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25000.0 | 2019-05-06 00:00:00 UTC | Two Healthcare Stocks in the XLV Fund Stand Out | ABBV | https://www.nasdaq.com/articles/two-healthcare-stocks-xlv-fund-stand-out-2019-05-06 | nan | nan | Healthcare stocks have fallen somewhat out of favor, as tech and faster growing industries have lead the rally in equities this year. There is a prevailing notion that healthcare stocks are defensive, given their business models and the dividends they pay to their shareholders. However, there are standouts in the sector that are poised to deliver growth, spurred by new approvals and new markets.
Source: Shutterstock
For those looking for a diversified approach to investing in healthcare stocks, Health Care SPDR (NYSEARCA:) and iShares Dow Jones US Healthcare (NYSEARCA:) are good options that are relatively liquid. The two funds track each other very closely, though there is a slight difference between their yields. XLV yields 1.6%, while IYH has a slightly higher yield of 1.9%.
For investors looking to bet on individual stocks, Merck & Co (NYSE:MRK) and AbbVie I(NYSE:) look like particularly good options. Within the XLV fund, MRK stock makes up 6% of overall holdings and ABBV stock accounts for 3.5% of its assets.
MRK stock and ABBV stock are primed to bounce back after both dropped slightly recently. Their performance should help offset any potential weakness of the fund’s other holdings, including Johnson & Johnson (NYSE:).
JNJ stock is by far XLV’s largest holding, comprising over 11% of its total assets. Though I have concerns about the, the benefit of owning the index is that its diversification reduces the risk posed by each stock.
Healthcare Stocks to Buy: MRK
Merck demonstrated its ability to execute on its global strategy in the first quarter, generating double-digit percentage sales and earnings per share growth, no small feat, considering that the market cap of MRK stock is over $200 billion. MRK’s investments in research and development are clearly paying off, and the owners of MRK stock should be very positive about the company’s 2019 outlook.
The company’s China business generated a large part of its growth, driven by high sales of its oncology drugs and vaccines there. Excluding the negative impact of currency fluctuations, its China sales soared 67% year-over-year. China is a huge market with significant demand, but it’s not an easy nut to crack. Many multinational corporations spanning various industries have struggled to generate profits there. Merck’s ability to drive sales in China bodes well for its future growth and for MRK stock.
On the oncology front, the FDA’s approval of MRK’s Keytruda for a number of indications, including advanced renal cell carcinoma and melanoma with lymph nodes, was a big win for MRK stock. The EU also approved Keytruda in combination with chemotherapy. Sales of Keytruda were up 55% year-over-year in Q1.
Expect further approvals of MRK’s oncology drugs throughout the year to provide a boost to MRK stock. A number of the company’s animal-health treatments could also be approved.
Healthcare Stocks to Buy: ABBV
ABBV stock hasn’t maintained as much upward momentum as I would have expected after it reported very solid Q1 results. This global pharmaceutical company focuses on four therapeutic areas: immunology, oncology, virology and neuroscience. ABBV is a healthcare stock that has a lot of potential, given the strength of the company’s pipeline.
, leading ABBV to increase its full-year EPS guidance from $7.26 to $7.36. Most importantly, the company’s pipeline advanced meaningfully. Notably, the FDAand the Japanese Ministry of Health, Labour and Welfare both approved the company’s SKYRIZI treatment, which could improve the standard of care of psoriasis.
Those were big wins in a therapeutic area with a great deal of long-term potential. ABBV has multiple other products making their way through the approval process, setting the stage for ABBV stock to benefit from multiple positive catalysts in the near future.
In oncology, AbbVie announced a strategic partnership with Teneobio, a biotechnology company that’s developing a new class of biologics for the treatment of cancer, autoimmunity and infectious diseases. The two companies have agreed to develop and commercialize a biologic calledTNB-383B for the potential treatment of multiple myeloma.
ABBV’ has several other ongoing collaborations that will expand its oncology research platform, enabling it to develop life-changing treatments andmeaningfully boost ABBV stock.
As of this writing, Luce Emerson 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. | In oncology, AbbVie announced a strategic partnership with Teneobio, a biotechnology company that’s developing a new class of biologics for the treatment of cancer, autoimmunity and infectious diseases. For investors looking to bet on individual stocks, Merck & Co (NYSE:MRK) and AbbVie I(NYSE:) look like particularly good options. Within the XLV fund, MRK stock makes up 6% of overall holdings and ABBV stock accounts for 3.5% of its assets. | For investors looking to bet on individual stocks, Merck & Co (NYSE:MRK) and AbbVie I(NYSE:) look like particularly good options. Within the XLV fund, MRK stock makes up 6% of overall holdings and ABBV stock accounts for 3.5% of its assets. Healthcare Stocks to Buy: ABBV ABBV stock hasn’t maintained as much upward momentum as I would have expected after it reported very solid Q1 results. | Within the XLV fund, MRK stock makes up 6% of overall holdings and ABBV stock accounts for 3.5% of its assets. For investors looking to bet on individual stocks, Merck & Co (NYSE:MRK) and AbbVie I(NYSE:) look like particularly good options. MRK stock and ABBV stock are primed to bounce back after both dropped slightly recently. | Within the XLV fund, MRK stock makes up 6% of overall holdings and ABBV stock accounts for 3.5% of its assets. For investors looking to bet on individual stocks, Merck & Co (NYSE:MRK) and AbbVie I(NYSE:) look like particularly good options. MRK stock and ABBV stock are primed to bounce back after both dropped slightly recently. |
25001.0 | 2019-05-01 00:00:00 UTC | Profit from Earnings Volatility With This Biotech Stocks Pairs Trade | ABBV | https://www.nasdaq.com/articles/profit-earnings-volatility-biotech-stocks-pairs-trade-2019-05-01 | nan | nan | If the trend is your friend, off and on the price chart biotech stocks Merck (NYSE:) and AbbVie (NYSE:) make a great pairing as a sector long and short in MRK stock and ABBV stock. Let me explain.
Earnings and its associated volatility can be a tough trade. I’ve said that before and I’m sure I’ll say it again. There are however, times when an earnings confessional and price action go hand-in-hand for good reason. That appears to be the case for biotech stock Merck.
Then there are times when other worries simply trump whatever a company has to say at the corporate altar. And that’s the situation facing ABBV stock in today’s market and why it’s time to position for a pair of friendly bullish and bearish trends still in motion off and on the price chart.
Biotech Stocks Long: MRK Stock
An existing bullish trend in MRK stock just became a good deal friendlier following Tuesday’s . By the numbers, the first of our two biotech stocks delivered stronger-than-forecast profits of $1.22 versus the Street’s estimate of $1.05.
A supportive sales beat on revenues of $10.81 billion was also announced. Strong sales of $2.27 billion in Merck’s core Keytruda drug and year-over-year growth of 55% led the way.
And that’s not all this biotech stock did to please investors either. Merck also backed up the solid quarter by narrowing and raising its full-year profit and sales guidance slightly above the midpoint of consensus estimates.
Lastly and rounding out the corporate confessional and making conditions more bullish on the price chart, Tuesday’s investor reaction of 2.51% did double duty on the monthly time frame.
MRK Stock Monthly Chart
On the monthly price chart, Tuesday’s decent reaction by investors is a much bigger deal longer-term. With the gain MRK stock effectively managed to establish an engulfing candlestick resembling a hammer pattern for the month of April. That’s potentially very bullish. And with this biotech stock’s uptrend intact following a pair of healthy corrective bases over the past couple years, our recommendation is to put Merck shares on the radar for purchase.
Specifically, I’m in favor of giving away some potential upside in MRK stock in order to receive additional price confirmation. That said, I’d recommend waiting to buy this biotech stock above the pattern high of $83.85 on the expectation of bullish momentum and profits to follow.
Biotech Stocks Short: ABBV Stock
The second of our two biotech stocks is AbbVie. And much to the chagrin of ABBV stock bulls, shares are setting up the short side of this pairs trade.
Bottom line, despite last week, ongoing and escalating concerns about generic competition for its once untouchable Humira drug continues to make investors more than a bit itchy to exit.
On the price chart shares of ABBV stock have corrected by roughly 37% since hitting an all-time-high last January. Typically and for a company of AbbVie’s size, that would be enough to consider looking at shares as an opportunistic value play. But not this time.
With so much of this biotech’s success attributed to Humira and those sales now at risk, uncertainty manifesting itself over the past four few months into a tight series of doji candles near key technical lows is concerning. It’s also potentially a profitable short position.
ABBV Stock Monthly Chart
Click to
My recommendation is to short ABBV stock below $76.81. This entry only triggers if April’s doji, which failed at angular resistance, is penetrated on the downside.
After three plus months of narrowing and anxious price action, a short position should turn quickly profitable with shares increasingly at risk of trending towards longer-term support in-between $60 — $62.
Disclosure: Investment accounts under Christopher Tyler’s management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter and StockTwits.
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. | If the trend is your friend, off and on the price chart biotech stocks Merck (NYSE:) and AbbVie (NYSE:) make a great pairing as a sector long and short in MRK stock and ABBV stock. And that’s the situation facing ABBV stock in today’s market and why it’s time to position for a pair of friendly bullish and bearish trends still in motion off and on the price chart. Biotech Stocks Short: ABBV Stock The second of our two biotech stocks is AbbVie. | If the trend is your friend, off and on the price chart biotech stocks Merck (NYSE:) and AbbVie (NYSE:) make a great pairing as a sector long and short in MRK stock and ABBV stock. And that’s the situation facing ABBV stock in today’s market and why it’s time to position for a pair of friendly bullish and bearish trends still in motion off and on the price chart. Biotech Stocks Short: ABBV Stock The second of our two biotech stocks is AbbVie. | If the trend is your friend, off and on the price chart biotech stocks Merck (NYSE:) and AbbVie (NYSE:) make a great pairing as a sector long and short in MRK stock and ABBV stock. Biotech Stocks Short: ABBV Stock The second of our two biotech stocks is AbbVie. And that’s the situation facing ABBV stock in today’s market and why it’s time to position for a pair of friendly bullish and bearish trends still in motion off and on the price chart. | Biotech Stocks Short: ABBV Stock The second of our two biotech stocks is AbbVie. If the trend is your friend, off and on the price chart biotech stocks Merck (NYSE:) and AbbVie (NYSE:) make a great pairing as a sector long and short in MRK stock and ABBV stock. And that’s the situation facing ABBV stock in today’s market and why it’s time to position for a pair of friendly bullish and bearish trends still in motion off and on the price chart. |
25002.0 | 2019-04-30 00:00:00 UTC | Financial Exchange Stock Talk: Dividend Sensei On AbbVie | ABBV | https://www.nasdaq.com/articles/financial-exchange-stock-talk%3A-dividend-sensei-abbvie-2019-04-30 | nan | nan | By Dividend Sensei:
See Dividend Sensei's recent article on AbbVie (ABBV) here.
See also Hurco Now Definitely In The Down Cycle on seekingalpha.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Dividend Sensei: See Dividend Sensei's recent article on AbbVie (ABBV) here. See also Hurco Now Definitely In The Down Cycle on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Dividend Sensei: See Dividend Sensei's recent article on AbbVie (ABBV) here. See also Hurco Now Definitely In The Down Cycle on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Dividend Sensei: See Dividend Sensei's recent article on AbbVie (ABBV) here. See also Hurco Now Definitely In The Down Cycle on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | By Dividend Sensei: See Dividend Sensei's recent article on AbbVie (ABBV) here. See also Hurco Now Definitely In The Down Cycle on seekingalpha.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
25003.0 | 2019-04-29 00:00:00 UTC | Better Big Pharma Stock: AbbVie vs. AstraZeneca | ABBV | https://www.nasdaq.com/articles/better-big-pharma-stock-abbvie-vs-astrazeneca-2019-04-29 | nan | nan | AbbVie (NYSE: ABBV) and AstraZeneca (NYSE: AZN) have a lot in common -- they're just several years out of sync. While AbbVie is headed toward a patent cliff, AstraZeneca has been languishing somewhere near the bottom of the cliff it fell off years ago.
Which of these big pharma stocks has the best chance of outperforming for your portfolio over the long run? Let's stack them up against each other to see which has stronger prospects right now.
Image source: Getty Images.
The case for AbbVie
Sales of AbbVie's top-selling drug, Humira hit a high water mark in 2018 at just shy of $20 billion. Late last year, less expensive biosimilar versions of the anti-inflammatory injection began eating into its market share among sufferers of rheumatoid arthritis, psoriasis, and a handful of other chronic autoimmune disorders.
Biosimilars have had a such a hard time gaining traction in the U.S. that investors were caught off guard when AbbVie reported that its international Humira sales in Q1 were 27.9% lower than in the prior-year period.
Humira still accounts for 56.8% of AbbVie's total revenue, so investors should be concerned. Luckily for the company and its shareholders, a thicket of ancillary patents has effectively blocked the drug's biosimilars from the U.S. market until 2023, which explains how domestic sales rose 7.1% to $3.2 billion during the first three months of 2019. Total worldwide sales fell 1.3% compared to a year earlier, and operating profits rose 3% to $3 billion.
While AbbVie has been managing Humira's decline, it has also been plowing the profits the biologic drug generates into a pipeline of new treatments that should offset most of those lost sales. In 2015, the company made a lot of investors nervous by spending $21 billion in cash and stock to acquire a piece of Imbruvica, but that investment is performing even better than expected.
Imbruvica tablets became the first chemotherapy-free treatment option for new patients diagnosed with the most common form of leukemia in 2016, and the drug's sales have been climbing ever since. During Q1, AbbVie's share of Imbruvica sales rose 34% to an annualized $4.1 billion and could reach $7 billion by 2023.
AbbVie also hopes to transition psoriasis patients currently using Humira to its recently approved treatment, Skyrizi , which shouldn't be too difficult. Skyrizi wiped the floor with Humira in a head-to-head study, which led to its Food and Drug Administration (FDA) approval.
AbbVie is now waiting for the FDA to hand down a decision about upadacitinib, a tablet for rheumatoid arthritis patients that outperformed Humira as well. If upadacitinib earns approvals for rheumatoid arthritis later this year and the ulcerative colitis indication in 2022, its annual sales could reach $2.2 billion by 2024.
Investors nervous about AbbVie's ability to offset Humira's upcoming sales declines have pushed the stock price down to just 9.0 times forward earnings expectations. The company generated $12.8 billion in free cash flow last year, and used just 44% of profits to make payments on a dividend that has been yielding around 5.4% recently.
Image source: Getty Images.
The case for AstraZeneca
It has been almost five years since AstraZeneca CEO Pascal Soriot convinced shareholders to reject a $118 billion buyout offer from Pfizer. Soriot promised to return annual top-line revenue to the previous year's level of $25.8 billion by 2017, but he didn't even get close. In 2018, product sales were just $21.0 billion, due to clinical trial setbacks and competition that proved tougher than expected.
AstraZeneca's market cap is still 16% below Pfizer's final bid, and a rising debt load has lowered the company's book value by 52% in the years since it rejected the offer. If you're surprised Soriot still has a job at AstraZeneca, you're not alone. If there's an explanation, it probably involves recent sales growth from the company's newer oncology products. Imfinzi might not become the $6.5 billion per year lung cancer treatment that management forecast in 2014, but its sales did reach an annualized $1.2 billion during Q1 2019.
Tagrisso became standard care for newly diagnosed lung cancer patients with EGFR-mutated tumors in 2018, and the market for that indication has turned out to be a bit larger than the company anticipated. Tagrisso exceeded all expectations and become AstraZeneca's top-selling drug after first-quarter sales jumped 86% year over year to an annualized $2.5 billion.
Sales of AstraZeneca's PARP inhibitor, Lynparza, soared 99% in Q1 thanks to label expansions for its use in ovarian and breast cancer granted in 2018. Lynparza's sales will surpass the $1 billion mark in 2019, and its growth story isn't finished. Recently, the company reported a statistically and clinically meaningful benefit for patients with pancreatic cancer following first-line chemotherapy. However, the company hasn't released any details yet; we'll need to wait for an upcoming scientific conference to find out exactly what AbbVie means by clinically meaningful.
AstraZeneca describes its dividend policy as progressive even though its biannual payouts haven't progressed since 2012, and the payments have exceeded available profits in recent years. Based on recent prices, this pharma stock is yielding about 3.5%, but it's struggling to cover that dividend at the moment.
With Astra's former top products, Nexium and Crestor, contributing just 13% of total sales, the path is clear for revenue gains ahead. Unfortunately, investors who expect more fireworks from its oncology lineup have driven the stock price up to 21.2 times forward earnings expectations.
Image source: Getty Images.
The better buy
Based on AstraZeneca's performance over the past five years, and its balance sheet today, buying the stock at its current high multiple is just too dangerous. That said, it has so many new drugs moving quickly in the right direction that it will be an interesting stock to watch from the sidelines.
AbbVie is headed for a patent cliff, but because of its low valuation and strong cash flows, the company and the stock shouldn't suffer much even if things don't work out quite as well as expected with Skyrizi or upadacitinib. That makes AbbVie the better big pharma stock to buy now.
10 stocks we like better than AbbVie
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Cory Renauer 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. | AbbVie (NYSE: ABBV) and AstraZeneca (NYSE: AZN) have a lot in common -- they're just several years out of sync. While AbbVie is headed toward a patent cliff, AstraZeneca has been languishing somewhere near the bottom of the cliff it fell off years ago. The case for AbbVie Sales of AbbVie's top-selling drug, Humira hit a high water mark in 2018 at just shy of $20 billion. | The case for AbbVie Sales of AbbVie's top-selling drug, Humira hit a high water mark in 2018 at just shy of $20 billion. Investors nervous about AbbVie's ability to offset Humira's upcoming sales declines have pushed the stock price down to just 9.0 times forward earnings expectations. AbbVie (NYSE: ABBV) and AstraZeneca (NYSE: AZN) have a lot in common -- they're just several years out of sync. | The case for AbbVie Sales of AbbVie's top-selling drug, Humira hit a high water mark in 2018 at just shy of $20 billion. Investors nervous about AbbVie's ability to offset Humira's upcoming sales declines have pushed the stock price down to just 9.0 times forward earnings expectations. AbbVie (NYSE: ABBV) and AstraZeneca (NYSE: AZN) have a lot in common -- they're just several years out of sync. | Humira still accounts for 56.8% of AbbVie's total revenue, so investors should be concerned. During Q1, AbbVie's share of Imbruvica sales rose 34% to an annualized $4.1 billion and could reach $7 billion by 2023. AbbVie is now waiting for the FDA to hand down a decision about upadacitinib, a tablet for rheumatoid arthritis patients that outperformed Humira as well. |
25004.0 | 2019-04-27 00:00:00 UTC | Why AbbVie Is in Better Shape Than You Might Think | ABBV | https://www.nasdaq.com/articles/why-abbvie-better-shape-you-might-think-2019-04-27 | nan | nan | It's rarely a good sign when a company's quarterly revenue drops from the prior-year period. But that's exactly what happened in the first quarter for AbbVie (NYSE: ABBV). The big pharma's sales slipped 1.3% year over year to $7.83 billion. It marked the first quarter in AbbVie's history to report a revenue decline.
Make no mistake: AbbVie now faces its toughest challenge ever. However, the company's Q1 results don't tell the full story. Actually, AbbVie is in better shape than you might think.
Image source: Getty Images.
Silver lining
Although AbbVie's revenue fell in the first quarter, the big drugmaker still managed to beat the consensus analysts' estimate. However, the real silver lining for AbbVie came on its bottom line. The company reported solid year-over-year adjusted earnings per share (EPS) growth of 14.4%. This improvement was better than even the highest end of the range of Wall Street estimates.
For full-year 2019, AbbVie expects adjusted EPS growth of 11%. Keep in mind that it anticipates delivering this double-digit percentage growth despite having nearly $5 billion of Humira's international sales under attack by biosimilar competition and another $500 million or so at risk for Androgel as a result of losing patent exclusivity.
And there's even a sliver of good news from Humira. AbbVie CFO Robert Michael noted in the company's Q1 conference call that adjusted gross margin increased 310 basis points year over year in Q1 to 83.3% of sales. This included a bump of 280 basis points related to the expiration of royalties that AbbVie has to pay on Humira.
Timing factors
Investors should also know that several timing factors will combine to make 2019 more challenging for AbbVie than the next few years will be for the company. Several products that should help offset declining international sales for Humira and falling overall sales for Androgel are only in their early stages.
For example, AbbVie thinks that Venclexta will be a blockbuster success story. The drug generated revenue of $151 million in the first quarter, though, and still has a considerable way to go to reach peak sales estimates. AbbVie and its partner Roche await another key FDA approval for Venclexta in combination with Gazyva as a first-line treatment for chronic lymphocytic leukemia (CLL).
The commercial launch for Orilissa is also still cranking up. AbbVie expected that this launch would be slower than for other products because of the education that was needed in the physician community for the first new endometriosis drug in years. Orilissa is expected to make around $200 million this year. However, with the slow-but-steady rollout in treating endometriosis and an anticipated regulatory filing for treating uterine fibroids coming up within a few months, Orilissa should become another blockbuster for AbbVie over time.
Then there's Skyrizi (risankizumab). AbbVie won FDA approval for the drug in treating psoriasis last week. CEO Rick Gonzalez said in the company's Q1 call that AbbVie expects to have "more than 50% commercial access by the end of July, a 90-day access metric not achieved by any other recent launch in the psoriasis category."
Gonzalez stated that the company only anticipates sales for Skyrizi of around $150 million this year, most of which will come in the second half of 2019. But the drug seems likely to achieve peak annual sales of more than $2 billion.
Promising pipeline
The crown jewel in AbbVie's pipeline has yet to win regulatory approval. But that should change soon. The FDA is expected to announce an approval decision for upadacitinib in treating rheumatoid arthritis (RA) in the third quarter of this year.
In phase 3 studies, upadacitinib demonstrated clear superiority over Humira in treating RA. As Rick Gonzalez has stated in the past, Humira is currently "the gold standard" for the indication. Upadacitinib could become the "platinum standard." AbbVie thinks the drug could make $6.5 billion annually at its peak.
Another late-stage pipeline candidate for AbbVie that doesn't get as much attention is Depatux-M (formerly known as ABT-414). AbbVie President Michael Severino liked what he saw in the phase 2 data for the drug in treating EGFR-amplified glioblastoma multiforme, an aggressive form of brain cancer. He thinks that Depatux-M is an intriguing pipeline candidate to "keep an eye on."
Strong cash flow
Last but not least, AbbVie continues to generate exceptionally strong cash flow despite the headwinds for Humira. The important thing to know is that the company has used and will continue to use this cash flow in ways that reward shareholders.
At the top of the list is AbbVie's great dividend. Its dividend yield currently stands north of 5.3%. The company also plans to continue buying back shares, which boosts its EPS growth. And AbbVie could make more deals in the future to bolster its pipeline.
Rick Gonzalez said in AbbVie's Q1 call that the company is "well-positioned to continue to deliver top tier financial performance in 2019 and beyond." I think he's right. AbbVie really is in better shape than you might think.
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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 and its partner Roche await another key FDA approval for Venclexta in combination with Gazyva as a first-line treatment for chronic lymphocytic leukemia (CLL). AbbVie President Michael Severino liked what he saw in the phase 2 data for the drug in treating EGFR-amplified glioblastoma multiforme, an aggressive form of brain cancer. But that's exactly what happened in the first quarter for AbbVie (NYSE: ABBV). | For full-year 2019, AbbVie expects adjusted EPS growth of 11%. AbbVie thinks the drug could make $6.5 billion annually at its peak. Strong cash flow Last but not least, AbbVie continues to generate exceptionally strong cash flow despite the headwinds for Humira. | AbbVie CFO Robert Michael noted in the company's Q1 conference call that adjusted gross margin increased 310 basis points year over year in Q1 to 83.3% of sales. Timing factors Investors should also know that several timing factors will combine to make 2019 more challenging for AbbVie than the next few years will be for the company. CEO Rick Gonzalez said in the company's Q1 call that AbbVie expects to have "more than 50% commercial access by the end of July, a 90-day access metric not achieved by any other recent launch in the psoriasis category." | It marked the first quarter in AbbVie's history to report a revenue decline. But that's exactly what happened in the first quarter for AbbVie (NYSE: ABBV). Make no mistake: AbbVie now faces its toughest challenge ever. |
25005.0 | 2019-04-26 00:00:00 UTC | 3 Big Stock Charts for Friday: AbbVie, ConocoPhillips and MGM Resorts | ABBV | https://www.nasdaq.com/articles/3-big-stock-charts-for-friday%3A-abbvie-conocophillips-and-mgm-resorts-2019-04-26 | nan | nan | A back and forth session on Thursday ultimately ended in a stalemate, with the S&P 500 closing a scant 0.04% lower yesterday. The direction of the market’s undertow, if there is one, remains unclear.
Source:
3M (NYSE:) did more damage than any other name, falling nearly 13% after reporting disappointing first-quarter numbers and ultimately deciding to cull 2000 jobs to adjust for a poor outlook. Nokia (NYSE:) wasn’t far behind with more than an 8% stumble though, after swinging to a surprising first-quarter loss.
There were some winners, though not as many, and no major names made meaningful gains. New Age Beverages (NASDAQ:) jumped more than 5% yesterday on news surrounding its new Marley-branded CBD drink, but NBEV shares gave back more than 2% in yesterday’s after-hours trading.
None of them are great trading prospects headed into the final trading day of the week though. Rather, it’s the stock charts of AbbVie (NYSE:), ConocoPhillips (NYSE:) and MGM Resorts International (NYSE:) that have earned closer looks.
ConocoPhillips (COP)
, ConocoPhillips was put under the trading microscope as a potentially bearish candidate. A major floor was being tested, repeatedly, but more than that COP stock was logging more lower highs thanks to increasing resistance at key moving average lines. Most noteworthy of all was that ConocoPhillips was being left out of a rally most other energy names were enjoying.
As of Wednesday, that support line has been snapped. As of Thursday, the bears put some distance between that floor and COP stock.
Bolstering the bearish tide is the volume behind it. The weekly chart’s Chaikin line has already crossed below zero, which tends to be a good signal of a sizeable pullback.
MGM Resorts International (MGM)
In January, MGM Resorts popped out of a well-defined downtrend. Although the effort continued to get traction for a few more days, that move was ultimately unwound — and then some — in February and March.
The bulls appear to have regrouped since then, pushing the stock back above all the key moving average lines. It’s this second effort, in fact, that largely seals the deal on the bigger rebound effort. The key is the interplay of those moving averages.
Also, take note of the way the moving average lines are starting to converge again after a big bearish divergence last year. The impending bullish crosses of those moving average lines are buying triggers in and of themselves.
Although compelling, the budding renewal of the breakout so far lacks volume. If the volume is still light after any move above $28, close caution remains advised.
AbbVie (ABBV)
With just a quick glance, AbbVie looks like it’s in serious trouble. Shares have been trending steadily lower since April, and are within easy reach of new 52-week lows … again.
ABBV stock may be better positioned for a rebound than it seems on the surface, however. While there’s still some significant work that needs to be done to snap AbbVie out of its bearish rut, a great deal of the needed hard work has already been done.
Curiously, although it has not helped make much forward progress, the past three days have not only been bullish, they’ve been on above-average volume. The bulls may be testing the waters.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, , or follow him on Twitter, at @jbrumley.
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. | Rather, it’s the stock charts of AbbVie (NYSE:), ConocoPhillips (NYSE:) and MGM Resorts International (NYSE:) that have earned closer looks. AbbVie (ABBV) With just a quick glance, AbbVie looks like it’s in serious trouble. ABBV stock may be better positioned for a rebound than it seems on the surface, however. | Rather, it’s the stock charts of AbbVie (NYSE:), ConocoPhillips (NYSE:) and MGM Resorts International (NYSE:) that have earned closer looks. AbbVie (ABBV) With just a quick glance, AbbVie looks like it’s in serious trouble. ABBV stock may be better positioned for a rebound than it seems on the surface, however. | Rather, it’s the stock charts of AbbVie (NYSE:), ConocoPhillips (NYSE:) and MGM Resorts International (NYSE:) that have earned closer looks. AbbVie (ABBV) With just a quick glance, AbbVie looks like it’s in serious trouble. ABBV stock may be better positioned for a rebound than it seems on the surface, however. | Rather, it’s the stock charts of AbbVie (NYSE:), ConocoPhillips (NYSE:) and MGM Resorts International (NYSE:) that have earned closer looks. AbbVie (ABBV) With just a quick glance, AbbVie looks like it’s in serious trouble. ABBV stock may be better positioned for a rebound than it seems on the surface, however. |
25006.0 | 2019-04-25 00:00:00 UTC | AbbVie Inc (ABBV) Q1 2019 Earnings Call Transcript | ABBV | https://www.nasdaq.com/articles/abbvie-inc-abbv-q1-2019-earnings-call-transcript-2019-04-25 | nan | nan | Image source: The Motley Fool.
AbbVie Inc (NYSE: ABBV)
Q1 2019 Earnings Call
April 25, 2019, 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 First Quarter 2019 Earnings Conference Call. All participants will be able to listen-only until the question-and-answer portion of this call. (Operator Instructions)
I would now like to introduce Ms. Liz Shea, Vice President of Investor Relations.
Elizabeth Shea -- Vice President, Investor Relations
Good morning and thanks for joining us. Also, on the call with me, today are Rick Gonzalez, Chairman of the Board and Chief Executive Officer; Michael Severino, Vice Chairman and President; Bill Chase, Executive Vice President of Finance and Administration; and Rob Michael, Senior Vice President and Chief Financial Officer.
Before we get started, I would like to remind you that some statements we make today are or 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 the factors that may affect AbbVie's operations is included in our 2018 annual report on Form 10-K and in our other SEC filings. AbbVie undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments 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. Following our prepared remarks, we'll take your questions.
So, with that, I'll now turn the 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 first quarter performance and highlights, as well as our full year guidance, which we are raising this quarter. Mike will then provide an update on recent advancements across our R&D programs and Rob will discuss the quarter in more detail. Following our remarks, we will take your questions.
I'm pleased to report that we're off to an excellent start in 2019, reinforcing our confidence in the long-term fundamentals of our business. We are seeing strong momentum across all aspects of our operations, with excellent growth from our hematological oncology portfolio, continued robust growth from HUMIRA in the US, international biosimilar impacts is trending within our expectations for 2019. And importantly, our late-stage pipeline continues to deliver, with the recent approval of SKYRIZI in major markets globally.
We delivered first quarter adjusted earnings per share of $2.14, representing growth of more than 14% versus the prior year, and once again exceeding our guidance. Total revenues of more than $7.8 billion were also ahead of expectations for the quarter, with several key products contributing to that growth. We saw excellent performance from our hematological oncology business, with global operational sales growth of more than 43%.
US HUMIRA grew more than 7% versus a last year, driven by continued robust demand. International HUMIRA sales were down 23% on an operational basis, reflecting the impact of direct biosimilar competition in Europe and other international markets. The international biosimilar trends and dynamics have been consistent with our expectations.
We also saw a substantial contributions from several other products in our portfolio, including Mavyret, Creon and Duodopa. We're certainly pleased with our commercial performance and our financial results for the quarter, and we remain well-positioned to deliver double-digit earnings growth once again in 2019. As noted in our earnings release, we are raising our full year 2019 guidance and now expect adjusted earnings between $8.73 and $8.83, reflecting growth of 11% at the midpoint.
In addition to the strong financial results, we have continued to make significant progress, building a pipeline that will allow us to maintain a growing and vibrant business. Since our inception, we've put tremendous effort and resources toward developing new therapies that advance the standard-of-care across a spectrum of important disease states. With special emphasis on doing so in a broad range of immune-mediated diseases, our central focus has been on advancing new medicines that will raise the bar and address important therapeutic needs for patients.
We believe that risankizumab and upadacitinib have achieved the objectives that we set forth. Both of these therapies have demonstrated differentiated clinical profiles versus HUMIRA, as well as other mechanisms on the market or those in development. This profile coupled with our strong commercial execution gives us tremendous confidence that both will be the new standard-of-care in their respective indications.
We recently announced the approval of risankizumab now known as SKYRIZI in the US and Japan for the treatment of adult patients with moderate to severe plaque psoriasis. These approvals mark a major milestone for AbbVie and further demonstrate our commitment and leadership in immunology. We're certainly pleased with the approved label for SKYRIZI, which reflects its best in category efficacy, favorable benefit risk and quarterly dosing.
As you know, we also have a highly experienced team, including the leading immunology marketing team and sales force, which will support this launch. Given its compelling product profile, we expect to secure rapid and broad formulary coverage for SKYRIZI, with more than 50% commercial access by the end of July, a 90-day access metric not achieved by any other recent launch in the psoriasis category. SKYRIZI represents a significant long-term opportunity for AbbVie, with multi-billion dollar peak sales potential.
