20 billion valuation mark and are poised to continue growing in the coming year -- unless, of course, an acquirer emerges. Adcetris, Seattle Genetics' first approved cancer drug, continued to reach record sales levels each quarter, representing growth between 30% and 42% compared to the corresponding periods in 2018. | AbbVie remains in the thick of its $63 billion deal with Allergan. Adcetris, Seattle Genetics' first approved cancer drug, continued to reach record sales levels each quarter, representing growth between 30% and 42% compared to the corresponding periods in 2018. Earlier this month, the company highlighted promising clinical trials results for a novel breast cancer drug called tucatinib. | AbbVie remains in the thick of its $63 billion deal with Allergan. This week the U.S. Food and Drug Administration granted accelerated approval three months ahead of schedule for Seattle Genetics' drug Padcev to treat the most common form of bladder cancer. While Seattle Genetics feverishly readies tucatinib's New Drug Application (NDA) for approval, the FDA designated the drug as a Breakthrough Therapy. | AbbVie remains in the thick of its $63 billion deal with Allergan. Earlier this month, the company highlighted promising clinical trials results for a novel breast cancer drug called tucatinib. Seattle Genetics is a stock to own for 2020. |
24778.0 | 2019-12-28 00:00:00 UTC | Can Johnson & Johnson Break Out In 2020? | ABBV | https://www.nasdaq.com/articles/can-johnson-johnson-break-out-in-2020-2019-12-28 | nan | nan | Johnson & Johnson (NYSE: JNJ) enjoyed an excellent run from 2010 to 2017, climbing from $63 to $140 before entering a more volatile period over the past two years. Since then, the stock has bounced between $120 and $147, and it sits closer to the top of that range as 2019 comes to an end. Investors who rode that wave have probably felt frustrated with the ups and downs in recent years, and they're hoping the stock will fare better next year.
Johnson & Johnson operates a unique combination of businesses
The branded company's pharmaceutical segment generates 53% of total company revenue and 67% of its operating profit. This portion of the business currently markets dozens of drugs, but Stelara, Remicade, Imbruvica, Zytiga, Invega, and Darzalex are the current best sellers. Potential regulatory changes and competition threaten the segment, and heavy investments in research and development or acquisitions are required to maintain a robust pipeline to replace drugs with expiring patents. Previous top-seller Remicade is experiencing declining sales due to competition, and pipeline products from AbbVie (NYSE: ABBV) could threaten Johnson & Johnson's immunology group with pending U.S. Food and Drug Administration approvals.
Image Source: Johnson & Johnson
Medical devices are roughly 30% of total sales and 21% of operating profits. This segment is driven by numerous products for orthopedic, surgical, vision, and interventional applications. The acquisition of Auris Health could hasten Johnson & Johson's entry to the robotic surgery market, which it was already targeting through a partnership with Alphabet. This part of the company has struggled to produce sales growth, with the top line declining nearly 4% year-to-date.
Finally, Johnson & Johnson has a consumer health products segment that contributes 17% of revenue and 12% of total company operating profit. These products include well-known brands such as Neutrogena, Tylenol, Aveeno, Motrin, Zyrtec, Benadryl, Visine, Nicorette, Listerine, and Band-Aid. Johnson & Johnson's consumer division will grow through acquiring and developing promising brands moving forward, but this segment is best characterized as a mature, stable, and slow-moving cash flow generator.
Does valuation leave room to the upside?
Johnson & Johnson's valuation is somewhat complicated by its combination of businesses because no other health stock offers a direct comparison. Conducting a sum-of-parts analysis and backing into weighted average metrics can be illuminating.
Johnson & Johnson trades at 15.6 times forward earnings, which is somewhat lower than the 18.7 weighted average of major drugmakers, consumer staples companies, and medical device makers. This figure is somewhat less exciting when adjusting for the growth outlook, which results in a relatively high 2.6 PEG ratio. The stock trades at a similar discount based on its 19.6 price-to-free-cash-flow, though the above growth rate caveat is relevant here as well. Finally, Johnson & Johnson's 16.4 EV/EBITDA is roughly in-line with the weighted average, indicating that the company's relatively high financial leverage is partially driving the apparent discount.
For income investors, the stock pays a mediocre 2.6% dividend yield. This number is fine, but there are much higher alternatives elsewhere, and Johnson & Johnson has shown dedication to a buyback program that returns value in the form of anti-dilution to stimulate appreciation rather than income.
The outlook is mixed but unexciting
Analysts are forecasting below 3% growth for 2020, so the investment community does not seem to recognize massive drivers in the future. Expansion into robotic surgery could help bolster growth in the device segment. Tremfya and Spravato are two drugs that could turn into blockbusters to buoy growth in the medium term. However, Johnson & Johnson is simply so large and diversified that these positive items are likely only sufficient to maintain a moderately positive growth rate.
Major regulatory changes or issues stemming from its role in the opioid crisis could certainly send shares tumbling, but there's very little about the current growth prospects or valuation metrics to suggest Johnson & Johnson has a substantial room to the upside. It is likely more prudent to buy this stock when it trades closer to the bottom of its recent range.
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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. | Previous top-seller Remicade is experiencing declining sales due to competition, and pipeline products from AbbVie (NYSE: ABBV) could threaten Johnson & Johnson's immunology group with pending U.S. Food and Drug Administration approvals. Potential regulatory changes and competition threaten the segment, and heavy investments in research and development or acquisitions are required to maintain a robust pipeline to replace drugs with expiring patents. The acquisition of Auris Health could hasten Johnson & Johson's entry to the robotic surgery market, which it was already targeting through a partnership with Alphabet. | Previous top-seller Remicade is experiencing declining sales due to competition, and pipeline products from AbbVie (NYSE: ABBV) could threaten Johnson & Johnson's immunology group with pending U.S. Food and Drug Administration approvals. Johnson & Johnson operates a unique combination of businesses The branded company's pharmaceutical segment generates 53% of total company revenue and 67% of its operating profit. Image Source: Johnson & Johnson Medical devices are roughly 30% of total sales and 21% of operating profits. | Previous top-seller Remicade is experiencing declining sales due to competition, and pipeline products from AbbVie (NYSE: ABBV) could threaten Johnson & Johnson's immunology group with pending U.S. Food and Drug Administration approvals. Johnson & Johnson operates a unique combination of businesses The branded company's pharmaceutical segment generates 53% of total company revenue and 67% of its operating profit. 10 stocks we like better than Johnson & Johnson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | Previous top-seller Remicade is experiencing declining sales due to competition, and pipeline products from AbbVie (NYSE: ABBV) could threaten Johnson & Johnson's immunology group with pending U.S. Food and Drug Administration approvals. Finally, Johnson & Johnson has a consumer health products segment that contributes 17% of revenue and 12% of total company operating profit. It is likely more prudent to buy this stock when it trades closer to the bottom of its recent range. |
24779.0 | 2019-12-25 00:00:00 UTC | 3 Top Dividend Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-to-buy-right-now-2019-12-25 | nan | nan | The end of one year and the start of another gives us a good opportunity to review our investment successes and failures over the last 12 months. It also provides a platform to see where we're going and choose our investments for what's sure to be a raucous year in the market.
Dividend stocks offer some of the best ways to drown out the noise and smooth the ride a bit, knowing that regardless of the market's gyrations, these quality investments are passively generating wealth for you every quarter. Here are three standout dividend payers you should consider for your portfolio right now.
Image source: Getty Images.
A play for income and growth
Being able to receive a steady dividend check is great, but also seeing your capital appreciate over time is even better. Pharmaceutical company AbbVie (NYSE: ABBV) lets investors enjoy both: It has outpaced the gains of the S&P 500 since its spinoff from Abbott Labs in 2013 while also raising its dividend by an average of almost 25% a year.
The risk with AbbVie has been its reliance upon its arthritis treatment Humira, which generates around 60% of its total annual revenue of $33 billion. The worry centers around the loss of exclusivity on the drug, which has already occurred in Europe and is scheduled to follow in the U.S. in 2023.
Yet a recent report indicates Humira's European sales haven't eroded as much as was feared. Although international sales were down 32% last quarter because of its biosimilar rivals, sales now appear to be stabilizing, boding well for a similar effect in the U.S.
And AbbVie has a number of other therapies in its portfolio to maintain organic growth to help offset any losses from Humira -- therapies that are expected to grow to more than $35 billion in 2025. It is also poised to acquire Allergan, which will immediately diversify its portfolio, giving AbbVie even more levers to pull in providing capital appreciation and dividend growth.
The recovery is taking hold
The turnaround at DIY home center Lowe's (NYSE: LOW) looks like it has a firm foundation under it now, after the company reported third-quarter results last month that saw earnings exceed analyst expectations and full-year guidance increased.
While there remain issues to work out, including its e-commerce business and its Canadian operations, Lowe's is investing heavily in the former and says it's committed to the latter. It is closing down a few dozen stores in Canada to focus on those that are performing best, and with renewed attention to attract the professional contractor here at home, the chain is in a surprisingly better place than where many thought it would be.
Lowe's is one of those stocks that take the sure and steady approach to paying a dividend. It has increased it annually for over 50 years and consistently raises it by double-digit rates each year. With confidence in robust consumer spending in a still-healthy economy, and a payout ratio (the proportion of earnings paid out as dividends) well within the level of safety, it has plenty of opportunity to continue raising its dividend for years to come.
It's good to be the king
Walmart (NYSE: WMT) is using its preeminent position to effectively fend off encroachment on its turf by Amazon.com, while pressing its advantage to expand its own influence online, in both groceries and in retail. Consumers can choose options on how they receive their orders, whether delivered to their home, picked up curbside, or retrieved in store.
That ability to parry and thrust has paid off with solid revenue and earnings growth this year, and it just kept getting better. Management is expecting an equally robust fourth-quarter performance, which could set it up for significant growth in 2020. Shares of Walmart have grown almost 30% this year
The retailer has paid a dividend every year since 1974, increasing the payout each year thereafter. It currently yields 1.8% annually.
There was a time when Walmart was seen as being one of the retailers with the most to lose from Amazon's growth. But now it is widely viewed as one of the few retailers best suited to challenge it, and remains well positioned to continue increasing its dividend well into the future.
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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 company AbbVie (NYSE: ABBV) lets investors enjoy both: It has outpaced the gains of the S&P 500 since its spinoff from Abbott Labs in 2013 while also raising its dividend by an average of almost 25% a year. The risk with AbbVie has been its reliance upon its arthritis treatment Humira, which generates around 60% of its total annual revenue of $33 billion. Although international sales were down 32% last quarter because of its biosimilar rivals, sales now appear to be stabilizing, boding well for a similar effect in the U.S. And AbbVie has a number of other therapies in its portfolio to maintain organic growth to help offset any losses from Humira -- therapies that are expected to grow to more than $35 billion in 2025. | Pharmaceutical company AbbVie (NYSE: ABBV) lets investors enjoy both: It has outpaced the gains of the S&P 500 since its spinoff from Abbott Labs in 2013 while also raising its dividend by an average of almost 25% a year. The risk with AbbVie has been its reliance upon its arthritis treatment Humira, which generates around 60% of its total annual revenue of $33 billion. Although international sales were down 32% last quarter because of its biosimilar rivals, sales now appear to be stabilizing, boding well for a similar effect in the U.S. And AbbVie has a number of other therapies in its portfolio to maintain organic growth to help offset any losses from Humira -- therapies that are expected to grow to more than $35 billion in 2025. | Pharmaceutical company AbbVie (NYSE: ABBV) lets investors enjoy both: It has outpaced the gains of the S&P 500 since its spinoff from Abbott Labs in 2013 while also raising its dividend by an average of almost 25% a year. The risk with AbbVie has been its reliance upon its arthritis treatment Humira, which generates around 60% of its total annual revenue of $33 billion. Although international sales were down 32% last quarter because of its biosimilar rivals, sales now appear to be stabilizing, boding well for a similar effect in the U.S. And AbbVie has a number of other therapies in its portfolio to maintain organic growth to help offset any losses from Humira -- therapies that are expected to grow to more than $35 billion in 2025. | Pharmaceutical company AbbVie (NYSE: ABBV) lets investors enjoy both: It has outpaced the gains of the S&P 500 since its spinoff from Abbott Labs in 2013 while also raising its dividend by an average of almost 25% a year. The risk with AbbVie has been its reliance upon its arthritis treatment Humira, which generates around 60% of its total annual revenue of $33 billion. Although international sales were down 32% last quarter because of its biosimilar rivals, sales now appear to be stabilizing, boding well for a similar effect in the U.S. And AbbVie has a number of other therapies in its portfolio to maintain organic growth to help offset any losses from Humira -- therapies that are expected to grow to more than $35 billion in 2025. |
24780.0 | 2019-12-24 00:00:00 UTC | 3 Blockbuster Cancer Drug Launches to Watch in 2020 | ABBV | https://www.nasdaq.com/articles/3-blockbuster-cancer-drug-launches-to-watch-in-2020-2019-12-24 | nan | nan | This has been an outstanding year for biotech stocks, and 2020 could be even better thanks to a slate of bonafide life-savers that hit pharmacy shelves months ahead of schedule.
The FDA approved dozens of drugs in 2019, but the agency rushed to greenlight these new cancer therapies much sooner than expected. Here's why they could be the industry's most successful product launches in 2020.