We have also been planning and preparing for the forthcoming regulatory approval and commercial launch of upadacitinib, our JAK1-selective inhibitor in rheumatoid arthritis. We've been extremely encouraged by the level of efficacy and benefit risk profile observed across the entire upadacitinib clinical program, including its clear superiority versus HUMIRA, the current gold standard for the treatment of RA. Based on the data generated across our program, we believe upadacitinib will offer meaningful advantage over other products on the market today for those in development and we remain on track for US regulatory decision in the third quarter.
With a robust and differentiated data we produced from our assets and the launch of several new products now under way, we remain confident that the strategy we have in place is working extremely well. We're excited to see the evolution of our pipeline assets from promising late-stage development compounds to successful on-market products. SKYRIZI marks the 12th new product or major indication approval for AbbVie in the last five years, demonstrating the productivity of our R&D investments, which is vital for the long-term success of any innovation-driven biopharmaceutical company like ours.
So, in summary, I'm extremely pleased with the strong execution and pipeline advancement we're seeing, leading to our increase in expectations for 2019. We are off to an exceptional start of the year, followed by several years of market-leading performance and we're well-positioned to continue to deliver top tier financial performance in 2019 and beyond.
With that, I will turn the call over to Mike for additional comments on our R&D programs. Mike?
Michael E. Severino -- M.D., Vice Chairman and President
Thank you, Rick. I'll start with immunology, where, as Rick noted, we've made significant progress with both of our late-stage assets. We recently received approval in the US and Japan for SKYRIZI in moderate to severe plaque psoriasis and expect an approval decision in Europe very soon. Based on the positive CHMP opinion we received at the end of February. These approvals are supported by a broad clinical development program, where SKYRIZI demonstrated a very start strong profile in Phase 3 studies across more than 2,000 patients.
We are pleased with the SKYRIZI label, which reflects the efficacy and safety profile demonstrated across our program. As we evaluate the available biologic treatment options, we believe SKYRIZI has a best in disease product profile, with differentiated attributes across the categories that physicians and patients the most important, including skin clearance, durability of response and dosing, with a favorable benefit risk profile.
In our Phase 3 studies, SKYRIZI demonstrated very high rates of durable skin clearance, with more than 80% of patients achieving PASI 90 and 60% of patients achieving PASI 100 or complete skin clearance at one year. Importantly, the proportion of SKYRIZI treated patients who achieve these high levels of response increased over time. In fact, the level of complete skin clearance at the one-year mark is the highest reported in a Phase 3 program to our knowledge.
In psoriasis both speed and durability of response are important considerations for an optimal therapy, as loss of efficacy is a key concern for both patients and physicians. Our clinical trials demonstrated clearance after just a single dose of SKYRIZI, as measured by the mean change in PASI score. The average skin clearance following the first dose was 58%, increasing to 91% after two doses and 95% after five doses.
SKYRIZI also provides a best in category dosing profile, with convenient quarterly dosing and flexibility for in-office or at home self-administration. We look forward to bringing this new treatment option to psoriasis patients. We also continue to make good progress with the development programs for SKYRIZI in several other immune-mediated conditions, with late-stage studies ongoing in several follow-on indications. We look forward to providing updates on these programs as the data mature.
Moving now to our other late-stage immunology assets, upadacitinib, where regulatory applications are currently under review for its initial indication rheumatoid arthritis. Our regulatory submissions are based on a comprehensive Phase 3 program. In our program, upadacitinib demonstrated strong results across a wide range of patients, including patients early in the treatment paradigm, who are naive to methotrexate, as well as patients who are heavily pre-treated with biologics. Upadacitinib is the only JAK1-selective inhibitor to meet all primary and secondary endpoints across all registrational trials.
Importantly, upadacitinib demonstrated clear superiority versus HUMIRA across all key measures evaluated in a head-to-head study, as well as clear structural benefit in two Phase 3 studies. Upadacitinib also performed extremely well as monotherapy, which we view as another important differentiator, because although methotrexate is commonly used as a first-line therapy, many patients do not respond to or cannot tolerate methotrexate treatment. Based on the data generated across our clinical program, we remain confident in the benefit risk profile for upadacitinib and believe that it will offer meaningful advantages over other therapeutic options. We continue to anticipate a regulatory decision in the third quarter and look forward to bringing this new therapy to the market.
Moving now to our hematologic oncology portfolio. In the quarter IMBRUVICA received FDA approval for its 10th indication. For using combination with GAZYVA in front-line CLL. This represents the first approval for a chemotherapy free combination regimen and treatment-naive patients with CLL. The approval is based on results from the Phase 3 iLLUMINATE study, in which treatment with the combination of IMBRUVICA and GAZYVA demonstrated a significant improvement in the risk of progression or death compared to treatment with Chlorambucil and GAZYVA. iLLUMINATE trial is one of several important Phase 3 studies that have demonstrated treatment with IMBRUVICA alone or in combination significantly prolongs progression-free survival compared to therapies such as FCR, BR and GC and previously untreated CLL patients.
These studies add to the breadth of data supporting IMBRUVICA, providing physicians more evidence of its compelling clinical benefits in the front-line setting. The data from three of these studies have been reflected in the NCCN Treatment Guidelines for front-line CLL, which now position IMBRUVICA as the only preferred regimen in the major segments of this market. We anticipate submitting data from other Phase 3 studies in front-line CLL for label augmentation later this year or early next year.
Moving now to VENCLEXTA, where our supplemental NDA and front-line CLL is currently being reviewed by the FDA under its real-time oncology review program. In conjunction with this submission VENCLEXTA received priority review, as well as a fifth breakthrough therapy designation. If granted, this approval will provide physicians and patients an important new treatment option and substantially expand the addressable population for which is VENCLEXTA is approved in CLL. We anticipate a regulatory decision later this year.
Last month, we disclosed top line data from the Phase 3 Bellini study in patients with relapsed-refractory multiple myeloma. While the study met the primary endpoint of progression-free survival, a higher proportion of deaths was observed in the VENCLEXTA arm compared to the control arm. Based on these data the FDA placed a partial clinical hold on all trials evaluating VENCLEXTA in multiple myeloma. We're working with the FDA to further analyze these results. But based on the data we have produced today, we continue to believe there is a potential role for VENCLEXTA in the t(11;14) biomarket defined myeloma population. We will provide updates on the multiple myeloma program as they become available.
Moving now to the area of women's health, where we're nearing completion of our pivotal program for Elagolix in uterine fibroids. Our registrational program evaluated nearly 800 women with heavy menstrual bleeding associated with uterine fibroids in two pivotal studies. The results of the two pivotal studies demonstrated that Elagolix in combination with low-dose hormone add-back therapy significantly reduced heavy menstrual bleeding compared to placebo. Current non-surgical treatments are limited in this area and women suffering from uterine fibroids need more therapeutic options. The results from these studies represent a significant advancement for women suffering from uterine fibroids and approval in this disease would represent an attractive follow on indication. We remain on track to submit our regulatory application in the middle of this year.
And in neuroscience, we are in the process of initiating a Phase 3 trial to support registration of ABBV 951, our innovative, subcutaneous levodopa/carbidopa delivery system. Continuous delivery of levodopa/carbidopa has proven to be very effective in managing motor fluctuations in patients with advanced Parkinson's disease. Duopa has helped to establish AbbVie's presence in this market and by providing patients with a less invasive non-surgical delivery option, this next-generation approach has the potential to broaden the treated patient population and help strengthen AbbVie's position in the advanced PD market.
In summary, we're extremely pleased with the productivity of our R&D organization, as we continue to invest in our pipeline to develop innovative medicines and support our long-term growth. We're seeing progress across all stages and in all therapeutic areas of our pipeline. With many important catal -- catalysts expected over the next 12 months to 18 months.
With that, I'll turn the call over to Rob for additional comments on our first quarter performance. Rob?
Robert A. Michael -- Senior Vice President, Chief Financial Officer
Thanks, Mike. As Rick mentioned, we had another quarter of outstanding performance. We reported adjusted earnings per share of $2.14, up more than 14% compared to prior year and $0.08 above our guidance midpoint. For the first quarter, net revenues were up 0.4% on an operational basis, excluding a 1% -- 1.7% unfavorable impact from foreign exchange. Strong growth from several key products offset the impact of the first full quarter of international biosimilar competition.
US HUMIRA sales were $3.2 billion, up 7.1% compared to prior year, driven by continued strong demand. Wholesaler inventory levels remained below half a month in the quarter. International HUMIRA sales were $1.2 billion, down 23% operationally, reflecting biosimilar competition across Europe and other international markets, and in line with our expectations.
Hematologic oncology global sales were $1.2 billion, up 43.2% on an operational basis, driven by the continued strong growth of both IMBRUVICA and VENCLEXTA. IMBRUVICA global net revenues were more than $1 billion, primarily driven by continued uptake in the front-line CLL segment. In CLL, IMBRUVICA remains the market leader across all lines of therapy, with new patient share of more than 25% in the front-line setting. VENCLEXTA revenues were $151 million, driven by continued progress in the broad relapsed refractory CLL segment and our recent launch in first-line AML.
We continue to be pleased with our strong global position in HCV. In the US, HCV revenues were up more than 17%, reflecting higher market share versus the prior year quarter. Our International business has also experienced positive share dynamics. But given patient de-warehousing in select markets during the prior year quarter, International HCV revenue declined approximately 25% on an operational basis, consistent with our expectations. We also saw continued strong operational sales growth for both Duodopa and Creon.
Turning now to the P&L profile for the first quarter. Adjusted gross margin was 83.3% of sales, up 310 basis points compared to the prior year, including a 280-basis-point 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 was 20% of sales, consistent with our expectations. The adjusted operating margin was 48.1% of sales, an improvement of 400 basis points versus the prior year. Net interest expense was $325 million and the adjusted tax rate was 7.9%.
As mentioned earlier, based on our strong performance year-to-date, we are raising our full year adjusted earnings per share guidance to between $8.73 to $8.83, reflecting growth of 11% at the midpoint. Excluded from this guidance is $1.47 of known intangible amortization and specified items, as well as a non-cash charge for contingent consideration related to the recent approval of SKYRIZI. We plan to communicate details about this charge on our second quarterearnings call This revised guidance continues to contemplate full year revenue growth of approximately 1% on an operational basis. At current rates, we now expect foreign exchange to have approximately 1% unfavorable impact on full year reported sales growth.
As Rick and Mike noted, we're pleased with the recent approval of SKYRIZI. Given the quarterly dosing schedule and our free goods program to bridge patients to commercial access, we expect very modest sales contribution from SKYRIZI in the second quarter. For the full year, our revenue guidance includes approximately $150 million of SKYRIZI sales, which will predominantly occur in the second half of the year. All other full year 2019 forecast assumptions for our key products remain unchanged.
Turning now to the P&L for 2019. We now expect an adjusted gross margin ratio approaching 83% and we now expect adjusted operating margin to be just above 47%, roughly 250 basis points above prior year and inclusive of the required investments for our new product launches. All other full year 2019 guidance assumptions remain unchanged.
As we look ahead to the second quarter, we expect adjusted earnings per share between $2.20 and $2.22, excluding approximately $0.30 of non-cash amortization and other specified items. As mentioned earlier, this guidance excludes a non-cash charge for contingent consideration related to the approval of SKYRIZI. We anticipate second quarter adjusted revenue above $8.1 billion. At current rates, we would expect foreign exchange to have an unfavorable impact on reported sales growth of approximately 1.5%. For US HUMIRA, we expect sales growth of approximately 7%. We expect International HUMIRA sales of approximately $1 billion assuming current exchange rates. And for IMBRUVICA we expect global sales approaching $1.1 billion .
Moving now to the P&L for the second quarter. We are forecasting an adjusted operating margin ratio comparable to first quarter results. We anticipate higher spending in the second half of the year related to new product launches. And we expect the adjusted tax rate to be in line with our full year guidance, which is just above our 2018 rate.
In summary, AbbVie has once again delivered an excellent quarter, with results well ahead of our expectations. Our strong growth prospects have enabled us to position the business for another year of double-digit earnings growth in 2019, despite Biosimilar dynamics and the required investments to support several major product launches. We are very pleased with AbbVie's strong performance.
And with that, I'll turn the call back over to Liz.
Elizabeth Shea -- Vice President, Investor Relations
Thanks, Rob. We will now open the call for questions. Operator, first question please.
Questions and Answers:
Operator
Thank you. (Operator Instructions) Our first question today is from Steve Scala from Cowen.
Stephen Michael Scala -- Cowen and Company, LLC -- Analyst
Thank you. I have a few questions. First, raising guidance after the first quarter is clearly a sign of confidence in the outlook. I believe, AbbVie raised after Q1 last year on its way to a great full year performance. How many times in its history has AbbVie raised guidance after the first quarter?
Secondly, on the gross profit margin was quite strong. You mentioned the royalty relief. Were there any other one-time benefits in the quarter?
And then, lastly, AbbVie has an exciting late-stage pipeline, but also an expansive early to mid-stage pipeline. Within the early to mid-stage pipeline, what products look most interesting and promising? Thank you.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Hi, Steve. This is Rick. I'll take the first question. I mean, obviously, we feel good about how the year started, and I said, we've started with a tremendous amount of momentum. Certainly, as we look at the performance of the hematological oncology business and US HUMIRA, and many other products are performing extremely well. And so, that's certainly driving the level of confidence that we're seeing. As well as, we've now seen a substantial period of time that I think we can measure the impact of biosimilar competition outside the US and feel good about how that is tracking against our expectations.
Specific to your question, we raised guidance three times in the first quarter and we've raised guidance, I think, 13 out of the 25 quarters that we've reported. And certainly we do not raise guidance in the first quarter unless you had a level of confidence that you could deliver that or greater performance across the year. That would just be a foolish position to take. So in both of the prior years where we raise in first quarter, those ended up being years where we outperformed significantly. So I think it is a good indication of the level of confidence that management has in the business whether it be our business or any other business, I think, it demonstrates a level of confidence, otherwise we wouldn't choose to do that.
And certainly, I am extremely pleased with how we've come out of the blocks in 2019 and I'm pleased with what -- how the pipeline has continued to deliver, and obviously, we'll be launching two major products this year SKYRIZI and ultimately we anticipate being able to launch upadacitinib this year in addition to the products we've already launched recently and are driving a tremendous amount of growth. So I have a lot of confidence in how the business can perform. With that, I will turn it over to Rob to answer your second question.
Robert A. Michael -- Senior Vice President, Chief Financial Officer
Hi, Steve. It's Rob. So we feel very good about our progress in gross margin. We just printed a new high. The lion's share of improvement you're seeing comes from the termination of HUMIRA royalties. We do have efficiencies in foreign exchange helping cover the impact of partnership accounting. But as you can see from our full year guidance, we have a lot -- we feel very good about the progress we've made in gross margin. So I wouldn't anticipate a lot of one-time impacts.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Mike, why don't you answer three?
Michael E. Severino -- M.D., Vice Chairman and President
Sure. So, this is Mike. We have obviously invested considerably in our late-stage pipeline. But we've also paid a large amount of attention and invested to make sure that we have broad and promising early to mid-stage pipeline as well. So I'd highlight programs from a couple of areas. Although, it's a late-stage program, I think, it's one that doesn't get a lot of attention, and so, I think, it's worth mentioning, which is Depatux-M, which used to be known as ABT-414, which is our EGFR targeted ADC in EGFR-amplified glioblastoma multiforme. That has delivered very interesting mid-stage data in the second-line patients with GBM and is in a randomized Phase 3 study with overall survival as a primary endpoint now in front-line GBM. So, I think, that is potentially a very interesting opportunity, because there really is very limited treatment options available for these patients and so that's one that I think we can keep an eye on.
Turning to our early pipeline. I would highlight in oncology. Our work in apoptosis, which is really an extension of what we learned discovering and developing a venetoclax or BCl-2 inhibitor. We have a Phase 2 study ongoing now with the different molecule with the venetoclax, which inhibits both BCL-2 and BCL-XL and that combination inhibition, that pattern of inhibition has potential in myelofibrosis and can specifically address the clone that drives that very serious hematologic disorder. There's really only one pathway currently that treat that disease. The current standard-of-care is Jakafi.
In our Phase 2 study we're looking at patients who failed or didn't respond to Jakafi. We're looking at a pretty resistant population and even early on we're seeing some very interesting responses. And I think there's also real potential that we could address the underlying pathophysiology and therefore be disease-modifying in the bone marrow fibrosis. So that study is accruing by the end of this year, early next year, we will be in a position to make a decision to advance that program into later stage development.
We also have number of other programs that are just a little bit behind that one in apoptosis. Programs like our TRAIL program, which is an apoptosis related program that has promising solid tumors including things like colorectal cancer and pancreatic cancer and we're seeing some very interesting responses in good PK-PD relationship in our early studies there. And we have a BC-XL targeted delivery for solid tumors also that add about the same stage of development.
If we shift to immuno-oncology, we've done a lot of work to advance our pipeline there. And one of the most novel programs in that area is program called GARP, which is now ABBV-151. That modulates TGF-beta and T-reg function which is thought to mediate the tumor immunosuppressive environment. So that's a program I think has a lot of solid science behind it is now in the clinic and we have a number of other novel IO programs in the clinic as well.
If we now shift our focus to immunology, a couple of things I would point to our TNF steroid ADC that has promised to deliver very high levels of response to patients, because we know that steroids are highly effective at managing the symptoms of RA and other immunological mediated diseases, but they can be given at high doses for long periods of time. So this program attempts to deliver a novel steroid directly to the immune effector cells in RA without systemic consequences or systemic adverse effects.
What we know from the early studies is we are able to dose this molecule in the range where we would expect to see efficacy without seeing those widespread steroid like effects and we're now moving into a randomized study that will give proof-of-concept and should read out next year. We've invested in other programs in immunology as well, like our CD40 antagonist and our jack BTK combination program. So a lot of data to come there.
Last area I focus on is neuroscience. People are familiar with our TAL antibody, which is in Phase 2, but we've built a broad pipeline behind that and our two neuroinflammation assets that we're developing in partnership with Alector are now in the clinic and so those are some very interesting programs. So there's a lot of data to come over the next 12 months to 18 months.
Stephen Michael Scala -- Cowen and Company, LLC -- Analyst
Thank you.
Elizabeth Shea -- Vice President, Investor Relations
Thanks, Steve. Operator, next question please.
Operator
Thank you. Our next question is from Chris Schott from JP Morgan.
Christopher Thomas Schott -- JP Morgan Chase & Co. -- Analyst
Great. Thanks very much for the questions. My first one was on SKYRIZI and just how we're thinking about that launch ramp. I guess, historically, we've seen some of the newer psoriasis agents having relatively gradual ramps and then maybe a few years to really gain momentum. I guess, is that fair to think about in this situation or when we think about the higher payer access you cited in the commercial infrastructure you have, should we think about all the different dynamic here?
And your second question, just kind of building on that is, how are you thinking about HUMIRA dynamics in dermatology with this launch and with a range of new agents coming in. I know that business remained fairly healthy, but should we think about the growth slowing at that indication over time?
And maybe the final one was just on business development priorities, just latest thoughts on how you're thinking about business development, and I guess, specifically, how you're prioritizing revenue growth potential versus diversification as you think about potential deals that you'd be looking at? Thanks so much.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Hi, Chris. This is Rick. I think if you look at SKYRIZI and you look at the ramp and you compare to historical ramps, one of the limiting factors in the historical has been their ability to be able to get market access -- broad based market access in a reasonable period of time and that's always a limiter, no matter what product we're talking about, what specialty product we're talking about, if you don't have access, it makes the launch extremely difficult, but what most companies do is subsidize with free goods for a period of time until they can get access. But no one has gotten access like we're describing here. So, certainly, access should enhance the ramp of SKYRIZI.
Now having said that, it takes a few months even in our case, to get to the level of access that we're talking about. So in the current quarter, you shouldn't expect much in the way of SKYRIZI revenue, because we are going to use free goods extensively during that period of time, but that access should ramp dramatically as we get toward the end of the quarter and moving into the next quarter. And then you should expect that the product will ramp. As with any new mechanism, it obviously take some time to get physicians familiar with it, but I would expect SKYRIZI to ramp more significantly than what you've seen with historical ramp. So I think that would be a reasonable way to be thinking about it.
As it relates to HUMIRA dynamics. I think if you have to look at the profile of SKYRIZI and think about where it would fit in the treatment paradigm for patients. Here you have an agent that has PASI 90, PASI 100 scores, like we've never seen before and it's an agent that has a good benefit risk profile. So from a safety standpoint, I think, there will be a high level of comfort around it and it's an agent that obviously has significant advantages from a dosing standpoint, where patients will only have to inject themselves once a quarter.
So when you look at all of those dynamics, you have to ask yourself the question, why wouldn't that be a front-line agent and indeed that will be certainly how we will be positioning this agent, it has the profile to be able to deliver against that criteria that would be appropriate for front-line naive patients, and obviously, an agent that will also be used extensively for those patients that are switching from a therapy that ultimately -- they're not getting the level of efficacy that they desire and need.
Now, HUMIRA, obviously, will maintain, there's a large number of well maintained patients on HUMIRA. Obviously you don't switch a patient that is well maintained. It is not just appropriate. And so -- but I would expect that you will start to see HUMIRA slow somewhat in the psoriasis category as SKYRIZI starts to ramp in a very significant way.
The last question is around business development. And what I would say there is, if you look at our business, obviously, our business continues to perform well. We launched a significant number of products over the course of the last several years, you're starting to see that diversification. In fact, last year, if you look at the -- what drove our growth, it was very balanced growth between IMBRUVICA, HUMIRA, Mavyret and to a lesser extent VENCLEXTA. So you're starting to see that diversity or that diversification play out and obviously we're launching significant number of additional assets, we launched some at the end of the year and then more will launch this year with SKYRIZI and upadacitinib. That will drive over time more diversification.
Having said that, we have a business that generates significant cash flow and our first priority is always using that cash flow to be able to invest back in the business. And so we look at all different kinds of transactions, small ones, medium-sized ones and larger ones. We look at them all in the backdrop of do they strategically fit in the enhanced long-term performance of the business and are they value at a point which we can get a good return for the investment that we need to make. And when we find those, we obviously act on those and we have the financial wherewithal to do that. So that's how we think about it, and I wouldn't say that's different than how we've historically thought about it, but that is how we look at business development.
Christopher Thomas Schott -- JP Morgan Chase & Co. -- Analyst
Thank you.
Elizabeth Shea -- Vice President, Investor Relations
Thanks, Chris. Operator, next question please.
Operator
Thank you. Our next question is from Jason Gerberry from Bank of America.
Jason Matthew Gerberry -- Bank of America Merrill Lynch -- Analyst
Hi. Good morning. Thanks for taking my questions. I guess just first one on the EU HUMIRA guidance. I think the 2Q guidance was for $1 billion, which is about 40% down. So I was just wondering if you could help square that for us in terms of the 30% erosion for the full year. And then also help us reconcile, I think, Biogen yesterday mentioned that there's about 35% biosimilar share in Europe. So just trying to put these data points together, it would seem like, perhaps, the erosion profile might be a little bit worse in Europe than you would -- than the last guidance. So if you can provide a little clarity there that would be helpful?
And then, I guess, just second question, just on the ORILISSA launch, can you just give us a little color how this is progressing, it is progressing according to plan, are there some early challenges that there maybe a little greater than initially anticipated, that would be helpful as well? Thanks.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Okay. Jason, this is Rick. I'll answer those questions for you. First, to the point that you made about the erosion, the erosion that we quoted on the call was 30% against the total international base. I think we said at the time, if you just looked within the segment that we are growing in biosimilar that was around 40% or 44%, something in that range. So it is consistent with that. The guidance is consistent with what we originally talked about, and I'd say that's the guidance that we are absolutely comfortable with as things are playing out.
If you look specifically to the Biogen comment. I think for Biogen said, although, I didn't read the transcript, but others did, is I think what they said was that share was in Germany. And I'd say, it's in the range of that in Germany. I can't remember the specific number that they quoted, remember, Germany has a quota system that they use and that quota is that 40% of the prescriptions written by their doctors, their physicians should be biosimilar products and so they are obviously going to drive to that 40% and they're not -- they're approaching that now. So I don't think that is a big surprise.
If you look more broadly across all of Europe -- all of the areas that are affected by biosimilars in Europe, then the share would be about 16% right now in the first quarter. We would expect that that will rise over the course of the year, which is just how we planned it. We plan two things, rising share and more price erosion as we advance toward the fourth quarter and that is how our forecast is built. So it's tracking against that forecast well. I think if you look at Biogen and Amgen, I'd say they have been the most aggressive in the market thus far. So Biogen quoted what they were getting up that share in Germany, I have no reason to believe that that wasn't accurate and but that's essentially how the biosimilars are going. So I'd say, I think, now actually we had more experience, we're pretty comfortable with how the biosimilars are sorting themselves out.
On ORILISSA, the ramp is going or the launch is going as we would expect. We have spent quite a bit of time out educating physicians. This is a physician population that hasn't had a new medicine in this area in order they prescribe a lot of these types of medicines in their practice generally. I'd say the receptivity that we're seeing physician -- from physicians is very good, very positive. These feedback we're getting from patients as they start I think is encourage. It would be suggestive of the fact that even into 150-milligram dose patients are seeing rapid relief of pain. So I think that's certainly positive and they like the profile of the drug.
We started the DTC campaign a couple of months ago and that will be an important aspect of this launch. And we said all along, this is a -- this is an area where we're ultimately going to have to build the market. And it's important to remember, these patients are typically younger women, right, and they don't go to their doctor every couple of months. They go to their doctor typically once a year. So engaging them and making them understand that there is a therapy available, and therefore, they should go to their doctor off cycle is an important part of this launch and building this launch.
I would say it's tracking well, compared to what we would have expected. The drug has right now about a $60 million running rate and growing. So it's within the expectations that we had. And long-term, I can tell you, our expectations are still. This will be a very sizable product for us going forward, albeit, it's going to be more of a slower ramp than some other products like HCV where they ramp very rapidly.
Jason Matthew Gerberry -- Bank of America Merrill Lynch -- Analyst
Got it. Thank you.
Elizabeth Shea -- Vice President, Investor Relations
Thanks, Jason. Operator, we'll take the next question please.
Operator
Thank you. Our next question is from Navin Jacob from UBS.
Navin Jacob -- UBS -- Analyst
Hi. Yes. Thanks for taking my questions. Maybe a question for Bill and a question for Rick, if I may. Bill, with the nice increase to your operating margin guidance to 47% for 2019. How confident are you in your 2020 operating margin guidance of 50%, I mean, that -- what's driving that 300 bps of increase?
And then second question for Rick. Obviously, the Pharma Group over the last two weels, three weeks has been under significant pressure, last week lease was associated with Medicare for all concerns, before that IPI and rebate rule. There's a lot of things proposed a lot of things discussed. I guess, Rick, help us understand beyond, obviously, I'm not going to ask you to handicap political outcomes, but beyond the political hurdles, what are some of the practical hurdles associated with broader form such as Medicare for all? And then with regards to the rebate rule, what are your expectations going into next year, assuming implication -- implementation? How that will affect AbbVie's ability to deal with marketplace, which is fundamentally has been driven with the inflammation marketplace, which has fundamentally been driven by -- a lot by how payors position products? Thanks.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Okay. Thank you. Rob, why don't you answer the first?
Robert A. Michael -- Senior Vice President, Chief Financial Officer
Hi, Navin. This is Rob. So we're in the process of developing our LRP right now. So I'm not going to give you 2020 guidance. But let me tell you how to think about it. If you think about the 2019 profile, we're up about 250 basis points, despite the investment for new product launches and flattish sales. In 2020, you should see increased P&L leverage as those new products ramp and the overall top-line grows. So that's the way I would model it.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Yeah. As it relates to the debate that's ongoing about affordability of healthcare and affordability of medicines. It certainly is obvious to everyone that there is a very significant debate that is ongoing here. I think fundamentally comes back to having patients have access to the medicines that they need and making sure that those medicines are priced in a range where they are affordable and they are justified based on the pharmacoeconomics of those particular agents. We should hope it will get to that debate. I think eventually it will get to that debate.
And so as you look at patients ability to be able to access medicines. I think it's important to think about it in the backdrop of where is the challenge in that. I would tell you as an example, and I don't think we're unusual, but we have a very extensive patient assistance program and that program actually allows patients up to 600% of poverty, which I think is around $150,000 a year worth of income for a family of four somewhere thereabouts, that in the event they can't afford their medicines, they can come to us and we obviously will provide the medicine even free of charge and we provide a significant amount of medicine to those patients.
Those programs are available to commercially insured patients, to uninsured patients, and therefore, there shouldn't be a patient that falls into that category. It doesn't have access to an AbbVie medicine regardless of their ability to be able to pay. Now do people fall through the net and they don't realize it. We are looking into that and we may actually do some additional awareness campaigns to make sure patients understand how to be able to access that that program. But I can tell you we have pretty broad coverage of that program, and we monitor how many patients don't qualify because of their income levels and we always constantly look at whether or not we have that set appropriately for patients who can't afford the medicine.
And so we adjust it in time based on the percent of over poverty income to ensure that we're trying to cover the vast majority of those patients. So, you shouldn't have a significant problem with those kinds of patients. Then you look at commercially insured patients, obviously, the industry provides a significant level of co-pay assistance to those patients and so that shouldn't be a challenge.
Where the challenge does exist, because these programs are not available broadly to patients on Medicare Part D, is in Medicare Part D. The non-LIS portion of Medicare Part D has very high out-of-pocket costs for medicines, particularly specialty medicines and to sort of put in perspective for you, a Medicare Part D patient, if you compare their out-of-pocket expense to a commercially insured patient, a patient on Medicaid, a patient who isn't Part D, but part of the LIS program, their out-of-pocket expense for something like HUMIRA is a little over 50 times, five-zero times, what it is compared to those other patient populations, which is a pretty significant burden on those patients.
And so I think, one of the things, we're trying to drive as we go through this process is, I think, it is the industry's responsibility to help step up and try to cover some of that cost and share some of that with the government to be able to make it affordable for those patients, that is just too high a burden on Medicare patients to be able to afford that. And I think that's the area that you have the greatest challenge from an ability to access these kinds of medicines. And so, we are obviously trying to come up with ways that we can suggest or try to participate in the process to help alleviate that challenge and I think we should be willing to come to the table and help drive that.
Now, people say, well, what about the cost associated with that? If you look at the Part D plan and you look at the overall cost, compared to how enrollment has increased over time, I would tell you that the Part D plan has worked extremely well from a competitiveness standpoint, the insurers that negotiate this and the PBMs that negotiated on behalf of the government, drive a pretty hard bargain and you see fairly significant rebating or discounting in this program.
I think one of the challenges and I will get to that here in a minute when we talk about rebate. One of the challenges is it would appear most of that rebate is being put back into the premiums, lowering the premiums and so there is this debate, where should that rebate money go back, should it go back against the actual drug costs or should be built back into the premiums and look that's not a decision that we make and I think that is part of where the rebate challenge comes in.
Now, as it relates to patients, well, certainly, I think, most of us believe that patient shouldn't be paying against the list price of their substantial rebates. And so the rebate rule as it's proposed right now, would allow manufacturers like us to discount at the point-of-sale or point of pharmacy to be able to reflect that and then that would be reflected in what the patient pays. I can tell you we are totally supportive of the patient paying off of the rebated price or the discounted price. I think that is absolutely appropriate.
Whether the rebate rule goes through as it is or some modification or doesn't go through at all, look, I can't handicap that. We have analyzed how it would as is currently proposed and as we've said many times, it doesn't affect our business, one way or another, whether it's a rebate or a discount, they are one and the same. And so, I think, we're comfortable with -- if that were to go through, being able to manage our business in a very similar way to the way we manage our business now. I think one of the challenges with Medicare for all would be you'd have to look pretty carefully at this drug benefit, because you would have patients who if they switched off one of those other programs and went on Medicare, at least the way Medicare Part D works right now. Their co-pay out-of-pocket is going to go up dramatically. And I think that's not something that they would necessarily like. So I think that's a significant challenge.
But I think one way or another we have to attack that and resolve this. This group making sure that they have good access, affordable access to drugs that they need. Now these are drugs that don't get abused. Now at the end of the day, take a drug like HUMIRA. HUMIRA is step edited has prior authorization. The patient has to fail all the lower cost alternatives before they ever get access to a medicine like HUMIRA. So there is not any real risk of abuse in this kind of a category. And so I think that's something else that's important to put in perspective as we have this debate.
Elizabeth Shea -- Vice President, Investor Relations
Thanks, Navin. Operator, we'll take the next question please.
Operator
Thank you. Our next question is from Josh Schimmer from Evercore ISI.
Joshua Elliott Schimmer -- Evercore ISI Institutional Equities -- Analyst
Thanks for taking the questions. Just want to clarify some of the points on guidance. On the fourth quarter call, you had indicated ORILISSA would be around $200 million this year. Is it on track for that or might that take a little longer to achieve? And then just follow-up on your answer to Jason's question about the OUS guidance for HUMIRA this year, sorry, in the second quarter being down 40% year-over-year. You talked about the expected cadence of erosion in Europe. But OUS is still projected to be down 40%. So you can elaborate on the answer and reconciling that with the initial guidance of 30% for global US for the -- ex US for the year? Thank you.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
So on ORILISSA -- Josh, this is Rick. On ORILISSA I would say that we are tracking against that number. So we're not changing our guidance on that number. And obviously, as I said, it has a running rate right now of about $60 million. And so it's ramping significantly from that. And I'd say, based on everything we know today, we're comfortable with that ramp. I'm not 100% sure I understand the question that you asked on the second one. Rob, I mean, you said something about 40% in the second quarter?
Robert A. Michael -- Senior Vice President, Chief Financial Officer
So, Josh, this is Rob. If you look at the guidance and compare that to our total international sales in the prior year that would put you at a 33% operational decline. So I'm not sure how you're getting your 40%.
William J. Chase -- Executive Vice President, Finance and Administration
And that -- Josh, this is Bill. That would be in the second quarter, as you look at the gating of the impact around biosimilars recognized in Q4, we are going to be comparing against a quarter in the prior year that already had some biosimilars. So you would expect actually that year-over-year impact to be less than what we're seeing in the first three quarters. So it averages out to our overall guidance.
Joshua Elliott Schimmer -- Evercore ISI Institutional Equities -- Analyst
Okay. Thanks.
Elizabeth Shea -- Vice President, Investor Relations
Thanks Josh. Operator, next question please.
Operator
Thank you. Our next question is from Geoff Meacham from Barclays.
Geoffrey Christopher Meacham -- Barclays Bank PLC -- Analyst
Good morning, everyone. Thanks so much for the question. Just had a few. Mike on VENCLEXTA and myeloma the imbalance I'm sure was a surprise, what's the hypothesis at this point. I'm not sure it's clear, what's different about myeloma versus CLR or AML in terms of unique safety tolerability risk and how does this alter your long-term view of the value of the drug?
And then, Rick, had another one on capital allocation. You guys have obviously expressed confidence in the long-term trajectory and without a large transaction. So my question is whether there are triggers that would evolve that strategy, for example, like if the -- if OUS HUMIRA is worse than expected later this year or next or your launches don't have initial objectives, what do you do from there and how much of a priority is the payout in that scenario? Thank you very much.
Michael E. Severino -- M.D., Vice Chairman and President
Okay. So, this is Mike. I'll take the first one. So with respect to Bellini and the imbalance that we observed in mortality in the overall population. Yes, obviously, that was a surprise to us. That's not something that we would have expected to see. I think it's hard to say with certainty what drove that. But I think comparing and contrasting the situation to CLL is important.
So what we know about CLL is that CLL is BCL-2 driven and you see that in the efficacy results that we've driven across our CLL program from the very early studies in 17p del from the MURANO study and all the work that we've done. If you look at multiple myeloma, there are, from our perspective, really, really two groups. Now I'm speaking from a BCL-2 biology perspective. There is a subset, which is this t(11;14) subset. So it's a subset, but it's about 20% of multiple myeloma and add it to obviously a significant proportion given that -- we have seen it improved given that myeloma overall is very big. And that subset is very highly BCL-2 driven in it's biology.
Then there is the broader population where the hypothesis was a little different. There the hypothesis was primarily synergy with proteasome inhibitors that we've seen mechanistically and that we saw in earlier studies. And so the Bellini result is that overall non-selected group. And so while we can't tell you with certainty today what drove that, what we can tell you is that that behavior is very different than what we've seen in other populations. In the t(11;14) group, it's very BCl-2 driven. The early data that we've seen suggests that we should see a good effect and that's why we continue to expect that the drug has a role in that population.
Now, obviously, we're going to need to take the time to work with the FDA around the issues of the partial clinical hold, but we do believe that in the long-term there will be a role or at least potential for a role in that population. So that's really the difference between multiple myeloma and CLL. So does this change our long-term view of the value of the asset? No it doesn't change our long-term view of the value of the asset. It doesn't change our view of CLL in anyway. And we had always felt that the larger opportunity because the clearer link to the biology for VENCLEXTA in myeloma was in that biomarker driven population.
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Geoff, this is Rick. So on your question, I think, the best way to think about it is this. If you look at 2019 and I think it is a good test. Our ability and our strategies ability to be able to withstand significant LoE. If you think about 2019 roughly just under $5 billion of HUMIRA that's facing LoE and probably something in the neighborhood of about $500 million of AndroGel that's facing LoE. And you are in the very early stages of the launch of several of our new products like ORILISSA, like SKYRISI and ultimately it will be like upadacitinib. So you're not getting much benefit. In fact if anything you're getting a little downdraft because everyone knows in the first year or so, the pharmaceutical launch of lose money because you have to apply a significant amount of SG&A to it to create the ramp. So you actually have headwinds from a profit performance standpoint.
So -- and you can see based on that, we have a business now that still has positive revenue growth and has EPS growth of 11%, let's call it. And yes, there's some share repurchases in there. But if you adjust that share repurchase out, it's still high single-digit EPS growth. So tremendous EPS growth despite those headwinds that we're facing. And I think that demonstrates the strength of the underlying business and it was really designed to be able to deal with that.
Now having said that, I don't know that those kinds of dynamics are what's going to drive, how we look at opportunities that exist from an acquisition standpoint. What drives that is what I described before. It is always better to have a stronger business than we can't have too strong of the business. So resets the philosophy that we operate with. And so as we look at different kinds of transactions we evaluate them against their strategic fit. And then, can we get a good return on those assets and if our analysis suggests that we can, then we obviously try to act on those and that's what drives from a capital allocation standpoint where we invest. And I don't see a dramatic change in the way international biosimilars behave, because obviously, I think, we've seen enough of that now that we have a pretty good idea of how they are behaving. And that would drive -- that would be a trigger event in and of itself. I think what will drive -- what we do is ultimately can we build a stronger business, if we were to acquire an asset, whatever that asset maybe.
Elizabeth Shea -- Vice President, Investor Relations
Thanks, Geoff. Operator, we have time for one final question.
Operator
Thank you. Our final question today is from Vamil Divan from Credit Suisse.
Vamil Kishore Divan -- Credit Suisse AG -- Analyst
Hi. Great. Thanks for taking my questions. So just two on the product side. First for upadacitinib, I think we're about four months from the PDUFA date. Just wondering, I don't know if you -- I apologize, if you mentioned on your prepared remarks. I am wondering, if you have any updated thoughts on the likelihood of the AdCom ahead of decision. And just the impact with other recent safety update on XELJANZ regarding the -- you raised some more questions about thrombosis risk with JAK inhibition and wondering what you -- how you think that might impact the review?
And then second one on SKYRIZI, you mentioned the dosing advantage you guys have with TREMFYA, just looking at the label, there is a little bit higher rate of immunogenicity with the product that with TREMFYA. I think it's about 14% of patients had antibodies that can be classified as neutralizing. So just wondering how you think physicians might think of the trade-off between more convenient dosing, but maybe a little bit more immunogenicity for a chronic condition like psoriasis? Thanks.
Michael E. Severino -- M.D., Vice Chairman and President
Sure. So, this is Mike. I'll take those. With respect to upadacitinib, we are still in the relatively early stages of our review, but we are several months into it. With respect to the likelihood of an AdCom. What I've said before, is that advisory committees are common for these sorts of applications. So for novel molecular entities and rhemathoid arthritis. So it wouldn't be necessarily surprising, if we had one or concern to us if we had one. But based on what we're hearing today, we do not anticipate one. And so, obviously, as we get closer, we'll be able to provide additional color on that.
With respect to XELJANZ and the safety finding that came out of their large-scale study. I'd say a couple of things. One, we need to see the data presented in full. We need to see how that translates through their label, but I would point a couple of features. One, that was at a dose that was higher than approved in RA for XELJANZ and it was in a very particular patient population, because it was in their cardiovascular safety study.
So these were patients who were selected to be at high risk for cardiovascular disease. So they were a little different than the broader patient population. Our program hasn't demonstrated an increased risk for VTEs for upadacitinib compared to essentially all of the competitors that we had in the trial, which include HUMIRA, includes methotrexate and in our monotherapy studies, for a portion of time, it even includes true placebo. So we feel very good about our data set.
With respect to SKYRIZI. What I would point to is the performance of the product. We have very, very strong performance. We are clearly covering the pathway very effectively and doing that with the favorable benefit risk profile. We have skin clearance that's actually rising over time and very durable out to a year. And so I don't see that as a concern at all for us.
Vamil Kishore Divan -- Credit Suisse AG -- Analyst
Okay. Thanks for taking the question.
Elizabeth Shea -- Vice President, Investor Relations
Thanks, Vamil. 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
Thank you. And this does conclude today's conference. You may disconnect at this time.
Duration: 68 minutes
Call participants:
Elizabeth Shea -- Vice President, Investor Relations
Richard A. Gonzalez -- Chairman of the Board and Chief Executive Officer
Michael E. Severino -- M.D., Vice Chairman and President
Robert A. Michael -- Senior Vice President, Chief Financial Officer
Stephen Michael Scala -- Cowen and Company, LLC -- Analyst
Christopher Thomas Schott -- JP Morgan Chase & Co. -- Analyst
Jason Matthew Gerberry -- Bank of America Merrill Lynch -- Analyst
Navin Jacob -- UBS -- Analyst
Joshua Elliott Schimmer -- Evercore ISI Institutional Equities -- Analyst
William J. Chase -- Executive Vice President, Finance and Administration
Geoffrey Christopher Meacham -- Barclays Bank PLC -- Analyst
Vamil Kishore Divan -- Credit Suisse AG -- 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. | AbbVie Inc (NYSE: ABBV) Q1 2019 Earnings Call April 25, 2019, 9:00 a.m. Welcome to the AbbVie First Quarter 2019 Earnings Conference Call. 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. | Chase -- Executive Vice President, Finance and Administration Geoffrey Christopher Meacham -- Barclays Bank PLC -- Analyst Vamil Kishore Divan -- Credit Suisse AG -- Analyst More ABBV analysis Transcript powered by AlphaStreet This article is a transcript of this conference call produced for The Motley Fool. AbbVie Inc (NYSE: ABBV) Q1 2019 Earnings Call April 25, 2019, 9:00 a.m. Welcome to the AbbVie First Quarter 2019 Earnings Conference Call. | AbbVie Inc (NYSE: ABBV) Q1 2019 Earnings Call April 25, 2019, 9:00 a.m. Welcome to the AbbVie First Quarter 2019 Earnings Conference Call. 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. | AbbVie Inc (NYSE: ABBV) Q1 2019 Earnings Call April 25, 2019, 9:00 a.m. Welcome to the AbbVie First Quarter 2019 Earnings Conference Call. 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. |
25007.0 | 2019-04-25 00:00:00 UTC | Noteworthy Thursday Option Activity: INTC, RTN, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-thursday-option-activity-intc-rtn-abbv-2019-04-25 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Intel Corp (Symbol: INTC), where a total of 82,236 contracts have traded so far, representing approximately 8.2 million underlying shares. That amounts to about 46.4% of INTC's average daily trading volume over the past month of 17.7 million shares. Especially high volume was seen for the $60 strike call option expiring May 17, 2019, with 7,533 contracts trading so far today, representing approximately 753,300 underlying shares of INTC. Below is a chart showing INTC's trailing twelve month trading history, with the $60 strike highlighted in orange:
Raytheon Co. (Symbol: RTN) saw options trading volume of 7,966 contracts, representing approximately 796,600 underlying shares or approximately 44.4% of RTN's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $175 strike put option expiring April 26, 2019, with 408 contracts trading so far today, representing approximately 40,800 underlying shares of RTN. Below is a chart showing RTN's trailing twelve month trading history, with the $175 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,965 contracts thus far today. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 42% of ABBV's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $85 strike call option expiring May 17, 2019, with 1,067 contracts trading so far today, representing approximately 106,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $85 strike highlighted in orange:
For the various different available expirations for INTC options, RTN options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $85 strike call option expiring May 17, 2019, with 1,067 contracts trading so far today, representing approximately 106,700 underlying shares of ABBV. Below is a chart showing RTN's trailing twelve month trading history, with the $175 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,965 contracts thus far today. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 42% of ABBV's average daily trading volume over the past month, of 5.5 million shares. | Below is a chart showing RTN's trailing twelve month trading history, with the $175 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,965 contracts thus far today. Below is a chart showing ABBV's trailing twelve month trading history, with the $85 strike highlighted in orange: For the various different available expirations for INTC options, RTN options, or ABBV options, visit StockOptionsChannel.com. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 42% of ABBV's average daily trading volume over the past month, of 5.5 million shares. | Below is a chart showing ABBV's trailing twelve month trading history, with the $85 strike highlighted in orange: For the various different available expirations for INTC options, RTN options, or ABBV options, visit StockOptionsChannel.com. Below is a chart showing RTN's trailing twelve month trading history, with the $175 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,965 contracts thus far today. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 42% of ABBV's average daily trading volume over the past month, of 5.5 million shares. | Particularly high volume was seen for the $85 strike call option expiring May 17, 2019, with 1,067 contracts trading so far today, representing approximately 106,700 underlying shares of ABBV. Below is a chart showing RTN's trailing twelve month trading history, with the $175 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 22,965 contracts thus far today. That number of contracts represents approximately 2.3 million underlying shares, working out to a sizeable 42% of ABBV's average daily trading volume over the past month, of 5.5 million shares. |
25008.0 | 2019-04-25 00:00:00 UTC | What You Need to Know About AbbVie's Surprisingly Strong Q1 Earnings | ABBV | https://www.nasdaq.com/articles/what-you-need-know-about-abbvies-surprisingly-strong-q1-earnings-2019-04-25 | nan | nan | AbbVie (NYSE: ABBV) raised concerns among investors the last time it delivered quarterly results. The drugmaker's January report showed it had missed analysts' estimates on both the top and bottom lines in the fourth quarter, after getting surprised somewhat by its rivals' aggressive pricing of biosimilars to its top-selling treatment, Humira, in Europe.
The company announced its 2019 first-quarter results before the market opened on Thursday. This time around, though, AbbVie provided a pleasant surprise for investors. Here are the highlights from the company's Q1 results.
Image source: Getty Images.
By the numbers
AbbVie reported Q1 net revenue of $7.83 billion, down 1.3% from the prior-year period. The good news, however, was that this figure came in higher than analysts' consensus revenue estimate of $7.76 billion. And on an operational basis (which assumes a constant currency rate), the company's Q1 revenue increased 0.4% year over year.
The big pharma company's GAAP net earnings for quarter were $2.46 billion, or $1.65 per share. This was a decline from Q1 2018, when AbbVie reported GAAP net earnings of $2.78 billion, or $1.74 per share.
On a non-GAAP adjusted basis, AbbVie's Q1 earnings came in at $2.14 per share -- up 14.4% year over year. This result not only topped analysts' consensus estimate of $2.06 per share, it exceeded even the most optimistic individual estimate in the array ($2.10 per share).
Behind the numbers
As always, the biggest factor behind AbbVie's quarterly results was the performance of Humira. The immunology drug made $4.45 billion in the first quarter, down 5.6% from the prior-year period on a reported basis and 3.8% on an operational basis.
Those results were in line with expectations. International sales for the drug fell 27.9% year over year to $1.23 billion. However, U.S. Humira sales increased by 7.1% to $3.22 billion.
The brightest spot in the quarter was AbbVie's hematology-oncology franchise. Sales for Imbruvica jumped 34% year over year to $1.02 billion, while Venclexta continued its momentum in its first year on the market with sales of $151 million.
The rest of the company's lineup performed about as expected. AbbVie's hepatitis C virus drugs Mavyret and Viekira together generated revenue of $815 million, down 11.3% from the prior-year period. Other key drugs, including Creon, Lupron, and Duodopa, contributed combined sales of $1.28 billion. This reflected a 4.7% year-over-year decline.
Although AbbVie's GAAP earnings were down from Q1 2018, its adjusted non-GAAP earnings improved for several reasons. The biggest factors behind the increase in non-GAAP earnings were adjustments due to a change in the fair value of contingent consideration and for AbbVie's corporate restructuring.
Looking ahead
Perhaps the best news was that AbbVie raised its full-year earnings guidance. The company is now forecasting GAAP earnings per share (EPS) for 2019 of $7.26 to $7.36. It also projects adjusted EPS for 2019 will land between $8.73 and $8.83. AbbVie's previous adjusted EPS guidance range was $8.65 to $8.75.
AbbVie announced on Wednesday that the U.S. Food and Drug Administration had approved Skyrizi (risankizumab) for treating moderate-to-severe plaque psoriasis. CEO Rick Gonzalez said that the drug "has the potential to set a new standard of care in psoriasis and represents a significant long-term opportunity for AbbVie."
In a way, this approval of Skyrizi represents the beginning of a new era for AbbVie. Sales for longtime flagship drug Humira have begun their inevitable decline. Skyrizi and upadacitinib, which awaits FDA approval, are the company's future, and overall, that future still appears to be a bright one.
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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 biggest factors behind the increase in non-GAAP earnings were adjustments due to a change in the fair value of contingent consideration and for AbbVie's corporate restructuring. CEO Rick Gonzalez said that the drug "has the potential to set a new standard of care in psoriasis and represents a significant long-term opportunity for AbbVie." AbbVie (NYSE: ABBV) raised concerns among investors the last time it delivered quarterly results. | By the numbers AbbVie reported Q1 net revenue of $7.83 billion, down 1.3% from the prior-year period. This was a decline from Q1 2018, when AbbVie reported GAAP net earnings of $2.78 billion, or $1.74 per share. On a non-GAAP adjusted basis, AbbVie's Q1 earnings came in at $2.14 per share -- up 14.4% year over year. | This was a decline from Q1 2018, when AbbVie reported GAAP net earnings of $2.78 billion, or $1.74 per share. On a non-GAAP adjusted basis, AbbVie's Q1 earnings came in at $2.14 per share -- up 14.4% year over year. AbbVie (NYSE: ABBV) raised concerns among investors the last time it delivered quarterly results. | This was a decline from Q1 2018, when AbbVie reported GAAP net earnings of $2.78 billion, or $1.74 per share. On a non-GAAP adjusted basis, AbbVie's Q1 earnings came in at $2.14 per share -- up 14.4% year over year. AbbVie announced on Wednesday that the U.S. Food and Drug Administration had approved Skyrizi (risankizumab) for treating moderate-to-severe plaque psoriasis. |
25009.0 | 2019-04-25 00:00:00 UTC | Health Care Sector Update for 04/25/2019: ABBV, BAX, BMY, JNJ, PFE, MRK, ABT, AMGN | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-for-04-25-2019%3A-abbv-bax-bmy-jnj-pfe-mrk-abt-amgn-2019-04-25 | nan | nan | Top Health Care Stocks:
JNJ: Flat
PFE: -0.10%
ABT: Flat
MRK: +0.19%
AMGN: -0.67%
Pre-bell Thursday saw mixed health care majors.
In other sector news:
(+) AbbVie (ABBV) was advancing by more than 2% as it reported Q1 adjusted diluted earnings per share of $2.14, up from $1.87 during the year-ago quarter, and beating the Capital IQ consensus forecast of $2.07.
(-) Baxter International (BAX) was retreating more than 2% after it reported Q1 adjusted diluted earnings per share of $0.76, up from $0.70 during the year-ago quarter, and surpassing the Capital IQ consensus forecast of $0.68.
(+) Bristol-Myers Squibb (BMY) was up more than 1.4% as the pharmaceutical company posted Q1 adjusted earnings of $1.10 per share, up from $0.94 in the same period a year ago and exceeding the estimate of $1.08 from analysts polled by Capital IQ.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In other sector news: (+) AbbVie (ABBV) was advancing by more than 2% as it reported Q1 adjusted diluted earnings per share of $2.14, up from $1.87 during the year-ago quarter, and beating the Capital IQ consensus forecast of $2.07. (-) Baxter International (BAX) was retreating more than 2% after it reported Q1 adjusted diluted earnings per share of $0.76, up from $0.70 during the year-ago quarter, and surpassing the Capital IQ consensus forecast of $0.68. (+) Bristol-Myers Squibb (BMY) was up more than 1.4% as the pharmaceutical company posted Q1 adjusted earnings of $1.10 per share, up from $0.94 in the same period a year ago and exceeding the estimate of $1.08 from analysts polled by Capital IQ. | In other sector news: (+) AbbVie (ABBV) was advancing by more than 2% as it reported Q1 adjusted diluted earnings per share of $2.14, up from $1.87 during the year-ago quarter, and beating the Capital IQ consensus forecast of $2.07. Pre-bell Thursday saw mixed health care majors. (-) Baxter International (BAX) was retreating more than 2% after it reported Q1 adjusted diluted earnings per share of $0.76, up from $0.70 during the year-ago quarter, and surpassing the Capital IQ consensus forecast of $0.68. | In other sector news: (+) AbbVie (ABBV) was advancing by more than 2% as it reported Q1 adjusted diluted earnings per share of $2.14, up from $1.87 during the year-ago quarter, and beating the Capital IQ consensus forecast of $2.07. Top Health Care Stocks: JNJ: Flat (-) Baxter International (BAX) was retreating more than 2% after it reported Q1 adjusted diluted earnings per share of $0.76, up from $0.70 during the year-ago quarter, and surpassing the Capital IQ consensus forecast of $0.68. | In other sector news: (+) AbbVie (ABBV) was advancing by more than 2% as it reported Q1 adjusted diluted earnings per share of $2.14, up from $1.87 during the year-ago quarter, and beating the Capital IQ consensus forecast of $2.07. Top Health Care Stocks: JNJ: Flat (-) Baxter International (BAX) was retreating more than 2% after it reported Q1 adjusted diluted earnings per share of $0.76, up from $0.70 during the year-ago quarter, and surpassing the Capital IQ consensus forecast of $0.68. |
25010.0 | 2019-04-23 00:00:00 UTC | Plaque Psoriasis Armamentarium Gets New Addition | ABBV | https://www.nasdaq.com/articles/plaque-psoriasis-armamentarium-gets-new-addition-2019-04-24 | nan | nan | (RTTNews) - The therapeutic armamentarium for plaque psoriasis patients is fairly well-stocked, and now there is one more addition to it.
The FDA has approved AbbVie's (ABBV) Skyrizi for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy.
What is plaque psoriasis?
More than 8 million Americans have psoriasis, according to the National Psoriasis Foundation.
Plaque psoriasis is the most common form of psoriasis, and it appears as raised, red patches covered with a silvery white buildup of dead skin cells or scale.
Topical treatments with and without steroids, phototherapy, systemic medications (the ones taken by mouth in liquid or pill form or given by injection) are the treatments for plaque psoriasis.
Some of the latest FDA approvals for plaque psoriasis are Bausch Health Companies Inc.'s (BHC) Bryhali Lotion 0.01%, which was green-lighted last November, Novartis' Hyrimoz, administered by subcutaneous injection, approved in October of 2018, and Sun Pharma's Ilumya, also administered by subcutaneous injection, approved last March.
Skyrizi - Recommended Dose and Availability
The recommended dose for Skyrizi is 150mg - administered by two subcutaneous injections every 12 weeks following two initiation doses at week 0 and 4. The drug is expected to be available in the U.S. in early May of this year.
Skyrizi, whose generic name is Risankizumab-rzaa, is developed by AbbVie in collaboration with Boehringer Ingelheim.
In February of this year, the European Medicines Agency's Committee for Medicinal Products for Human Use (CHMP) recommended approval of Skyrizi, and a final decision is expected in the first half of this year.
Analysts expect Skyrizi to bring in global sales of $2.3 billion.
ABBV closed Tuesday's trading at $78.66, up 0.65%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The FDA has approved AbbVie's (ABBV) Skyrizi for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. Skyrizi, whose generic name is Risankizumab-rzaa, is developed by AbbVie in collaboration with Boehringer Ingelheim. ABBV closed Tuesday's trading at $78.66, up 0.65%. | The FDA has approved AbbVie's (ABBV) Skyrizi for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. Skyrizi, whose generic name is Risankizumab-rzaa, is developed by AbbVie in collaboration with Boehringer Ingelheim. ABBV closed Tuesday's trading at $78.66, up 0.65%. | The FDA has approved AbbVie's (ABBV) Skyrizi for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. Skyrizi, whose generic name is Risankizumab-rzaa, is developed by AbbVie in collaboration with Boehringer Ingelheim. ABBV closed Tuesday's trading at $78.66, up 0.65%. | The FDA has approved AbbVie's (ABBV) Skyrizi for the treatment of moderate to severe plaque psoriasis in adults who are candidates for systemic therapy or phototherapy. Skyrizi, whose generic name is Risankizumab-rzaa, is developed by AbbVie in collaboration with Boehringer Ingelheim. ABBV closed Tuesday's trading at $78.66, up 0.65%. |
25011.0 | 2019-04-22 00:00:00 UTC | Notable ETF Outflow Detected - IYH, ABBV, AMGN, MDT | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-iyh-abbv-amgn-mdt-2019-04-22 | 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 U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $81.5 million dollar outflow -- that's a 3.8% decrease week over week (from 11,850,000 to 11,400,000). Among the largest underlying components of IYH, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Amgen Inc (Symbol: AMGN) is off about 0.5%, and Medtronic PLC (Symbol: MDT) is lower by about 0.1%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average:
Looking at the chart above, IYH's low point in its 52 week range is $168.42 per share, with $204.83 as the 52 week high point — that compares with a last trade of $181.23. 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 IYH, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Amgen Inc (Symbol: AMGN) is off about 0.5%, and Medtronic PLC (Symbol: MDT) is lower by about 0.1%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $168.42 per share, with $204.83 as the 52 week high point — that compares with a last trade of $181.23. 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 IYH, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Amgen Inc (Symbol: AMGN) is off about 0.5%, and Medtronic PLC (Symbol: MDT) is lower by about 0.1%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $168.42 per share, with $204.83 as the 52 week high point — that compares with a last trade of $181.23. 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 IYH, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Amgen Inc (Symbol: AMGN) is off about 0.5%, and Medtronic PLC (Symbol: MDT) 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 U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $81.5 million dollar outflow -- that's a 3.8% decrease week over week (from 11,850,000 to 11,400,000). For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $168.42 per share, with $204.83 as the 52 week high point — that compares with a last trade of $181.23. | Among the largest underlying components of IYH, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.5%, Amgen Inc (Symbol: AMGN) is off about 0.5%, and Medtronic PLC (Symbol: MDT) is lower by about 0.1%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $168.42 per share, with $204.83 as the 52 week high point — that compares with a last trade of $181.23. 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). |
25012.0 | 2019-04-22 00:00:00 UTC | AbbVie Reports Its Q1 Results on Thursday: Here's What You Can Expect | ABBV | https://www.nasdaq.com/articles/abbvie-reports-its-q1-results-thursday-heres-what-you-can-expect-2019-04-22 | nan | nan | AbbVie (NYSE: ABBV) disappointed investors the last time when it reported its 2018 fourth-quarter in January. The big drugmaker missed Wall Street analysts' estimates on both the top and bottom lines.
The culprit? Worse than expected sales for Humira in the wake of biosimilar competition in Europe. AbbVie's share price has floundered so far this year in large part because of concerns about Humira, with the stock down 15% year to date.
AbbVie announces its 2019 first-quarter results before the market opens on Thursday. Here's what you can expect from the big pharma company's update.
Image source: Getty Images.
1. Mixed news for Humira
As Humira goes, so goes AbbVie. The company is likely to provide both good news and bad news for its top-selling drug later this week.
First, the bad news. Rivals priced their biosimilars a good bit lower than AbbVie initially expected. As a result, Humira's international sales in Q1 are probably going to be ugly. Bill Chase, AbbVie's former CFO, who is retiring soon, stated in the company's Q4 conference call that international sales of Humira are expected to fall 30% in the full year 2019. Look for international Humira sales in the ballpark of $1.2 billion unless the deterioration from biosimilar competition is even worse than anticipated.
What's the good news? U.S. sales for Humira should still be solid -- probably around $3.2 billion. That level reflects close to 7% year-over-year growth, which isn't bad for a blockbuster that's getting long in the tooth.
2. Another strong quarter for hematology/oncology
There should be plenty of good news for AbbVie's hematology/oncology franchise, which includes Imbruvica and Venclexta. Imbruvica made $3.6 billion last year. The blood cancer drug should get off to a great start in the first quarter, with sales in the vicinity of $1 billion.
Venclexta is coming on strong as well. The leukemia drug generated $124 million in the fourth quarter. AbbVie expects 2019 full-year sales for the drug of $725 million. While momentum should build throughout the rest of 2019, Venclexta should provide a solid year-over-year boost for AbbVie's total revenue.
The damper on the party is the partial clinical hold that the U.S. Food and Drug Administration placed on studies of Venclexta in treating patients with multiple myeloma. AbbVie announced this decision in March, after a higher proportion of deaths was observed in patients taking Venclexta than in the control arm in a phase 3 study. This won't affect AbbVie's Q1 results, of course, but it is a concern for Venclexta's long-term peak sales prospects.
3. Bright and dull spots elsewhere in the lineup
AbbVie's third-best-selling drug is hepatitis C virus (HCV) therapy, Mavyret. The HCV market is relatively stable now, but it won't be surprising if Q1 sales of Mavyret and older HCV drug Viekira combine for less than the $919 million generated in the first quarter of last year.
Sales for hypogonadism drug Androgel are almost sure to continue to drop in the first quarter. A generic version of the drug hit the market in October 2018.
On the other hand, AbbVie is likely to report stronger sales for pancreatic enzyme replacement therapy Creon, Parkinson's disease drug Duodopa, and endometriosis drug Orilissa, which is still in the early stages of its commercial launch. Sales for the other key products in AbbVie's lineup, including Lupron, Synthroid, and Synagis, are likely to be flat.
The expectations game
Wall Street analysts expect AbbVie to report Q1 revenue of $7.76 billion and adjusted earnings per share of $2.06. That's in line with what the company provided in its outlook for the first quarter back in January. Whether or not AbbVie actually meets those expectations depends primarily on how well Humira can hold on to its market share in Europe.
There is something, though, that could be a feather in AbbVie's cap when the company announces its Q1 results on Thursday. The FDA is scheduled to make a decision on approval for risankizumab this week. It's possible that decision could be handed down before AbbVie's Q1 update. Risankizumab could be the drugmaker's next blockbuster and, along with upadacitinib, a worthy successor to Humira.
10 stocks we like better than AbbVie
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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. | Bill Chase, AbbVie's former CFO, who is retiring soon, stated in the company's Q4 conference call that international sales of Humira are expected to fall 30% in the full year 2019. AbbVie announced this decision in March, after a higher proportion of deaths was observed in patients taking Venclexta than in the control arm in a phase 3 study. AbbVie (NYSE: ABBV) disappointed investors the last time when it reported its 2018 fourth-quarter in January. | The expectations game Wall Street analysts expect AbbVie to report Q1 revenue of $7.76 billion and adjusted earnings per share of $2.06. AbbVie (NYSE: ABBV) disappointed investors the last time when it reported its 2018 fourth-quarter in January. AbbVie's share price has floundered so far this year in large part because of concerns about Humira, with the stock down 15% year to date. | Bill Chase, AbbVie's former CFO, who is retiring soon, stated in the company's Q4 conference call that international sales of Humira are expected to fall 30% in the full year 2019. AbbVie expects 2019 full-year sales for the drug of $725 million. On the other hand, AbbVie is likely to report stronger sales for pancreatic enzyme replacement therapy Creon, Parkinson's disease drug Duodopa, and endometriosis drug Orilissa, which is still in the early stages of its commercial launch. | Mixed news for Humira As Humira goes, so goes AbbVie. Another strong quarter for hematology/oncology There should be plenty of good news for AbbVie's hematology/oncology franchise, which includes Imbruvica and Venclexta. AbbVie expects 2019 full-year sales for the drug of $725 million. |
25013.0 | 2019-04-20 00:00:00 UTC | 3 Cancer Treatment Stocks to Buy in April | ABBV | https://www.nasdaq.com/articles/3-cancer-treatment-stocks-buy-april-2019-04-20 | nan | nan | Cancer drug sales are on track to eclipse the $200 billion mark early in the next decade, thanks to an innovation bonanza that's transformed oncology into the fastest-growing segment across the entire pharmaceutical industry. Specifically, a recent report by EvaluatePharma estimated that global cancer drug sales will rise at a blistering compound annual growth rate of 12% over the next five years.
With this double-digit growth trend in mind, we asked three of our Motley Fool contributors which cancer treatment stocks they think are worth buying this month. They picked Geron (NASDAQ: GERN), AbbVie (NYSE: ABBV), and Exelixis (NASDAQ: EXEL). Here's why.