NEW DRUG (GENERIC NAME) INDICATION COMPANY (SYMBOL)
Enhertu (fam-trastuzumab deruxtecan-nxki) Breast cancer AstraZeneca (NYSE: AZN)
Padcev (enfortumab vedotin-ejfv)
Bladder cancer Seattle Genetics (NASDAQ: SGEN)
Brukinsa (zanubrutinib) Mantle cell lymphoma Beigene (NASDAQ: BGNE)
Data source: U.S. Food and Drug Administration.
Some things can't wait
In 2019, it cost $2.6 million to file a drug application with the FDA, and it still takes up to two months to learn whether the agency will begin reviewing that application. Once the review begins, the FDA provides an expected action date exactly 10 months later, or six months later for a shortened priority review.
If the FDA's fees and timing seem ridiculous you should know that before electronic filing was available, new drug applications could fill an office from floor to ceiling. That's why it's always a good idea to pay attention to drugs the agency finds important enough to finish reviewing months ahead of schedule.
Image source: Getty Images.
Brukinsa from Beigene
In November, the FDA approved a new Bruton's tyrosine kinase (BTK) inhibitor called Brukinsa for patients with mantle cell lymphoma who have relapsed after standard first-line treatment.
During trials leading to its approval, Brukinsa shrank tumors for 84% of lymphoma patients. Another BTK-inhibitor marketed by Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) called Imbruvica earned approval to treat the same group of patients in 2013 after shrinking tumors just 66% of the time.
During the first nine months of 2019, J&J and AbbVie reported Imbruvica sales that reached a combined $5.9 billion. With an apparent advantage over Imbruvica, Brukinsa could begin adding 10-figure sums to Beigene's top line in a few short years.
Padcev from Seattle Genetics
Antibody-drug conjugates (ADCs) are mini-chemo bombs attached to proteins that recognize specific targets frequently found on cancer cells. Once reaching their target, ADCs deliver a lethal payload to cancerous cells while leaving healthy neighboring cells alone.
ADCs nearly fell out of favor after some high-profile clinical trial failures, but they're making a comeback. In December, the FDA approved a first-in-class Nectin-4-directed antibody called Padcev from Seattle Genetics.
The antibody side of Padcev seeks out a new target, but it's attached to the same chemotherapy used in the first ADC from Seattle Genetics, Adcetris. Padcev's approved to treat bladder cancer patients who have relapsed following treatment with Keytruda or similar therapies.
During the pivotal study that led to its approval, Padcev shrank tumors for 44% of patients. Bladder cancer isn't the most common malignancy, but it claims the lives of around 17,000 Americans annually. With a new treatment option, though, this figure should fall significantly.
Image source: Getty Images.
Enhertu from AstraZeneca
Two days after greenlighting Padcev, the FDA approved another ADC from AstraZeneca, called Enhertu. The antibody in Enhertu is also the active ingredient in Herceptin, a targeted cancer drug approved in 1998 to treat breast cancer patients with HER2 positive tumors.
During a pivotal trial leading to its approval, Enhertu shrank tumors for a surprising 60.3% of patients who had relapsed after at least two lines of therapy. Enhertu isn't for everyone, but it is aimed at a large patient group. In 2019, around 50,000 breast cancer patients will be diagnosed with HER2-positive tumors.
A clear favorite
If you're thinking about buying shares of any drugmakers, you could do a lot worse than Beigene, AstraZeneca, or Seattle Genetics. If I were to pick just one, though, it would probably be Beigene.
You may remember that in 2017, Celgene acquired rights to Beigene's PD-1 inhibitor, tislelizumab and Beigene began marketing Celgene's cancer drugs in China. During the first nine months of 2019, sales of Celgene's products in Beigene's territory rose soared 78% from the previous-year period to $166 million.
Earlier this year, Bristol-Myers Squibb acquired Celgene and returned tislelizumab to Beigene. Not long after that, Amgen agreed to purchase around $2.7 billion of Beigene shares in return for a hand in developing 20 new cancer drug candidates. Beigene will also market three Amgen products in China -- Xgeva, Kyprolis, and Blincyto.
At recent prices, Beigene stock is trading at 23.6 times trailing sales, which is awfully high. With Brukinsa's U.S. launch under way, growing sales in China of products from Celgene and Amgen, and tislelizumab under review at the FDA, it's probably worth the risk.
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Cory Renauer owns shares of Johnson & Johnson. The Motley Fool owns shares of and recommends Bristol-Myers Squibb and Seattle Genetics. 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. | Another BTK-inhibitor marketed by Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) called Imbruvica earned approval to treat the same group of patients in 2013 after shrinking tumors just 66% of the time. During the first nine months of 2019, J&J and AbbVie reported Imbruvica sales that reached a combined $5.9 billion. This has been an outstanding year for biotech stocks, and 2020 could be even better thanks to a slate of bonafide life-savers that hit pharmacy shelves months ahead of schedule. | Another BTK-inhibitor marketed by Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) called Imbruvica earned approval to treat the same group of patients in 2013 after shrinking tumors just 66% of the time. During the first nine months of 2019, J&J and AbbVie reported Imbruvica sales that reached a combined $5.9 billion. Enhertu (fam-trastuzumab deruxtecan-nxki) Breast cancer AstraZeneca (NYSE: AZN) Padcev (enfortumab vedotin-ejfv) Bladder cancer Seattle Genetics (NASDAQ: SGEN) Brukinsa (zanubrutinib) Mantle cell lymphoma Beigene (NASDAQ: BGNE) Data source: U.S. Food and Drug Administration. | Another BTK-inhibitor marketed by Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) called Imbruvica earned approval to treat the same group of patients in 2013 after shrinking tumors just 66% of the time. During the first nine months of 2019, J&J and AbbVie reported Imbruvica sales that reached a combined $5.9 billion. Enhertu (fam-trastuzumab deruxtecan-nxki) Breast cancer AstraZeneca (NYSE: AZN) Padcev (enfortumab vedotin-ejfv) Bladder cancer Seattle Genetics (NASDAQ: SGEN) Brukinsa (zanubrutinib) Mantle cell lymphoma Beigene (NASDAQ: BGNE) Data source: U.S. Food and Drug Administration. | Another BTK-inhibitor marketed by Johnson & Johnson (NYSE: JNJ) and AbbVie (NYSE: ABBV) called Imbruvica earned approval to treat the same group of patients in 2013 after shrinking tumors just 66% of the time. During the first nine months of 2019, J&J and AbbVie reported Imbruvica sales that reached a combined $5.9 billion. Padcev's approved to treat bladder cancer patients who have relapsed following treatment with Keytruda or similar therapies. |
24781.0 | 2019-12-22 00:00:00 UTC | Why I'd Avoid These Marijuana ETNs Like the Plague | ABBV | https://www.nasdaq.com/articles/why-id-avoid-these-marijuana-etns-like-the-plague-2019-12-22 | nan | nan | You can count the number of exchange-traded funds (ETFs) focused on the cannabis industry using your fingers. Until a couple of weeks ago, though, there weren't any marijuana exchange-traded noted (ETNs), which, unlike ETFs, don't hold positions in stocks but instead are unsecured debt securities issued by a financial institution.
Now, though, there are two marijuana ETNs available on the market: the MicroSectors Cannabis Index ETN and the MicroSectors Cannabis 2X Leveraged ETN. I'd avoid both of these new ETNs like the plague. Here's why.
Image source: Getty Images.
The dangers of leverage
There's a simple reason I'm not a fan of either of the new MicroSectors cannabis ETNs: I think that using leverage can be dangerous. The MJJ ETN is engineered to go up twice as much as its underlying index, which in this case is the MicroSectors North American Cannabis Index. The MJO ETN is designed to go up three times as much as the index.
The idea might sound great at first blush. But it's easy to overlook the downside of using leverage. If the index does down, your investment goes down two or three times as much. Actually, it can be even worse than that. While leveraged ETNs (and ETFs) attempt to track their underlying indexes by the specified multiple, it's not an exact science.
If you're an investor with a long-term perspective, leveraged ETFs and ETNs aren't alternatives to seriously consider. Even if you're a short-term trader, using leverage can quickly lead to huge losses.
Especially risky
While leveraged ETFs and ETNs are risky, the two new MicroSectors cannabis leveraged ETNs are especially risky. Why?
First, they're brand new. That means you can't really evaluate the track records because they only go back a few days. Buying a new leveraged ETN is closer to gambling than it is investing.
Second, the underlying index for the ETNs includes only 23 constituents. Over half of the MicroSectors North American Cannabis Index is tied to just five stocks: AbbVie, Agilent, Mettler-Toledo, Thermo Fisher Scientific, and Waters Corporation.
There's also the tiny little detail that none of these are really marijuana stocks. Why are they in the index at all? It comes down to the criteria that MicroSectors uses for its cannabis index. Companies that "provide products or services related to the medical or industrial use of cannabis or cannabis derivatives" are included.
That definition provides plenty of leeway. AbbVie qualifies probably due to its marketing of Marinol, an FDA-approved drug that contains a synthetic cannabinoid. The other companies made the index by supplying instruments used by some cannabis-related businesses.
Better bets
My view is that owning shares of any of the top five constituents of the MicroSectors North American Cannabis Index is a better option than owning either of these two new leveraged ETNs. But if you're really looking to profit from the cannabis industry, there are even better alternatives.
Innovative Industrial Properties (NYSE: IIPR), for example, is a cannabis-focused real estate investment trust (REIT). The company is profitable. Its dividend yields close to 5.5%. And IIP is growing rapidly by reinvesting its money into new medical cannabis properties that it leases out.
Valens GroWorks (OTC: VGWCF) is a great picks-and-shovels marijuana stock. The company provides cannabis extraction services to several of the top Canadian cannabis producers. With Canada's cannabis derivatives market just opening for business, Valens should be poised for strong growth in 2020.
If you're looking for a pure-play cannabis stock, you might like Cresco Labs (OTC: CRLBF). The company recently won the "U.S. Cannabis Company Game Changer Award" at the inaugural MJBizDaily Awards last week. Cresco should benefit from its home state of Illinois launching its recreational marijuana market in 2020 as well as the pending acquisition of another fast-growing cannabis company, Origin House.
Sure, Innovative Industrial Properties, Valens, and Cresco have their own risks. But they're relatively tame compared to putting your money in a brand-new leveraged ETN.
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Keith Speights owns shares of AbbVie. The Motley Fool recommends Innovative Industrial Properties, Origin House, and Valens GroWorks. 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. | Over half of the MicroSectors North American Cannabis Index is tied to just five stocks: AbbVie, Agilent, Mettler-Toledo, Thermo Fisher Scientific, and Waters Corporation. AbbVie qualifies probably due to its marketing of Marinol, an FDA-approved drug that contains a synthetic cannabinoid. Learn more Keith Speights owns shares of AbbVie. | Over half of the MicroSectors North American Cannabis Index is tied to just five stocks: AbbVie, Agilent, Mettler-Toledo, Thermo Fisher Scientific, and Waters Corporation. AbbVie qualifies probably due to its marketing of Marinol, an FDA-approved drug that contains a synthetic cannabinoid. Learn more Keith Speights owns shares of AbbVie. | Over half of the MicroSectors North American Cannabis Index is tied to just five stocks: AbbVie, Agilent, Mettler-Toledo, Thermo Fisher Scientific, and Waters Corporation. AbbVie qualifies probably due to its marketing of Marinol, an FDA-approved drug that contains a synthetic cannabinoid. Learn more Keith Speights owns shares of AbbVie. | Over half of the MicroSectors North American Cannabis Index is tied to just five stocks: AbbVie, Agilent, Mettler-Toledo, Thermo Fisher Scientific, and Waters Corporation. AbbVie qualifies probably due to its marketing of Marinol, an FDA-approved drug that contains a synthetic cannabinoid. Learn more Keith Speights owns shares of AbbVie. |
24782.0 | 2019-12-22 00:00:00 UTC | Why 2020 Should Be the Biggest Year Yet for CRISPR Gene-Editing Stocks | ABBV | https://www.nasdaq.com/articles/why-2020-should-be-the-biggest-year-yet-for-crispr-gene-editing-stocks-2019-12-22 | nan | nan | Has there been a lot of hype about CRISPR gene editing? Absolutely. But while the hype might have been overdone in some cases, the reality is that there's significant potential for CRISPR (which stands for "clustered regularly interspaced short palindromic repeats") to transform the way many diseases are treated.
2019 has been an important year for the top CRISPR gene-editing stocks with the first human clinical studies cranking up. CRISPR Therapeutics (NASDAQ: CRSP) has been the biggest winner -- mainly because those studies were for its lead pipeline candidate. However, Editas Medicine (NASDAQ: EDIT) and Intellia Therapeutics (NASDAQ: NTLA) have also racked up nice year-to-date gains.
But as Bachman-Turner Overdrive sang, "You ain't seen nothing yet." Here's why 2020 should be the biggest year so far for CRISPR gene-editing stocks.
Image source: Getty Images.
Key clinical studies
CRISPR Therapeutics and its partner Vertex Pharmaceuticals (NASDAQ: VRTX) already announced encouraging preliminary results in November from the first clinical studies to date for a CRISPR gene-editing therapy. Nine months after receiving an infusion of CRISPR therapy CTX001, a patient with rare blood disease transfusion-dependent beta thalassemia no longer needed transfusions. In the other study, a patient with sickle cell disease was free of vaso-occlusive crises (VOCs) -- a painful complication of sickle cell disease -- four months after receiving an infusion of CTX001. This patient previously experienced an average of seven VOCs per year.
It's still really early and the preliminary results were only for two patients. However, the news was positive enough that Vertex CEO Jeffrey Leiden was talking about CTX001 having the potential to cure beta-thalassemia and sickle cell disease.