Image source: Getty Images.
A path forward
George Budwell (Geron): Small-cap cancer companies normally aren't even worth considering as investing vehicles. Developing cancer treatments is prohibitively expensive after all. Geron, however, isn't your typical small-cap cancer play.
The brief rundown is that Geron is developing a first-in-class telomerase inhibitor, imetelstat, for patients afflicted with a blood-based malignancy known as lower risk myelodysplastic syndromes (MDS). Per the company's latest update, the drug's pivotal trial for MDS should commence by the middle of this year. So, depending on how quickly enrollment goes, Geron might be able to file for imetelstat's regulatory approval as early as mid-2021.
Why is Geron worth a deeper dive? Imetelstat's MDS indication represents an enormous commercial opportunity for the company. While the entrance of potential competitors like Acceleron Pharma and Celgene's luspatercept has muddied the waters from a commercial standpoint, Geron's management still believes that imetelstat could generate sales in excess of $500 million in the MDS setting. That's a sizable payday for a company with a sub-$340 million cap at the time of writing.
What's the risk? With less than $182 million remaining in cash, Geron is probably going to have to raise capital at some point during imetelstat's late-stage development. The bright side is that Geron's share price has been bolting higher heading into the start of imetelstat's late-stage MDS trial, and this upward trend should continue based on the magnitude of this commercial opportunity. Therefore, risk-tolerant investors might to take a flier on this deeply undervalued cancer stock this month.
A growing oncology franchise
Keith Speights (AbbVie): Yes, AbbVie is best known for immunology rather than oncology. That's understandable for a company that claims the world's top-selling drug, Humira, which treats a wide range of autoimmune diseases. But AbbVie is steadily becoming a force to be reckoned with in cancer treatment.
The company's No. 2 product, Imbruvica, is already a major success. AbbVie thinks the drug will generate peak annual sales of around $7 billion in the future. Imbruvica is already more than halfway there, raking in nearly $3.6 billion last year. AbbVie also has a fast-rising star with leukemia drug Venclexta.
When asked at the Cowen Healthcare Conference in March what investors are missing about AbbVie, the company's president, Michael Severino, listed the strength of AbbVie's early-stage pipeline near the top of the list. Several promising cancer drugs are in that early-stage pipeline, and Severino expects solid progress for these drugs in the next few years.
Of course, we have to work immunology into any conversation about AbbVie. Although Humira faces biosimilar competition in Europe, the drug remains strong in the U.S. and will likely continue to dominate for several more years. In the meantime, AbbVie expects approvals this year for two new drugs that could take the baton from Humira: risankizumab and upadacitinib.
AbbVie currently trades at only 8.5 times expected earnings. With a dividend yield north of 5% on top of this bargain valuation, I think AbbVie is a great cancer treatment stock to buy in April.
The top value stock among cancer drug developers
Sean Williams (Exelixis): Although big pharma is often viewed as the smartest way for investors to take advantage of novel cancer treatments, my preference among cancer stocks has been the same for years: midcap biotech Exelixis.
Admittedly, Exelixis isn't particularly diversified, which is usually a red flag for pharma and biotech investors. But Exelixis' bread-and-butter drug has delivered multiple label expansions, has additional indication opportunities, and has made Exelixis one of the cheapest growth stocks you can buy in the entire healthcare sector.
Exelixis' Cabometyx was first approved in April 2016, following positive data from the Meteor trial, as a second-line treatment for patients with advanced renal cell carcinoma (RCC). It was the first therapy to deliver a "trifecta" in treating advanced RCC patients. In other words, it provided a statistically significant improvement in objective response rate, progression-free survival, and median overall survival.
In December 2017, following impressive data in the midstage Cabosun study, Cabometyx's label was expanded to include first-line treatment for advanced RCC patients. Rather than trailing Bristol-Myers Squibb's (NYSE: BMY) immunotherapy Opdivo, which it did in second-line RCC, Cabometyx beat Opdivo to the punch in first-line RCC.
And most recently, Cabometyx got the green light from the Food and Drug Administration in patients with previously treated hepatocellular carcinoma (HCC) following strong data in the phase 3 Celestial trial. Both indications (RCC and HCC) may offer more than $1 billion in peak annual sales.
Furthermore, Exelixis is working together with its biggest RCC competitor, Bristol-Myers, on a possible combination therapy in first-line RCC. The CheckMate 9ER trial should read out soon, and if it winds up blowing Pfizer's (NYSE: PFE) Sutent out of the water (Sutent was the standard of care before Cabometyx came along), Exelixis could secure itself a larger share of first-line RCC, even if sharing with Bristol-Myers.
All told, Exelixis is forecast to nearly double sales from $854 million to $1.6 billion between 2018 and 2022, while doubling earnings per share from $1.05 to $2.06 between 2019 and 2022. That's a compound annual sales growth rate of at least 17% and a price earnings-to-growth (PEG) ratio of less than 0.5. For added context, a PEG ratio below 1 is typically considered to undervalued. Exelixis is probably the top value among cancer stocks.
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George Budwell owns shares of AbbVie, Celgene, Geron, and Pfizer. Keith Speights owns shares of AbbVie, Celgene, and Pfizer. Sean Williams owns shares of Celgene and Exelixis. The Motley Fool owns shares of and recommends Celgene and Exelixis. 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. | They picked Geron (NASDAQ: GERN), AbbVie (NYSE: ABBV), and Exelixis (NASDAQ: EXEL). A growing oncology franchise Keith Speights (AbbVie): Yes, AbbVie is best known for immunology rather than oncology. But AbbVie is steadily becoming a force to be reckoned with in cancer treatment. | See the 10 stocks *Stock Advisor returns as of March 1, 2019 George Budwell owns shares of AbbVie, Celgene, Geron, and Pfizer. They picked Geron (NASDAQ: GERN), AbbVie (NYSE: ABBV), and Exelixis (NASDAQ: EXEL). A growing oncology franchise Keith Speights (AbbVie): Yes, AbbVie is best known for immunology rather than oncology. | See the 10 stocks *Stock Advisor returns as of March 1, 2019 George Budwell owns shares of AbbVie, Celgene, Geron, and Pfizer. They picked Geron (NASDAQ: GERN), AbbVie (NYSE: ABBV), and Exelixis (NASDAQ: EXEL). A growing oncology franchise Keith Speights (AbbVie): Yes, AbbVie is best known for immunology rather than oncology. | They picked Geron (NASDAQ: GERN), AbbVie (NYSE: ABBV), and Exelixis (NASDAQ: EXEL). A growing oncology franchise Keith Speights (AbbVie): Yes, AbbVie is best known for immunology rather than oncology. But AbbVie is steadily becoming a force to be reckoned with in cancer treatment. |
25014.0 | 2019-04-19 00:00:00 UTC | 5 Top Pharmaceutical Stocks to Buy in 2019 | ABBV | https://www.nasdaq.com/articles/5-top-pharmaceutical-stocks-buy-2019-2019-04-19 | nan | nan | More than $320 billion was spent on prescription drugs in the U.S. in 2016, a figure that's expected to nearly double to $610 billion by 2021, according to IQVIA (formerly QuintilesIMS).
With so much money being spent on necessary medicines, there's serious opportunity for pharmaceutical companies and investors alike. Some drugmakers present better opportunities than others do, though. Here's what you need to know about the top pharmaceutical stocks to buy in 2019.
Image source: Getty Images.
What is the pharmaceutical industry?
The pharmaceutical industry includes both big pharma companies that generate billions of dollars and tiny biotechs still years away from possibly turning a profit. Whether they're Goliaths or fledglings, pharmaceutical companies share several common attributes.
All pharmaceutical companies have the same general approach for developing drugs, beginning with drug discovery -- finding an experimental drug that holds promise in treating a targeted disease. Next, the experimental drug is advanced to preclinical testing conducted in labs and in animals.
If preclinical testing goes well, the company will seek approval from the U.S. Food and Drug Administration (FDA) to begin clinical testing in humans in the U.S. or from the European Medicines Agency (EMA) to begin clinical testing in Europe. This process is different than approvals for medical devices, which have varied approval pathways depending on the safety risks associated with the devices.
If the necessary approvals are obtained, the experimental drug moves into a relatively small phase 1 clinical trial with a primary purpose of evaluating the drug's safety. Upon successful completion of a phase 1 clinical trial, the drug is usually advanced into a phase 2 study. This stage of clinical testing focuses largely on how effective the drug is at treating the targeted disease, also called an indication or endpoint.
After meeting the goals of the phase 2 study, most drugs transition into one or more phase 3 clinical studies, which are larger in scope and are aimed at evaluating a drug's safety and efficacy in a more comprehensive way. If phase 3 testing is successful, the pharma company can file for regulatory approval of the drug with the FDA, EMA, or other regulatory agency in whatever country they hope to market the medicine.
In some cases, however, a drug can obtain FDA approval after successful completion of phase 2 studies. This accelerated approval process is reserved for drugs that treat serious conditions for which there is an unmet medical need and that can be evaluated using what's called a surrogate endpoint -- a laboratory measurement, radiographic image, physical sign, or other measure that scientists think predicts a clinical benefit but doesn't itself conclusively establish a clinical benefit.
Most drugs that begin clinical testing fail somewhere along the way. Only around 63% of drugs that were in phase 1 clinical studies advanced to a phase 2 study between 2006 and 2015, according to the industry trade group Biotechnology Innovation Association (BIO). Less than 31% of the drugs that made it to phase 2 testing went on to phase 3. Pharma companies filed for approval for 58% of these drugs in phase 3 studies. Of the drugs submitted for approval, roughly 85% actually won it. Overall, fewer than 1 out of 10 drugs that entered phase 1 testing ultimately won FDA approval.
Winning regulatory approval isn't the last hurdle for pharmaceutical companies, though. They must also secure reimbursement for the new drug from government and private payers. In the U.S., drugmakers typically negotiate directly with health insurers and pharmacy benefits managers (PBMs), which act as third-party administrators of prescription-drug programs for payers, as well as with the Centers for Medicare and Medicaid Services (CMS) for Medicaid pricing. In Europe and many other parts of the world, pharma companies must negotiate with government agencies.
It's possible that pharma companies will also have to negotiate directly with CMS for Medicare in the future. CMS oversees the Medicare/Medicaid healthcare programs, but individual states administer their Medicaid benefits. Close to $130 billion per year is spent by CMS on prescription drugs for the Medicare program. That's twice as much as the combined Medicaid prescription drug spending across the states, which is roughly $64 billion, but -- for now, at least -- CMS can't negotiate drug prices and instead must take the average selling price negotiated by private Medicare Part D prescription drug plans.
Traditional drugs are usually given five years of exclusivity in the U.S. before a generic version can enter the market. Biologic drugs, which are medicines that use living organisms, don't have generic versions. They can, though, have biosimilars -- another biologic for which there isn't a clinically meaningful difference from the already-approved product. Biologics are given 12 years of exclusivity in the U.S. before biosimilar competition is allowed. Drugmakers typically also secure patents on their drugs that provide even more protection against competition from generic and biosimilar rivals.
What is a pharmaceutical stock?
Not every company has shares that are available to be bought by investors. The stocks of publicly traded companies, though, can be bought and sold by individual investors on stock exchanges or in stock quotation services known as over-the-counter markets.
Pharmaceutical stocks are the stocks of publicly traded companies that engage in developing and marketing prescription drugs. These companies include many that focus exclusively on prescription drugs. However, some large companies such as Johnson & Johnson (NYSE: JNJ) are involved in the pharmaceutical industry as well as other parts of healthcare like medical devices and consumer health products.
In general, the potential for pharmaceutical stocks to generate solid gains in the future appears to be quite good. Spending on prescription drugs in the U.S. is projected to nearly double to $610 billion by 2021 in large part because of aging demographic trends. Around 10,000 baby boomers reach retirement age every day, according to the AARP. As this large generation ages, the demand for prescription drugs will continue to rise.
But with overall prescription drug spending increasing, government and private payers are scrambling to find ways to control costs. Both Democrats and Republicans in the U.S. Congress, as well as President Trump, have put the heat on pharmaceutical companies that have significantly raised drug prices. These political pressures could negatively impact pharma companies' revenue growth and their stock price gains despite the tailwinds for the industry from demographic trends.
As a result of these risks, pharmaceutical stocks aren't great picks for all investors. These stocks are best suited for growth investors who are willing to take on considerable risk and who won't need to access their initial investments within the next 5 to 10 years.
How to find the best pharmaceutical stocks
Just like with all investing, a potential investor aiming to find a pharmaceutical stock to add to their portfolio should look closely at the company's financial condition. Researching and developing new drugs requires a lot of money. It's important that the drugmaker has access to the cash needed to fund this research and development (R&D).
For established pharmaceutical companies, check out their approved products. In particular, examine the sales growth of these approved drugs. Determine if there are other rival drugs that could cannibalize its current market share or apply downward pressure on the pricing. You should also find out how much time the drugs have before they might face generic or biosimilar competition.
Because even successful drugs have limited windows to make most of their money before they lose exclusivity, it's also important to assess the pharma company's pipeline. These experimental drugs represent a company's opportunities for future growth.
As you might expect, in general, it's better for a company to have more drugs in later phases than in early phases of clinical testing. The odds of failure for early-stage drugs are very high. A drugmaker with several pipeline candidates in phase 3 studies that performed exceptionally well in phase 2 testing and that don't have many rivals already on the market or in late-stage development has a better shot at success than others will.
Large pharmaceutical companies typically have larger pipelines with more late-stage candidates. This tends to make these big pharma companies less risky overall than smaller drugmakers. However, large companies also aren't likely to grow as quickly as smaller companies could. For investors seeking strong growth prospects, relatively smaller drugmakers are likely to be more attractive.
Top pharmaceutical stocks for 2019
The best pharmaceutical stocks have great approved products that are delivering significant revenue growth. These stocks are either already very profitable or on track for profitability in the near future, with solid pipelines of drug candidates that should be able to generate even more growth.
These are the top five pharmaceutical stocks to buy in 2019:
Data source: Yahoo! Finance. Market caps as of April 1, 2019.
1. AbbVie
AbbVie's current products include three blockbuster drugs (i.e., drugs that generate annual sales of $1 billion or more). The most important of these is immunology drug Humira, which ranks as the world's top-selling drug and is expected to stay at the top at least through 2024. AbbVie's cancer drug Imbruvica and its hepatitis C drug Mavyret round out the company's list of current blockbusters. These and other products enabled AbbVie to make revenue of $32.8 billion and earnings of $5.7 billion in 2018.
Humira already faces biosimilar competition in Europe, however. Biosimilar rivals will enter the U.S. market in 2023. That gives AbbVie a few years for some of its other products to step up. In the meantime, AbbVie's dominance in the U.S. should allow it to hold onto market share domestically. The company is competing against biosimilars in Europe by lowering its pricing for Humira.
Imbruvica continues to generate strong sales growth and should keep the momentum going as it wins approvals for treating additional types of cancer. Sales for another of AbbVie's cancer drugs, Venclexta, are also expected to soar over the next few years. The company's endometriosis drug, Orilissa, should be another blockbuster success, especially if it picks up FDA approval for treating uterine fibroids as well.
AbbVie's pipeline also looks really impressive. The company anticipates winning FDA approval in 2019 for immunology drugs risankizumab and upadacitinib, both of which had great phase 3 study results. AbbVie thinks that these two candidates will be key to achieving its goal of delivering $35 billion in non-Humira sales by 2025.
In addition to its solid growth prospects, AbbVie pays a strong dividend with a yield of over 5%. The company has increased its dividend by 168% since being spun off from parent Abbott Labs in 2013.
2. Exelixis
Exelixis' top growth driver is cancer drug Cabometyx. However, the company also has three other approved products: Cometriq (which uses the same compound as Cabometyx but is an oral capsule rather than a tablet), melanoma drug Cotellic, and hypertension drug Minnebro (currently only approved in Japan).
Cabometyx has been tremendously successful in treating advanced renal cell carcinoma (RCC), the most common type of kidney cancer. In 2018, the drug helped boost Exelixis' total revenue by nearly $276 million. Sales are likely to pick up quite a bit in 2019. In January, Exelixis received FDA approval for Cabometyx as a treatment for previously treated advanced hepatocellular carcinoma (HCC) -- the most common type of liver cancer.
Exelixis shouldn't have to fret about generic competition for Cabometyx anytime soon. The drugmaker's first key patent for its top drug doesn't expire until 2024, with the last of its patent portfolio for Cabometyx stretching out until 2033.
The company's top pipeline candidate is also Cabometyx. Exelixis has phase 3 clinical studies in progress evaluating the drug in treating thyroid cancer and previously untreated advanced liver cancer. CEO Michael Morrissey said in the company's fourth-quarter 2018 earnings conference call that the company intends to add more pipeline programs through strategic acquisitions and licensing deals. With a growing cash stockpile and earnings, Exelixis shouldn't have a problem funding purchases of early-stage candidates, which is the most likely course for the drugmaker -- and one that is less likely to negatively impact the stock.
3. Intercept Pharmaceuticals
Intercept Pharmaceuticals isn't profitable yet. The company lost more than $309 million in 2018, but Intercept's revenue continues growing significantly, and it's making progress toward profitability. That progress should kick into overdrive in the not-too-distant future.
The drugmaker's only approved product right now is Ocaliva (also known as obeticholic acid or OCA). The drug got FDA approval in 2016 as a treatment for chronic liver disease primary biliary cholangitis (PBC). But in February, the company reported encouraging results from a phase 3 study of Ocaliva in treating patients with liver fibrosis due to nonalcoholic steatohepatitis (NASH). There currently are no approved treatments for NASH, so the disease presents a huge opportunity for drugmakers. However, there has been a high-profile setback for one experimental NASH drug and a phase 2 failure for another. Intercept appears to be in the driver's seat to be the first to market a NASH treatment with Ocaliva.
The company is also targeting other chronic liver diseases. Intercept has a couple of phase 2 studies underway evaluating OCA in treating primary sclerosing cholangitis and biliary atresia. The potential in NASH alone, however, could be enough to make Intercept a big winner over the next few years.
4. Pfizer
Pfizer ranks as one of the largest pharmaceutical companies in the world. It claims 10 blockbuster products and a long list of other drugs that generate hundreds of millions of dollars in annual sales. But Pfizer hasn't generated the kind of revenue growth that the other drugmakers that made this list of pharmaceutical stocks to buy in 2019 have. So why does it deserve a spot among these top picks? Pfizer's future over the next few years looks far more promising than its past.
By mid-2020, Pfizer should begin moving past the negative impact on year-over-year sales comparisons caused by the loss of exclusivity for several of its drugs, especially Lyrica. That will set the stage for the company's fast-growing products, including blood thinner Eliquis, immunology drug Xeljanz, and cancer drug Lorbrena, to shine.
Pfizer also appears to have its best pipeline in years. The company anticipates winning FDA approval in 2019 for tafamidis in treating rare genetic disease transthyretin amyloid cardiomyopathy. It also has more than two dozen programs in phase 3 clinical studies.
Like AbbVie, Pfizer also offers investors an attractive dividend with a current yield of 3.4%. This dividend, combined with improving growth prospects in the coming years, should enable Pfizer to deliver solid total returns over the long run.
5. Vertex Pharmaceuticals
Vertex is arguably the best biotech stock on the market. The company has three approved products that treat cystic fibrosis (CF): Kalydeco, Orkambi, and Symdeko. Success for these CF drugs boosted Vertex's revenue by 40% in 2018 to more than $3 billion and more than doubled its earnings to reach more than $1 billion.
Competition isn't a significant worry for Vertex right now. The company's drugs are the only approved CF treatments that address the underlying cause of the disease. Its closest potential rival, AbbVie, remains well behind Vertex in clinical development.
But the best news for Vertex could be just around the corner. The company expects to file for approval in the U.S. and in Europe in mid-2019 for its triple-drug combination therapies for the treatment of CF. These drugs hold the potential to expand Vertex's addressable patient population by 75%.
In addition, Vertex's pipeline includes other promising candidates. Vertex is conducting a phase 2 study of experimental pain drug VX-150. The company is also partnering with CRISPR Therapeutics in evaluating gene-editing therapy CTX001 in phase 1 studies for treating rare genetic blood diseases beta thalassemia and sickle cell disease.
Risks
Despite their promise, each of these pharmaceutical stocks faces key risks any potential investors need to understand before buying.
The most serious risk is the possibility of failure in clinical studies, like that suffered by AbbVie in 2018 when its cancer drug Rova-T flopped in the clinic. There's also a chance that any of the drugmakers could run into regulatory approval obstacles even if clinical studies are successful. And there's even the possibility that the FDA could change a product's label in ways that reduce its attractiveness to prescribers and patients or require a product to be withdrawn from the market after the drug has won approval.
All of the companies could be negatively impacted by competition. Even if Intercept's Ocaliva becomes the first approved NASH drug, it's only a matter of time before other NASH treatments will win approval. Vertex will likely experience competition in CF sooner or later as well. AbbVie, Exelixis, and Pfizer already go head-to-head against rivals.
As the sole unprofitable company on the list, Intercept has the added challenge of funding operations with its current cash stockpile. It's possible that Intercept could need to raise additional capital in the future through debt or issuing new shares, both of which present risks for investors. Adding debt would increase Intercept's interest expense and likely delay the company achieving profitability. Issuing new shares would cause dilution in the value of existing shares. (Think of this like a pie that has 10 slices initially. If the pie is cut into 20 slices -- the equivalent of issuing new shares -- everyone's slice becomes smaller.)
Drugmakers also face the prospects of lawsuits from patients over safety allegations and from other companies over potential patent infringements. Their risks include several developments that could exert downward pressure on drug prices, including any significant federal changes.
For example, several Democrat presidential candidates are promoting a Medicare-for-All program that would mean that all pharmaceutical companies would negotiate drug pricing only with the federal government rather than with multiple private payers. Sen. Elizabeth Warren, D.-Mass., wants the federal government to manufacture generic drugs in some cases. In addition, there are questions about who will head up the FDA after Scott Gottlieb's resignation and what changes the new FDA commissioner might make that could negatively impact pharma companies.
The trade-off
Investing in pharmaceutical stocks, like investing in any industry, involves taking on risk in the hope of future rewards. AbbVie, Exelixis, Intercept, Pfizer, and Vertex certainly have risks, but they also provide investors a good chance of making solid returns over the long run. Each of these pharmaceutical companies should be able to leverage their past and current success into developing new drugs that will be the blockbusters of the future.
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Keith Speights owns shares of AbbVie, Pfizer, and Vertex Pharmaceuticals. The Motley Fool owns shares of and recommends Exelixis. The Motley Fool owns shares of CRISPR Therapeutics. The Motley Fool recommends Intercept Pharmaceuticals 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. | AbbVie AbbVie's current products include three blockbuster drugs (i.e., drugs that generate annual sales of $1 billion or more). AbbVie's cancer drug Imbruvica and its hepatitis C drug Mavyret round out the company's list of current blockbusters. These and other products enabled AbbVie to make revenue of $32.8 billion and earnings of $5.7 billion in 2018. | AbbVie AbbVie's current products include three blockbuster drugs (i.e., drugs that generate annual sales of $1 billion or more). AbbVie, Exelixis, Intercept, Pfizer, and Vertex certainly have risks, but they also provide investors a good chance of making solid returns over the long run. AbbVie's cancer drug Imbruvica and its hepatitis C drug Mavyret round out the company's list of current blockbusters. | AbbVie AbbVie's current products include three blockbuster drugs (i.e., drugs that generate annual sales of $1 billion or more). AbbVie's cancer drug Imbruvica and its hepatitis C drug Mavyret round out the company's list of current blockbusters. These and other products enabled AbbVie to make revenue of $32.8 billion and earnings of $5.7 billion in 2018. | AbbVie AbbVie's current products include three blockbuster drugs (i.e., drugs that generate annual sales of $1 billion or more). AbbVie's cancer drug Imbruvica and its hepatitis C drug Mavyret round out the company's list of current blockbusters. These and other products enabled AbbVie to make revenue of $32.8 billion and earnings of $5.7 billion in 2018. |
25015.0 | 2019-04-19 00:00:00 UTC | 5 Top Biotech Stocks to Buy in 2019 | ABBV | https://www.nasdaq.com/articles/5-top-biotech-stocks-buy-2019-2019-04-19 | nan | nan | Biotech stocks have delivered sizzling overall returns over the last few years. New drugs have improved the lives of patients and made big profits for investors in the process.
The future looks promising for biotech stocks as a group as well. Several currently successful drugs have room to increase sales. Even more powerful drugs are on the way. But which biotech stocks are the best choices for investors to buy in 2019?
Image source: Getty Images.
What are biotech stocks?
What exactly is a biotech? The term is short for "biotechnology," which includes any type of technology that involves the use of living organisms to develop agricultural or medical products.
Many medicines don't involve the use of living organisms. Medicines that do are called biologics. Technically, only drugmakers that develop biologics are biotechs. However, the term "biotech" is frequently used to refer to drugmakers that develop traditional nonbiologic drugs as well.
All drugmakers follow the same general path for drug development and approval. They must adance a biologic drug from preclinical testing to clinical testing. Typically, clinical testing involves three phases of clinical studies. After successful completion of phase 3 clinical testing, the company can submit for regulatory approval of its experimental drug.
There are several key differences, though, for biologics. The manufacturing process for biologics is typically much more complicated than the manufacturing process for other drugs. Also, instead of filing a New Drug Application (NDA) for regulatory approval by the U.S. Food and Drug Administration (FDA), biotechs must file a Biologics License Application (BLA). Probably the most important difference between biologics and other drugs is the length of exclusivity -- a period where a brand drug is protected from competition from generic versions.
Traditional drugs are usually given five years of exclusivity in the U.S. before a generic version can enter the market. Biologics don't have generic versions, but they can have biosimilars -- another biologic for which there isn't a clinically meaningful difference from the reference product. Biologics enjoy a 12-year period of exclusivity in the U.S. before biosimilar competition is allowed. Most drugmakers of either biologics or other drugs secure patents for their products that, if successfully defended, can hold off competition even longer.
What to look for in biotech stocks
Investors considering buying a biotech stock need to evaluate the potential of its current products and its pipeline -- the portfolio of the biotech's experimental drugs in development. Evaluating the former is significantly easier to do than the latter.
For already-approved products, you'll definitely want to look at sales growth. It's the best way to determine how strong a biotech's current product lineup is. However, you'll also need to get a sense of how sustainable a product's sales growth actually is.
One important thing to consider is how many years of exclusivity the drug has remaining. Sales tend to fall off dramatically once generic or biosimilar rivals are on the market. Check out current competitive drugs, too. Even if the biotech's top drugs have several years left of exclusivity, the emergence of strong branded rivals can hurt sales growth.
It can be tricky to assess how strong a biotech's pipeline is. Even promising candidates can fail in clinical studies or in the regulatory approval process. However, the odds of success are greater for late-stage drugs than they are for early-stage drugs.
Pay especially close attention to previous clinical results for a biotech's phase 3 candidates as well as to already-approved drugs and pipeline candidates of other biotechs targeting the same indications. A biotech with multiple late-stage pipeline candidates that performed really well in previous clinical studies and that have few or no strong rival drugs on the market or in development is more likely to be successful.
While revenue is certainly important, investors will also need to examine biotechs' earnings and cash positions. A biotech stock that has reported positive earnings growth for several consecutive quarters and that has a cash stockpile large enough to fund operations for a year or more will be less risky than a biotech stock that doesn't meet these criteria.
As with any stock, valuation is another key factor to consider with biotech stocks. Because the best biotech stocks should deliver solid growth, metrics based on projected earnings such as the forward price-to-earnings multiple and the price-to-earnings-to-growth (PEG) ratio, which incorporates earnings growth expectations, are better for assessing the valuation of these stocks than historical measures such as the trailing-12-month price-to-earnings (P/E) ratio.
Top 5 biotech stocks for 2019
The best biotech stocks have successful products on the market that are generating tremendous sales growth. They're profitable with solid earnings growth and they have strong pipelines.
Here are the top biotech stocks to buy in 2019:
P/E = price to earnings. All data as of Feb. 18, 2019. Data source: Yahoo! Finance.
1. AbbVie
AbbVie's Humira is the best-selling drug in the world, having raked in a whopping $19.9 billion in 2018. The company also has two other blockbuster drugs (drugs that achieve annual sales of $1 billion or more) with cancer drug Imbruvica and hepatitis C virus (HCV) drug Mavyret.
In addition to these top-tier drugs, AbbVie also has several other products that generate significant revenue. Sales for leukemia drug Venclexta are rapidly picking up momentum. Creon and Lupron have been on the market for years but their sales continue to grow. The biotech also has a promising new endometriosis drug approved in 2018, Orilissa, for which sales are starting to ramp up.
Overall, AbbVie's revenue grew 16% year over year in 2018. The company's adjusted earnings per share (EPS) increased by 41% compared to the same period last year.
The biggest challenge for AbbVie's current product lineup relates to the company's dependence on legacy drug Humira, which is responsible for nearly 61% of AbbVie's total revenue last year. Biosimilars to Humira hit the European market in October 2018 and have already begun to chip away at the blockbuster drug's market share. AbbVie will begin facing biosimilar competition in the U.S. in 2023.
However, AbbVie isn't too worried about sales declines for Humira in large part because of its promising pipeline. The biotech is conducting phase 3 clinical studies for several existing drugs in treating additional indications, including Imbruvica, Orilissa, and Venclexta. AbbVie also has several promising new late-stage candidates. Immunology drugs risankizumab and upadacitinib especially stand out. AbbVie expects the two therapies combined will make at least $10 billion annually by 2025.
AbbVie reported cash, cash equivalents, and short-term investments totaling nearly $8.8 billion as of Sept. 30, 2018. This cash stockpile gives the company plenty of flexibility to make acquisitions in the future if it chooses to do so. AbbVie also pays a dividend that yields more than 5%, and its low forward P/E ratio of 8.57 makes the stock a bargain compared to many other stocks.
2. Celgene
Celgene's top product, blood cancer drug Revlimid, is also one of the best-selling drugs in the world. Last year, Revlimid generated sales of nearly $9.7 billion, up 18% over 2017.
The biotech's other key products include multiple myeloma drug Pomalyst, immunology drug Otezla, and cancer drug Abraxane. Sales for Pomalyst and Otezla grew 26% year over year in 2018, while sales for Abraxane increased more than 7%. Celgene's total revenue grew by nearly 18% last year. The biotech's adjusted EPS increased by 20% in 2018.
Like AbbVie, Celgene depends heavily on one product -- in this case Revlimid, which kicks in around 63% of total sales. Also like AbbVie, Celgene faces loss of exclusivity for its best-selling product in the near future. A generic version of the drug will be available in limited volumes beginning in 2023 with no volume restrictions after Jan. 31, 2026.
But Celgene's pipeline appears to be very strong. The company is waiting for FDA approval of fedratinib in treating myelofibrosis. It expects to file for approval for ozanimod in treating multiple sclerosis soon. Celgene also expects to win regulatory approvals for blood disorder drug luspatercept and cancer-fighting cell therapies bb2121 and liso-cel by 2020. All five drugs are projected to be blockbusters if they succeed.
Celgene appears to be in solid shape financially as well, with a cash stockpile of $6 billion. And it's practically a steal with shares trading at a little over seven times expected earnings.
Bristol-Myers Squibb (NYSE: BMY) found Celgene so attractive that it's trying to acquire the biotech. If the acquisition is accepted by regulators and shareholders of both companies later this year, Celgene shareholders would realize a nice gain of close to 17%. In addition, they'll receive a contingent value right (CVR) share, which will entitle the holder to receive $9 in cash per share for the achievement of future regulatory milestones for ozanimod, liso-cel, and bb2121.
3. Exelixis
Exelixis currently has four approved products: cancer drugs Cabometyx, Cometriq, and Cotellic, and hypertension drug Minnebro, which is approved in Japan. The most important drugs for the biotech are Cabometyx and Cometriq, which are different forms of cabozantinib.
Last year, Exelixis reported 90% revenue growth. Much of this growth was driven by momentum for Cabometyx in treating advanced renal cell carcinoma (RCC), the most common type of kidney cancer. The biotech's adjusted EPS in 2018 nearly tripled from the previous year mostly due to the success of Cabometyx.
Although the FDA's five-year exclusivity period for Cabometyx began in 2016, Exelixis won't have to worry about generic competition for its key drug for a while. The company has an array of U.S. patents that begin expiring in 2024, with the last of the patents extending through 2033.
Exelixis' sales should receive a big boost from the FDA's January approval for the drug to be used as a treatment for previously treated advanced hepatocellular carcinoma (HCC), the most common type of liver cancer. The drug also won approval for this indication in Europe in November 2018.