2020 should bring more results that could increase the buzz about a potential cure for the two genetic diseases. The primary results from CRISPR Therapeutics' two early stage clinical trials aren't scheduled to be available until early 2021. However, the primary endpoints of both studies focus on meaningful improvement for at least three months starting six months after CTX-001 infusion. If additional patients experience the level of improvement seen in the first two patients, we'll likely hear about it next year.
Don't be surprised if CRISPR Therapeutics provides a sneak peek at early results from its early stage clinical study of CTX110 in treating B-cell malignancies in 2020 as well. CTX110 is the biotech's first allogeneic chimeric antigen receptor T-cell (CAR-T) therapy to be tested in humans. Allogeneic CAR-T therapies could be game-changers in treating blood cancers. Current CAR-T therapies require a patient's own T-cells to be genetically modified at an off-site lab, which involves several weeks and is very expensive. Allogeneic CAR-T therapies, sometimes referred to as "off-the-shelf" therapies, use healthy donors' T-cells and can be administered quickly and should be much less costly.
So far, we've only discussed ex vivo CRISPR therapies where cells are genetically edited outside of patients' bodies then administered via infusion. A major milestone should also be achieved with the first-ever in vivo (in the body) dosing of a CRISPR gene-editing therapy likely on the way in early 2020. Editas Medicine has already screened the first potential patients with Leber congenital amaurosis type 10 (LCA 10), the leading genetic cause of blindness, that could be treated with EDIT-101, a CRISPR therapy that is administered through an injection in the eye.
Expanding targets
In addition to the clinical studies currently in progress, look for new clinical trials that use CRISPR gene editing in other therapeutic targets next year. CRISPR Therapeutics plans to initiate an early stage clinical study in the first half of 2020 evaluating its second allogeneic CAR-T therapy, CTX120, in treating multiple myeloma.
Editas expects to provide data to its partner Allergan (NYSE: AGN) by the end of 2019 related to its next potential clinical candidate targeting Usher syndrome type 2a (USH2A), which, like LCA 10, is a rare genetic eye disease. Allergan has the right to opt in on that program. Whether with Allergan's participation or not, Editas could file sometime next year for FDA approval to begin its second clinical study of a CRISPR therapy.
Intellia Therapeutics should take a big step next year as well. The company anticipates filing for FDA approval by the middle of 2020 to begin a clinical study evaluating CRISPR therapy NTLA-2001 in treating rare genetic disease transthyretin amyloidosis.
Potential investing strategies
There are several ways that investors could profit from what should be the biggest year yet for CRISPR gene-editing stocks:
Buy shares of one or more CRISPR-focused biotech stocks.
Buy shares of one or more of the major partners of the CRISPR-focused biotech stocks.
Buy shares of an exchange-traded fund (ETF).
Option 1 provides the greatest potential for big gains, followed by option 2 then option 3. However, investing in biotech stocks, regardless of which alternative you use, comes with risks -- especially the risk of clinical failure. Option 1 involves the greatest risk, with options 2 and 3 offering less risk.
Investors who like option 1 will probably want to put CRISPR Therapeutics and Editas Medicine at the top of the list, since both biotechs are ahead of Intellia in pipeline development.
Major partners for option 2 include Vertex, Allergan, Bayer (which, like Vertex, partners with CRISPR Therapeutics and owns a stake in the company), Bristol-Myers Squibb (which thanks to its acquisition of Celgene is a partner with Editas), and Regeneron (which partners with Intellia). You could also throw AbbVie into the mix, since it's in the process of acquiring Allergan. Vertex probably offers the greatest growth prospects with its strong cystic fibrosis franchise.
For option 3, the SPDR S&P Biotech ETF's holdings include Editas, Intellia, Vertex, Regeneron, and AbbVie. Also, the iShares Nasdaq Biotechnology ETF owns shares of CRISPR Therapeutics, Editas, Intellia, Vertex, and Regeneron.
I've taken an "all of the above" approach, owning shares of a CRISPR-focused biotech, three major partners of CRISPR-focused biotechs, and one of the top biotech ETFs. My view is that 2020 will be the biggest year thus far for CRISPR gene-editing stocks but also a very good year for biotech stocks, in general.
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Keith Speights owns shares of AbbVie, Bristol-Myers Squibb, Editas Medicine, SPDR S&P Biotech, and Vertex Pharmaceuticals. The Motley Fool owns shares of and recommends Bristol-Myers Squibb, CRISPR Therapeutics, and Editas Medicine. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | You could also throw AbbVie into the mix, since it's in the process of acquiring Allergan. For option 3, the SPDR S&P Biotech ETF's holdings include Editas, Intellia, Vertex, Regeneron, and AbbVie. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Bristol-Myers Squibb, Editas Medicine, SPDR S&P Biotech, and Vertex Pharmaceuticals. | See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Bristol-Myers Squibb, Editas Medicine, SPDR S&P Biotech, and Vertex Pharmaceuticals. You could also throw AbbVie into the mix, since it's in the process of acquiring Allergan. For option 3, the SPDR S&P Biotech ETF's holdings include Editas, Intellia, Vertex, Regeneron, and AbbVie. | You could also throw AbbVie into the mix, since it's in the process of acquiring Allergan. For option 3, the SPDR S&P Biotech ETF's holdings include Editas, Intellia, Vertex, Regeneron, and AbbVie. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Bristol-Myers Squibb, Editas Medicine, SPDR S&P Biotech, and Vertex Pharmaceuticals. | You could also throw AbbVie into the mix, since it's in the process of acquiring Allergan. For option 3, the SPDR S&P Biotech ETF's holdings include Editas, Intellia, Vertex, Regeneron, and AbbVie. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Bristol-Myers Squibb, Editas Medicine, SPDR S&P Biotech, and Vertex Pharmaceuticals. |
24783.0 | 2019-12-22 00:00:00 UTC | 20 High-Yield Dividend Stocks to Buy in 2020 | ABBV | https://www.nasdaq.com/articles/20-high-yield-dividend-stocks-to-buy-in-2020-2019-12-22 | nan | nan | A new year is on the way. With it comes plenty of excitement... and perhaps some nervousness for investors. No one knows what the stock market will do in 2020. After the longest bull run ever and the inherent uncertainty in a presidential election year, investors can't be blamed for being at least a little apprehensive -- especially investors who rely on income generated by the stocks they own.
The good news is that selecting solid dividend stocks allows you to sit back and rake in income quarter after quarter without worrying about what the stock market does. But which stocks are smart picks? Here are 20 high-yield dividend stocks you can buy in 2020, listed in alphabetical order.
Image source: Getty Images.
1. AbbVie
AbbVie (NYSE: ABBV) offers a dividend that yields nearly 5.3%. The big drugmaker recently increased its dividend by 10.3% and has grown the dividend by a whopping 195% since being spun off from Abbott Labs in 2013. Although AbbVie faces headwinds for its top-selling drug Humira, the rest of its lineup plus its pending acquisition of Allergan should put the company in great shape to keep the dividends flowing.
2. AT&T
Telecommunications giant AT&T's (NYSE: T) dividend currently yields 5.4%. The company is a Dividend Aristocrat and boasts 36 consecutive years of dividend increases. AT&T's entertainment business is still under heavy pressure, but its wireless business should remain strong.
3. Brookfield Infrastructure Partners
Brookfield Infrastructure Partners (NYSE: BIP) pays a dividend with a yield just shy of 4%. The company's infrastructure assets, including cell towers, natural gas pipelines, ports, and toll roads, provide a steady revenue stream. Brookfield Infrastructure expects to grow organically by between 6% and 9% in 2020 as it adds new infrastructure assets to its portfolio.
4. Brookfield Renewable Partners
Brookfield Renewable Partners (NYSE: BEP) is Brookfield Infrastructure's sibling, with both companies controlled by general partner Brookfield Asset Management. Brookfield Renewable, as its name indicates, focuses primarily on renewable energy assets including hydroelectric, wind, and solar power facilities. Its dividend currently yields close to 4.5%.
5. Chevron
2019 hasn't been a great year for the energy sector. But Chevron (NYSE: CVX) has performed better than most energy stocks. The company's strong balance sheet and relatively low cash-flow break even point of $51 per barrel of oil puts the company in a position to weather a tough oil market and to perform really well in a good market. Chevron's dividend currently yields nearly 4%. Another dividend increase in 2020 seems likely.
6. Duke Energy
Duke Energy (NYSE: DUK) offers a dividend that yields nearly 4.2%. As a utility that provides must-have electric and gas power to customers, the company can count on steady earnings. And that translates to steady dividends, making Duke a dividend stock that's ideal for retirees in 2020 and beyond.
7. Enbridge
Enbridge (NYSE: ENB) is another company that enjoys steady earnings thanks to its oil and gas pipelines. The company's dividend yield currently stands north of 6.3%. Enbridge seems likely to be able to boost its dividend by 10% in 2020.
8. Enterprise Products Partners
Enterprise Products Partners (NYSE: EPD) ranks as one of the top players in the midstream oil and gas market. The company offers a mouthwatering dividend yield of 6.4%. Enterprise also has several new projects on the way that should boost its growth prospects over the next few years.
9. Gilead Sciences
There aren't many biotechs that have dividend programs, but Gilead Sciences (NASDAQ: GILD) is a notable exception. Gilead's dividend currently yields over 3.8%. Its strong HIV franchise is the biotech's anchor, but Gilead hopes to soon expand into immunology by winning FDA approval for its rheumatoid arthritis drug filgotinib next year.
10. IBM
IBM (NYSE: IBM) has been a dividend investors' favorite for a long time. It still should be, with its dividend yielding nearly 4.8%. The technology company could also enjoy rising sales in 2020 thanks to its acquisition of Red Hat earlier this year and the launch of its new z15 mainframe system.
11. Innovative Industrial Properties
If you're looking for a way to profit from the cannabis boom, Innovative Industrial Properties (NYSE: IIPR) should be near the top of the list. The cannabis-focused real estate investment trust (REIT) is growing like a weed (pardon the pun). It also offers a fast-growing dividend that currently yields 5.4%.
12. Medical Properties Trust
Medical Properties Trust (NYSE: MPW) is a REIT that focuses on healthcare. The company owns and leases healthcare properties, primarily acute care hospitals. Its dividend currently yields 5.2%. Medical Properties Trust has steadily increased its dividend payout over the last five years.
13. ONEOK
ONEOK (NYSE: OKE), like Enterprise Products Partners, operates in the midstream energy market. Its stock has outperformed most of its peers in 2019. Despite the big run-up in its share price, ONEOK's dividend yield remains high at just under 5%. The company should fare well in 2020 also, with several projects coming online that could fuel earnings growth.
14. Pfizer
Pfizer's (NYSE: PFE) dividend yields over 3.9% right now, but it's likely to drop soon. So why did the big pharma stock make the list of dividend stocks to buy for 2020? The reason Pfizer's dividend is going to decline is that the company is spinning off and merging its Upjohn unit with Mylan, forming a new entity to be named Viatris. The good news for Pfizer shareholders is that between their positions in Pfizer and Viatris, the overall dividend should be roughly the same. The deal also puts Pfizer on a stronger growth path by shedding its older drugs with declining sales.
15. Public Storage
One thing isn't likely to change in 2020: Americans have too much stuff and need a place to store that stuff. Public Storage (NYSE: PSA) offers a solution to that problem as the nation's largest self-storage provider. The company also offers a solution to investors looking for reliable income with its dividend yield of 3.9%.
16. Southern Company
Southern Company (NYSE: SO) ranks as one of the largest utilities in the U.S. It's also one of the most attractive high-yield dividend stocks with its dividend currently yielding nearly 3.9%. Even better, Southern Company should be able to boost its dividend modestly in 2020 and in subsequent years.
17. Store Capital
Warren Buffett really likes Store Capital (NYSE: STOR), the only REIT in Buffett's Berkshire Hathaway holdings. Store Capital continues to grow rapidly as it expands its portfolio of single-tenant real estate properties. That growth could translate to even higher dividends from the company, making Store Capital's current dividend yield of nearly 3.8% even more attractive.
18. Verizon Communications
Like fellow telecom leader AT&T, Verizon Communications (NYSE: VZ) faces some headwinds. However, also like AT&T, Verizon offers a terrific dividend, which currently yields 4%. The company is a Dividend Aristocrat that places a high priority on dividend hikes each year. In addition, Verizon's investments in building a high-speed 5G wireless network should pay off over the long run.
19. Wells Fargo
Wells Fargo's (NYSE: WFC) stock performance has lagged behind many of its peers in the financial services sector mainly because of the aftermath of the company's scandals that made headlines beginning in 2016. But those scandals didn't impact Wells Fargo's dividend program. The financial giant's dividend currently yields nearly 3.8%, and its future appears to be brighter now that a new CEO is in place.
20. Welltower
Rounding out our 20 high-yield dividend stocks to buy in 2020 is Welltower (NYSE: WELL). The healthcare REIT offers a dividend yield of 4.5%. With its focus on private-pay senior housing properties, Welltower should be able to count on a steady revenue stream that allows it to keep the dividends flowing well into the future.
Great income, varying growth
All 20 of these stocks should provide great income for investors in 2020 and beyond. Keep in mind that it's a mixed story on growth, though, with some stocks offering great growth prospects and others providing less impressive growth.