More indications for cabozantinib could be on the way. Exelixis is conducting a phase 3 clinical studies evaluating the drug in treating thyroid cancer and in previously untreated advanced HCC. CEO Michael Morrissey also stated in the biotech's fourth-quarter 2018 earnings conference call that Exelixis plans to boost its pipeline with additional assets.
The company had a cash position totaling nearly $852 million at the end of 2018. Exelixis stock might not look like a tremendous bargain with a forward P/E of over 17. However, the future growth prospects for Cabometyx give the stock a very attractive PEG ratio of 0.48.
4. Ligand Pharmaceuticals
Ligand Pharmaceuticals is a unique biotech. It doesn't actually develop drugs on its own. Instead, Ligand develops platforms that it licenses to drugmakers to help them develop drugs more effectively.
There are currently 10 products on the market that use Ligand's technologies. These products include Amgen's multiple myeloma drug Kyprolis and Novartis' Promacta, which increases blood platelet counts for patients with several diseases.
Business is booming for Ligand. In 2018, the biotech reported a revenue increase of 78%. Ligand's adjusted EPS soared more than tenfold year over year.
Eight experimental drugs that use Ligand's technologies are in late-stage clinical testing or awaiting regulatory approval. One especially promising candidate in this group is Sage Therapeutics' postpartum depression drug Zulresso (brexanolone), which received FDA approval decision on March 19, 2019.
The earlier-stage pipeline looks even more encouraging. Twenty-one drugs that use Ligand's technologies are currently in phase 2 testing, with another 23 in phase 1 clinical trials.
Ligand had more than $718 million in cash at the end of 2018. Like Exelixis, Ligand's valuation could seem a little high based on its forward P/E multiple of 18.15. But Ligand claims an attractive PEG ratio 0.8 thanks largely to the solid growth prospects for the pipeline candidates using its technologies.
5. Vertex Pharmaceuticals
Vertex just might be the best biotech stock on the market right now. The company's three approved drugs -- Kalydeco, Orkambi, and Symdeko -- enjoy a virtual monopoly in treating the underlying causes of a genetic disease called cystic fibrosis (CF).
Sales for these three drugs soared last year, driving Vertex's revenue up 22%. The biotech's adjusted EPS more than doubled from 2017.
Vertex doesn't have to worry about generic competition for a long time. The company's U.S. patents on Kalydeco and Symdeko don't expire until 2027, while its patent on Orkambi extends through 2030.
There's a very good chance that Vertex will add another drug to its portfolio in 2020. Vertex plans to submit for regulatory approval of a triple-drug combination therapy for CF by mid-2019. If approved, this therapy along with securing approvals for its current drugs in treating younger CF patients could enable Vertex to expand its addressable market by nearly 75%.
Vertex's pipeline also includes promising drugs targeting other indications. None are yet in late-stage testing. However, the biotech plans to advance experimental pain drug VX-150 into phase 3 clinical studies after it completes a phase 2b dose-ranging study. Vertex also has several early-stage clinical programs, notably including partnering with CRISPR Therapeutics on gene-editing therapy CTX001.
The company's cash position continues to improve, with Vertex reporting nearly $3.2 billion in cash, cash equivalents, and marketable securities at the end of 2018. Vertex has a similar story with respect to valuation as Exelixis and Ligand. Although Vertex's forward P/E is higher than 29, its PEG ratio is a relatively low 0.8.
What are the risks to biotech stocks?
All five of these biotechs, as well as the greater biotech industry, face several risks, with the greatest one being that a key pipeline candidate fails in a clinical study. AbbVie experienced a big clinical setback last year with experimental cancer drug Rova-T. Celgene's once-promising Crohn's disease drug GED-0301 flopped in a late-stage study in 2017.
Even if clinical testing goes well, there's also a possibility that regulatory agencies could decide not to approve a drug. Celgene had an embarrassment in early 2018 where the FDA refused to review its regulatory submission for ozanimod. The biotech had to add more data to its filing and plans to resubmit for approval in the first quarter of 2019. Such delays can be costly, especially for a drug like ozanimod with the potential for blockbuster sales.
You might think that the biotechs would have clear sailing as long as there aren't any serious clinical or regulatory setbacks, but that's not necessarily the case. There's always the chance that another drugmaker could develop a more effective product. New products that are comparable in efficacy could cause a competitive battle that results in loss of market share and price cuts that hurt growth prospects. AbbVie and Celgene face the potential threats that their respective top-selling drugs could lose in litigation over patents. Should Humira face generic competition in the U.S. sooner than expected, it would likely take a big toll on AbbVie's share price. The same is true for Celgene with a generic rival for Revlimid.
Celgene's pending acquisition by Bristol-Myers Squibb also presents a unique risk for the biotech. If the deal falls through, it's likely that Celgene's stock would fall, too.
Bright futures
Although they all carry risks, all five of these biotechs should have bright futures.
AbbVie and Celgene appear likely to profit from their top blockbuster drugs for several more years as their other approved drugs and new drugs potentially on the way generate growth. Exelixis, Ligand, and Vertex stand to expand their markets with new indications and new therapies. Strong current lineups and promising pipelines combined with solid financial positions make these biotechs good picks for investors in 2019.
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Keith Speights owns shares of AbbVie, Celgene, and Vertex Pharmaceuticals. The Motley Fool owns shares of and recommends Celgene and Exelixis. The Motley Fool owns shares of CRISPR Therapeutics. The Motley Fool recommends Amgen 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. | AbbVie AbbVie's Humira is the best-selling drug in the world, having raked in a whopping $19.9 billion in 2018. In addition to these top-tier drugs, AbbVie also has several other products that generate significant revenue. Overall, AbbVie's revenue grew 16% year over year in 2018. | AbbVie AbbVie's Humira is the best-selling drug in the world, having raked in a whopping $19.9 billion in 2018. In addition to these top-tier drugs, AbbVie also has several other products that generate significant revenue. Overall, AbbVie's revenue grew 16% year over year in 2018. | AbbVie and Celgene appear likely to profit from their top blockbuster drugs for several more years as their other approved drugs and new drugs potentially on the way generate growth. AbbVie AbbVie's Humira is the best-selling drug in the world, having raked in a whopping $19.9 billion in 2018. In addition to these top-tier drugs, AbbVie also has several other products that generate significant revenue. | AbbVie AbbVie's Humira is the best-selling drug in the world, having raked in a whopping $19.9 billion in 2018. In addition to these top-tier drugs, AbbVie also has several other products that generate significant revenue. Overall, AbbVie's revenue grew 16% year over year in 2018. |
25016.0 | 2019-04-16 00:00:00 UTC | Is TG Therapeutics a Buy? | ABBV | https://www.nasdaq.com/articles/tg-therapeutics-buy-2019-04-17 | nan | nan | TG Therapeutics (NASDAQ: TGTX), a clinical-stage hematology and autoimmune disease specialist, has been crushing the broader stock market this year. The biotech's shares surged higher in response to the news that the company's relapsed and refractory marginal zone lymphoma (MZL) candidate, umbralisib, may be up for an accelerated approval from the Food and Drug Administration, perhaps as soon as next year.
In a mid-stage trial for MZL that read out earlier this year, the experimental drug easily met its primary endpoint of overall response rate. And the FDA recently granted umbralisib a Breakthrough Therapy Designation for this indication. In short, the stars appear to be lining up for TG and its promising B-cell lymphoma drug.
Image Source: Getty Images.
Does this red-hot biotech stock have more room to run, or should investors take their profits now? To answer that question, let's consider the company's clinical pipeline and its commercial prospects.
What's on the horizon?
Predicting the near-term fates of clinical-stage biotechs is never easy. These companies, after all, are prone to wild swings in their share prices due to a lack of strong institutional support, and the chaotic nature of the clinical trial process in general. Having said that, TG does have the ingredients in place to continue its recent growth trend for a long-time.
The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie's (NYSE: ABBV) Imbruvica.
If this narrative holds through the drug's anticipated accelerated path toward approval (the FDA hasn't agreed to this regulatory arrangement yet), it should be in line to rack up a few hundred million in annual sales in the relapsed/refractory MZL setting. That's quite a haul for a company with a current market cap of $686 million.
But there's even more to like about this biotech. TG is also aiming to tack follicular lymphoma and small lymphocytic lymphoma onto umbralisib's label in the near-future. While those two indications are attracting a significant amount of attention from potential competitors, the commercial opportunity should still be significant enough to move TG's share price higher in the event that umbralisib hits the mark as a treatment for these other lymphomas.
Lastly, TG is awaiting the maturing progression-free survival data for the combination of umbralisib and ublituximab in patients with chronic lymphocytic leukemia. This pivotal trial could open up yet another high-value indication for TG's hematology franchise. Although the company hasn't pinned down a target date for this next clinical update, TG expects it to occur sometime between the end of 2019 and the first half 2020.
Time to buy?
The good news is that TG appears poised to get at least one drug on the market in the near future, based on the clinical data released thus far. That should help it slow down its blistering cash burn rate, reduce its need to raise capital on a regular basis.
The bad news is that TG is attempting to break into a stacked field. AbbVie, Gilead, Bristol-Myers Squibb/Celgene, Verastem, and others sport drugs that would compete directly against TG's lead product candidates in hematology. Given that, its experimental drugs will need to post stellar efficacy and safety results; otherwise, they may flounder in the marketplace.
After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche.
Bottom line: Investors may want to take a wait-and-see approach with this upstart biotech, despite its recent share-price rise. Additional clinical updates might warrant an entry soon, but a less-than-stellar readout for any of these ongoing heme trials could spur a hefty pullback. In other words, TG's stock definitely makes the grade as a top watch list candidate, but only ultra-aggressive investors should consider buying it ahead of these all-important clinical milestones.
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*Stock Advisor returns as of March 1, 2019
George Budwell owns shares of AbbVie and Celgene. The Motley Fool owns shares of and recommends Celgene and Gilead Sciences. The Motley Fool recommends TG Therapeutics. 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. | After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche. The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie's (NYSE: ABBV) Imbruvica. AbbVie, Gilead, Bristol-Myers Squibb/Celgene, Verastem, and others sport drugs that would compete directly against TG's lead product candidates in hematology. | The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie's (NYSE: ABBV) Imbruvica. AbbVie, Gilead, Bristol-Myers Squibb/Celgene, Verastem, and others sport drugs that would compete directly against TG's lead product candidates in hematology. After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche. | The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie's (NYSE: ABBV) Imbruvica. AbbVie, Gilead, Bristol-Myers Squibb/Celgene, Verastem, and others sport drugs that would compete directly against TG's lead product candidates in hematology. After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche. | The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie's (NYSE: ABBV) Imbruvica. AbbVie, Gilead, Bristol-Myers Squibb/Celgene, Verastem, and others sport drugs that would compete directly against TG's lead product candidates in hematology. After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche. |
25017.0 | 2019-04-16 00:00:00 UTC | Is TG Therapeutics a Buy? | ABBV | https://www.nasdaq.com/articles/tg-therapeutics-buy-2019-04-16 | nan | nan | TG Therapeutics (NASDAQ: TGTX) , a clinical-stage hematology and autoimmune disease specialist, has been crushing the broader stock market this year. The biotech's shares surged higher in response to the news that the company's relapsed and refractory marginal zone lymphoma (MZL) candidate, umbralisib, may be up for an accelerated approval from the Food and Drug Administration, perhaps as soon as next year.
In a mid-stage trial for MZL that read out earlier this year, the experimental drug easily met its primary endpoint of overall response rate. And the FDA recently granted umbralisib a Breakthrough Therapy Designation for this indication. In short, the stars appear to be lining up for TG and its promising B-cell lymphoma drug.
Does this red-hot biotech stock have more room to run, or should investors take their profits now? To answer that question, let's consider the company's clinical pipeline and its commercial prospects.
What's on the horizon?
Predicting the near-term fates of clinical-stage biotechs is never easy. These companies, after all, are prone to wild swings in their share prices due to a lack of strong institutional support, and the chaotic nature of the clinical trial process in general. Having said that, TG does have the ingredients in place to continue its recent growth trend for a long-time.
The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie 's (NYSE: ABBV) Imbruvica.
If this narrative holds through the drug's anticipated accelerated path toward approval (the FDA hasn't agreed to this regulatory arrangement yet), it should be in line to rack up a few hundred million in annual sales in the relapsed/refractory MZL setting. That's quite a haul for a company with a current market cap of $686 million.
But there's even more to like about this biotech. TG is also aiming to tack follicular lymphoma and small lymphocytic lymphoma onto umbralisib's label in the near-future. While those two indications are attracting a significant amount of attention from potential competitors, the commercial opportunity should still be significant enough to move TG's share price higher in the event that umbralisib hits the mark as a treatment for these other lymphomas.
Lastly, TG is awaiting the maturing progression-free survival data for the combination of umbralisib and ublituximab in patients with chronic lymphocytic leukemia. This pivotal trial could open up yet another high-value indication for TG's hematology franchise. Although the company hasn't pinned down a target date for this next clinical update, TG expects it to occur sometime between the end of 2019 and the first half 2020.
Time to buy?
The good news is that TG appears poised to get at least one drug on the market in the near future, based on the clinical data released thus far. That should help it slow down its blistering cash burn rate, reduce its need to raise capital on a regular basis.
The bad news is that TG is attempting to break into a stacked field. AbbVie, Gilead , Bristol-Myers Squibb/Celgene , Verastem , and others sport drugs that would compete directly against TG's lead product candidates in hematology. Given that, its experimental drugs will need to post stellar efficacy and safety results; otherwise, they may flounder in the marketplace.
After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche.
Bottom line: Investors may want to take a wait-and-see approach with this upstart biotech, despite its recent share-price rise. Additional clinical updates might warrant an entry soon, but a less-than-stellar readout for any of these ongoing heme trials could spur a hefty pullback. In other words, TG's stock definitely makes the grade as a top watch list candidate, but only ultra-aggressive investors should consider buying it ahead of these all-important clinical milestones.
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 quadrupled 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.
See the 10 stocks
*Stock Advisor returns as of March 1, 2019
George Budwell owns shares of AbbVie and Celgene. The Motley Fool owns shares of and recommends Celgene and Gilead Sciences. The Motley Fool recommends TG Therapeutics. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche. The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie 's (NYSE: ABBV) Imbruvica. AbbVie, Gilead , Bristol-Myers Squibb/Celgene , Verastem , and others sport drugs that would compete directly against TG's lead product candidates in hematology. | The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie 's (NYSE: ABBV) Imbruvica. AbbVie, Gilead , Bristol-Myers Squibb/Celgene , Verastem , and others sport drugs that would compete directly against TG's lead product candidates in hematology. After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche. | The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie 's (NYSE: ABBV) Imbruvica. AbbVie, Gilead , Bristol-Myers Squibb/Celgene , Verastem , and others sport drugs that would compete directly against TG's lead product candidates in hematology. After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche. | The lowdown is that umbralisib seems to sport a favorable efficacy and safety profile compared to other drugs in its class, as well as to its chief competitor in later-line MZL -- AbbVie 's (NYSE: ABBV) Imbruvica. AbbVie, Gilead , Bristol-Myers Squibb/Celgene , Verastem , and others sport drugs that would compete directly against TG's lead product candidates in hematology. After all, the biotech heavyweight AbbVie has placed a heavy emphasis on this particular space over the past few years with its development of both Imbruvica and Venclexta, and that could make it next to impossible for smaller companies like TG to carve out a profitable niche. |
25018.0 | 2019-04-16 00:00:00 UTC | J&J profit boosted by better-than-expected pharma unit sales | ABBV | https://www.nasdaq.com/articles/jj-profit-boosted-better-expected-pharma-unit-sales-2019-04-16 | nan | nan | By Manas Mishra and Saumya Joseph
April 16 () - Johnson & Johnson on Tuesday reported a first-quarter profit that exceeded Wall Street expectations on higher sales of its prescription medicines, including a double-digit increase for its psoriasis treatment Stelara, even as the company faces fierce competition for some of its other important drugs.
The U.S. healthcare conglomerate said growth in its pharmaceuticals business was driven by volume rather than price hikes, and its shares rose more than 2 percent to $139.49.
"We're really seeing the strength in pharma sales drive top and bottom line growth," said John Ham, associate advisor at New England Investment and Retirement Group, which owns J&J shares. "We think growth in pharma sales not only in Asia but also in the United States will be a driver for the company going forward."
Excluding items, the company earned $2.10 per share, beating analysts' average estimates by 7 cents, according to IBES data from Refinitiv.
J&J also tightened its full-year forecast for adjusted earnings to $8.53 to $8.63 per share from its prior range of $8.50 to $8.65.
The company on a conference call said 800 sites have already been certified to treat patients with its new nasal spray depression treatment Spravato, which won U.S. approval last month.
"We believe that we're off to a very, very strong start with Spravato and that is going to be an important growth driver for us," said Jennifer Taubert, head of J&J's pharma unit.
Sales of prostate cancer drug Zytiga, which is now facing competition from cheaper generic versions as well as from branded rival Xtandi from Pfizer Inc and Astellas Pharma , fell 19.6 percent.
But the company said it now sees the overall sales decline it expects due to competition from generics and biosimilars in 2019 coming in at the lower end of its prior $3 billion to $3.5 billion forecast.
Overall sales increased slightly to $20.02 billion, topping analyst estimates of $19.61 billion.
Sales from the medical device business fell 4.6 percent to $6.46 billion, edging past Wall Street estimates of $6.44 billion. Consumer health sales declined 2.4 percent to $3.32 billion.
Net profit for the quarter fell 14.2 percent to $3.75 billion as the company recorded $423 million in litigation expenses.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | "We're really seeing the strength in pharma sales drive top and bottom line growth," said John Ham, associate advisor at New England Investment and Retirement Group, which owns J&J shares. The company on a conference call said 800 sites have already been certified to treat patients with its new nasal spray depression treatment Spravato, which won U.S. approval last month. Sales of prostate cancer drug Zytiga, which is now facing competition from cheaper generic versions as well as from branded rival Xtandi from Pfizer Inc and Astellas Pharma , fell 19.6 percent. | But the company said it now sees the overall sales decline it expects due to competition from generics and biosimilars in 2019 coming in at the lower end of its prior $3 billion to $3.5 billion forecast. Overall sales increased slightly to $20.02 billion, topping analyst estimates of $19.61 billion. Sales from the medical device business fell 4.6 percent to $6.46 billion, edging past Wall Street estimates of $6.44 billion. | By Manas Mishra and Saumya Joseph April 16 () - Johnson & Johnson on Tuesday reported a first-quarter profit that exceeded Wall Street expectations on higher sales of its prescription medicines, including a double-digit increase for its psoriasis treatment Stelara, even as the company faces fierce competition for some of its other important drugs. But the company said it now sees the overall sales decline it expects due to competition from generics and biosimilars in 2019 coming in at the lower end of its prior $3 billion to $3.5 billion forecast. Sales from the medical device business fell 4.6 percent to $6.46 billion, edging past Wall Street estimates of $6.44 billion. | But the company said it now sees the overall sales decline it expects due to competition from generics and biosimilars in 2019 coming in at the lower end of its prior $3 billion to $3.5 billion forecast. Overall sales increased slightly to $20.02 billion, topping analyst estimates of $19.61 billion. Sales from the medical device business fell 4.6 percent to $6.46 billion, edging past Wall Street estimates of $6.44 billion. |
25019.0 | 2019-04-15 00:00:00 UTC | ABBV May 31st Options Begin Trading | ABBV | https://www.nasdaq.com/articles/abbv-may-31st-options-begin-trading-2019-04-15 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 31st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 31st contracts and identified one put and one call contract of particular interest.
The put contract at the $75.00 strike price has a current bid of 90 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $75.00, but will also collect the premium, putting the cost basis of the shares at $74.10 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $81.08/share today.
Because the $75.00 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 79%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 1.20% return on the cash commitment, or 9.52% 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 $75.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $95.00 strike price has a current bid of 7 cents. If an investor was to purchase shares of ABBV stock at the current price level of $81.08/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $95.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 17.25% if the stock gets called away at the May 31st 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 $95.00 strike highlighted in red:
Considering the fact that the $95.00 strike represents an approximate 17% 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 94%. 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 0.09% boost of extra return to the investor, or 0.69% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 30%, while the implied volatility in the call contract example is 28%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $81.08) to be 28%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls 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. | 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 $95.00 strike highlighted in red: Considering the fact that the $95.00 strike represents an approximate 17% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 31st expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $95.00 strike highlighted in red: Considering the fact that the $95.00 strike represents an approximate 17% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 31st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 31st 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 $75.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $95.00 strike price has a current bid of 7 cents. Below is a chart showing ABBV's trailing twelve month trading history, with the $95.00 strike highlighted in red: Considering the fact that the $95.00 strike represents an approximate 17% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 31st expiration. | At Stock Options Channel, our YieldBoost formula has looked up and down the ABBV options chain for the new May 31st 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 $95.00 strike highlighted in red: Considering the fact that the $95.00 strike represents an approximate 17% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options become available today, for the May 31st expiration. |
25020.0 | 2019-04-15 00:00:00 UTC | AbbVie (ABBV) Gains As Market Dips: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-as-market-dips%3A-what-you-should-know-2019-04-15-0 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $81.01, moving +0.28% from the previous trading session. This change outpaced the S&P 500's 0.06% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Coming into today, shares of the drugmaker had gained 1.04% in the past month. In that same time, the Medical sector lost 2.31%, while the S&P 500 gained 4.3%.
ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. This would mark year-over-year growth of 9.63%. Meanwhile, our latest consensus estimate is calling for revenue of $7.75 billion, down 2.35% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.69 per share and revenue of $32.79 billion. These totals would mark changes of +9.86% and +0.12%, respectively, from last year.
Any recent changes to analyst estimates for ABBV should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. ABBV currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 9.3 right now. For comparison, its industry has an average Forward P/E of 14.97, which means ABBV is trading at a discount to the group.
Meanwhile, ABBV's PEG ratio is currently 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed the most recent trading day at $81.01, moving +0.28% from the previous trading session. ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. | AbbVie (ABBV) closed the most recent trading day at $81.01, moving +0.28% from the previous trading session. ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. | AbbVie (ABBV) closed the most recent trading day at $81.01, moving +0.28% from the previous trading session. ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. | ABBV currently has a Zacks Rank of #3 (Hold). AbbVie (ABBV) closed the most recent trading day at $81.01, moving +0.28% from the previous trading session. ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. |
25021.0 | 2019-04-14 00:00:00 UTC | The Simple Way You Could Make 10% Each Year With AbbVie | ABBV | https://www.nasdaq.com/articles/simple-way-you-could-make-10-each-year-abbvie-2019-04-14 | nan | nan | AbbVie's (NYSE: ABBV) share price has grown by a compound annual growth rate (CAGR) of more than 15% since the company was spun off from Abbott Labs. But investors didn't see that kind of return in 2018, with AbbVie stock falling 5%. So far, AbbVie's performance this year has been even worse.
But there's a simple way that you could make a 10% return each year with AbbVie. And you can do so regardless of how well the stock performs. Sound too good to be true? It isn't.
Image source: Getty Images.
Two simple steps
To obtain a steady 10% annual return from AbbVie requires only two simple steps. First, you have to buy the stock now. Second, you have to sit back and wait around seven years. At the end of the period, you'll probably have 10% returns on your initial investment for a long time thereafter no matter how AbbVie stock fares along the way.
One key ingredient to this strategy is AbbVie's dividend. Although the big drugmaker's dismal stock performance recently has been disappointing to shareholders, it's helped boost AbbVie's dividend yield to a mouthwatering 5.15%.
The other key ingredient is AbbVie's commitment to increasing its dividend payout. Including AbbVie's time as part of Abbott, the company has increased its dividend for 47 years in a row. Since its spinoff from Abbott in 2013, AbbVie has raised its dividend by a total of 168%. That translates to a compounded annual yearly dividend increase of around 15%.
If AbbVie continued to raise its dividend by 15% each year, the dividend yield would double to 10% in less than five years. However, the company's most recent dividend boost of 11.5% was a little less than its average. Even if AbbVie only increases its dividend by 10% each year, you'd only have to wait seven years for the dividend to double and provide an annual return of 10% on your initial investment.
Realistic assumption?
There's a huge assumption in this simple strategy: AbbVie has to keep growing its dividend. How realistic is that assumption?
I don't see any problem with AbbVie's ability to double its dividend over the next seven years. First of all, AbbVie currently only uses 44% of operating cash flow to fund its dividend program. That gives the company flexibility to increase its dividend even if earnings and cash flow don't increase.
The good news is that earnings and cash flow almost certainly will increase. Some investors might be concerned about sales declines for AbbVie's top-selling drug, Humira, now that there's biosimilar competition in Europe. However, Humira's European sales won't evaporate. More importantly, more than two-thirds of the drug's total revenue is made in the U.S., where there isn't likely to be any direct biosimilar competition until 2023.
Even better, AbbVie expects to generate $35 billion in sales from drugs other than Humira by 2025. That's more than the company made in total last year. And unlike AbbVie's current dependence on Humira, its strategy for future success involves multiple drugs.
Blockbuster cancer drug Imbruvica should continue its momentum. Sales for Venclexta are expected to pick up significantly with the drug's approval as a first-line treatment for chronic lymphocytic leukemia (CLL). AbbVie also should benefit from strong sales growth for Orilissa in treating endometriosis pain and potentially in treating uterine fibroids in the future.
The company has a couple of successors to Humira waiting in the wings as well. Regulatory approvals for risankizumab and upadacitinib are expected this year. Both immunology drugs should become megablockbusters for AbbVie.
An added bonus
I think that it's quite possible -- and even highly probable -- that investors who buy and hold AbbVie stock will be looking at a 10% dividend yield based on their initial investment within a few years. It could even happen sooner than seven years from now if AbbVie boosts its dividend closer to its historic levels.
There's also an added bonus that I believe could be in store for patient investors. AbbVie's shares currently trade at less than nine times expected earnings. That's a bargain-basement price that could move much higher if AbbVie gets some good news, which I think is likely later this year.
Even if AbbVie's share price only grows by 5% annually, the company's strong dividend combined with that relatively weak growth would give shareholders a total return of more than 10% -- without waiting seven years. All you have to do is buy and hold this big pharma stock. It's a simple path to solid profits.
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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) share price has grown by a compound annual growth rate (CAGR) of more than 15% since the company was spun off from Abbott Labs. An added bonus I think that it's quite possible -- and even highly probable -- that investors who buy and hold AbbVie stock will be looking at a 10% dividend yield based on their initial investment within a few years. Even if AbbVie's share price only grows by 5% annually, the company's strong dividend combined with that relatively weak growth would give shareholders a total return of more than 10% -- without waiting seven years. | If AbbVie continued to raise its dividend by 15% each year, the dividend yield would double to 10% in less than five years. Even if AbbVie's share price only grows by 5% annually, the company's strong dividend combined with that relatively weak growth would give shareholders a total return of more than 10% -- without waiting seven years. AbbVie's (NYSE: ABBV) share price has grown by a compound annual growth rate (CAGR) of more than 15% since the company was spun off from Abbott Labs. | If AbbVie continued to raise its dividend by 15% each year, the dividend yield would double to 10% in less than five years. Even if AbbVie only increases its dividend by 10% each year, you'd only have to wait seven years for the dividend to double and provide an annual return of 10% on your initial investment. An added bonus I think that it's quite possible -- and even highly probable -- that investors who buy and hold AbbVie stock will be looking at a 10% dividend yield based on their initial investment within a few years. | Even if AbbVie only increases its dividend by 10% each year, you'd only have to wait seven years for the dividend to double and provide an annual return of 10% on your initial investment. Even better, AbbVie expects to generate $35 billion in sales from drugs other than Humira by 2025. Even if AbbVie's share price only grows by 5% annually, the company's strong dividend combined with that relatively weak growth would give shareholders a total return of more than 10% -- without waiting seven years. |
25022.0 | 2019-04-12 00:00:00 UTC | ACWI, LLY, ABBV, ACN: ETF Inflow Alert | ABBV | https://www.nasdaq.com/articles/acwi-lly-abbv-acn-etf-inflow-alert-2019-04-12 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI ACWI ETF (Symbol: ACWI) where we have detected an approximate $102.9 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 143,200,000 to 144,600,000). Among the largest underlying components of ACWI, in trading today Lilly (Eli) & Co (Symbol: LLY) is down about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Accenture plc (Symbol: ACN) is higher by about 0.5%. For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average:
Looking at the chart above, ACWI's low point in its 52 week range is $61.01 per share, with $74.9512 as the 52 week high point — that compares with a last trade of $74.06. 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 ACWI, in trading today Lilly (Eli) & Co (Symbol: LLY) is down about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Accenture plc (Symbol: ACN) is higher by about 0.5%. For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average: Looking at the chart above, ACWI's low point in its 52 week range is $61.01 per share, with $74.9512 as the 52 week high point — that compares with a last trade of $74.06. 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 ACWI, in trading today Lilly (Eli) & Co (Symbol: LLY) is down about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Accenture plc (Symbol: ACN) is higher 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 iShares MSCI ACWI ETF (Symbol: ACWI) where we have detected an approximate $102.9 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 143,200,000 to 144,600,000). For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average: Looking at the chart above, ACWI's low point in its 52 week range is $61.01 per share, with $74.9512 as the 52 week high point — that compares with a last trade of $74.06. | Among the largest underlying components of ACWI, in trading today Lilly (Eli) & Co (Symbol: LLY) is down about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Accenture plc (Symbol: ACN) is higher 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 iShares MSCI ACWI ETF (Symbol: ACWI) where we have detected an approximate $102.9 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 143,200,000 to 144,600,000). For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average: Looking at the chart above, ACWI's low point in its 52 week range is $61.01 per share, with $74.9512 as the 52 week high point — that compares with a last trade of $74.06. | Among the largest underlying components of ACWI, in trading today Lilly (Eli) & Co (Symbol: LLY) is down about 0.7%, AbbVie Inc (Symbol: ABBV) is up about 0.8%, and Accenture plc (Symbol: ACN) is higher 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 iShares MSCI ACWI ETF (Symbol: ACWI) where we have detected an approximate $102.9 million dollar inflow -- that's a 1.0% increase week over week in outstanding units (from 143,200,000 to 144,600,000). For a complete list of holdings, visit the ACWI Holdings page » The chart below shows the one year price performance of ACWI, versus its 200 day moving average: Looking at the chart above, ACWI's low point in its 52 week range is $61.01 per share, with $74.9512 as the 52 week high point — that compares with a last trade of $74.06. |
25023.0 | 2019-04-12 00:00:00 UTC | Forward Guidance Will Make or Break JNJ Earnings | ABBV | https://www.nasdaq.com/articles/forward-guidance-will-make-or-break-jnj-earnings-2019-04-12 | nan | nan | Johnson & Johnson (NYSE:) announces earnings on Tuesday before market open. The New Brunswick, New Jersey-based healthcare company has become one of the strongest, longest-running brands in existence.
Source: Shutterstock
However, challenges with drug patent expirations have blunted earnings growth in JNJ stock. This has left JNJ trading in a range for more than two years. Though this report will probably not deliver any meaningful surprises, investors still need signs that earnings growth will resume in Johnson & Johnson stock to break the equity out of its range.
Pharma Will Drive the Report on JNJ Stock
Tuesday’s announcement will kick off earnings season for the pharma industry. Wall Street forecasts Q1 earnings to come in at $2.06 per share, matching the number for Q1 2018. They also predict revenues of $19.6 billion, a 2% decrease from the $20.01 billion announced in the same quarter last year.
Consumers know JNJ best for its consumer health products. However, many often forget that medical devices and pharma each drive greater shares of the company’s revenue. It is pain in the pharma division that’s driving the predicted revenue decline.
Sales of Simponi/Simponi Aria and Xarelto fell in the fourth quarter. The company has also cited alternatives to Velcade, Tracleer and Zytiga in explaining revenue declines. By no means is JNJ stock the only pharma stock to struggle with new competition. AbbVie (NYSE:) faces the same issue with Humira. Also, Pfizer (NYSE:) will see its patent protection go away in its blockbuster drug Lyrica this summer.
Patent expirations have long affected pharma stocks, and this may have helped to trap JNJ stock in a range. Since early 2017, JNJ stock has traded near the $120 per share to $150 per share range. Now, its forward P/E ratio comes in below 15. In the past few years, JNJ’s forward P/E has typically been in the high teens to the low 20s.
The stagnant earnings may explain the modest discount in JNJ stock. For this reason, I think investors will focus on guidance in the upcoming report. As of now, Wall Street expects 2019 earnings to increase by 4.6%. In all likelihood, investors will need to at least see that figure to move JNJ higher.
JNJ Stock Retains Numerous Advantages
Fortunately, some tailwinds could help JNJ stock. Traders should remember that JNJ stock usually beats estimates, at least on earnings. For that reason, I would expect the earnings number to come in higher than $2.06 per share.