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Keith Speights owns shares of AbbVie, Chevron, Gilead Sciences, and Pfizer. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Brookfield Asset Management, Enbridge, Gilead Sciences, and STORE Capital. The Motley Fool is short shares of IBM. The Motley Fool recommends Brookfield Infrastructure Partners, Enterprise Products Partners, Innovative Industrial Properties, Mylan, ONEOK, and Verizon Communications and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2020 $200 calls on IBM, short January 2020 $200 puts on IBM, short January 2020 $155 calls on IBM, and short January 2020 $220 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. | Although AbbVie faces headwinds for its top-selling drug Humira, the rest of its lineup plus its pending acquisition of Allergan should put the company in great shape to keep the dividends flowing. AbbVie AbbVie (NYSE: ABBV) offers a dividend that yields nearly 5.3%. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Chevron, Gilead Sciences, and Pfizer. | AbbVie AbbVie (NYSE: ABBV) offers a dividend that yields nearly 5.3%. Although AbbVie faces headwinds for its top-selling drug Humira, the rest of its lineup plus its pending acquisition of Allergan should put the company in great shape to keep the dividends flowing. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Chevron, Gilead Sciences, and Pfizer. | AbbVie AbbVie (NYSE: ABBV) offers a dividend that yields nearly 5.3%. Although AbbVie faces headwinds for its top-selling drug Humira, the rest of its lineup plus its pending acquisition of Allergan should put the company in great shape to keep the dividends flowing. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Chevron, Gilead Sciences, and Pfizer. | AbbVie AbbVie (NYSE: ABBV) offers a dividend that yields nearly 5.3%. Although AbbVie faces headwinds for its top-selling drug Humira, the rest of its lineup plus its pending acquisition of Allergan should put the company in great shape to keep the dividends flowing. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Keith Speights owns shares of AbbVie, Chevron, Gilead Sciences, and Pfizer. |
24784.0 | 2019-12-20 00:00:00 UTC | Noteworthy Friday Option Activity: C, ABBV, VLO | ABBV | https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-c-abbv-vlo-2019-12-20 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Citigroup Inc (Symbol: C), where a total of 70,124 contracts have traded so far, representing approximately 7.0 million underlying shares. That amounts to about 63.4% of C's average daily trading volume over the past month of 11.1 million shares. Particularly high volume was seen for the $77.50 strike call option expiring January 17, 2020, with 4,698 contracts trading so far today, representing approximately 469,800 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) options are showing a volume of 36,296 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 53.2% of ABBV's average daily trading volume over the past month, of 6.8 million shares. Especially high volume was seen for the $90 strike call option expiring December 20, 2019, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $90 strike highlighted in orange:
And Valero Energy Corp (Symbol: VLO) options are showing a volume of 16,046 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 50.1% of VLO's average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $105 strike call option expiring January 17, 2020, with 6,390 contracts trading so far today, representing approximately 639,000 underlying shares of VLO. Below is a chart showing VLO's trailing twelve month trading history, with the $105 strike highlighted in orange:
For the various different available expirations for C options, ABBV options, or VLO 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 $77.50 strike call option expiring January 17, 2020, with 4,698 contracts trading so far today, representing approximately 469,800 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $77.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 36,296 contracts thus far today. Especially high volume was seen for the $90 strike call option expiring December 20, 2019, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of ABBV. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 53.2% of ABBV's average daily trading volume over the past month, of 6.8 million shares. | Particularly high volume was seen for the $77.50 strike call option expiring January 17, 2020, with 4,698 contracts trading so far today, representing approximately 469,800 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $77.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 36,296 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 53.2% of ABBV's average daily trading volume over the past month, of 6.8 million shares. Especially high volume was seen for the $90 strike call option expiring December 20, 2019, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of ABBV. | Particularly high volume was seen for the $77.50 strike call option expiring January 17, 2020, with 4,698 contracts trading so far today, representing approximately 469,800 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $77.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 36,296 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 53.2% of ABBV's average daily trading volume over the past month, of 6.8 million shares. Especially high volume was seen for the $90 strike call option expiring December 20, 2019, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of ABBV. | Particularly high volume was seen for the $77.50 strike call option expiring January 17, 2020, with 4,698 contracts trading so far today, representing approximately 469,800 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $77.50 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) options are showing a volume of 36,296 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 53.2% of ABBV's average daily trading volume over the past month, of 6.8 million shares. Especially high volume was seen for the $90 strike call option expiring December 20, 2019, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of ABBV. |
24785.0 | 2019-12-19 00:00:00 UTC | 2 Must-Own Dividend Growth Stocks in 2020 | ABBV | https://www.nasdaq.com/articles/2-must-own-dividend-growth-stocks-in-2020-2019-12-19 | nan | nan | Companies that regularly increase their dividends -- a.k.a. dividend growth stocks -- tend to be excellent wealth creators for long-term investors. That said, it's not exactly easy to unearth quality dividend stocks worth holding for lengthy periods of time.
Which dividend growth stocks should patient investors have on their radar in 2020? The pharmaceutical giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are two names that could produce market-beating returns for the next decade and beyond. Here's why.
Image source: Getty Images.
AbbVie: A proven cash cow for income investors
Since its inception as a spinoff from Abbott Laboratories, AbbVie has averaged an annual 24.7% hike to its dividend. This enormous growth rate, combined with the stock's poor showing in 2019 due to Humira's patent woes, have culminated in the drugmaker sporting a junk bond like yield of 5.28% at current levels. That's easily one of the highest payouts in the realm of large-cap biopharmaceuticals.
Can AbbVie afford to keep plowing cash into its already rich dividend program? The answer is a resounding yes. Even though AbbVie's sky-high payout ratio of 183% suggests otherwise, there are two clear-cut reasons to have faith in the drugmaker's ability to retain its status as a Dividend Aristocrat for years to come:
AbbVie's highly diversified growth portfolio -- consisting of the hematology/oncology medicines Imbruvica and Venclexta, as well as the immunology products Skyrizi and Rinvoq -- should keep its top line growing at a healthy rate over the course of the next decade.
AbbVie's megamerger with Allergan should provide another powerful boost to the company's free cash flows post-transaction and lower the impact of Humira's eventual decline early in the next decade.
All told, AbbVie should have no problem posting regular hikes to its dividend in the years ahead, making it a great stock to own for the buy-and-hold crowd.
Gilead: Patience is required but a turnaround is inevitable
To be up front, Gilead hasn't been a winning stock in quite some time. Declining hepatitis C drug sales, multiple failures in the clinic, and the decision to grossly overpay for Kite Pharma's cell therapy platform have all taken their toll on Gilead's shares.
Despite instituting a fairly rich dividend program in 2015, for example, the biotech's shares have lost investors nearly 40% of their capital since the biotech paid its first dividend nearly four and a half years ago. Pouring salt into the wound, Gilead has also raised its dividend by 10.4% on average per year over this period, which is a fairly strong growth rate for a large-cap biotech.
Why should dividend investors reconsider this name in 2020? The core reason is that Gilead is starting to emerge from this lengthy trough period. Under new CEO Dan O'Day, the biotech has made tremendous strides toward broadening its product portfolio with promising drug candidates like filgotinib and KTE-X19, as well as improving Kite's long-term commercial outlook by setting it up as a largely independent entity.
So, with a forward-looking annualized yield of 3.81% at present and one of the largest cash positions in the industry, income investors may want to seriously consider this former biotech powerhouse in 2020. Gilead's long-awaited turnaround, after all, is finally showing definitive signs of taking shape.
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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 megamerger with Allergan should provide another powerful boost to the company's free cash flows post-transaction and lower the impact of Humira's eventual decline early in the next decade. The pharmaceutical giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are two names that could produce market-beating returns for the next decade and beyond. AbbVie: A proven cash cow for income investors Since its inception as a spinoff from Abbott Laboratories, AbbVie has averaged an annual 24.7% hike to its dividend. | The pharmaceutical giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are two names that could produce market-beating returns for the next decade and beyond. AbbVie: A proven cash cow for income investors Since its inception as a spinoff from Abbott Laboratories, AbbVie has averaged an annual 24.7% hike to its dividend. Can AbbVie afford to keep plowing cash into its already rich dividend program? | Even though AbbVie's sky-high payout ratio of 183% suggests otherwise, there are two clear-cut reasons to have faith in the drugmaker's ability to retain its status as a Dividend Aristocrat for years to come: AbbVie's highly diversified growth portfolio -- consisting of the hematology/oncology medicines Imbruvica and Venclexta, as well as the immunology products Skyrizi and Rinvoq -- should keep its top line growing at a healthy rate over the course of the next decade. The pharmaceutical giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are two names that could produce market-beating returns for the next decade and beyond. AbbVie: A proven cash cow for income investors Since its inception as a spinoff from Abbott Laboratories, AbbVie has averaged an annual 24.7% hike to its dividend. | The pharmaceutical giants AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are two names that could produce market-beating returns for the next decade and beyond. AbbVie: A proven cash cow for income investors Since its inception as a spinoff from Abbott Laboratories, AbbVie has averaged an annual 24.7% hike to its dividend. Can AbbVie afford to keep plowing cash into its already rich dividend program? |
24786.0 | 2019-12-18 00:00:00 UTC | ABBV Crosses Above Average Analyst Target | ABBV | https://www.nasdaq.com/articles/abbv-crosses-above-average-analyst-target-2019-12-18 | nan | nan | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.00, changing hands for $90.08/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 7 different analyst targets contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $74.00. And then on the other side of the spectrum one analyst has a target as high as $98.00. The standard deviation is $8.485.
But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $90.00/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $90.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover AbbVie Inc:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on ABBV — FREE.
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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. | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.00, changing hands for $90.08/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $90.00/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $90.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.00, changing hands for $90.08/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with ABBV crossing above that average target price of $90.00/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $90.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? | There are 7 different analyst targets contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. And so with ABBV crossing above that average target price of $90.00/share, investors in ABBV have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $90.00 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.00, changing hands for $90.08/share. | There are 7 different analyst targets contributing to that average for AbbVie Inc, but the average is just that — a mathematical average. In recent trading, shares of AbbVie Inc (Symbol: ABBV) have crossed above the average analyst 12-month target price of $90.00, changing hands for $90.08/share. But the whole reason to look at the average ABBV price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. |
24787.0 | 2019-12-17 00:00:00 UTC | 5 Large-Cap Dividend Stocks to Buy | ABBV | https://www.nasdaq.com/articles/5-large-cap-dividend-stocks-to-buy-2019-12-17 | nan | nan | U.S. equities are powering higher thanks to a the combined tailwinds of seasonal strength, a “Phase 1” trade deal between the United States and China, and ongoing monetary policy support from the Federal Reserve and other global central banks. All the major indices are stretching to new record highs, setting the stage for an epic Santa Claus rally to close out 2019.
History’s longest and most powerful bull market is showing no signs of slowing. And as a result, a number of beaten down high-yield stocks within the S&P 500 are showing renewed signs of life.
If you are on the lookout for dividend stocks on the verge of a turnaround, here are five to consider:
Schlumberger (SLB)
Oil and gas services company Schlumberger (NYSE:) is threatening to break up and out of a six-month consolidation range with a push above resistance near the $40-a-share level. The stock currency pays a dividend yield of more than 5% and is likely to push back towards prior highs near $48, which would be worth a gain of 20% from here.
SLB will next report results on Jan. 17 before the bell. Analysts are looking for earnings of 38 cents per share on revenues of $8.2 billion.
Kraft Heinz (KHC)
Kraft Heinz (NASDAQ:) is in turnaround mode, climbing back up and over its 50-week moving average for the first time since the summer of 2017 after spending most of 2019 building a base of support. The company pays a dividend yield of just over 5% and trades at a reasonable price-to-book valuation of 0.75.
The company will next report results on Feb. 20 before the bell. Analysts are looking for earnings of 68 cents per share on revenues of $6.6 billion.
Ford (F)
Ford (NYSE:) shares are rounding higher and are set to break up and out of a post-August trading range. Watch for a return to the prior double-top highs near $10.50 that would be worth a gain of nearly 12% from here. The stock pays a dividend yield of nearly 6.4% on trades at a price-to-sales ratio of just 0.24.
Ford will next report results on Feb. 4 after the close. Analysts are looking for earnings of 18 cents per share on revenues of $37.3 billion.
AbbVie (ABBV)
Drugmaker AbbVie (NYSE:) is poised to move up and over its November high, setting the stage for a rally back to highs not seen since early 2017. The company pays a dividend yield of 5.3%. Healthcare stocks have recently been swinging back into favor, benefiting stocks like ABBV as the national dialogue around single-payer healthcare has died down somewhat.
The company will next report results on Jan. 24 before the bell. Analysts are looking for earnings of $2.20 per share on revenues of $8.7 billion.
Helmerich & Payne (HP)
Oil and gas exploration and production company Helmerich & Payne (NYSE:) is enjoying a share price move up and off of multi-month support near the $40-a-share level, setting up a challenge of the 200-day average last attempted back in May. The company pays an impressive 6.7% dividend yield.
HP will next report results on Jan. 28 after the close. Analysts are looking for earnings of nine cents per share on revenues of $604.3 million.
The post 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. | AbbVie (ABBV) Drugmaker AbbVie (NYSE:) is poised to move up and over its November high, setting the stage for a rally back to highs not seen since early 2017. Healthcare stocks have recently been swinging back into favor, benefiting stocks like ABBV as the national dialogue around single-payer healthcare has died down somewhat. U.S. equities are powering higher thanks to a the combined tailwinds of seasonal strength, a “Phase 1” trade deal between the United States and China, and ongoing monetary policy support from the Federal Reserve and other global central banks. | AbbVie (ABBV) Drugmaker AbbVie (NYSE:) is poised to move up and over its November high, setting the stage for a rally back to highs not seen since early 2017. Healthcare stocks have recently been swinging back into favor, benefiting stocks like ABBV as the national dialogue around single-payer healthcare has died down somewhat. If you are on the lookout for dividend stocks on the verge of a turnaround, here are five to consider: Schlumberger (SLB) Oil and gas services company Schlumberger (NYSE:) is threatening to break up and out of a six-month consolidation range with a push above resistance near the $40-a-share level. | AbbVie (ABBV) Drugmaker AbbVie (NYSE:) is poised to move up and over its November high, setting the stage for a rally back to highs not seen since early 2017. Healthcare stocks have recently been swinging back into favor, benefiting stocks like ABBV as the national dialogue around single-payer healthcare has died down somewhat. If you are on the lookout for dividend stocks on the verge of a turnaround, here are five to consider: Schlumberger (SLB) Oil and gas services company Schlumberger (NYSE:) is threatening to break up and out of a six-month consolidation range with a push above resistance near the $40-a-share level. | AbbVie (ABBV) Drugmaker AbbVie (NYSE:) is poised to move up and over its November high, setting the stage for a rally back to highs not seen since early 2017. Healthcare stocks have recently been swinging back into favor, benefiting stocks like ABBV as the national dialogue around single-payer healthcare has died down somewhat. The stock currency pays a dividend yield of more than 5% and is likely to push back towards prior highs near $48, which would be worth a gain of 20% from here. |
24788.0 | 2019-12-16 00:00:00 UTC | Is Amarin a $20 Billion Stock? | ABBV | https://www.nasdaq.com/articles/is-amarin-a-%2420-billion-stock-2019-12-16 | nan | nan | Trading in shares of Amarin (NASDAQ: AMRN) was halted on Friday when the stock started to take off in anticipation of good news from the U.S. Food and Drug Administration. Later in the day, the FDA provided an early holiday present to Amarin investors: the revised label the company had been seeking was approved.
The Nasdaq's trading halt was finally released after the market closed. The exchange wanted investors to calm down and not get too excited about its drug's newly expanded label. It's easy to see why investors are so enthused. The stock has run up from $3 per share in September 2018 to $24 per share on Friday.
Optimists are already forecasting a future price of $50 per share for Amarin. Indeed, according to FiercePharma, market chatter is now valuing the company at a $20 billion market cap, or $55 a share, if the company is acquired. If that happens, it would be a nearly 19-bagger for early Amarin investors in a little more than a year.
Image Source: Getty Images.
What does the new label say?
It was widely expected that the FDA would allow Amarin to start marketing its drug to a much wider class of patients, and on Friday, the FDA delivered: "FDA approves use of drug to reduce risk of cardiovascular events in certain patient groups." The specific risks that are reduced by Vascepa include heart attacks (31% reduction), strokes (28% reduction), and death (20% reduction), according to the company's phase 3 study.
Amarin's original label for the fish oil-derived pill said nothing about all these health benefits. The original label was only allowed to claim that Vascepa reduced triglycerides in people with very high triglycerides (more than 500 milligrams per deciliter). That's a small percentage of people.
The company wanted to expand the label to treat anybody with elevated levels of triglycerides (one-fourth of adult Americans have elevated triglycerides). And, more importantly, the company wanted the label to say that Vascepa reduced MACE (major adverse cardiovascular events) in this group. On Friday, Amarin won the day.
From the FDA's new label:
VASCEPA is an ethyl ester of eicosapentaenoic acid (EPA) indicated:
as an adjunct to maximally tolerated statin therapy to reduce the risk of myocardial infarction, stroke, coronary revascularization, and unstable angina requiring hospitalization in adult patients with elevated triglyceride (TG) levels (≥ 150 mg/dL) and
established cardiovascular disease
diabetes mellitus and 2 or more additional risk factors for cardiovascular disease.
More than 50 million people have elevated triglycerides in the U.S. alone. Out of this group, Vascepa is indicated for the 30 million people who have diabetes and two or more additional risk factors for cardiovascular disease. And what are those risk factors? This includes people who smoke, don't exercise, have high blood pressure, have a family history of heart disease, or are obese. In short, the number of people who might be prescribed Vascepa is very high -- in the tens of millions just in this country.
Patients who are prescribed Vascepa will take four grams a day, according to the label. The drug currently sells for approximately $380 a month, or roughly $4,560 a year. A quick back-of-the-envelope calculation says that if Vascepa is prescribed to 10 million patients at current prices, it's a $45 billion drug. If the drug is prescribed to 10% of this group, it's a $4.5 billion drug. Again, this is just in the U.S. alone.
Let's hope the company is not acquired
Not surprisingly, big pharma is very interested in acquiring Amarin. Among its suitors are Pfizer, Amgen, Gilead Sciences, and Novartis. Anticipation is high because this drug could catalyze a bidding war.
One drug can be huge for a pharmaceutical company. Consider AbbVie, for instance. It's a $120 billion mega-cap that trades for four times its revenues. The company has $32 billion in annual sales. Most of those revenues come from one drug, Humira, which treats arthritis. This is the best-selling drug in the U.S., accounting for about $20 billion in sales annually.
Why is this relevant to Amarin? The number of people with arthritis in the U.S. is a little more than 50 million. That's roughly equivalent to the number of people who have elevated triglycerides. It's a huge market, in other words.
Can the much smaller Amarin achieve similar numbers with Vascepa? Maybe. Certainly, the opportunity is there; $20 billion in annual sales is within the realm of possibility. Of course, there is a big difference in company size and how big of a salesforce the company can put together. Also, Amarin has never sold drugs before and will have to build up its company to achieve that sort of global sales dominance.
It would certainly be easier -- and quicker -- for the small company to sell out to big pharma. Most investors would cheer for a $20 billion buyout. It's a sizable increase and a quick double.
Yet that $20 billion number is tiny compared to the market opportunity. After all, some published reports estimate Vascepa sales will max out at $2 billion a year. That's a lowball number, maybe by a factor of 10.
It might be best for the company to stay independent for a while and see how fast sales growth ramps up. Amarin has always had its share of doubters. Maybe the company still needs to prove just how big this drug can be.
10 stocks we like better than Amarin
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Amarin wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2019
Taylor Carmichael owns shares of Amarin. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Amgen. 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. | Consider AbbVie, for instance. Trading in shares of Amarin (NASDAQ: AMRN) was halted on Friday when the stock started to take off in anticipation of good news from the U.S. Food and Drug Administration. Later in the day, the FDA provided an early holiday present to Amarin investors: the revised label the company had been seeking was approved. | Consider AbbVie, for instance. It was widely expected that the FDA would allow Amarin to start marketing its drug to a much wider class of patients, and on Friday, the FDA delivered: "FDA approves use of drug to reduce risk of cardiovascular events in certain patient groups." The company wanted to expand the label to treat anybody with elevated levels of triglycerides (one-fourth of adult Americans have elevated triglycerides). | Consider AbbVie, for instance. Indeed, according to FiercePharma, market chatter is now valuing the company at a $20 billion market cap, or $55 a share, if the company is acquired. It was widely expected that the FDA would allow Amarin to start marketing its drug to a much wider class of patients, and on Friday, the FDA delivered: "FDA approves use of drug to reduce risk of cardiovascular events in certain patient groups." | Consider AbbVie, for instance. In short, the number of people who might be prescribed Vascepa is very high -- in the tens of millions just in this country. If the drug is prescribed to 10% of this group, it's a $4.5 billion drug. |
24789.0 | 2019-12-16 00:00:00 UTC | Is AbbVie’s Dividend Capable Of Long-Term Growth? | ABBV | https://www.nasdaq.com/articles/is-abbvies-dividend-capable-of-long-term-growth-2019-12-16 | nan | nan | Nearly 20 years ago on Dec. 15, 2000, medical device and pharmaceutical maker Abbott Laboratories (NYSE: ABT) announced its $6.9 billion acquisition of Knoll Pharmaceuticals, a subsidiary of chemical giant BASF. At that time, no one knew that Knoll housed a drug, still in clinical development, that would one day become the world's largest selling drug.
Then in 2013, Abbott Labs split its company in two. The medical device side retained the name Abbott Labs and the pharmaceutical business was spun-off to shareholders and the new company was named AbbVie (NYSE: ABBV). The aforementioned drug was called D2E7 by Knoll, and generically known as adalimumab, but better know as Humira, generated $19.9 billion in global sales last year and was the world's best-selling drug. Humira is a subcutaneous injection used to treat a variety of diseases including rheumatoid arthritis, psoriatic arthritis, plaque psoriasis, Crohn's disease, ulcerative colitis, and ankylosing spondylitis among others. Humira's sales accounted for 60% of AbbVie's revenue in 2018.
Humira's days of market exclusivity are numbered
Humira was approved in the U.S. in 2002. Last year, U.S. sales of Humira were $13.7 billion, or roughly 42% of AbbVie's total global sales. Humira is set to lose U.S. patent protection in 2023, which will likely precipitate a significant drop in profits. Another $6.3 billion of Humira sales (19% of total sales) was generated outside the U.S. Late last year, biosimilars of Humira (generic biologics) were approved in Europe. The impact of these generics entering the market can be seen in AbbVie's third-quarter earnings release which showed international sales of Humira declining by 32%. AbbVie realized it would have a significant problem in 2023 when U.S. Humira biosimilars are scheduled to launch.
Getty Images
Will an $86 billion diversification strategy work?
AbbVie's solution to this impending patent cliff was to acquire Allergan (NYSE: AGN) for $86 billion including the assumption of Allergan's debt. Allergan will bring over $15 billion in revenues to AbbVie and in the process reduce overall Humira exposure to less than 40% of total sales, still significant, but better. Further, over the next few years international competition from generics should cause international sales of Humira to continue declining. In fact, at the current rate of decline, international sales of Humira will likely be less than $1 billion by 2023.
With Allergan, AbbVie now has two main components of its business, Humira and a diversified $30 billion pharmaceutical business it forecasts to grow at a high-single-digit rate for the next decade. The problem is domestic Humira should post similar growth rates. Thus, even if AbbVie's long-range forecast is correct, by 2023 Humira could still account for roughly 35% of sales.
The Allergan acquisition should lift the trough earnings of AbbVie in 2024.
According to AbbVie CEO Rick Gonzalez:
You can take this $15 billion set of assets that are durable and growing and highly profitable (referring to Allergan), and the cash flows from HUMIRA prior to or shortly into the LOE (loss of exclusivity) in 2023 will have paid down the incremental debt that was necessary to be able to buy these assets. So, essentially, HUMIRA is buying the assets that replace it over the long-term.
So in other words, AbbVie is viewing Allergan as a similar-sized asset that will replace the lost sales from Humira; and Humira will pay for it.
The approaching 2023 patent cliff looms for investors
While investors wait for more clarity surrounding AbbVie's earnings power post the Humira 2023 loss of exclusivity, a dividend yield of 5.5%, which was increased by 10% on Nov. 1, should help reduce investors' concerns.
When asked about the recent dividend increase Gonzalez said,
We certainly would not have increased our dividend double-digits now if we had any concerns about that going forward. So, I can tell you we are committed to a strong and growing dividend and we are committed to paying down debt and we have the ability to be able to do both. And I think the dividend increase that we are announcing today is a reflection of our confidence in that cash flow generation.
One way to think about AbbVie today is that it is over-earning, or that AbbVie's normalized earnings power is less than what it is reporting today. After all, the substantial bulk of Humira's profits are going away in the not-so-distant future.
But investors aren't paying much today for Humira's profits. AbbVie trades at less than 10x forward earnings. Further, Allergan will be highly accretive to AbbVie's earnings with over 20% accretion at peak. And AbbVie's other assets could also provide upside, such as its successors to Humira called Skyrizi and Rinvoq, both of which have shown superiority to Humira in head-to-head clinical trials for several indications. Given the low valuation, accretive acquisition, robust pipeline, and strong new drug launches, AbbVie is well-positioned for its impending patent cliff. While earnings will no doubt take a dip in 2023 and 2024, investors should expect dividend growth to continue.
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Jon Younkman owns shares of AbbVie. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The impact of these generics entering the market can be seen in AbbVie's third-quarter earnings release which showed international sales of Humira declining by 32%. Allergan will bring over $15 billion in revenues to AbbVie and in the process reduce overall Humira exposure to less than 40% of total sales, still significant, but better. Given the low valuation, accretive acquisition, robust pipeline, and strong new drug launches, AbbVie is well-positioned for its impending patent cliff. | Last year, U.S. sales of Humira were $13.7 billion, or roughly 42% of AbbVie's total global sales. The approaching 2023 patent cliff looms for investors While investors wait for more clarity surrounding AbbVie's earnings power post the Humira 2023 loss of exclusivity, a dividend yield of 5.5%, which was increased by 10% on Nov. 1, should help reduce investors' concerns. The medical device side retained the name Abbott Labs and the pharmaceutical business was spun-off to shareholders and the new company was named AbbVie (NYSE: ABBV). | So in other words, AbbVie is viewing Allergan as a similar-sized asset that will replace the lost sales from Humira; and Humira will pay for it. The approaching 2023 patent cliff looms for investors While investors wait for more clarity surrounding AbbVie's earnings power post the Humira 2023 loss of exclusivity, a dividend yield of 5.5%, which was increased by 10% on Nov. 1, should help reduce investors' concerns. The medical device side retained the name Abbott Labs and the pharmaceutical business was spun-off to shareholders and the new company was named AbbVie (NYSE: ABBV). | So in other words, AbbVie is viewing Allergan as a similar-sized asset that will replace the lost sales from Humira; and Humira will pay for it. The medical device side retained the name Abbott Labs and the pharmaceutical business was spun-off to shareholders and the new company was named AbbVie (NYSE: ABBV). Humira's sales accounted for 60% of AbbVie's revenue in 2018. |
24790.0 | 2019-12-15 00:00:00 UTC | Better Buy: AbbVie vs. Merck | ABBV | https://www.nasdaq.com/articles/better-buy%3A-abbvie-vs.-merck-2019-12-15 | nan | nan | AbbVie (NYSE: ABBV) ranks as one of the biggest pharmaceutical stocks on the market. But it's still a lot smaller than Merck (NYSE: MRK). Bigger has proven to be better this year, with AbbVie's stock performance trailing well behind Merck's.