Also, JNJ stock should continue to deliver the stability for which the public knows the company. For now, JNJ and Microsoft (NASDAQ:) are the only two U.S. companies that maintain a AAA credit rating. Debt levels have fallen over the last year, so I see no change in that status coming.
Also, attention should shift back to the dividend in the coming days. The company traditionally announces a hike to its JNJ stock dividend soon after the Q1 report. They have increased the payout every year since 1963. Hence, I do not see the company breaking its 56-year streak of payout increases. The only question remains how much of a dividend hike JNJ gives.
Johnson & Johnson stock currently pays 90 cents per share each quarter, a yield of about 2.65%. In the past, earnings growth has had little obvious effect on the size of the increase. While I do not foresee any surprises, the dividend boost could help JNJ stock to recover.
Concluding Thoughts on JNJ Stock
Going into earnings, investors need to see guidance that will help break JNJ stock out of its range. Johnson & Johnson usually beats earnings. However, patent expirations on key drugs have led to modest declines in revenue. They may also explain why JNJ has traded in a range for the last two years.
However, conditions increasingly point to the potential for a rising stock price. The P/E ratio has fallen below company averages. Moreover, analysts forecast earnings increases in later quarters and for the overall year. If company guidance confirms those predictions, JNJ stock should rise. An expected dividend hike in the coming weeks should offer further help.
JNJ stock trades at about $135 per share now. If guidance affirms or exceeds profit growth predictions, I think it could help take JNJ past $150 per share sooner rather than later.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can 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. | AbbVie (NYSE:) faces the same issue with Humira. Source: Shutterstock However, challenges with drug patent expirations have blunted earnings growth in JNJ stock. However, many often forget that medical devices and pharma each drive greater shares of the company’s revenue. | AbbVie (NYSE:) faces the same issue with Humira. Johnson & Johnson (NYSE:) announces earnings on Tuesday before market open. Source: Shutterstock However, challenges with drug patent expirations have blunted earnings growth in JNJ stock. | AbbVie (NYSE:) faces the same issue with Humira. Patent expirations have long affected pharma stocks, and this may have helped to trap JNJ stock in a range. JNJ Stock Retains Numerous Advantages Fortunately, some tailwinds could help JNJ stock. | AbbVie (NYSE:) faces the same issue with Humira. The company traditionally announces a hike to its JNJ stock dividend soon after the Q1 report. Concluding Thoughts on JNJ Stock Going into earnings, investors need to see guidance that will help break JNJ stock out of its range. |
25024.0 | 2019-04-11 00:00:00 UTC | Notable Thursday Option Activity: ABBV, EBAY, CXO | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity-abbv-ebay-cxo-2019-04-11 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. That amounts to about 133.8% of ABBV's average daily trading volume over the past month of 5.3 million shares. Especially high volume was seen for the $90 strike call option expiring April 12, 2019, with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $90 strike highlighted in orange:
eBay Inc. (Symbol: EBAY) options are showing a volume of 120,619 contracts thus far today. That number of contracts represents approximately 12.1 million underlying shares, working out to a sizeable 127.2% of EBAY's average daily trading volume over the past month, of 9.5 million shares. Particularly high volume was seen for the $36.50 strike put option expiring April 12, 2019, with 38,627 contracts trading so far today, representing approximately 3.9 million underlying shares of EBAY. Below is a chart showing EBAY's trailing twelve month trading history, with the $36.50 strike highlighted in orange:
And Concho Resources Inc (Symbol: CXO) saw options trading volume of 11,307 contracts, representing approximately 1.1 million underlying shares or approximately 67.4% of CXO's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $125 strike call option expiring May 17, 2019, with 3,701 contracts trading so far today, representing approximately 370,100 underlying shares of CXO. Below is a chart showing CXO's trailing twelve month trading history, with the $125 strike highlighted in orange:
For the various different available expirations for ABBV options, EBAY options, or CXO 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 April 12, 2019, with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. That amounts to about 133.8% of ABBV's average daily trading volume over the past month of 5.3 million shares. | Especially high volume was seen for the $90 strike call option expiring April 12, 2019, with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $90 strike highlighted in orange: eBay Inc. (Symbol: EBAY) options are showing a volume of 120,619 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. Especially high volume was seen for the $90 strike call option expiring April 12, 2019, with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. That amounts to about 133.8% of ABBV's average daily trading volume over the past month of 5.3 million shares. | Especially high volume was seen for the $90 strike call option expiring April 12, 2019, with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. That amounts to about 133.8% of ABBV's average daily trading volume over the past month of 5.3 million shares. |
25025.0 | 2019-04-11 00:00:00 UTC | Notable Thursday Option Activity: ABBV, EBAY, CXO | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity-abbv-ebay-cxo-2019-04-11-0 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. That amounts to about 133.8% of ABBV's average daily trading volume over the past month of 5.3 million shares. Especially high volume was seen for the $90 strike call option expiring April 12, 2019 , with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $90 strike highlighted in orange:
eBay Inc. (Symbol: EBAY) options are showing a volume of 120,619 contracts thus far today. That number of contracts represents approximately 12.1 million underlying shares, working out to a sizeable 127.2% of EBAY's average daily trading volume over the past month, of 9.5 million shares. Particularly high volume was seen for the $36.50 strike put option expiring April 12, 2019 , with 38,627 contracts trading so far today, representing approximately 3.9 million underlying shares of EBAY. Below is a chart showing EBAY's trailing twelve month trading history, with the $36.50 strike highlighted in orange:
And Concho Resources Inc (Symbol: CXO) saw options trading volume of 11,307 contracts, representing approximately 1.1 million underlying shares or approximately 67.4% of CXO's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $125 strike call option expiring May 17, 2019 , with 3,701 contracts trading so far today, representing approximately 370,100 underlying shares of CXO. Below is a chart showing CXO's trailing twelve month trading history, with the $125 strike highlighted in orange:
For the various different available expirations for ABBV options , EBAY options , or CXO 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.
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 April 12, 2019 , with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. That amounts to about 133.8% of ABBV's average daily trading volume over the past month of 5.3 million shares. | Especially high volume was seen for the $90 strike call option expiring April 12, 2019 , with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $90 strike highlighted in orange: eBay Inc. (Symbol: EBAY) options are showing a volume of 120,619 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. Especially high volume was seen for the $90 strike call option expiring April 12, 2019 , with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. That amounts to about 133.8% of ABBV's average daily trading volume over the past month of 5.3 million shares. | Especially high volume was seen for the $90 strike call option expiring April 12, 2019 , with 26,101 contracts trading so far today, representing approximately 2.6 million underlying shares of ABBV. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in AbbVie Inc (Symbol: ABBV), where a total of 71,116 contracts have traded so far, representing approximately 7.1 million underlying shares. That amounts to about 133.8% of ABBV's average daily trading volume over the past month of 5.3 million shares. |
25026.0 | 2019-04-10 00:00:00 UTC | Ex-Dividend Reminder: Becton, Dickinson, AbbVie and Abbott Laboratories | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder-becton-dickinson-abbvie-and-abbott-laboratories-2019-04-10 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel, on 4/12/19, Becton, Dickinson & Co (Symbol: BDXA), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Becton, Dickinson & Co will pay its quarterly dividend of $0.7656 on 5/1/19, AbbVie Inc will pay its quarterly dividend of $1.07 on 5/15/19, and Abbott Laboratories will pay its quarterly dividend of $0.32 on 5/15/19. As a percentage of BDXA's recent stock price of $62.09, this dividend works out to approximately 1.23%, so look for shares of Becton, Dickinson & Co to trade 1.23% lower — all else being equal — when BDXA shares open for trading on 4/12/19. Similarly, investors should look for ABBV to open 1.29% lower in price and for ABT to open 0.41% lower, all else being equal.
Below are dividend history charts for BDXA, ABBV, and ABT, showing historical dividends prior to the most recent ones declared.
Becton, Dickinson & Co (Symbol: BDXA):
AbbVie Inc (Symbol: ABBV):
Abbott Laboratories (Symbol: ABT):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 4.93% for Becton, Dickinson & Co, 5.15% for AbbVie Inc, and 1.63% for Abbott Laboratories.
In Wednesday trading, Becton, Dickinson & Co shares are currently down about 0.4%, AbbVie Inc shares are up about 0.5%, and Abbott Laboratories shares are up about 0.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If they do continue, the current estimated yields on annualized basis would be 4.93% for Becton, Dickinson & Co, 5.15% for AbbVie Inc, and 1.63% for Abbott Laboratories. Looking at the universe of stocks we cover at Dividend Channel, on 4/12/19, Becton, Dickinson & Co (Symbol: BDXA), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Becton, Dickinson & Co will pay its quarterly dividend of $0.7656 on 5/1/19, AbbVie Inc will pay its quarterly dividend of $1.07 on 5/15/19, and Abbott Laboratories will pay its quarterly dividend of $0.32 on 5/15/19. | Looking at the universe of stocks we cover at Dividend Channel, on 4/12/19, Becton, Dickinson & Co (Symbol: BDXA), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Becton, Dickinson & Co will pay its quarterly dividend of $0.7656 on 5/1/19, AbbVie Inc will pay its quarterly dividend of $1.07 on 5/15/19, and Abbott Laboratories will pay its quarterly dividend of $0.32 on 5/15/19. Becton, Dickinson & Co (Symbol: BDXA): AbbVie Inc (Symbol: ABBV): Abbott Laboratories (Symbol: ABT): In general, dividends are not always predictable, following the ups and downs of company profits over time. | Looking at the universe of stocks we cover at Dividend Channel, on 4/12/19, Becton, Dickinson & Co (Symbol: BDXA), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Becton, Dickinson & Co will pay its quarterly dividend of $0.7656 on 5/1/19, AbbVie Inc will pay its quarterly dividend of $1.07 on 5/15/19, and Abbott Laboratories will pay its quarterly dividend of $0.32 on 5/15/19. Becton, Dickinson & Co (Symbol: BDXA): AbbVie Inc (Symbol: ABBV): Abbott Laboratories (Symbol: ABT): In general, dividends are not always predictable, following the ups and downs of company profits over time. | If they do continue, the current estimated yields on annualized basis would be 4.93% for Becton, Dickinson & Co, 5.15% for AbbVie Inc, and 1.63% for Abbott Laboratories. Looking at the universe of stocks we cover at Dividend Channel, on 4/12/19, Becton, Dickinson & Co (Symbol: BDXA), AbbVie Inc (Symbol: ABBV), and Abbott Laboratories (Symbol: ABT) will all trade ex-dividend for their respective upcoming dividends. Becton, Dickinson & Co will pay its quarterly dividend of $0.7656 on 5/1/19, AbbVie Inc will pay its quarterly dividend of $1.07 on 5/15/19, and Abbott Laboratories will pay its quarterly dividend of $0.32 on 5/15/19. |
25027.0 | 2019-04-08 00:00:00 UTC | AbbVie (ABBV) Outpaces Stock Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-outpaces-stock-market-gains%3A-what-you-should-know-2019-04-08-0 | nan | nan | AbbVie (ABBV) closed at $83.98 in the latest trading session, marking a +0.64% move from the prior day. This move outpaced the S&P 500's daily gain of 0.11%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq added 0.19%.
Coming into today, shares of the drugmaker had gained 6.66% in the past month. In that same time, the Medical sector gained 1.2%, while the S&P 500 gained 3.84%.
ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. The company is expected to report EPS of $2.05, up 9.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.75 billion, down 2.35% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. These results would represent year-over-year changes of +9.73% and +0.12%, respectively.
Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ABBV is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, ABBV is holding a Forward P/E ratio of 9.62. Its industry sports an average Forward P/E of 15.44, so we one might conclude that ABBV is trading at a discount comparatively.
It is also worth noting that ABBV currently has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.12 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.com.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie (ABBV) closed at $83.98 in the latest trading session, marking a +0.64% move from the prior day. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie (ABBV) closed at $83.98 in the latest trading session, marking a +0.64% move from the prior day. ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. AbbVie (ABBV) closed at $83.98 in the latest trading session, marking a +0.64% move from the prior day. ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. | AbbVie (ABBV) closed at $83.98 in the latest trading session, marking a +0.64% move from the prior day. ABBV will be looking to display strength as it nears its nex t earnings release, which is expected to be April 25, 2019. ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. |
25028.0 | 2019-04-07 00:00:00 UTC | Better Buy: AbbVie vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-vs-johnson-johnson-2019-04-07 | nan | nan | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Both of these healthcare giants post consistent growth, crank out profits, and have a history of sharing the wealth with their investors.
But which is the better choice for new money today?
Image source: Getty Images.
Growth
You can't talk about AbbVie's growth prospects without focusing on a single drug: Humira. This blockbuster compound accounts for more than 60% of total revenue, and has been the company's primary driver for years.
The big concern facing Humira right now is that biosimilar competition is starting to enter the picture. That pressure is currently just limited to Europe, but it should spill over into the U.S. within just a few years.
AbbVie is aware of the headwinds, and has been aggressively developing new drugs to help fill in the eventual void. Current winners include the hematology drugs Imbruvica and Venclexta, as well as the hepatitis C drug Mavyret. These drugs are still in growth mode, and are expecting to pull in billions in annual revenue in the years ahead. The company's pipeline is also expected to go a long way toward overcoming the decline.
All told, Wall Street currently believes that AbbVie's bottom-line will grow in excess of 9% annually over the next five years. That's a pretty solid growth rate for such a mature business.
While Johnson & Johnson is a far more diversified business than AbbVie, it is having troubles with biosimilars too. Sales of the company's top-selling cancer drug, Remicade, are falling by double digits from the pressure of copycat competition.
J&J's management team has also focused its attention on new drug launches to help pick up the slack. The company's current winners include Stelara, Tremfy, Darzalex, and Zytiga, among others.
Unlike AbbVie, J&J isn't just a drug maker. The company also pulls in billions in annual sales from its consumer healthcare division and its medical device business. When combined, these two units pull in more than half of total sales, and are also helping to cushion the Remicade weakness.
Market watchers currently think that J&J will remain in growth mode over the next half-decade. The current estimate calls for more than 6% growth in profits over the next five years.
It is great to see that both of these businesses are still growing, but AbbVie's higher expected growth rate gives it the gold medal in this category.
Winner: AbbVie
Value
AbbVie is currently trading for 22.5 times its trailing earnings, which isn't all that enticing of a price. However, the number looks much better when you value this company based on its future earnings. AbbVie is currently trading for less than nine times next year's earnings estimates.
It's a similar situation with Johnson & Johnson. The stock is currently valued at more than 24 times trailing earnings, but that number drops all the way to below 15 when you use next year's estimated earnings.
There's an argument to be made that both of these stocks are cheap right now, but there's no doubt that AbbVie's stock is more of a bargain at the moment.
Winner: AbbVie
Income
AbbVie and Johnson & Johnson are both dividend dynamos.
AbbVie has paid out a solid dividend ever since it was spun-off of its former parent company Abbott Laboratories (NYSE: ABT) back in 2013. AbbVie's yield currently tops 5.1%, which is a monster number. What's more, the dividend only consumes about 55% of trailing earnings, so there's ample room left for future dividend hikes.
Johnson & Johnson also offers a market-topping yield of 2.6% right now, which is also quite attractive. The dividend only consumes about 44% of net income, so this one looks very safe too.
With a dividend yield that is nearly twice as high as its counterpart, AbbVie is the clear winner here.
Winner: AbbVie
The better buy
There is a legitimate argument to be made that Johnson & Johnson's stock is the better choice right now since AbbVie's future is so heavily reliant on the success of Humira. That's a fair criticism that shouldn't be taken lightly.
However, for this matchup there's no doubt who the clear winner is. AbbVie is growing faster, pays out a better dividend, and is trading at a cheaper valuation than Johnson & Johnson. That one-two-three punch is simply too tough to beat.
10 stocks we like better than Johnson & Johnson
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of March 1, 2019
Brian Feroldi 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. | AbbVie has paid out a solid dividend ever since it was spun-off of its former parent company Abbott Laboratories (NYSE: ABT) back in 2013. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Growth You can't talk about AbbVie's growth prospects without focusing on a single drug: Humira. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Winner: AbbVie Value AbbVie is currently trading for 22.5 times its trailing earnings, which isn't all that enticing of a price. Winner: AbbVie Income AbbVie and Johnson & Johnson are both dividend dynamos. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Winner: AbbVie Income AbbVie and Johnson & Johnson are both dividend dynamos. Winner: AbbVie The better buy There is a legitimate argument to be made that Johnson & Johnson's stock is the better choice right now since AbbVie's future is so heavily reliant on the success of Humira. | Winner: AbbVie The better buy There is a legitimate argument to be made that Johnson & Johnson's stock is the better choice right now since AbbVie's future is so heavily reliant on the success of Humira. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Growth You can't talk about AbbVie's growth prospects without focusing on a single drug: Humira. |
25029.0 | 2019-04-07 00:00:00 UTC | Better Buy: AbbVie vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-vs-johnson-johnson-2019-04-07-0 | nan | nan | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Both of these healthcare giants post consistent growth, crank out profits, and have a history of sharing the wealth with their investors.
But which is the better choice for new money today?
Growth
You can't talk about AbbVie's growth prospects without focusing on a single drug: Humira. This blockbuster compound accounts for more than 60% of total revenue, and has been the company's primary driver for years.
The big concern facing Humira right now is that biosimilar competition is starting to enter the picture. That pressure is currently just limited to Europe, but it should spill over into the U.S. within just a few years .
AbbVie is aware of the headwinds, and has been aggressively developing new drugs to help fill in the eventual void. Current winners include the hematology drugs Imbruvica and Venclexta, as well as the hepatitis C drug Mavyret. These drugs are still in growth mode, and are expecting to pull in billions in annual revenue in the years ahead. The company's pipeline is also expected to go a long way toward overcoming the decline.
All told, Wall Street currently believes that AbbVie's bottom-line will grow in excess of 9% annually over the next five years. That's a pretty solid growth rate for such a mature business.
While Johnson & Johnson is a far more diversified business than AbbVie, it is having troubles with biosimilars too. Sales of the company's top-selling cancer drug, Remicade, are falling by double digits from the pressure of copycat competition .
J&J's management team has also focused its attention on new drug launches to help pick up the slack. The company's current winners include Stelara, Tremfy, Darzalex, and Zytiga, among others.
Unlike AbbVie, J&J isn't just a drug maker. The company also pulls in billions in annual sales from its consumer healthcare division and its medical device business. When combined, these two units pull in more than half of total sales, and are also helping to cushion the Remicade weakness.
Market watchers currently think that J&J will remain in growth mode over the next half-decade. The current estimate calls for more than 6% growth in profits over the next five years.
It is great to see that both of these businesses are still growing, but AbbVie's higher expected growth rate gives it the gold medal in this category.
Winner: AbbVie
Value
AbbVie is currently trading for 22.5 times its trailing earnings, which isn't all that enticing of a price. However, the number looks much better when you value this company based on its future earnings. AbbVie is currently trading for less than nine times next year's earnings estimates.
It's a similar situation with Johnson & Johnson. The stock is currently valued at more than 24 times trailing earnings, but that number drops all the way to below 15 when you use next year's estimated earnings.
There's an argument to be made that both of these stocks are cheap right now, but there's no doubt that AbbVie's stock is more of a bargain at the moment.
Winner: AbbVie
Income
AbbVie and Johnson & Johnson are both dividend dynamos.
AbbVie has paid out a solid dividend ever since it was spun-off of its former parent company Abbott Laboratories (NYSE: ABT) back in 2013. AbbVie's yield currently tops 5.1%, which is a monster number. What's more, the dividend only consumes about 55% of trailing earnings, so there's ample room left for future dividend hikes.
Johnson & Johnson also offers a market-topping yield of 2.6% right now, which is also quite attractive. The dividend only consumes about 44% of net income, so this one looks very safe too.
With a dividend yield that is nearly twice as high as its counterpart, AbbVie is the clear winner here.
Winner: AbbVie
The better buy
There is a legitimate argument to be made that Johnson & Johnson's stock is the better choice right now since AbbVie's future is so heavily reliant on the success of Humira. That's a fair criticism that shouldn't be taken lightly.
However, for this matchup there's no doubt who the clear winner is. AbbVie is growing faster, pays out a better dividend, and is trading at a cheaper valuation than Johnson & Johnson. That one-two-three punch is simply too tough to beat.
10 stocks we like better than Johnson & Johnson
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 quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 1, 2019
Brian Feroldi 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie has paid out a solid dividend ever since it was spun-off of its former parent company Abbott Laboratories (NYSE: ABT) back in 2013. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Growth You can't talk about AbbVie's growth prospects without focusing on a single drug: Humira. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Winner: AbbVie Value AbbVie is currently trading for 22.5 times its trailing earnings, which isn't all that enticing of a price. Winner: AbbVie Income AbbVie and Johnson & Johnson are both dividend dynamos. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Winner: AbbVie Income AbbVie and Johnson & Johnson are both dividend dynamos. Winner: AbbVie The better buy There is a legitimate argument to be made that Johnson & Johnson's stock is the better choice right now since AbbVie's future is so heavily reliant on the success of Humira. | Winner: AbbVie The better buy There is a legitimate argument to be made that Johnson & Johnson's stock is the better choice right now since AbbVie's future is so heavily reliant on the success of Humira. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) are both monster healthcare companies that have been stellar holdings for long-term shareholders. Growth You can't talk about AbbVie's growth prospects without focusing on a single drug: Humira. |
25030.0 | 2019-04-04 00:00:00 UTC | 10 Medical Marijuana Stocks to Cure Your Portfolio | ABBV | https://www.nasdaq.com/articles/10-medical-marijuana-stocks-to-cure-your-portfolio-2019-04-04 | nan | nan | Invariably, no other investment class generates as much interest and controversy as marijuana stocks. Within a generation, toward legalization shifted dramatically from strongly opposed to mostly supportive. This is largely due to demographics, as the more progressive millennials replace older Americans in positions of influence.
Additionally, marijuana stocks represent a viable economic channel that can help bridge the gap for many states’ financial issues. For instance, green-friendly enjoys significant tax revenues from their botanical industry. I don’t see this trend changing for the worse anytime soon, as awareness and popularity is only increasing.
Of course, cannabis isn’t without its controversies. Primarily, the federal government classifies marijuana as a Schedule I drug, putting it on par with hardcore narcotics like cocaine. Thus, no matter how liberal some states become toward their agricultural ambitions, the specter of federal oversight and crackdowns keeps many entrepreneurs and businesses away.
However, we have one critical exception to the rule: marijuana stocks that specialize in medicinal and therapeutic benefits. For one thing, medical cannabis mitigates the stereotypical image of potheads and general no-gooders. Plus, people experiment with pharmaceuticals all the time. Why not allow these same patients the choice for natural alternatives?
More critically for marijuana stocks, the medicinal aspect offers the best chance for international acceptance. Currently, very few jurisdictions allow recreational weed. Given the abundance of traditional and conservative nations, a green world is unlikely. But as Thailand and South Korea demonstrated, medical cannabis is a much .
As a result, you want exposure not just to marijuana stocks, but also to the therapeutic element. Here are 10 names to consider:
Medical Marijuana Stocks: AbbVie (ABBV)
Source: Shutterstock
Whenever you have a discussion about cannabis stocks, chances are, AbbVie (NYSE:) isn’t the first name you think about. One of the healthcare sector’s blue chips, ABBV stock has soared on its vast therapeutic pipeline. We’re talking mainstream solutions for common ailments and diseases like arthritis and plaque psoriasis.
Still, AbbVie maintains some botanical credibility with its Marinol therapy. A synthetic cannabis-based drug, Marinol addresses chemotherapy-related side effects, such as vomiting or nausea. In addition, it helps restore appetite among AIDS patients.
Of course, you should note that Marinol isn’t among AbbVie’s top-selling products. Therefore, you’re only getting limited exposure to cannabis with ABBV stock. But based on the extreme volatility of marijuana stocks, that isn’t such a bad gig.
Emerald Health Therapeutics (EMHTF)
Source: Shutterstock
Not that I would know, but growing cannabis allegedly isn’t rocket science. With the right conditions, the right equipment and a reasonable car, anyone can grow their stash. But cultivating the plant so that it addresses specific ailments and symptoms? That takes real effort, which is where Emerald Health Therapeutics (OTCMKTS:) comes in.
Rather than just pumping out the green stuff, Emerald deliberately seeks out the strains most effective in addressing patients’ needs. The company provides a wide of strains, which range in weight, tetrahydrocannabinol (THC) content, and cannabidiol (CBD) strength. Their impressive portfolio should lift EMHTF stock over the long run, as interest in CBD products accelerates.
More importantly, the markets share the same opinion. On year-to-date basis, EMHTF stock is up nearly 70%. While all cannabis stocks suffer volatility risk, Emerald’s concentration on medicinal weed should help mitigate downside pressure.
Aurora Cannabis (ACB)
Source: Shutterstock
I’ve spent a lot of time discussing Aurora Cannabis (NYSE:), and I don’t mean to keep double-dipping into this company. Still, I keep going back for a reason: ACB stock is an excellent play within the medical-marijuana market.
A key factor in my bullishness for Aurora is their management team. In my view, they’re making smart decisions through their acquisitive strategy. Rather than merely focusing on outright capacity, they’re looking out over the horizon. Aurora’s buyout of Whistler Medical Marijuana gave the organization significant leverage in medical cannabis due to Whistler’s extensive .
Furthermore, ACB stock is a strong performer. Since the January opener, shares have skyrocketed roughly 70%. While it’s likely to cool off, the inevitable correction should be only temporary. Among marijuana stocks, Aurora is exceptionally well-positioned for sustainable growth.
Cronos Group (CRON)
Source: Shutterstock
One of the top names among major marijuana stocks, Cronos Group (NASDAQ:) naturally attracts a lot of attention. This time, though, they’re attracting the wrong kind.
Prior to its earnings report for the fourth quarter, I worried about the company’s . Hit or exceed it, and management can stave off criticism. But fall short, and CRON stock could crumble. They missed the sales target — quite badly, too — and shares naturally reacted poorly.
But speculators looking for a discounted price may want to put CRON stock back on their radar. Since the beginning of March, Cronos has shed over 16%. However, the magnitude of volatility has declined noticeably in the past few days.
Plus, Cronos has international legitimacy among medicinally focused cannabis stocks. Featuring partnerships and joint ventures across five continents, the company is ahead of the game.
CannTrust (CTST)
Source: Shutterstock
In business — even the green kind — you can’t get ahead of yourself. So while lucrative opportunities exist in the international sector, CannTrust (NYSE:) remains firmly committed to winning its native Canadian market.
At the same time, CannTrust can’t afford to ignore the rest of the world. Although Canada becoming the first to legalize recreational weed generated headlines, our northern neighbors alone can’t support this burgeoning industry. Therefore, management has focused on the growth and capacity narrative to compete effectively at home and, later, abroad.
To achieve the second leg of this journey, CannTrust teamed up with Denmark’s to distribute medical-cannabis products in that country. It also inked a partnership with an Australian firm for similar distribution arrangements. While it’s not the most common name among marijuana stocks, CTST stock provides a risky, but viable, opportunity.
Innovative Industrial Properties (IIPR)
Source: Shutterstock
Most marijuana stocks focus on the industry’s front face; namely, production. As I mentioned earlier, marijuana isn’t that difficult to grow. So long as you have the green light legally, the physical barrier to entry is relatively short.
But the real challenge, though, is finding a consistent source of financing. This is where Innovative Industrial Properties (NYSE:) lends a helping hand. Despite momentum toward legalization, several financial institutions shy away from cannabis ventures. Innovative Industrial plugs the gap, offering critical capital through its leaseback business model.
Thanks to the company’s tremendous utility, IIPR stock has lit up the markets. Shares are currently up 66% YTD. Technically, IIPR may have gotten a bit overheated. That said, I wouldn’t get too greedy looking for the perfect entry point. Innovative Industrial levers a proven business model that is only increasing in relevancy.
Terra Tech (TRTC)
Source: Shutterstock
Everyone recognizes cannabis stocks for two things: their incredible potential and their equally incredible volatility. Unfortunately, stakeholders of medical-cannabis producer Terra Tech (OTCMKTS:) find themselves in the latter category. Over the trailing year, TRTC stock is down around 60%.
And the bad news doesn’t end there. Unlike many other marijuana stocks, Terra Tech has had trouble generating top-line growth. In its most recent earnings report for the fourth quarter, the company reported $6.92 million in sales. This badly underperformed against the year-ago level, when Terra Tech generated revenue of $11 million.
So why take a bet on TRTC stock? First, its vertically integrated organization may facilitate significant efficiencies as political momentum increases. Second, I dig their leadership team. The head execs are experts in finance, which should prove beneficial in properly navigating TRTC across choppy waters.
Charlotte’s Web (CWBHF)
Source: Shutterstock
When most people look at Charlotte’s Web (OTCMKTS:), they’re thinking that they missed the boat. After all, CWBHF stock has jumped almost 113% since the beginning of this year. From the opening price of April, Charlotte’s Web shares gained a ridiculous 16%.
As much as I love marijuana stocks, I’m fairly certain that this cannabis firm is due for a pullback. But once that occurs, I wouldn’t waste too much time squabbling over the granularity. Instead, I’d consider what our own Matt McCall had to say. Thanks to the popularity of CBD, Charlotte’s Web’s CBD-based products could be distributed across channels.
Unquestionably, such an event would launch CWBHF stock into the stratosphere. Moreover, because most CBD products contain no trace of THC, they don’t fall under severe federal guidelines. Therefore, don’t get too greedy looking for an ideal price point when CWBHF corrects.
Cannabis Science (CBIS)
Source: Shutterstock
On paper, Cannabis Science (OTCMKTS:) represents the next evolution among cannabis stocks: pharmaceutical firms that devote their time and research exclusively toward medical marijuana. Not only that, this is a much-needed development that could lift CBIS stock, as well as the entire botanical industry.
For decades, people unquestionably trusted the mainstream healthcare and pharmaceutical network. However, the rapidly escalating has proven that well-intentioned medical professionals can lever a tragic impact. One of the underlying causes of this crisis is the addictiveness of prescribed medicines.
Organizations like Cannabis Science can potentially mitigate this situation with naturally sourced therapies free of psychoactive side-effects. That’s the allure for CBIS stock. However, shares trade for less than 3 cents a pop, so this is only for the risk-tolerant.
GW Pharmaceuticals (GWPRF)
Source: Shutterstock
On surface level, GW Pharmaceuticals (OTCMKTS:) brings a lot of positives to the table. As pioneers among medicinally-concentrated marijuana stocks, they lever substantial credibility. Their Sativex drug for addressing symptoms associated with multiple sclerosis achieved better-than-expected results. This only encourages other companies to pursue cannabis-based therapies for many other diseases.
That’s the good news. The not-so-pleasant side of the coin, though, is market performance. While no one mistakes cannabis stocks as stable investment platforms, GWPRF stock is rough for even hardened botanical veterans. In December of last year, shares fell off a cliff before rebounding back toward low-earth orbit.
So is GWPRF stock worth a look now? Although I like how the company has stabilized, I don’t care for its low volume. But GW Pharmaceuticals is a penny stock with underappreciated talents. If you have the nerve and the patience, it’s worth your consideration.
As of this writing, Josh Enomoto 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. | Here are 10 names to consider: Medical Marijuana Stocks: AbbVie (ABBV) Source: Shutterstock Whenever you have a discussion about cannabis stocks, chances are, AbbVie (NYSE:) isn’t the first name you think about. One of the healthcare sector’s blue chips, ABBV stock has soared on its vast therapeutic pipeline. Still, AbbVie maintains some botanical credibility with its Marinol therapy. | Here are 10 names to consider: Medical Marijuana Stocks: AbbVie (ABBV) Source: Shutterstock Whenever you have a discussion about cannabis stocks, chances are, AbbVie (NYSE:) isn’t the first name you think about. One of the healthcare sector’s blue chips, ABBV stock has soared on its vast therapeutic pipeline. Still, AbbVie maintains some botanical credibility with its Marinol therapy. | Here are 10 names to consider: Medical Marijuana Stocks: AbbVie (ABBV) Source: Shutterstock Whenever you have a discussion about cannabis stocks, chances are, AbbVie (NYSE:) isn’t the first name you think about. One of the healthcare sector’s blue chips, ABBV stock has soared on its vast therapeutic pipeline. Still, AbbVie maintains some botanical credibility with its Marinol therapy. | Here are 10 names to consider: Medical Marijuana Stocks: AbbVie (ABBV) Source: Shutterstock Whenever you have a discussion about cannabis stocks, chances are, AbbVie (NYSE:) isn’t the first name you think about. One of the healthcare sector’s blue chips, ABBV stock has soared on its vast therapeutic pipeline. Still, AbbVie maintains some botanical credibility with its Marinol therapy. |
25031.0 | 2019-04-04 00:00:00 UTC | Novartis Resubmits BLA to FDA for Biosimilar of Neulasta | ABBV | https://www.nasdaq.com/articles/novartis-resubmits-bla-to-fda-for-biosimilar-of-neulasta-2019-04-04-0 | nan | nan | Novartis AG'sNVS generic arm, Sandoz, resubmitted its Biologics License Application (BLA) for a proposed biosimilar of Neulasta to the FDA.