But which of these pharma stocks is the better pick for long-term investors looking ahead? Here's how AbbVie and Merck compare on several key fronts.
Image source: Getty Images.
Growth prospects
Wall Street thinks that Merck's growth prospects look better than AbbVie's over the next five years. Analysts project that Merck will grow its earnings by an average of nearly 10% annually while AbbVie's earnings will increase by less than 4% annually. How accurate those estimates will actually be remains to be seen, but there are certainly some good reasons to believe that Wall Street is right in going with Merck instead of AbbVie when it comes to growth.
AbbVie's top-selling drug, Humira, already faces biosimilar competition in Europe that's quickly eroding revenue. Humira will battle biosimilars in the much larger U.S. market starting in 2023. That's when the blockbuster drug's sales declines will really become ugly.
The good news is that AbbVie has several products that should help offset the sinking sales for Humira. Cancer drugs Imbruvica and Venclexta should continue to pick up momentum. AbbVie's new immunology drugs Rinvoq and Skyrizi are likely to be huge winners. The company should also reduce its dependence on Humira with its pending acquisition of Allergan. However, analysts think Allergan's growth prospects are even lower than AbbVie's, so the deal probably won't work miracles for AbbVie's growth story.
Meanwhile, Merck claims the cancer immunotherapy that's likely to knock Humira out of the No. 1 spot among the world's biggest blockbuster drugs -- Keytruda. This one drug should drive most of Merck's growth over the next several years. However, Merck also has other products with rising sales, including its Gardasil HPV vaccine and neuromuscular block reversal drug Bridion.
Dividends
Merck claims a solid dividend that currently yields more than 2.7%. The drugmaker has increased its dividend each year since 2011 for a total boost of nearly 61%. With rising revenue and earnings, Merck should be in great shape to provide additional dividend hikes in the future.
But it's hard to beat AbbVie when it comes to dividends. The company's dividend yield stands at 5.4%. AbbVie has increased its dividend for a remarkable 47 years in a row including the time that it was part of Abbott Labs. Since being spun off from Abbott in 2013, AbbVie's dividend payout has soared by 195%.
Could the Allergan acquisition jeopardize AbbVie's terrific dividend? Probably not. Allergan currently pays a dividend of its own that yields around 1.6%. AbbVie CEO Rick Gonzalez stated in the company's third-quarter conference call that AbbVie is "committed to a strong and growing dividend" after the Allergan deal closes.
Valuation
Determining which of these two big pharma stocks claims the more attractive valuation isn't as easy as it might seem. Merck's price-to-earnings (P/E) ratio of 25 is a lot lower than AbbVie's P/E ratio of 40. But using multiples based on previous earnings doesn't tell the full story.
If we look at near-term earnings growth, AbbVie is a lot cheaper than Merck. AbbVie's shares trade at only nine times expected earnings compared to Merck's forward earnings multiple of 16. So is AbbVie the better bargain? Not necessarily.
Remember that Wall Street thinks that Merck will deliver much stronger earnings growth over the next five years than AbbVie will -- and that view is probably right. Factoring longer-term growth into the picture, Merck's valuation is more attractive than AbbVie's is.
Better buy
Which of these stocks is the better pick? I think it depends on your priorities.
If you're an income-seeking investor looking mainly for juicy dividends, my view is to go with AbbVie. I expect AbbVie's dividend will continue to grow for a long time to come.
On the other hand, if your focus is on total return, Merck is probably the better stock to buy right now. Keytruda is on a roll that isn't likely to slow anytime soon. Merck's growth won't necessarily be awe-inspiring, but it should be solid. And combined with its dividend, Merck should be able to outperform the broader market.
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Keith Speights 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. | AbbVie's top-selling drug, Humira, already faces biosimilar competition in Europe that's quickly eroding revenue. Remember that Wall Street thinks that Merck will deliver much stronger earnings growth over the next five years than AbbVie will -- and that view is probably right. AbbVie (NYSE: ABBV) ranks as one of the biggest pharmaceutical stocks on the market. | Growth prospects Wall Street thinks that Merck's growth prospects look better than AbbVie's over the next five years. However, analysts think Allergan's growth prospects are even lower than AbbVie's, so the deal probably won't work miracles for AbbVie's growth story. AbbVie's shares trade at only nine times expected earnings compared to Merck's forward earnings multiple of 16. | Growth prospects Wall Street thinks that Merck's growth prospects look better than AbbVie's over the next five years. However, analysts think Allergan's growth prospects are even lower than AbbVie's, so the deal probably won't work miracles for AbbVie's growth story. Remember that Wall Street thinks that Merck will deliver much stronger earnings growth over the next five years than AbbVie will -- and that view is probably right. | AbbVie's shares trade at only nine times expected earnings compared to Merck's forward earnings multiple of 16. AbbVie (NYSE: ABBV) ranks as one of the biggest pharmaceutical stocks on the market. Bigger has proven to be better this year, with AbbVie's stock performance trailing well behind Merck's. |
24791.0 | 2019-12-15 00:00:00 UTC | 3 Companies That Are Raising Their Dividends | ABBV | https://www.nasdaq.com/articles/3-companies-that-are-raising-their-dividends-2019-12-15 | nan | nan | As the year comes to a close, income investors are thinking about more than just the upcoming holidays and New Year's Eve parties. They also have their dividend stocks in mind, since many publicly traded companies declare raises around this time.
In that spirit, here are three dividend stocks that are about to make their shareholders slightly more wealthy. Two, by the way, are Dividend Aristocrats, meaning that they're S&P 500 components that have lifted their payouts at least once per year for a minimum of 25 years in a row.
Image source: Getty Images.
McCormick
The best stock lurking in your spice rack, McCormick (NYSE: MKC), is one of those two Dividend Aristocrats. Several weeks ago, the company maintained that status by declaring this year's hike to its quarterly distribution of 9% to $0.62 per share.
Consumers in the U.S. and in various other spots around the world are trying to eat healthier, and this trend has been McCormick's friend. Let's face it: The healthier meal option is often the less-tasty one. An effective and relatively easy way to crank up the flavor is by generous use of spices.
As a mainstay in the spice section of nearly every major U.S. supermarket, the company benefits commensurately. Both the top and bottom lines have been rising, and in McCormick's latest set of quarterly results, the company raised its guidance for a current fiscal-year net profit -- which, on an adjusted per-share basis, is now expected to climb by a minimum of almost 5% year over year.
McCormick's freshly lifted dividend will be paid on Jan. 13 to stockholders of record as of Dec. 31. At the most recent closing stock price, it would yield 1.5%.
AbbVie
Raiser No. 2 on our list is AbbVie (NYSE: ABBV), one of the small number of pharmaceutical stocks on the Dividend Aristocrats roster. Last month the company declared that its upcoming quarterly dividend will be $1.18 per share, for a 10% increase.
This was a blast of good news in a year that hasn't seen a lot of it for AbbVie. A big reason for the unpopularity of its stock through much of 2019 relates to Humira. The anti-inflammation drug has not only been the star of AbbVie's product lineup, it's also the most popular medication in the world. But it's at the point in its life cycle when biosimilars are cropping up (in Europe, anyway), so its luster for Abbvie investors is fading.
But Humira biosimilars won't be introduced in the U.S. for a few years yet, so AbbVie's current cash cow is hanging on (its global sales slumped only 3.7% year over year in the company's Q3). Meanwhile, earlier this year AbbVie bought another blockbuster drug, Botox, when it struck a deal to acquire its maker Allergan. It also has several treatments with good market potential in its pipeline.
In spite of a recent rebound, AbbVie's share price is under water, having recorded a nearly 6% decline so far this year. But the combination of a weakened price and cash flow strong enough to pay healthy dividends means a very high yield. AbbVie's new payout, which is to be dispensed Feb. 14 to investors of record as of Jan. 15, would yield 5.4% at the current stock price.
Mastercard
Here's a dividend stock that's probably hanging out in your wallet or purse as we speak: Mastercard (NYSE: MA). The payment card giant isn't a Dividend Aristocrat (at least not yet), but it does have a fine track record of making annual raises to its quarterly payout. The 2019 model is a chunky 21% lift to $0.40 per share. This accompanies an $8 billion share repurchase program concurrently announced by the company.
We're past the midway point on the War on Cash, and there's little doubt which side will win. For years, Mastercard and its peer card incumbents have been reaping the benefits of the increasing use of noncash means of payment from consumers. It's simply more convenient at the register to make a purchase by whipping out a card or waving a smartphone (Mastercard is deeply involved in digital payments, too).
This is a major reason card giants have been raking it in for years, while posting double-digit growth numbers that would be the envy of many business sectors. Mastercard's Q3 results are typical: 12% year-over-year growth in revenue, adjusted per-share earnings up 18%, and an operating profit margin approaching 60%.
Investors know very well that Mastercard is going to be quite the victor in the War on Cash, so it's no surprise they've pushed the share price up considerably (it's risen almost 55% in 2019 alone). Although the company is a very steady and reliable dividend payer, even with that 21% raise, the payout will have a relatively thin yield at 0.6%.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Mastercard. The Motley Fool recommends McCormick. 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 Raiser No. 2 on our list is AbbVie (NYSE: ABBV), one of the small number of pharmaceutical stocks on the Dividend Aristocrats roster. This was a blast of good news in a year that hasn't seen a lot of it for AbbVie. | AbbVie Raiser No. 2 on our list is AbbVie (NYSE: ABBV), one of the small number of pharmaceutical stocks on the Dividend Aristocrats roster. This was a blast of good news in a year that hasn't seen a lot of it for AbbVie. | But Humira biosimilars won't be introduced in the U.S. for a few years yet, so AbbVie's current cash cow is hanging on (its global sales slumped only 3.7% year over year in the company's Q3). AbbVie Raiser No. 2 on our list is AbbVie (NYSE: ABBV), one of the small number of pharmaceutical stocks on the Dividend Aristocrats roster. | AbbVie's new payout, which is to be dispensed Feb. 14 to investors of record as of Jan. 15, would yield 5.4% at the current stock price. AbbVie Raiser No. 2 on our list is AbbVie (NYSE: ABBV), one of the small number of pharmaceutical stocks on the Dividend Aristocrats roster. |
24792.0 | 2019-12-15 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On Joel Greenblatt - 12/15/2019 | ABBV | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-on-joel-greenblatt-12-15-2019-2019-12-15 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
AMERISOURCEBERGEN CORP. (ABC) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company's segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers. Servicing healthcare providers in the pharmaceutical supply channel, the Pharmaceutical Distribution segment's operations provide drug distribution and related services. The Other segment consists of the operations of various segments, including the AmerisourceBergen Consulting Services (ABCS), the World Courier Group, Inc. and the MWI Veterinary Supply, Inc. ABSG operates distribution facilities that focus primarily on complex disease treatment regimens.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BIOGEN INC (BIIB) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Biogen Inc. is a biopharmaceutical company. The Company focuses on discovering, developing, manufacturing and delivering therapies to people living with serious neurological, rare and autoimmune diseases. The Company markets products, including TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA and FAMPYRA for multiple sclerosis (MS), FUMADERM for the treatment of severe plaque psoriasis and SPINRAZA for the treatment of spinal muscular atrophy (SMA). It also has a collaboration agreement with Genentech, Inc. (Genentech), a member of the Roche Group, with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL) and other conditions, GAZYVA indicated for the treatment of CLL and follicular lymphoma, and other anti-CD20 therapies. The Company's product candidate includes OCREVUS; Biosimilar adalimumab; Aducanumab; E2609; BIIB074; BAN2401; Opicinumab; CIRARA; BIIB061; BIIB054; BIIB067, and BIIB068.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
MOLINA HEALTHCARE, INC. (MOH) is a mid-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Joel Greenblatt is 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Molina Healthcare, Inc. offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. The Company operates through two segments: Health Plans and Other, which includes its Pathways Health and Community Support LLC (Pathways) business. It arranges healthcare services for persons served by Medicaid, Medicare, the Children's Health Insurance Program (CHIP) and the Marketplace, and products to assist government agencies in their administration of the Medicaid program. As of December 31, 2016, the Company's Health Plans segment consisted of health plans in 12 states and the Commonwealth of Puerto Rico, and its direct delivery business.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt is 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson's disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
TIVITY HEALTH INC (TVTY) is a small-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Joel Greenblatt is 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Tivity Health, Inc., formerly Healthways, Inc., is focused targeted population health for those aged 50 and older. The Company offers three programs: SilverSneakers senior fitness, Prime fitness and WholeHealth Living. The SilverSneakers senior fitness program is offered to members of Medicare Advantage, Medicare Supplement, and Group Retiree plans. The Company also offers Prime fitness, a fitness facility access program, through commercial health plans, employers and insurance exchanges. Its national network of fitness centers delivers both SilverSneakers and Prime fitness. As of December 31, 2016, the Company's fitness networks encompassed approximately 16,000 participating locations and more than 1,000 alternative locations that provide classes outside of traditional fitness centers. As of December 31, 2016, the Company's WholeHealth Living network included over 88,000 complementary, alternative, and physical medicine practitioners to serve individuals through health plans.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Joel Greenblatt has returned 93.02% vs. 150.48% for the S&P 500. For more details on this strategy, click here
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. Company Description: Molina Healthcare, Inc. offers Medicaid-related solutions for low-income families and individuals, and assists government agencies in their administration of the Medicaid program. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson's disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The following are the top rated Healthcare stocks according to Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. |
24793.0 | 2019-12-15 00:00:00 UTC | 5 High-Yield Dividend Stocks to Watch | ABBV | https://www.nasdaq.com/articles/5-high-yield-dividend-stocks-to-watch-2019-12-15 | nan | nan | If you're an income-oriented investor, you probably like dividend stocks for their steady payouts. But no investor minds profiting from solid growth on top of nice dividends.
Can you get both high dividend yields and meaningful share appreciation in the market today? I think so. Here are five high-yield dividend stocks to watch over the next year that just might deliver on both counts.
Image source: Getty Images.
1. AbbVie
AbbVie's (NYSE: ABBV) dividend current yields nearly 5.5%. What's even better is that the big drugmaker has a fantastic track record of dividend hikes. AbbVie has increased its dividend for 48 consecutive years including its time as part of Abbott Labs (NYSE: ABT).
Although AbbVie's year-to-date performance has been dismal, I look for 2020 to be a better year for the stock. Humira will remain the top concern for the company because of challenges from biosimilars in Europe. However, AbbVie's year-over-year comparisons for the drug should be much better next year than they were in 2019. In addition, the company has two new immunology drugs on the market -- Rinvoq and Skyrizi -- that ranked in the top five new drugs launched this year. Expect sales for both drugs to pick up considerably in 2020.
2. Brookfield Infrastructure Partners
2019 has been a great year for Brookfield Infrastructure Partners (NYSE: BIP), with its shares soaring close to 50%. Investors also have to love the infrastructure company's dividend yield of 3.9%, which was a lot higher before the stock's tremendous gains.
Brookfield Infrastructure's management team thinks that 2020 will be yet another great year. The company is investing in several projects that will expand its operations. It expects to soon close on key acquisitions, including communication towers in India and a global railroad operator, that hold the opportunity to generate strong returns. Brookfield has also initiated efforts to boost profitability. With all of this combined with the steady revenue stream from the company's existing infrastructure assets across the world, I look for this dividend stock to continue its winning ways next year.
3. Chevron
Chevron (NYSE: CVX) has provided positive gains for investors so far in 2019, but its stock has trailed well behind the S&P 500. However, the big oil company continued to distribute the dividends that investors like, with its dividend yield standing at a little over 4%. And its share price has held up relatively well despite Chevron's announcement that it will write down $11 billion in assets in the fourth quarter.
You'll definitely want to keep your eyes on Chevron in the year ahead. The company has a strong balance sheet and isn't spending as aggressively as most of its peers. That puts Chevron in a great position to profit if oil prices rise -- and gives it a solid foundation to take on more debt if oil prices fall. There's no way to know what will happen with global oil markets in 2020, but Chevron is arguably among the best-positioned oil companies to handle whatever comes its way.
4. IBM
IBM (NYSE: IBM) has lagged well behind the broader market in recent years but is performing pretty well so far in 2019. Big Blue's mouth-watering dividend yield of nearly 4.9% makes the stock's gains even more appealing. And there are a couple of reasons IBM could deliver an even better performance in 2020.
The huge tech company's acquisition of Red Hat earlier this year should really begin to pay off in the coming year. IBM's revenue is likely to increase by at least 5% in 2020 from the addition of the open-source software company. Also, IBM's new z15 mainframe should fuel higher sales beginning in 2019 Q4 and going through most of next year.
5. Verizon Communications
Verizon Communication's (NYSE: VZ) year-to-date performance has been so-so. But its dividend yield of a little over 4% remains spectacular. The telecommunications giant has increased its dividend payout for 13 consecutive years.
That strong dividend might not be the primary attraction for Verizon in the future, though. Verizon's investments in high-speed 5G networks could transform its business. CEO Hans Vestberg predicts that half of the U.S. population will have access to 5G by the end of 2020, although it will probably take another four years for all of those individuals to have 5G phones and fully benefit from 5G. Verizon appears to be a high-yield dividend stock that long-term investors will want to keep on their radar screens.
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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's (NYSE: ABBV) dividend current yields nearly 5.5%. AbbVie has increased its dividend for 48 consecutive years including its time as part of Abbott Labs (NYSE: ABT). Although AbbVie's year-to-date performance has been dismal, I look for 2020 to be a better year for the stock. | AbbVie AbbVie's (NYSE: ABBV) dividend current yields nearly 5.5%. AbbVie has increased its dividend for 48 consecutive years including its time as part of Abbott Labs (NYSE: ABT). Although AbbVie's year-to-date performance has been dismal, I look for 2020 to be a better year for the stock. | AbbVie AbbVie's (NYSE: ABBV) dividend current yields nearly 5.5%. AbbVie has increased its dividend for 48 consecutive years including its time as part of Abbott Labs (NYSE: ABT). Although AbbVie's year-to-date performance has been dismal, I look for 2020 to be a better year for the stock. | AbbVie AbbVie's (NYSE: ABBV) dividend current yields nearly 5.5%. AbbVie has increased its dividend for 48 consecutive years including its time as part of Abbott Labs (NYSE: ABT). Although AbbVie's year-to-date performance has been dismal, I look for 2020 to be a better year for the stock. |
24794.0 | 2019-12-13 00:00:00 UTC | ProShares ProShares S&P 500 Dividend Aristocrats ETF Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/proshares-proshares-sp-500-dividend-aristocrats-etf-experiences-big-inflow-2019-12-13 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares S&P 500 Dividend Aristocrats ETF (Symbol: NOBL) where we have detected an approximate $60.3 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 83,500,000 to 84,300,000). Among the largest underlying components of NOBL, in trading today Leggett & Platt, Inc. (Symbol: LEG) is off about 0.3%, Target Corp (Symbol: TGT) is off about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.5%. For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average:
Looking at the chart above, NOBL's low point in its 52 week range is $56.79 per share, with $75.60 as the 52 week high point — that compares with a last trade of $75.38. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of NOBL, in trading today Leggett & Platt, Inc. (Symbol: LEG) is off about 0.3%, Target Corp (Symbol: TGT) is off about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.5%. For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average: Looking at the chart above, NOBL's low point in its 52 week range is $56.79 per share, with $75.60 as the 52 week high point — that compares with a last trade of $75.38. 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 NOBL, in trading today Leggett & Platt, Inc. (Symbol: LEG) is off about 0.3%, Target Corp (Symbol: TGT) is off about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.5%. For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average: Looking at the chart above, NOBL's low point in its 52 week range is $56.79 per share, with $75.60 as the 52 week high point — that compares with a last trade of $75.38. 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 NOBL, in trading today Leggett & Platt, Inc. (Symbol: LEG) is off about 0.3%, Target Corp (Symbol: TGT) is off about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares S&P 500 Dividend Aristocrats ETF (Symbol: NOBL) where we have detected an approximate $60.3 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 83,500,000 to 84,300,000). For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average: Looking at the chart above, NOBL's low point in its 52 week range is $56.79 per share, with $75.60 as the 52 week high point — that compares with a last trade of $75.38. | Among the largest underlying components of NOBL, in trading today Leggett & Platt, Inc. (Symbol: LEG) is off about 0.3%, Target Corp (Symbol: TGT) is off about 0.5%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the ProShares ProShares S&P 500 Dividend Aristocrats ETF (Symbol: NOBL) where we have detected an approximate $60.3 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 83,500,000 to 84,300,000). For a complete list of holdings, visit the NOBL Holdings page » The chart below shows the one year price performance of NOBL, versus its 200 day moving average: Looking at the chart above, NOBL's low point in its 52 week range is $56.79 per share, with $75.60 as the 52 week high point — that compares with a last trade of $75.38. |
24795.0 | 2019-12-12 00:00:00 UTC | Noteworthy Thursday Option Activity: MAS, ABBV, C | ABBV | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-mas-abbv-c-2019-12-12 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Masco Corp. (Symbol: MAS), where a total of 11,612 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 50% of MAS's average daily trading volume over the past month of 2.3 million shares. Particularly high volume was seen for the $47 strike call option expiring December 20, 2019, with 5,431 contracts trading so far today, representing approximately 543,100 underlying shares of MAS. Below is a chart showing MAS's trailing twelve month trading history, with the $47 strike highlighted in orange:
AbbVie Inc (Symbol: ABBV) saw options trading volume of 34,475 contracts, representing approximately 3.4 million underlying shares or approximately 49.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Especially high volume was seen for the $90 strike call option expiring January 17, 2020, with 5,724 contracts trading so far today, representing approximately 572,400 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $90 strike highlighted in orange:
And Citigroup Inc (Symbol: C) options are showing a volume of 48,856 contracts thus far today. That number of contracts represents approximately 4.9 million underlying shares, working out to a sizeable 48.4% of C's average daily trading volume over the past month, of 10.1 million shares. Particularly high volume was seen for the $62.50 strike put option expiring December 20, 2019, with 2,637 contracts trading so far today, representing approximately 263,700 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $62.50 strike highlighted in orange:
For the various different available expirations for MAS options, ABBV options, or C options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Especially high volume was seen for the $90 strike call option expiring January 17, 2020, with 5,724 contracts trading so far today, representing approximately 572,400 underlying shares of ABBV. Below is a chart showing MAS's trailing twelve month trading history, with the $47 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 34,475 contracts, representing approximately 3.4 million underlying shares or approximately 49.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $90 strike highlighted in orange: And Citigroup Inc (Symbol: C) options are showing a volume of 48,856 contracts thus far today. | Below is a chart showing MAS's trailing twelve month trading history, with the $47 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 34,475 contracts, representing approximately 3.4 million underlying shares or approximately 49.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $90 strike highlighted in orange: And Citigroup Inc (Symbol: C) options are showing a volume of 48,856 contracts thus far today. Especially high volume was seen for the $90 strike call option expiring January 17, 2020, with 5,724 contracts trading so far today, representing approximately 572,400 underlying shares of ABBV. | Below is a chart showing MAS's trailing twelve month trading history, with the $47 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 34,475 contracts, representing approximately 3.4 million underlying shares or approximately 49.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Particularly high volume was seen for the $62.50 strike put option expiring December 20, 2019, with 2,637 contracts trading so far today, representing approximately 263,700 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $62.50 strike highlighted in orange: For the various different available expirations for MAS options, ABBV options, or C options, visit StockOptionsChannel.com. Especially high volume was seen for the $90 strike call option expiring January 17, 2020, with 5,724 contracts trading so far today, representing approximately 572,400 underlying shares of ABBV. | Below is a chart showing MAS's trailing twelve month trading history, with the $47 strike highlighted in orange: AbbVie Inc (Symbol: ABBV) saw options trading volume of 34,475 contracts, representing approximately 3.4 million underlying shares or approximately 49.2% of ABBV's average daily trading volume over the past month, of 7.0 million shares. Especially high volume was seen for the $90 strike call option expiring January 17, 2020, with 5,724 contracts trading so far today, representing approximately 572,400 underlying shares of ABBV. Particularly high volume was seen for the $62.50 strike put option expiring December 20, 2019, with 2,637 contracts trading so far today, representing approximately 263,700 underlying shares of C. Below is a chart showing C's trailing twelve month trading history, with the $62.50 strike highlighted in orange: For the various different available expirations for MAS options, ABBV options, or C options, visit StockOptionsChannel.com. |
24796.0 | 2019-12-11 00:00:00 UTC | Best ETFs for 2020: The AdvisorShares Vice ETF Is a Long-Term Winner | ABBV | https://www.nasdaq.com/articles/best-etfs-for-2020%3A-the-advisorshares-vice-etf-is-a-long-term-winner-2019-12-11 | nan | nan | This article is a part of InvestorPlace.com’s Best ETFs for 2020 contest. The InvestorPlace Staff’s pick for the contest is the AdvisorShares Vice ETF (NASDAQ:).
This year was a peculiar one for marijuana stocks. Early on, hopes (and stocks) ran high on the idea that major growth was guaranteed in the cannabis space. But numerous factors have since put a dent in that thesis … at least in the short term.
In 2019, marijuana stocks and other substance-based vice stocks faced issues of oversupply, quality control and , which led many investors to question their investment viability this year.
But, despite the disappointment in 2019, I am cautiously optimistic about a comeback in some vice stocks in 2020. This is why I have picked the AdvisorShares Vice ETF (NASDAQ:) for this year’s Best ETFs contest.
The core idea behind this exchange-traded fund is that in good times or bad, people will always seek “sinful” indulgences like pot, alcohol and tobacco. Its “recession-resistant” areas makes it particularly promising for those who might be concerned that we’re headed for more dreary times. But it doesn’t need a recession to be successful, as the vices it promotes will always be appealing.