The BLA was resubmitted to the FDA to address the issues mentioned in the complete response letter (CRL) received in June 2016. The resubmission includes new data from a pivotal pharmacokinetics (PK) and pharmacodynamics (PD) study.
We note that Neulasta is a long-acting version of Neupogen and is used primarily to help reduce the chance of infection due to a low white blood cell count in patients with certain types of cancer (nonmyeloid), who receive anticancer medicines (chemotherapy) that can cause fever and reduce blood cell count.
We note that Sandoz is one of the strongest players in the biosimilars market. Ziextenzo, the biosimilar of Neulasta, has already been launched in Europe in November 2018. The company has three approved biosimilars in the United States and markets eight biosimilars in the European Economic Area (EEA).
Among these, Hyrimoz, a biosimilar of Humira, was launched in the EU in October 2018. It is also approved in the United States. However, Novartis cannot launch Hyrimoz in the United States until October 2023, per a settlement with AbbVie, Inc. ABBV . Zessly, a biosimilar of Remicade, was launched in the EU in November 2018. The FDA approved Erelzi, a biosimilar of Enbrel, in 2016 but the launch is pending litigation with Amgen, Inc. AMGN .
Meanwhile, Sandoz received a CRL from the FDA in May 2018 for a biosimilar of Rituxan and has decided thereafter not to pursue it any further as of now.
We remind investors that the Sandoz business has suffered significant declines in sales and profits in the United States due to increased competition in its product segments. The company has agreed to sell the Sandoz US dermatology business and generic US oral solids portfolio to Aurobindo Pharma USA Inc.
Shares of the company have gained 12.9% in the past six months compared with the industry 's 3.6% growth.
The last year was a transformative one for Novartis, as it restructured its business to become a core drug-focused company, powered by data and digital technologies. Novartis acquired U.S.-based clinical-stage gene-therapy company, AveXis, Inc in 2018. The company also acquired Endocyte to expand expertise in radiopharmaceuticals. We expect more acquisitions in the coming months, as the company looks to further restructure its business.
Approval of new drugs and label expansion of existing drugs bode well for Novartis, as it looks to streamline its business. The company sold its stake in consumer healthcare joint venture to GlaxoSmithKline GSK for $13 billion.
Zacks Rank
Novartis currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | However, Novartis cannot launch Hyrimoz in the United States until October 2023, per a settlement with AbbVie, Inc. ABBV . Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Novartis AG'sNVS generic arm, Sandoz, resubmitted its Biologics License Application (BLA) for a proposed biosimilar of Neulasta to the FDA. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. However, Novartis cannot launch Hyrimoz in the United States until October 2023, per a settlement with AbbVie, Inc. ABBV . See their latest picks free >> Want the latest recommendations from Zacks Investment Research? | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. However, Novartis cannot launch Hyrimoz in the United States until October 2023, per a settlement with AbbVie, Inc. ABBV . The company has three approved biosimilars in the United States and markets eight biosimilars in the European Economic Area (EEA). | However, Novartis cannot launch Hyrimoz in the United States until October 2023, per a settlement with AbbVie, Inc. ABBV . Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. It is also approved in the United States. |
25032.0 | 2019-04-03 00:00:00 UTC | Alector (ALEC) Initiates Phase I Alzheimer's Study on AL003 | ABBV | https://www.nasdaq.com/articles/alector-alec-initiates-phase-i-alzheimers-study-on-al003-2019-04-03-0 | nan | nan | Alector, Inc.ALEC announced the initiation of the phase I INTERCEPT study on AL003 for the treatment of Alzheimer's disease. The randomized, double-blind, placebo-controlled, dose escalation study will investigate the safety, tolerability, pharmacokinetics, pharmacodynamics and immunogenicity of AL003 in healthy volunteers and patients with Alzheimer's disease.
AL003 is the company's second product candidate being developed for the treatment of patients with Alzheimer's disease in collaboration with AbbVie ABBV . In November, Alector initiated a phase I INVOKE study to evaluate AL002 for the treatment of Alzheimer's disease.
Alector is focused on identifying and functionally repairing genetic mutations that cause dysfunction of the brain immune system, leading to neurodegeneration. AL003 targets SIGLEC 3, which is an inhibitory receptor expressed primarily on cells of myeloid lineage, including microglia, which constitute the brain's immune system.
Shares of the company were up almost 7% on the announcement of the news. Alector's stock price has increased 18.2% in the past year against the industry 's decline of 6.6%.
Companies continue to invest heavily in developing Alzheimer's disease treatments. The market has immense commercial potential, and companies coming up with new treatments could rake in billions of dollars.
In January 2019, Biogen inked two strategic collaborations one each with C4 Therapeutics and Skyhawk Therapeutics to develop potential therapies for Alzheimer's disease, Parkinson's disease and other devastating neurological diseases.
In December 2018, Eli Lilly & Company LLY signed a collaboration agreement with Swiss biotech AC Immune SA ACIU to jointly develop tau aggregation inhibitors, which have the potential to treat Alzheimer's and other neurodegenerative diseases. Lilly has had its share of failures in Alzheimer's disease.
Zacks Rank & Stock to Consider
Alector currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AL003 is the company's second product candidate being developed for the treatment of patients with Alzheimer's disease in collaboration with AbbVie ABBV . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AC Immune SA (ACIU): Free Stock Analysis Report ALECTOR INC (ALEC): Free Stock Analysis Report To read this article on Zacks.com click here. The randomized, double-blind, placebo-controlled, dose escalation study will investigate the safety, tolerability, pharmacokinetics, pharmacodynamics and immunogenicity of AL003 in healthy volunteers and patients with Alzheimer's disease. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AC Immune SA (ACIU): Free Stock Analysis Report ALECTOR INC (ALEC): Free Stock Analysis Report To read this article on Zacks.com click here. AL003 is the company's second product candidate being developed for the treatment of patients with Alzheimer's disease in collaboration with AbbVie ABBV . In December 2018, Eli Lilly & Company LLY signed a collaboration agreement with Swiss biotech AC Immune SA ACIU to jointly develop tau aggregation inhibitors, which have the potential to treat Alzheimer's and other neurodegenerative diseases. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AC Immune SA (ACIU): Free Stock Analysis Report ALECTOR INC (ALEC): Free Stock Analysis Report To read this article on Zacks.com click here. AL003 is the company's second product candidate being developed for the treatment of patients with Alzheimer's disease in collaboration with AbbVie ABBV . In January 2019, Biogen inked two strategic collaborations one each with C4 Therapeutics and Skyhawk Therapeutics to develop potential therapies for Alzheimer's disease, Parkinson's disease and other devastating neurological diseases. | AL003 is the company's second product candidate being developed for the treatment of patients with Alzheimer's disease in collaboration with AbbVie ABBV . Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AC Immune SA (ACIU): Free Stock Analysis Report ALECTOR INC (ALEC): Free Stock Analysis Report To read this article on Zacks.com click here. Companies continue to invest heavily in developing Alzheimer's disease treatments. |
25033.0 | 2019-04-03 00:00:00 UTC | 10 Best Selling Drugs Of 2018 | ABBV | https://www.nasdaq.com/articles/10-best-selling-drugs-2018-2019-04-03 | nan | nan | (RTTNews) - It typically takes 10-12 years to introduce a new drug into the market - i.e., from the initial discovery stage to regulatory approval - and it costs the drugmakers an average of $2.6 billion.
The rising prescription drug prices are posing a huge problem for the healthcare system in the United States. On average, an American spends about $1,200 on prescription drugs a year, according to a report by the Organization for Economic Cooperation and Development.
In a list of top 20 expensive prescription drugs in the U.S., compiled by GoodRx, a medical app, which helps find the lowest cost pharmacy for prescriptions, Actimmune, costing $52,000 per month, tops the list, followed by Myalept ($46,328) in the second spot, and Daraprim ($45,000) in the third place. This list excludes drugs that are administered under the supervision of a healthcare provider.
Unlike other countries, the U.S. allows manufacturers of pharmaceutical drugs to set their own prices for the drugs they develop.
The Trump administration has been consistently emphasizing the need to reduce the price of prescription drugs and has vowed to bring transparency in healthcare.
Early this year, the Health and Human Services Secretary Alex Azar and Inspector General Daniel Levinson proposed a rule to lower prescription drug prices and out-of-pocket costs by encouraging manufacturers to pass discounts directly on to patients.
Despite the Trump administration taking steps to curb the rising drug prices, the drugmakers continue to ratchet up the prices. In January of this year, "over three dozen drugmakers hiked the prices on hundreds of medications", according to The Wall Street Journal.
Commenting on the government's efforts in curtailing the drug pricing, Robert Field, Professor of law and public health at Drexel University, says, "It's like a chronic condition that flares up every decade or two and then goes into remission and we don't really do anything to get to the root cause."
The drug companies may hike their drugs' prices due to various factors like shortage of raw materials, problems at manufacturing facilities, natural disasters or reduced competition due to consolidation. But, be that it may, price gouging should never be a company's strategy to boost profitability.
Let's take a look at some of the top-selling drugs of 2018.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | (RTTNews) - It typically takes 10-12 years to introduce a new drug into the market - i.e., from the initial discovery stage to regulatory approval - and it costs the drugmakers an average of $2.6 billion. Early this year, the Health and Human Services Secretary Alex Azar and Inspector General Daniel Levinson proposed a rule to lower prescription drug prices and out-of-pocket costs by encouraging manufacturers to pass discounts directly on to patients. Commenting on the government's efforts in curtailing the drug pricing, Robert Field, Professor of law and public health at Drexel University, says, "It's like a chronic condition that flares up every decade or two and then goes into remission and we don't really do anything to get to the root cause." | The rising prescription drug prices are posing a huge problem for the healthcare system in the United States. Despite the Trump administration taking steps to curb the rising drug prices, the drugmakers continue to ratchet up the prices. The drug companies may hike their drugs' prices due to various factors like shortage of raw materials, problems at manufacturing facilities, natural disasters or reduced competition due to consolidation. | Unlike other countries, the U.S. allows manufacturers of pharmaceutical drugs to set their own prices for the drugs they develop. Early this year, the Health and Human Services Secretary Alex Azar and Inspector General Daniel Levinson proposed a rule to lower prescription drug prices and out-of-pocket costs by encouraging manufacturers to pass discounts directly on to patients. The drug companies may hike their drugs' prices due to various factors like shortage of raw materials, problems at manufacturing facilities, natural disasters or reduced competition due to consolidation. | On average, an American spends about $1,200 on prescription drugs a year, according to a report by the Organization for Economic Cooperation and Development. In a list of top 20 expensive prescription drugs in the U.S., compiled by GoodRx, a medical app, which helps find the lowest cost pharmacy for prescriptions, Actimmune, costing $52,000 per month, tops the list, followed by Myalept ($46,328) in the second spot, and Daraprim ($45,000) in the third place. Despite the Trump administration taking steps to curb the rising drug prices, the drugmakers continue to ratchet up the prices. |
25034.0 | 2019-04-03 00:00:00 UTC | Notable ETF Outflow Detected - IWV, ABBV, MMM, HON | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-iwv-abbv-mmm-hon-2019-04-03 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $269.8 million dollar outflow -- that's a 2.8% decrease week over week (from 57,850,000 to 56,250,000). Among the largest underlying components of IWV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average:
Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $169.27. 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 IWV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $169.27. 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 IWV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $169.27. 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 IWV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $269.8 million dollar outflow -- that's a 2.8% decrease week over week (from 57,850,000 to 56,250,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $169.27. | Among the largest underlying components of IWV, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, 3M Co (Symbol: MMM) is up about 0.4%, and Honeywell International Inc (Symbol: HON) is lower by about 0.3%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point — that compares with a last trade of $169.27. 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). |
25035.0 | 2019-04-02 00:00:00 UTC | Noteworthy Tuesday Option Activity: MO, RTN, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-mo-rtn-abbv-2019-04-02 | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Altria Group Inc (Symbol: MO), where a total of 56,041 contracts have traded so far, representing approximately 5.6 million underlying shares. That amounts to about 46% of MO's average daily trading volume over the past month of 12.2 million shares. Particularly high volume was seen for the $58 strike put option expiring April 26, 2019, with 20,974 contracts trading so far today, representing approximately 2.1 million underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $58 strike highlighted in orange:
Raytheon Co. (Symbol: RTN) options are showing a volume of 7,530 contracts thus far today. That number of contracts represents approximately 753,000 underlying shares, working out to a sizeable 45.8% of RTN's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $185 strike call option expiring April 18, 2019, with 814 contracts trading so far today, representing approximately 81,400 underlying shares of RTN. Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 21, 2019, with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange:
For the various different available expirations for MO options, RTN options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Particularly high volume was seen for the $100 strike call option expiring June 21, 2019, with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MO options, RTN options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 21, 2019, with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MO options, RTN options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 21, 2019, with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MO options, RTN options, or ABBV options, visit StockOptionsChannel.com. | Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MO options, RTN options, or ABBV options, visit StockOptionsChannel.com. Particularly high volume was seen for the $100 strike call option expiring June 21, 2019, with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. |
25036.0 | 2019-04-02 00:00:00 UTC | Noteworthy Tuesday Option Activity: MO, RTN, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-mo-rtn-abbv-2019-04-02-0 | nan | nan | Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Altria Group Inc (Symbol: MO), where a total of 56,041 contracts have traded so far, representing approximately 5.6 million underlying shares. That amounts to about 46% of MO's average daily trading volume over the past month of 12.2 million shares. Particularly high volume was seen for the $58 strike put option expiring April 26, 2019 , with 20,974 contracts trading so far today, representing approximately 2.1 million underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $58 strike highlighted in orange:
Raytheon Co. (Symbol: RTN) options are showing a volume of 7,530 contracts thus far today. That number of contracts represents approximately 753,000 underlying shares, working out to a sizeable 45.8% of RTN's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $185 strike call option expiring April 18, 2019 , with 814 contracts trading so far today, representing approximately 81,400 underlying shares of RTN. Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 21, 2019 , with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange:
For the various different available expirations for MO options , RTN options , or ABBV options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 June 21, 2019 , with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MO options , RTN options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 21, 2019 , with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MO options , RTN options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 21, 2019 , with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MO options , RTN options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing RTN's trailing twelve month trading history, with the $185 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 26,596 contracts, representing approximately 2.7 million underlying shares or approximately 44.9% of ABBV's average daily trading volume over the past month, of 5.9 million shares. Particularly high volume was seen for the $100 strike call option expiring June 21, 2019 , with 4,217 contracts trading so far today, representing approximately 421,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $100 strike highlighted in orange: For the various different available expirations for MO options , RTN options , or ABBV options , visit StockOptionsChannel.com. |
25037.0 | 2019-04-01 00:00:00 UTC | AbbVie (ABBV) Gains But Lags Market: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-but-lags-market%3A-what-you-should-know-2019-04-01-0 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $80.76, marking a +0.2% move from the previous day. This change lagged the S&P 500's 1.16% gain on the day. Meanwhile, the Dow gained 1.27%, and the Nasdaq, a tech-heavy index, added 1.29%.
Heading into today, shares of the drugmaker had gained 1.7% over the past month, outpacing the Medical sector's gain of 1.35% and lagging the S&P 500's gain of 1.92% in that time.
Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. This would mark year-over-year growth of 9.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.75 billion, down 2.35% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.68 per share and revenue of $32.79 billion. These totals would mark changes of +9.73% and +0.12%, respectively, from last year.
Any recent changes to analyst estimates for ABBV should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ABBV currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 9.29 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.1.
Also, we should mention that ABBV has a PEG ratio of 1.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.18 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.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.
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 latest trading session, AbbVie (ABBV) closed at $80.76, marking a +0.2% move from the previous day. Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. | In the latest trading session, AbbVie (ABBV) closed at $80.76, marking a +0.2% move from the previous day. Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. | In the latest trading session, AbbVie (ABBV) closed at $80.76, marking a +0.2% move from the previous day. Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. | In the latest trading session, AbbVie (ABBV) closed at $80.76, marking a +0.2% move from the previous day. Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. |
25038.0 | 2019-03-31 00:00:00 UTC | Better Buy: AbbVie vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-vs-johnson-johnson-2019-03-31 | nan | nan | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market one of the top cancer drugs in the world, Imbruvica. But while the two companies are partners in one area, they compete on other fronts, particularly in immunology.
J&J has been the bigger winner in terms of stock performance over the last 12 months, rising around 9%, with AbbVie's share price dropping 15% during the period. However, past performance doesn't necessarily translate to future results. Which of these two big pharma stocks is the better pick for long-term investors now?
Image source: Getty Images.
The case for AbbVie
Many investors have been leery of AbbVie because the company's top-selling drug, Humira, now faces biosimilar competition in Europe. They're concerned that declining sales for the product that currently contributes over 60% of AbbVie's total revenue will be a weight that's hard to overcome. But AbbVie isn't worried about Humira.
For one thing, more than two-thirds of Humira's sales are generated in the U.S. market. Biosimilar rivals won't be available in the U.S. until 2023, giving AbbVie several more years of huge sales from its top drug. In the meantime, the company claims several products that should deliver strong sales growth, including its blood cancer drugs Imbruvica and Venclexta and endometriosis drug Orilissa.
Even better, AbbVie's pipeline includes several likely winners. The company expects to win U.S. Food and Drug Administration (FDA) approvals for immunology drugs risankizumab and upadacitinib this year. AbbVie thinks the two drugs can combine for incremental annual sales of $10 billion or more by 2025. Overall, the drugmaker expects $35 billion in incremental risk-adjusted sales from drugs other than Humira by 2025 -- more than AbbVie made in total last year with Humira included.
The company also offers a strong dividend that currently yields nearly 5.4%. AbbVie has consistently increased its dividend since being spun off from parent Abbott Labs in 2013.
With AbbVie's share price decline in recent months, the stock's valuation has become increasingly attractive. Shares now trade at less than 8.5 times expected earnings.
The case for Johnson & Johnson
Johnson & Johnson faces headwinds for its top-selling drug, too. Remicade already has biosimilar competition in the U.S. and in Europe. That's not J&J's only challenge, though. The company is also embroiled in controversy (and litigation) over allegations that its baby powder and other talc products have been contaminated by asbestos.
But there are still several reasons for investors to seriously consider buying Johnson & Johnson stock. J&J's scope of operations provides exposure to multiple areas within the healthcare sector. The company isn't just a top drugmaker; Johnson & Johnson also runs multibillion-dollar consumer health and medical device businesses.
J&J has several growth drivers. It stands to benefit from increasing sales of Imbruvica and other fast-rising cancer drugs, Darzalex and Zytiga. Although Remicade's sales are falling, the company's other top immunology drugs -- Simponi, Stelara, and Tremfya -- continue to deliver strong growth. Its consumer and medical device segments should also grow thanks to key acquisitions and launches of new products.
Like AbbVie, Johnson & Johnson claims a strong dividend program. Its dividend yield currently stands at 2.6%. J&J is a Dividend Aristocrat, increasing its dividend for 56 consecutive years.
The healthcare stock isn't as inexpensive as AbbVie, but its valuation still appears to be reasonable. J&J's forward price-to-earnings multiple is 15.3, which is on the low end of its range over the last 10 years.
Better buy
Johnson & Johnson has been a solid stock for investors to include in their portfolios for a long time. In my view, the stock still is a pretty good choice. However, I think that AbbVie is the better pick.
AbbVie's growth prospects appear to be stronger than J&J's. Its dividend yield is much higher. And AbbVie stock is a better bargain. I expect AbbVie to deliver market-beating total returns over the long run.
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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. | J&J has been the bigger winner in terms of stock performance over the last 12 months, rising around 9%, with AbbVie's share price dropping 15% during the period. Biosimilar rivals won't be available in the U.S. until 2023, giving AbbVie several more years of huge sales from its top drug. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market one of the top cancer drugs in the world, Imbruvica. | The case for AbbVie Many investors have been leery of AbbVie because the company's top-selling drug, Humira, now faces biosimilar competition in Europe. Overall, the drugmaker expects $35 billion in incremental risk-adjusted sales from drugs other than Humira by 2025 -- more than AbbVie made in total last year with Humira included. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market one of the top cancer drugs in the world, Imbruvica. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market one of the top cancer drugs in the world, Imbruvica. The case for AbbVie Many investors have been leery of AbbVie because the company's top-selling drug, Humira, now faces biosimilar competition in Europe. Overall, the drugmaker expects $35 billion in incremental risk-adjusted sales from drugs other than Humira by 2025 -- more than AbbVie made in total last year with Humira included. | Overall, the drugmaker expects $35 billion in incremental risk-adjusted sales from drugs other than Humira by 2025 -- more than AbbVie made in total last year with Humira included. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) together market one of the top cancer drugs in the world, Imbruvica. J&J has been the bigger winner in terms of stock performance over the last 12 months, rising around 9%, with AbbVie's share price dropping 15% during the period. |
25039.0 | 2019-03-26 00:00:00 UTC | AbbVie's Psoriasis Drug Skyrizi Gets First Approval in Japan | ABBV | https://www.nasdaq.com/articles/abbvies-psoriasis-drug-skyrizi-gets-first-approval-in-japan-2019-03-26 | nan | nan | AbbVie Inc.ABBV announced that the Japanese Ministry of Health, Labour and Welfare (MHLW) has approved its key pipeline candidate, risankizumab, for the treatment of adult patients with plaque psoriasis, generalized pustular psoriasis, erythrodermic psoriasis and psoriatic arthritis. The interleukin-23 (IL-23) inhibitor will be marketed under the trade name of Skyrizi.
Following this nod, Japan became the first country to approve Skyrizi for patients suffering psoriatic disease and failing to show an adequate response to the conventional therapies.
The approval was based on the safety and efficacy data from the phase II/III studies, namely sustaIMM, ultIMMa-1 and IMMspire, which evaluated Skyrizi in the Japanese patients with plaque psoriasis, generalized pustular psoriasis and erythrodermic psoriasis. Also, a global phase II study evaluated Skyrizi for treating patients with active psoriatic arthritis, which also formed basis of its application filing in Japan
AbbVie has developed Skyrizi in collaboration with the privately held Boehringer Ingelheim.
Shares of AbbVie have declined 13.7% so far this year against the industry's increase of 3.7%.
Notably, AbbVie had filed the marketing application in the EU last May and in the United States last April. AbbVie's application will now be reviewed by the European Commission, which will announce its decision in two months' time. The FDA's decision is also awaited in the first half of 2019.
AbbVie expects an approval for another key pipeline candidate, upadacitinib, this year. Upadacitinib, an oral investigational JAK inhibitor, has been developed for the treatment of adult patients with moderate-to-severe rheumatoid arthritis (RA). The nod and the successful commercialization of upadacitinib are crucial for long-term growth at AbbVie, especially as a biosimilar competition looms large on its blockbuster RA drug, Humira.
Several companies made biosimilar versions of Humira. With Humira accounting for around 61% of AbbVie's sales, the entry of biosimilars will leave a huge impact on the company's financials. Per settlements with a set of seven manufacturers including Amgen AMGN , Biogen BIIB , Pfizer PFE , Momenta among others, Humira biosimilars are expected to be launched across the United States in 2023. However, AbbVie faces a direct biosimilar competition in Europe and other countries, accounting for approximately 25% of the total global Humira revenues. Humira biosimilars were first unveiled in the EU last October. In 2019, AbbVie fears a 30% plunge or a $2-billion decline in the international Humira sales.
Zacks Rank
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The nod and the successful commercialization of upadacitinib are crucial for long-term growth at AbbVie, especially as a biosimilar competition looms large on its blockbuster RA drug, Humira. AbbVie Inc.ABBV announced that the Japanese Ministry of Health, Labour and Welfare (MHLW) has approved its key pipeline candidate, risankizumab, for the treatment of adult patients with plaque psoriasis, generalized pustular psoriasis, erythrodermic psoriasis and psoriatic arthritis. Also, a global phase II study evaluated Skyrizi for treating patients with active psoriatic arthritis, which also formed basis of its application filing in Japan AbbVie has developed Skyrizi in collaboration with the privately held Boehringer Ingelheim. | AbbVie Inc.ABBV announced that the Japanese Ministry of Health, Labour and Welfare (MHLW) has approved its key pipeline candidate, risankizumab, for the treatment of adult patients with plaque psoriasis, generalized pustular psoriasis, erythrodermic psoriasis and psoriatic arthritis. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Also, a global phase II study evaluated Skyrizi for treating patients with active psoriatic arthritis, which also formed basis of its application filing in Japan AbbVie has developed Skyrizi in collaboration with the privately held Boehringer Ingelheim. | AbbVie Inc.ABBV announced that the Japanese Ministry of Health, Labour and Welfare (MHLW) has approved its key pipeline candidate, risankizumab, for the treatment of adult patients with plaque psoriasis, generalized pustular psoriasis, erythrodermic psoriasis and psoriatic arthritis. Also, a global phase II study evaluated Skyrizi for treating patients with active psoriatic arthritis, which also formed basis of its application filing in Japan AbbVie has developed Skyrizi in collaboration with the privately held Boehringer Ingelheim. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Also, a global phase II study evaluated Skyrizi for treating patients with active psoriatic arthritis, which also formed basis of its application filing in Japan AbbVie has developed Skyrizi in collaboration with the privately held Boehringer Ingelheim. With Humira accounting for around 61% of AbbVie's sales, the entry of biosimilars will leave a huge impact on the company's financials. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25040.0 | 2019-03-26 00:00:00 UTC | Health Care Select Sector SPDR Fund Experiences Big Inflow | ABBV | https://www.nasdaq.com/articles/health-care-select-sector-spdr-fund-experiences-big-inflow-2019-03-26 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $298.9 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 209,570,000 to 212,870,000). Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Lilly (Eli) & Co (Symbol: LLY) is up about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 1.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average:
Looking at the chart above, XLV's low point in its 52 week range is $78.74 per share, with $96.06 as the 52 week high point - that compares with a last trade of $91.54. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Lilly (Eli) & Co (Symbol: LLY) is up about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $298.9 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 209,570,000 to 212,870,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Lilly (Eli) & Co (Symbol: LLY) is up about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 1.5%. For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $78.74 per share, with $96.06 as the 52 week high point - that compares with a last trade of $91.54. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Lilly (Eli) & Co (Symbol: LLY) is up about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $298.9 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 209,570,000 to 212,870,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $78.74 per share, with $96.06 as the 52 week high point - that compares with a last trade of $91.54. | Among the largest underlying components of XLV, in trading today AbbVie Inc (Symbol: ABBV) is up about 2%, Lilly (Eli) & Co (Symbol: LLY) is up about 1.3%, and Danaher Corp (Symbol: DHR) is up by about 1.5%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Health Care Select Sector SPDR Fund (Symbol: XLV) where we have detected an approximate $298.9 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 209,570,000 to 212,870,000). For a complete list of holdings, visit the XLV Holdings page » The chart below shows the one year price performance of XLV, versus its 200 day moving average: Looking at the chart above, XLV's low point in its 52 week range is $78.74 per share, with $96.06 as the 52 week high point - that compares with a last trade of $91.54. |
25041.0 | 2019-03-25 00:00:00 UTC | AbbVie (ABBV) Dips More Than Broader Markets: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-dips-more-than-broader-markets%3A-what-you-should-know-2019-03-25 | nan | nan | In the latest trading session, AbbVie (ABBV) closed at $79.64, marking a -0.15% move from the previous day. This change lagged the S&P 500's 0.08% loss on the day. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the drugmaker had gained 1.28% over the past month. This has outpaced the Medical sector's loss of 0.22% and the S&P 500's gain of 0.52% in that time.
Wall Street will be looking for positivity from ABBV as it approaches its nex t earnings report date. On that day, ABBV is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 9.63%. Meanwhile, our latest consensus estimate is calling for revenue of $7.75 billion, down 2.35% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.68 per share and revenue of $32.79 billion. These totals would mark changes of +9.73% and +0.12%, respectively, from last year.
Any recent changes to analyst estimates for ABBV should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. ABBV currently has a Zacks Rank of #3 (Hold).
Digging into valuation, ABBV currently has a Forward P/E ratio of 9.19. This valuation marks a discount compared to its industry's average Forward P/E of 15.3.
We can also see that ABBV currently has a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.13 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the latest trading session, AbbVie (ABBV) closed at $79.64, marking a -0.15% move from the previous day. Wall Street will be looking for positivity from ABBV as it approaches its nex t earnings report date. On that day, ABBV is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 9.63%. | In the latest trading session, AbbVie (ABBV) closed at $79.64, marking a -0.15% move from the previous day. Wall Street will be looking for positivity from ABBV as it approaches its nex t earnings report date. On that day, ABBV is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 9.63%. | In the latest trading session, AbbVie (ABBV) closed at $79.64, marking a -0.15% move from the previous day. Wall Street will be looking for positivity from ABBV as it approaches its nex t earnings report date. On that day, ABBV is projected to report earnings of $2.05 per share, which would represent year-over-year growth of 9.63%. | In the latest trading session, AbbVie (ABBV) closed at $79.64, marking a -0.15% move from the previous day. ABBV currently has a Zacks Rank of #3 (Hold). Wall Street will be looking for positivity from ABBV as it approaches its nex t earnings report date. |
25042.0 | 2019-03-24 00:00:00 UTC | 4 Blockbuster Drug Launches to Watch in 2019 | ABBV | https://www.nasdaq.com/articles/4-blockbuster-drug-launches-watch-2019-2019-03-24 | nan | nan | Get ready for some blockbuster drug launches that could get intense.
Clarivate Analytics has offered a report on experimental drugs entering the market soon that are expected to generate sales above $1 billion in 2023. Every potential blockbuster is important to the company that launches it, but there are a few in the annual Clarivate report that are more important than usual. In 2019, AbbVie (NYSE: ABBV) , Alexion Pharmaceuticals (NASDAQ: ALXN) , and Aimmune Therapeutics (NASDAQ: AIMT) face upcoming drug launches that they can't afford to fumble.
1. Upadacitinib: Another rheumatoid arthritis treatment
AbbVie's mega-blockbuster rheumatoid arthritis injection, Humira, is losing ground to biosimilar competition in Europe, and it should face the same fight in the U.S. a few years from now. That's going to be a problem, because AbbVie relies on Humira for around 60% of total revenue.
Upadacitinib is a big reason investors aren't too worried about Humira's eventual demise. Annual sales of AbbVie's still-experimental drug are expected to reach $2.2 billion in 2023.
AbbVie's potential new rheumatoid arthritis treatment faces competition from biosimilar versions of older biologics that don't always work. Upadacitinib breezed through clinical trials with patients who don't respond to drugs like Humira, which is a fairly large group.
2. Skyrizi: Another psoriasis drug
Skyrizi will be the brand name for risankizumab, a potential new psoriasis injection also from AbbVie. In addition to the drug's treatment of psoriasis, the agency will probably start reviewing more applications for the treatment of Crohn's disease and ulcerative colitis in a couple of years.
If Skyrizi is approved in a timely fashion, sales could reach $1.74 billion in 2023. During a clinical trial with moderate to severely affected psoriasis patients, 73% of those given Skyrizi achieved a 90% improvement, compared with just 2% of the placebo group. In a head-to-head study with a similar drug called Stelara, 75% of those treated with Skyrizi achieved a 90% improvement, compared with just 42% of those given the popular standard treatment.
We should know whether Skyrizi can meet expectations by the end of the year, because it could reach pharmacies before the end of April. The FDA's expected to announce its decision on or before April 25.
3. Ultomiris: Convenience counts
Alexion Pharmaceuticals relies on its C5 inhibitor, Soliris, for around 86% of total product sales. This rare-disease drug is getting old, and Alexion needs to transition patients to its new and improved version, Ultomiris.
The FDA approved Ultomiris to treat paroxysmal nocturnal hemoglobinuria (PNH) in December, and an expansion to treat atypical hemolytic uremic syndrome (aHUS) could happen in 2020. A far more convenient dosing schedule could drive Ultomiris sales past $1.74 billion in 2023.
To keep their immune systems from chewing up their blood cells, patients with PNH and aHUS need an intravenous infusion of Soliris every two weeks. Maintenance dosing for Ultomiris can be infused at eight-week intervals, and an injectable version could earn approval in 2020.
At around $458,000, Ultomiris is still one of the world's most expensive therapies, but Alexion priced it around 10% less than Soliris to persuade payers to support the switch.
4. AR101: It just seems too easy
Aimmune Therapeutics is a clinical-stage biotech with a lot of expenses, but no products to sell yet. The company lost $211 million last year, and its $301 million cash cushion isn't going to last much longer if its first drug launch, a peanut desensitization therapy called AR101, doesn't take off like a rocket.