When looking for the best ETFs to buy it’s always important to consider the expenses associated with the investment. Although ACT’s design as an actively managed fund adds to its overall expenses — it has a net expense ratio of 0.99%, or $99 annually per $10,000 invested — I see this as a justified cost. It allows its management team to closely monitor the space and adjust its holdings according to shifts within the various industries it embodies. And right now, the marijuana space is particularly volatile.
Furthermore, the success of ACT’s management team is reflected in the fact that despite the general pain in many marijuana and tobacco stocks this year, the ETF is up almost 16% year to date.
It has been slowly marching back into the green this year. And I think the outlook on marijuana/tobacco stocks will brighten as investors’ expectations come back down to Earth. This more realistic perspective should give it room to run higher next year.
ACT’s Holdings Are Packed With Potential
My optimism for ACT’s success is also backed by a few other perks.
The U.S. House Judiciary Committee just passed the to decriminalize marijuana at the federal level. If the MORE Act becomes law, it will be a crucial first step toward the U.S. taking Canada’s lead on marijuana legalization. Although it doesn’t stand a very good chance of moving forward under the current Senate majority leadership, it’s certainly a promising move that will help drive ACT in the right direction.
Luckily for investors who are concerned about too much direct exposure to marijuana stocks, ACT’s top three holdings are bio-pharmaceutical healthcare and research companies that aren’t strictly based in pot.
These holdings include: Thermo Fisher Scientific (NYSE:), Abbott Laboratories (NYSE:) and Abbvie (NYSE:). Each falls under the ETF’s “cannabis-related” sector allocation, which makes up 32.7% of its vice pie. As mentioned earlier, in addition to cannabis-related holdings, ACT recognizes the staying power of alcohol and tobacco stocks. I like this diversification because it doesn’t solely rely on the success of cannabis stocks alone.
Still, the bulk of its tobacco stocks are tobacco companies with cannabis exposure, which make up 17.8% of the ETF’s sector allocation. Among ACT’s other top holdings are Boston Beer Company (NYSE:), LVMH Moet Hennessy (OTCMKTS:) and Philip Morris International (NYSE:).
For investors interested in an ETF that is solely focused on marijuana stocks there are other options like the AdvisorShares Pure Cannabis ETF (NYSEARCA:). But this is a much riskier play given its much less diverse holdings. Given these unpredictable times, I’d rather take a bet on an ETF with significant growth prospects and a decent degree of safety. As an added bonus, it also has a much less cringey ticker than “YOLO.”
Bottom Line on ACT
All in all, the ACT ETF has long-term durability with concentrated exposure to select companies related to alcohol, cannabis and tobacco. The evolving landscape of cannabis in particular has the potential to lead to real growth opportunities in 2020 and beyond. As such, the ACT ETF is one of the best ETFs to consider now regardless of whether it ends up winning InvestorPlace.com’s ETF contest.
Anna Jacoby is a web editor for . As of this writing, she did not hold a position in any of the aforementioned securities. InvestorPlace Web Editor Robert Waldo also contributed to this article.
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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. | These holdings include: Thermo Fisher Scientific (NYSE:), Abbott Laboratories (NYSE:) and Abbvie (NYSE:). The core idea behind this exchange-traded fund is that in good times or bad, people will always seek “sinful” indulgences like pot, alcohol and tobacco. Luckily for investors who are concerned about too much direct exposure to marijuana stocks, ACT’s top three holdings are bio-pharmaceutical healthcare and research companies that aren’t strictly based in pot. | These holdings include: Thermo Fisher Scientific (NYSE:), Abbott Laboratories (NYSE:) and Abbvie (NYSE:). This is why I have picked the AdvisorShares Vice ETF (NASDAQ:) for this year’s Best ETFs contest. Luckily for investors who are concerned about too much direct exposure to marijuana stocks, ACT’s top three holdings are bio-pharmaceutical healthcare and research companies that aren’t strictly based in pot. | These holdings include: Thermo Fisher Scientific (NYSE:), Abbott Laboratories (NYSE:) and Abbvie (NYSE:). Furthermore, the success of ACT’s management team is reflected in the fact that despite the general pain in many marijuana and tobacco stocks this year, the ETF is up almost 16% year to date. For investors interested in an ETF that is solely focused on marijuana stocks there are other options like the AdvisorShares Pure Cannabis ETF (NYSEARCA:). | These holdings include: Thermo Fisher Scientific (NYSE:), Abbott Laboratories (NYSE:) and Abbvie (NYSE:). This year was a peculiar one for marijuana stocks. Furthermore, the success of ACT’s management team is reflected in the fact that despite the general pain in many marijuana and tobacco stocks this year, the ETF is up almost 16% year to date. |
24797.0 | 2019-12-07 00:00:00 UTC | 3 Biotechs Facing FDA Approvals by Year's End | ABBV | https://www.nasdaq.com/articles/3-biotechs-facing-fda-approvals-by-years-end-2019-12-07 | nan | nan | Biotech investors know that simply generating some positive clinical trial data for a candidate treatment is no guarantee that the drug will make it to market. The U.S. Food and Drug Administration (FDA) looks deep before giving its approval. And when a company announces that it has received either an FDA approval letter -- or its dreaded counterpart, the complete response letter -- that can dramatically impact its stock price.
One way or another, these three companies should get that sort of news this month.
Image Source: Getty Images
Amarin seeks a broader approval
Amarin (NASDAQ: AMRN) spent much of 2019 in the news. Sales of Vascepa, its fish oil extract pill, took off, and the stock price did the same. The drug was initially approved to lower triglycerides in patients whose levels were severely elevated. However, after it released fresh data showing that Vascepa also helps mitigate cardiovascular events, the company presented to an FDA advisory panel that debated the merits of expanding the approved label in a way that would give it millions of potential new users.
Based on data from nearly 8,200 patients, Vascepa resulted in a 25% reduction in first occurrences of major adverse cardiovascular events (MACE).
The FDA's Endocrinologic and Metabolic Drugs Advisory Committee voted 16-0 in favor of expanding Vascepa's label to include its use for reducing cardiovascular risk in patients treated with statins. The FDA does not have to follow its panels' recommendations, but it generally does, especially when the votes are unanimous. The debate now is about how broad or restrictive the FDA will ultimately be. The regulator has until Dec. 28 to make its decision, and Amarin shareholders eagerly await it.
Allergan awaits approval for its migraine drug
The FDA is expected to weigh in any day now on a pending migraine treatment from Allergan (NYSE: AGN). This could potentially be the first orally available small-molecule drug that works by interacting with a specific receptor found in a pathway responsible for pain. The drug targets the calcitonin gene-regulated peptide (CGRP) receptor.
In 2018, the FDA approved three monoclonal antibodies targeting the CGRP receptor to prevent migraines. These drugs require monthly injections. Allergan hopes the FDA will find that the data from its four studies substantiates the efficacy and safety of ubrogepant as an intervention for acute migraines, as opposed to prevention like the approved antibodies.
However, hard on ubrogepant's heels come Zydis and Vazegapant, a pair of small-molecule CGRP receptor antagonists from rival Biohaven Pharmaceuticals (NYSE: BHVN). Zydis is an orally dissolving formulation that has been submitted for FDA approval to treat acute migraines. Vazegapant is a novel inhaled formulation, and Biohaven expects to present top-line pivotal Phase 3 trial data on it this month, with a potential FDA filing next year.
Investors can view all this activity surrounding the CGRP receptor as a route for treating migraines as reinforcement of its importance. Arguably, the fact that multiple treatments and companies see the mechanism as so promising means that there's a lower risk of them failing. As a possible blockbuster in the making with millions of potential patients, ubrogepant should be a meaningful future revenue driver, if approved. Allergan shareholders voted in October in favor of the company's previously announced acquisition by AbbVie (NYSE: ABBV). The deal has yet to close, but approval of this drug should only bolster its attractiveness to AbbVie shareholders.
FDA to weigh in on a novel schizophrenia treatment
Intra-Cellular Therapies (NASDAQ: ITCI) expects to hear from the FDA about the fate of its schizophrenia drug lumateperone by Dec. 27. The drug's novel mechanism acts on three different neurotransmitters: dopamine, serotonin, and glutamate.
The National Institutes of Health says approximately 2.4 million Americans suffer from schizophrenia, and the American Psychiatric Association believes as much as 1% of the global population has this affliction. Although treatment options exist, many have side effects. Intra-Cellular believes as many as 60% of patients discontinue their treatments or switch therapies within months of starting them. Clearly, patients are seeking better options with fewer, more-manageable side effects.
In two phase 3 trials run in the U.S., lumateperone demonstrated a statistically significant improvement compared to placebo using the Positive and Negative Syndrome Score (PANSS). One trial included risperidone, an approved antipsychotic, which performed in line with Intra-Cellular's drug.
Now for the big distinction. In those studies, Lumateperone did not negatively impact metabolic and endocrine levels as risperidone does. In fact, in pooled data from three clinical trials lumateperone looked more like a placebo on multiple parameters including total cholesterol, fasting glucose, and body weight. Intra-Cellular believes this will make lumateperone more appealing to patients and their doctors.
Intra-Cellular has begun to build out its team to prepare for the commercial launch of lumateperone. Given that it's the smallest of the companies discussed here, both by market capitalization and number of employees, it's not too farfetched to think Intra-Cellular might look to be acquired. It will likely require substantial investment to achieve commercial success with a treatment for schizophrenia and bipolar disorder, the company's second target for lumateperone. A larger acquirer or partner could provide the extra financial muscle needed.
Catalysts are coming by 2020
Of the three stocks, Allergan is the least risky but has the lowest upside. Amarin's stock jumped from the mid-teens to the low $20 range based on the positive FDA advisory panel vote. With a broad approval, the stock should maintain that upward trajectory, while an overly restrictive approval or a non-approval would likely shave 25% to 50% off the share price.
As an investment, Intra-Cellular carries the most risk as lumateperone has not yet been approved, nor does the company have any other approved drugs. But with the stock trading below $10 a share, the risk-reward equation may look attractive, particularly to speculative investors.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Allergan shareholders voted in October in favor of the company's previously announced acquisition by AbbVie (NYSE: ABBV). The deal has yet to close, but approval of this drug should only bolster its attractiveness to AbbVie shareholders. However, after it released fresh data showing that Vascepa also helps mitigate cardiovascular events, the company presented to an FDA advisory panel that debated the merits of expanding the approved label in a way that would give it millions of potential new users. | Allergan shareholders voted in October in favor of the company's previously announced acquisition by AbbVie (NYSE: ABBV). The deal has yet to close, but approval of this drug should only bolster its attractiveness to AbbVie shareholders. However, after it released fresh data showing that Vascepa also helps mitigate cardiovascular events, the company presented to an FDA advisory panel that debated the merits of expanding the approved label in a way that would give it millions of potential new users. | Allergan shareholders voted in October in favor of the company's previously announced acquisition by AbbVie (NYSE: ABBV). The deal has yet to close, but approval of this drug should only bolster its attractiveness to AbbVie shareholders. Allergan awaits approval for its migraine drug The FDA is expected to weigh in any day now on a pending migraine treatment from Allergan (NYSE: AGN). | Allergan shareholders voted in October in favor of the company's previously announced acquisition by AbbVie (NYSE: ABBV). The deal has yet to close, but approval of this drug should only bolster its attractiveness to AbbVie shareholders. However, after it released fresh data showing that Vascepa also helps mitigate cardiovascular events, the company presented to an FDA advisory panel that debated the merits of expanding the approved label in a way that would give it millions of potential new users. |
24798.0 | 2019-12-06 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABBV | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2019-12-06 | 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.
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:
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.
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. | With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. 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: Another consideration with dividend growth stocks is just how much the dividend is growing. Get the latest Zacks research report on LOW — FREE Get the latest Zacks research report on FUL — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. 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. Get the latest Zacks research report on LOW — FREE Get the latest Zacks research report on FUL — FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | 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. 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: Another consideration with dividend growth stocks is just how much the dividend is growing. | 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. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. 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. |
24799.0 | 2019-12-05 00:00:00 UTC | January 2020 Options Now Available For AbbVie (ABBV) | ABBV | https://www.nasdaq.com/articles/january-2020-options-now-available-for-abbvie-abbv-2019-12-05 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the January 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2020 contracts and identified one put and one call contract of particular interest.
The put contract at the $80.00 strike price has a current bid of 45 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $80.00, but will also collect the premium, putting the cost basis of the shares at $79.55 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $86.74/share today.
Because the $80.00 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 78%. 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 0.56% return on the cash commitment, or 4.11% 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 $80.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $87.50 strike price has a current bid of 73 cents. If an investor was to purchase shares of ABBV stock at the current price level of $86.74/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $87.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 1.72% if the stock gets called away at the January 2020 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 $87.50 strike highlighted in red:
Considering the fact that the $87.50 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 52%. 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 0.84% boost of extra return to the investor, or 6.14% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 49%, while the implied volatility in the call contract example is 33%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $86.74) to be 29%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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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. | 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 $87.50 strike highlighted in red: Considering the fact that the $87.50 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 begin trading today, for the January 2020 expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $87.50 strike highlighted in red: Considering the fact that the $87.50 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 begin trading today, for the January 2020 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2020 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 $80.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $87.50 strike price has a current bid of 73 cents. Below is a chart showing ABBV's trailing twelve month trading history, with the $87.50 strike highlighted in red: Considering the fact that the $87.50 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 begin trading today, for the January 2020 expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new January 2020 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 $87.50 strike highlighted in red: Considering the fact that the $87.50 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 begin trading today, for the January 2020 expiration. |
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