Aimmune's lead candidate, AR101, could become the first and only preventative treatment approved for millions of parents worried about children with severe peanut allergies. With surprisingly solid evidence that AR101 provides a protective benefit, sales in 2023 are expected to reach $1.17 billion. That's an awful lot for a capsule that simply contains known quantities of various natural peanut proteins, but surprising clinical trial results say this drug's headed for blockbuster sales.
In a study with 496 patients between 4 and 17 years old, 67.2% of the group treated with AR101 were able to eat a whole peanut without any serious problems, compared with just 4% of the placebo group. Moreover, 4.3% of the placebo group experienced a severe reaction after ingesting the challenge peanut, compared with just 0.8% of those given AR101.
Most likely to succeed?
AbbVie and Alexion have all the resources necessary to launch a new drug, while Aimmune will need to build a new sales team to market AR101. Despite the extra challenges, the lack of competition for around 6 million people in the U.S. and EU with severe peanut allergies is a big advantage.
Although Aimmune could end up waiting until January 2020 to begin its first drug launch, its market cap at recent prices has fallen to just $1.33 billion. That means meeting expectations, or just getting halfway there, could propel this stock into orbit.
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Cory Renauer 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In 2019, AbbVie (NYSE: ABBV) , Alexion Pharmaceuticals (NASDAQ: ALXN) , and Aimmune Therapeutics (NASDAQ: AIMT) face upcoming drug launches that they can't afford to fumble. Upadacitinib: Another rheumatoid arthritis treatment AbbVie's mega-blockbuster rheumatoid arthritis injection, Humira, is losing ground to biosimilar competition in Europe, and it should face the same fight in the U.S. a few years from now. That's going to be a problem, because AbbVie relies on Humira for around 60% of total revenue. | In 2019, AbbVie (NYSE: ABBV) , Alexion Pharmaceuticals (NASDAQ: ALXN) , and Aimmune Therapeutics (NASDAQ: AIMT) face upcoming drug launches that they can't afford to fumble. Upadacitinib: Another rheumatoid arthritis treatment AbbVie's mega-blockbuster rheumatoid arthritis injection, Humira, is losing ground to biosimilar competition in Europe, and it should face the same fight in the U.S. a few years from now. AbbVie's potential new rheumatoid arthritis treatment faces competition from biosimilar versions of older biologics that don't always work. | In 2019, AbbVie (NYSE: ABBV) , Alexion Pharmaceuticals (NASDAQ: ALXN) , and Aimmune Therapeutics (NASDAQ: AIMT) face upcoming drug launches that they can't afford to fumble. AbbVie and Alexion have all the resources necessary to launch a new drug, while Aimmune will need to build a new sales team to market AR101. Upadacitinib: Another rheumatoid arthritis treatment AbbVie's mega-blockbuster rheumatoid arthritis injection, Humira, is losing ground to biosimilar competition in Europe, and it should face the same fight in the U.S. a few years from now. | Skyrizi: Another psoriasis drug Skyrizi will be the brand name for risankizumab, a potential new psoriasis injection also from AbbVie. In 2019, AbbVie (NYSE: ABBV) , Alexion Pharmaceuticals (NASDAQ: ALXN) , and Aimmune Therapeutics (NASDAQ: AIMT) face upcoming drug launches that they can't afford to fumble. Upadacitinib: Another rheumatoid arthritis treatment AbbVie's mega-blockbuster rheumatoid arthritis injection, Humira, is losing ground to biosimilar competition in Europe, and it should face the same fight in the U.S. a few years from now. |
25043.0 | 2019-03-24 00:00:00 UTC | 3 Bargain Stocks You Can Buy Today | ABBV | https://www.nasdaq.com/articles/3-bargain-stocks-you-can-buy-today-2019-03-24 | nan | nan | Most longtime investors would tell you that the stock market is anything but cheap right now. That's to be expected after a bull market that's now gone on 10 years and counting.
But there are still some bargains to be found. Three stocks that appear to be quite attractively priced are AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and DaVita (NYSE: DVA) . Here's why these are bargain stocks you can buy today.
1. AbbVie
Big drugmaker AbbVie's shares trade at less than nine times expected earnings. The stock is priced at a discount primarily because of concerns that over 60% of AbbVie's total revenue comes from one drug, Humira, that now faces biosimilar competition in Europe. Direct biosimilar rivals will also enter the U.S. market by 2023.
However, AbbVie has a well-defined plan to reduce its dependence on Humira. Sales continue to pick up momentum for the company's top two cancer drugs, Imbruvica and Venclexta. Endometriosis drug Orilissa is off to a great start, and AbbVie thinks that it will soon win another approved indication for the drug in treating uterine fibroids.
AbbVie's pipeline includes a couple of very promising late-stage immunology candidates. The company anticipates FDA approval for risankizumab in treating psoriasis in April with an expected approval for upadacitinib in treating rheumatoid arthritis in the third quarter of this year. Both drugs should be blockbuster winners for AbbVie.
Wall Street analysts project that AbbVie will be able to increase earnings by close to 10% annually on average over the next five years. With the company also paying a dividend with a mouth-watering yield of 5.3%, AbbVie should be able to deliver solid total returns in the future.
2. Celgene
Celgene's valuation is even more attractive than AbbVie's, with the biotech's shares trading at a little over seven times expected earnings. Like AbbVie, Celgene is heavily dependent on one drug -- in this case, Revlimid. The blood cancer drug faces limited-volume generic competition beginning in 2023. There's also litigation under way challenging Celgene's key patents on Revlimid.
But Celgene has other approved drugs with booming sales. Multiple myeloma drug Pomalyst and immunology drug Otezla are rising stars. The biotech also has another blockbuster with slower growth in cancer drug Abraxane.
It's Celgene's pipeline that's the real attraction, though. The company awaits regulatory approval for myelofibrosis drug fedratinib. Celgene expects to file for approval of multiple sclerosis drug ozanimod within the next few months. Three other promising candidates, luspatercept, bb2121, and liso-cel, are on track to win approvals in 2020. All five drugs are expected to be blockbusters.
Celgene's product lineup and pipeline looked so appealing that Bristol-Myers Squibb is hoping to buy the biotech. Assuming the deal is approved by shareholders of both companies, buying Celgene now could lock in a quick profit of 15% plus the potential for more if ozanimod, liso-cel, and bb2121 achieve specified regulatory milestones.
3. DaVita
Shares of DaVita currently trade at 10.4 times expected earnings. The dialysis services provider didn't have a great year in 2018, with earnings falling 76% from 2017 and revenue increasing by less than 5%. DaVita CEO Javier Rodriguez stated in the company's Q4 conference call that "some recent data suggest that ESRD [end-stage renal disease] industry growth may be slowing."
Don't think that DaVita doesn't have solid long-term prospects, though. The data hint at slowing industry growth mentioned by Rodriguez could simply be a short-term impact of increased availability for kidney transplants. Over the next few decades, demographic trends should benefit DaVita as more people reach the ages where they're more likely to require kidney dialysis.
DaVita also operates in several international markets. The company operates dialysis centers in countries including Brazil, China, Germany, Malaysia, and Poland. Demographic trends should help drive growth for DaVita in these markets as well.
The company could soon be in a stronger financial position. DaVita awaits regulatory approval of the sale of its DaVita Medical Group business to UnitedHealth Group 's Optum subsidiary. Assuming this approval is obtained, DaVita will make around $4.3 billion from the transaction to use in paying down debt and investing in growth initiatives.
Best bargain
In my view, Celgene is the best bargain of these three stocks. Despite some opposition, I expect the acquisition of Celgene by Bristol-Myers Squibb will go through. The clock is ticking, though. This bargain biotech probably won't be a bargain for much longer.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The stock is priced at a discount primarily because of concerns that over 60% of AbbVie's total revenue comes from one drug, Humira, that now faces biosimilar competition in Europe. Three stocks that appear to be quite attractively priced are AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and DaVita (NYSE: DVA) . AbbVie Big drugmaker AbbVie's shares trade at less than nine times expected earnings. | Three stocks that appear to be quite attractively priced are AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and DaVita (NYSE: DVA) . AbbVie Big drugmaker AbbVie's shares trade at less than nine times expected earnings. The stock is priced at a discount primarily because of concerns that over 60% of AbbVie's total revenue comes from one drug, Humira, that now faces biosimilar competition in Europe. | Three stocks that appear to be quite attractively priced are AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and DaVita (NYSE: DVA) . Celgene Celgene's valuation is even more attractive than AbbVie's, with the biotech's shares trading at a little over seven times expected earnings. See the 10 stocks *Stock Advisor returns as of March 1, 2019 Keith Speights owns shares of AbbVie and Celgene. | Celgene Celgene's valuation is even more attractive than AbbVie's, with the biotech's shares trading at a little over seven times expected earnings. Three stocks that appear to be quite attractively priced are AbbVie (NYSE: ABBV) , Celgene (NASDAQ: CELG) , and DaVita (NYSE: DVA) . AbbVie Big drugmaker AbbVie's shares trade at less than nine times expected earnings. |
25044.0 | 2019-03-24 00:00:00 UTC | Where Will AbbVie Be in 10 Years? | ABBV | https://www.nasdaq.com/articles/where-will-abbvie-be-10-years-2019-03-24 | nan | nan | Warren Buffett once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." He was exactly right. And as a result, it makes sense to think about what the stocks you buy might look like 10 years from now.
My favorite big pharma stock is AbbVie (NYSE: ABBV) . I have pounded the table on why AbbVie is a great pick for growth investors, income investors, and value investors. But I admit that some are worried about the company's prospects. Let's look at those prospects by taking Buffett's advice literally. Where will AbbVie be in 10 years?
Humira in the rearview mirror (sort of)
Most of the worries about AbbVie right now center on the company's reliance on immunology drug Humira. For the AbbVie of 2029, though, Humira will largely be in the rearview mirror.
Don't get me wrong. I fully expect that Humira will still be raking in a lot of money 10 years from now. Market research company EvaluatePharma projects that Humira will remain the world's top-selling drug as far out as 2024 with sales of more than $15 billion. Those sales won't completely dry up overnight -- or even over the next four years.
However, Humira will face direct biosimilar competition in the U.S. beginning in 2023. Expect significant sales erosion to start then and continue for years thereafter. By 2029, Humira almost certainly won't be the best-selling drug in the world. It likely won't even be AbbVie's best-selling drug. But Humira doesn't have to rank at the top to still contribute significantly to the company's top and bottom lines.
Taking the baton
I think AbbVie will remain at the top of the immunology market regardless of how rapidly Humira's sales deteriorate. That's because the big drugmaker has a couple of products ready to take the baton from Humira.
Risankizumab is likely to win FDA approval in treating psoriasis in April 2019. Within the next few years, the drug could also pick up approvals for treating other autoimmune diseases. By 2029, I think risankizumab could be generating annual sales of more than $4 billion.
My expectations are even higher for upadacitinib. AbbVie should obtain FDA approval for the drug in treating rheumatoid arthritis later this year. And there's a list of other indications that upadacitinib could add to the list in the not-too-distant future, including atopic dermatitis, Crohn's disease, psoriatic arthritis, and ulcerative colitis. It won't surprise me a bit if upadacitinib pulls in $6 billion or more annually 10 years from now.
I also agree with AbbVie president Michael Severino that some investors are underestimating the strength of the company's early stage pipeline . In particular, ABBV-599, which combines upadacitinib with a BTK inhibitor, could be a big winner by 2029.
Much more diversified
There's one prediction that I feel very confident in making: By 2029, AbbVie will be a much more diversified company than it is today. Its revenue will be distributed across more products. And the company will be a leader in more therapeutic areas.
As I already mentioned, AbbVie should continue to be a leader in immunology. I also expect it will increase its market share in oncology. Right now, AbbVie's lead cancer drug in Imbruvica. I suspect that the drug will be the company's top-selling product 10 years from now with sales of $7 billion or more. Venclexta is likely to also be a powerhouse for AbbVie as it picks up additional approvals in multiple myeloma and as a first-line treatment for chronic lymphocytic leukemia (CLL).
While Imbruvica and Venclexta are on track to be even bigger winners in treating various blood cancers, I think that AbbVie will gain some momentum in fighting solid tumors as well. Rova-T was admittedly a big disappointment , but AbbVie's pipeline includes several promising phase 1 drugs that target solid tumors. Whether it's through internal development or acquisitions, I feel pretty good about the company extending its oncology leadership.
Orilissa should have a good chance of becoming a blockbuster for AbbVie, especially if it wins approval for treating uterine fibroids in addition to its current approval for endometriosis. The drug should keep AbbVie in the thick of the women's health market. Despite lower numbers of patients, I also think that hepatitis C virus (HCV) drug Mavyret will still be a significant moneymaker for the company in 2029.
Don't be shocked if AbbVie emerges as a major contender in neuroscience, either. This area is more of a long shot for the company, though.
A dividend king
By virtue of its lineage as part of Abbott Labs , AbbVie belongs to the exclusive club of Dividend Aristocrats -- S&P 500 companies that have increased their dividends for at least 25 consecutive years. My view is that aristocrat isn't a strong enough term for AbbVie's dividend status, though. By 10 years from now, perhaps the more fitting description is that AbbVie will be a dividend king.
The company currently pays a dividend that yields close to 5.3%. AbbVie has increased its dividend by 168% since being spun off from Abbott in 2013. I fully expect the drugmaker will keep those dividend hikes coming.
Let's assume that AbbVie increases its dividend by an average of 10% each year (which is lower than what the company has done in the past). At that growth rate, by 2029 an investor who bought AbbVie shares today would receive an effective dividend yield (the yield on his or her initial investment) of more than 13%.
Back to the present
My take is that the AbbVie of 2029 will be in better shape than the AbbVie of today. But let's go back to the present.
AbbVie is a bargain with shares trading at less than nine times expected earnings. It's poised for significant growth. It pays that solid dividend that we've already discussed. In my view, AbbVie is absolutely a stock that you can buy and hold for the next 10 years or more.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Venclexta is likely to also be a powerhouse for AbbVie as it picks up additional approvals in multiple myeloma and as a first-line treatment for chronic lymphocytic leukemia (CLL). While Imbruvica and Venclexta are on track to be even bigger winners in treating various blood cancers, I think that AbbVie will gain some momentum in fighting solid tumors as well. Rova-T was admittedly a big disappointment , but AbbVie's pipeline includes several promising phase 1 drugs that target solid tumors. | Rova-T was admittedly a big disappointment , but AbbVie's pipeline includes several promising phase 1 drugs that target solid tumors. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. My favorite big pharma stock is AbbVie (NYSE: ABBV) . | Humira in the rearview mirror (sort of) Most of the worries about AbbVie right now center on the company's reliance on immunology drug Humira. A dividend king By virtue of its lineage as part of Abbott Labs , AbbVie belongs to the exclusive club of Dividend Aristocrats -- S&P 500 companies that have increased their dividends for at least 25 consecutive years. Back to the present My take is that the AbbVie of 2029 will be in better shape than the AbbVie of today. | Where will AbbVie be in 10 years? My favorite big pharma stock is AbbVie (NYSE: ABBV) . I have pounded the table on why AbbVie is a great pick for growth investors, income investors, and value investors. |
25045.0 | 2019-03-22 00:00:00 UTC | This is Why AbbVie (ABBV) is a Great Dividend Stock | ABBV | https://www.nasdaq.com/articles/this-is-why-abbvie-abbv-is-a-great-dividend-stock-2019-03-22 | nan | nan | All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show tha t dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
AbbVie in Focus
AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. The stock has seen a price change of -11.88% since the start of the year. Currently paying a dividend of $1.07 per share, the company has a dividend yield of 5.27%. In comparison, the Large Cap Pharmaceuticals industry's yield is 2.68%, while the S&P 500's yield is 1.93%.
Taking a look at the company's dividend growth, its current annualized dividend of $4.28 is up 19.2% from last year. In the past five-year period, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. AbbVie's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for ABBV for this fiscal year. The Zacks Consensus Estimate for 2019 is $8.68 per share, with earnings expected to increase 9.73% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, ABBV is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. In the past five-year period, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. AbbVie's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. In the past five-year period, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. | AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. In the past five-year period, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. AbbVie's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend. | AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. In the past five-year period, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. AbbVie's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend. |
25046.0 | 2019-03-21 00:00:00 UTC | Does Recent AbbVie Stock Weakness Make It A Buy? 3 Pros, 3 Cons | ABBV | https://www.nasdaq.com/articles/does-recent-abbvie-stock-weakness-make-it-buy-3-pros-3-cons-2019-03-21 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie (NYSE: ABBV ) stock continues to slide, despite a buoyant market. The shares are down 12.3% year-to-date and 28.5% over the past 12 months. That's a dreadful performance in comparison to either the Nasdaq Composite index 's 5.22% increase or the 11.8% gain by VanEck Vectors Pharmaceutical ETF (NASDAQ: PPH ) from year-ago levels. ABBV stock makes up 5% of the pharma industry exchange-traded fund's current portfolio.
Losses continued following AbbVie's latest quarterly report. In it, we saw 2019 guidance fail to excite investors. Several drugs underperformed expectations. However, many investors see the continued weakness in AbbVie stock as an opportunity. The now-5.31% dividend yield in particular has generated much enthusiasm. In this market, that sort of yield is amazing. That is, assuming it comes from a safe source. Should you trust ABBV stock here?
AbbVie Stock Cons
Replacing Humira: Investors are asking where AbbVie goes after Humira? As of Q4 2018, Humira made up 61% of the company's revenues. Yes, that is down from 65% for the same quarter in 2017, but the company's transition to other products simply isn't happening fast enough to inspire much confidence.
Humira generates about $20 billion in annual sales at the moment and 2018 was another record year for the franchise. However, cracks are showing. International sales - now getting hit by generics competition - fell by double digits in 2018. While that was more than offset by a continued rise in U.S. sales, the plaque psoriasis drug should lose American patent protection in 2023. At that point, AbbVie could lose the biggest share of its revenue if other pipeline drugs don't come along fast enough.
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PoliticalPressures : The intro of the Trump Administration's proposed 2020 budget has drug prices back in the news. The budget takes aim at drug pricing with a variety of measures. Perhaps most relevant to AbbVie, the budget would sharply cut reimbursements for prescription drugs once a generic hits the market. Given the reliance here on Humira, that's a major concern.
Meanwhile, the presidential election cycle is kicking off again. Remember that pharma and biotech stocks got clobbered ahead of the 2016 election as investors considered negative comments from both leading candidates. The Trump administration is going after drug prices, and several of the Democratic candidates seem inclined to do the same. Expect more negative political headlines in coming months.
Dividend Cut Coming? Most analyses of AbbVie's dividend safety seem focused almost exclusively on 2019. Yes, the drug maker can afford the ABBV stock 5.5% dividend yield for the time being. In fact, there is plenty of room to spare, based on its relatively low dividend payout ratio.
However, so much of the shareholder base here is like that of GileadSciences (NASDAQ: GILD ) in 2015. That is to say, investors were attracted to past rising profits and oblivious to future threats. Just as Gilead's profits plummeted once HCV revenue started dropping, AbbVie will face a far more-complicated situation in a few years. People buying AbbVie for its past dividend history are driving while looking out the rearview mirror.
AbbVie Stock Pros
That Dividend Yield : Just as any bearish argument involving ABBV stock starts with Humira's patent problems, bulls invariably point to the dividend yield. And with good reason. At this point, ABBV stock is offering investors a choice yield of 5.31%. You'll find only a handful of other $100-billion market cap companies that pay as much.
On top of that, AbbVie continues to increase its dividend. In the past year, it upped its quarterly payout from 96 cents to $1.07. Sure, there is good reason to doubt that the dividend hikes will continue once Humira goes off patent. But for income investors that are willing to play the timing game, there should be a few good years of income potential here as Humira enjoys its waning years of windfall sales numbers.
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New And Rising Drugs : AbbVie has a lot of newly launching or still-growing drugs moving to replace Humira. Analysts have suggested that AbbVie could hit $7 billion peak sales with Imbruvica, and reach the $1-2 billion range for each of three others, Venclexta, Orlissa, and Mayvret. Meanwhile, while Risankizumab and Upadacitinib are still a distance from commercial success, both are potentially $5 billion drugs if all goes according to plan.
Add it all up, and you could match Humira's current $20 billion annual sales contribution with this assortment of newer drugs. It would take a lot to go right - and in pharma, things usually don't all follow plan - but there is a path here. It's also worth remembering that Humira sales won't go straight to zero even as the generics arrive; there will be several more years of reasonably strong cash flows first.
AbbVie still has a respectable pipeline and some time to keep developing other options even as Humira's U.S. patent cliff steadily approaches.
Discounted Stock : Despite a hot stock market, ABBV shares have been caught in a downdraft. With the stock market up 15% for the year, AbbVie's 13% decline stands in a rather stark contrast.
Given the decline, the stock is now trading at under 9x forward earnings. I don't think P/E multiples are a great metric for pharma companies due to patent issues. But plenty of other investors do. The combination of a low P/E ratio and a stock that has fallen sharply will likely attract numerous dip buyers to help give ABBV stock a bounce.
AbbVie Stock Verdict
The clock is ticking. In 2023, Humira's U.S. sales are likely to start to plunge as generic competition arrives. As we've seen internationally, Humira sales started to tank as soon as that happen elsewhere. Will the company's newly launched drugs and pipeline do enough to replace Humira?
My guess that it won't be. Humira did $19.9 billion in sales last year. A typical blockbuster drug will hit a few billion a year in sales. AbbVie needs multiple new blockbusters simply to maintain its current revenue stream, let alone grow additionally. It's not impossible, but the odds are long. Unfortunately, $30 billion-plus in debt limits AbbVie's options and makes a dividend cut in coming years quite likely. That will be terrible news for ABBV stock, given its huge dividend income investor base.
At the time of this writing, Ian Bezek owned GILD stock. You can reach him on Twitter at @irbezek.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE: ABBV ) stock continues to slide, despite a buoyant market. ABBV stock makes up 5% of the pharma industry exchange-traded fund's current portfolio. Losses continued following AbbVie's latest quarterly report. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE: ABBV ) stock continues to slide, despite a buoyant market. At that point, AbbVie could lose the biggest share of its revenue if other pipeline drugs don't come along fast enough. AbbVie Stock Pros That Dividend Yield : Just as any bearish argument involving ABBV stock starts with Humira's patent problems, bulls invariably point to the dividend yield. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE: ABBV ) stock continues to slide, despite a buoyant market. AbbVie Stock Pros That Dividend Yield : Just as any bearish argument involving ABBV stock starts with Humira's patent problems, bulls invariably point to the dividend yield. More From InvestorPlace 2 Toxic Pot Stocks You Should Avoid 7 Invincible Stocks Leading The Bull Market Higher 5 Dow Jones Stocks Coming to Life 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Does Recent AbbVie Stock Weakness Make It A Buy? | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie (NYSE: ABBV ) stock continues to slide, despite a buoyant market. AbbVie Stock Cons Replacing Humira: Investors are asking where AbbVie goes after Humira? ABBV stock makes up 5% of the pharma industry exchange-traded fund's current portfolio. |
25047.0 | 2019-03-20 00:00:00 UTC | AbbVie's Venclexta Multiple Myeloma Studies Put on Hold by FDA | ABBV | https://www.nasdaq.com/articles/abbvies-venclexta-multiple-myeloma-studies-put-on-hold-by-fda-2019-03-20 | nan | nan | AbbVie, Inc.ABBV announced that the FDA has placed a partial clinical hold on all studies evaluating its leukemia drug, Venclexta (venetoclax) for the treatment of multiple myeloma. The decision was taken after, in the ongoing phase III BELLINI study, a higher proportion of deaths were observed in the Venclexta arm compared to the control arm of the study.
Following the observation, it has been instructed that until the data is further analyzed, no new patients should be enrolled in any studies of Venclexta for multiple myeloma. Meanwhile, those who are already enrolled in multiple myeloma studies and receiving benefit from Venclexta have been instructed to continue with treatment after consulting their doctor
Venclexta is presently approved for other cancer types like newly-diagnose chronic lymphocytic leukemia (CLL) and second-line treatment of certain acute myeloid leukemia (AML) patients. The clinical hold does not impact any of the approved indications for Venclexta. It is presently not approved to treat multiple myeloma.
The BELLINI study is evaluating the safety and efficacy of Venclexta plus Takeda's Velcade (bortezomib) and dexamethasone in patients with relapsed or refractory multiple myeloma who are considered sensitive or naïve to proteasome inhibitors and have received one to three prior lines of therapy. The combination is being compared to treatment with Velcade, dexamethasone and placebo.
AbbVie's stock has declined 12.3% this year so far against an increase of 3.7% recorded by the industry .
Venclexta is jointly marketed by AbbVie and Roche's RHHBY pharma arm, Genentech in the United States and by AbbVie outside the United States. Venclexta is marketed by the trade name of Venclyxto in the EU.
For AbbVie, Venclexta brought in revenues of $344 million in 2018, up more than 100% year over year driven by uptake in the second-line plus setting following approval in the United States as well as EU in the broad relapsed/refractory CLL segment (MURANO study) in 2018. Venclexta is a key drug in AbbVie's oncology portfolio.
AbbVie is studying Venclyxto/Venclexta to expand the label to address the broader relapsed/refractory CLL patient population, expand into earlier lines of therapy, and broaden into other hematologic malignancies like multiple myeloma and AML. As mentioned above, regulatory applications seeking approval for Venclexta plus Rituxan for relapse/refractory CLL (based on MURANO study data) were approved in the United States and in the EU in 2018.
Data from the phase III MURANO study of Venclexta plus Rituxan in relapse/refractory CLL showed that the combination led to a profound improvement in progression free survival compared to Teva's TEVA Treanda plus Rituxan. In November 2018, AbbVie gained FDA approval for Venclexta in first-line AML. Label expansion for these indications has expanded the patient population of Venclexta significantly. However, pipeline setbacks like the clinical hold on the multiple myeloma studies will hurt the growth prospects of this important oncology drug.
Another important cancer drug in AbbVie's portfolio is Imbruvica, which it markets in partnership with J&J JNJ . Imbruvica, currently approved for quite a few indications, has multi-billion dollar potential. AbbVie is exploring the potential to expand Imbruvica's label into solid tumors and autoimmune diseases. Several studies on Imbruvica are ongoing to evaluate the drug alone or in combination in different patient segments. AbbVie expects Imbruvica peak sales of more than $7 billion and revenues of about $5 billion in 2020.
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie, Inc.ABBV announced that the FDA has placed a partial clinical hold on all studies evaluating its leukemia drug, Venclexta (venetoclax) for the treatment of multiple myeloma. AbbVie's stock has declined 12.3% this year so far against an increase of 3.7% recorded by the industry . Venclexta is jointly marketed by AbbVie and Roche's RHHBY pharma arm, Genentech in the United States and by AbbVie outside the United States. | AbbVie, Inc.ABBV announced that the FDA has placed a partial clinical hold on all studies evaluating its leukemia drug, Venclexta (venetoclax) for the treatment of multiple myeloma. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie's stock has declined 12.3% this year so far against an increase of 3.7% recorded by the industry . | AbbVie, Inc.ABBV announced that the FDA has placed a partial clinical hold on all studies evaluating its leukemia drug, Venclexta (venetoclax) for the treatment of multiple myeloma. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie's stock has declined 12.3% this year so far against an increase of 3.7% recorded by the industry . | AbbVie, Inc.ABBV announced that the FDA has placed a partial clinical hold on all studies evaluating its leukemia drug, Venclexta (venetoclax) for the treatment of multiple myeloma. AbbVie's stock has declined 12.3% this year so far against an increase of 3.7% recorded by the industry . Venclexta is jointly marketed by AbbVie and Roche's RHHBY pharma arm, Genentech in the United States and by AbbVie outside the United States. |
25048.0 | 2019-03-19 00:00:00 UTC | Why You Should Buy ABBV Stock for Income and Value | ABBV | https://www.nasdaq.com/articles/why-you-should-buy-abbv-stock-income-and-value-2019-03-19 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Today, I'd like to discuss the outlook for AbbVie (NYSE: ABBV ), the $116-billion-market-cap biopharmaceutical stock, whose shares have been in a downtrend for almost a year and have especially been hammered following its earning report of Jan. 25.
Source: Shutterstock
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There could be further price volatility and weakness in the ABBV stock price in the coming weeks, pushing it toward the low-$70's or even mid-$60's level. However, it is a company with robust growth prospects and respectable dividends that may deserve a place in a diversified portfolio.
Therefore, if you already own AbbVie shares, you might want to hold your position. That said, within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 5-7% below the current price point. Expect nearer-term trading to be choppy at best.
If you are an experienced investor in the options market, you may want to protect your portfolio with a covered call or possibly a put option spread with a 3-month time horizon. If you do not yet hold ABBV, you may want to wait several weeks to buy into the stock at the next dip.
With all of that in mind, here's a deeper look into at AbbVie stock.
A Hiccup in the Robust Fundamental Story
In 2013, Abbott Laboratories (NYSE: ABT ) spun off its research-based pharmaceuticals business, creating AbbVie, an independent biopharmaceutical company. Abbott decided to retain the branded generic pharmaceuticals, diagnostics, medical devices and nutrition.
Meanwhile, AbbVie took control of the development and commercialization of a range of brands , including Humira, its flagship drug used to treat autoimmune diseases, Imbruvica, which differentiates between cancer cells and regular cells, and Synthroid, a replacement for a hormone normally produced by the thyroid gland.
The company's financials and growth metrics over the past five years have been impressive and ABBV was in a strong financial position heading into 2019, with hopes of a higher share price during the first quarter.
However, in January, AbbVie's fourth-quarter earnings release weighed heavily on the stock. For starters, the company missed the consensus on revenue. Its earnings per share of $1.90 was below the expected number of $1.94. The next day, the stock fell by 6% and that decline has intensified over the past two months.
ABBV's quarterly report also showed that the international sales of Humira fell by almost 15% year over year, mostly as a result of 'biosimilar' competition in Europe , which makes up three-quarters of the overseas Humira business. In October 2018, its patent in the European Union (E.U) expired .
The U.S. Food and Drug Administration (FDA) refers to biosimilars as "highly similar to an FDA-approved biological product … [that has] no clinically meaningful differences in terms of safety and effectiveness." Although Wall Street had already known about this sales decline in Europe, when coupled with the other question marks in the earnings report, it was enough to increase the selling pressure on the stock.
It is also possible that investors got worried about the potential fall in Humira revenue when the drug comes off patent in 2023 in the U.S. It is important to emphasize that AbbVie's revenue from the drug will not decline to nothing when the biosimilars hit the market in 2023. What will most likely happen is that as the company's pricing power decreases, the revenue will also gradually decline.
Therefore, many analysts feel that ABBV shares offer value and that any bad news that is specific to Humira is already baked into the stock price.
Value Play
When markets penalize biopharma stocks, it can take some time for them to recover. However, for patient long-term investors, the returns can be significant - especially when the company boasts several other current drugs, as well promising ones in the pipeline.
At present, AbbVie's other major products include:
AndroGel, a testosterone replacement therapy.
Creon, a pancreatic enzyme therapy to treat exocrine pancreatic insufficiency.
Duopa and Duodopa, gels to treat Parkinson's disease.
Viekira Pak, which treats chronic hepatitis C.
Zinbryta, to treat multiple sclerosis.
Analysts are also expecting a slew of new products in 2020, such as next-generation immunology drugs. These drugs and others that are being developed and commercialized, highlight how impressive the potential growth story could be in the next few years.
ABBV trades at a trailing price-to-earnings (P/E) ratio of 21. This number is rather modest when compared with the P/E ratios of several competitors, including AstraZeneca (NYSE: AZN ) with a P/E of 49.9, Pfizer (NYSE: PFE ) with a P/E of 25.2, and Merck (NYSE: MRK ) with a P/E of 34.8.
Reinvesting the Sweet Dividend Yield of ABBV stock
Income investors know that they can compound their returns through reinvesting dividends from high-yielding shares. AbbVie also offers investors a healthy dividend yield of about 5.4%, another reason why I believe the stock belongs in a capital-growth portfolio.
Since its spin-off from Abbott Laboratories in 2013, ABBV has increased dividends every year - a trend that is likely to continue. The next dividend payment is scheduled for May 15, 2019, with an ex-dividend date of April 12.
It would not be wrong to call AbbVie a cashflow machine; as of Dec. 31, the company had a free cash flow of $3.27 billion. This strength not only gives shareholders conviction that the dividends are safe, but also provides the company with enough flexibility to, for example, make acquisitions to offset any further Humira revenue decline (especially in the U.S. when the drug comes off patent in 2023).
The Bottom Line on AbbVie Stock
Like most biopharma stocks, AbbVie is a high-momentum stock. In other words, when the broader markets go up or when the company's earnings beat expectations, both investors and momentum traders tend to hit the "buy" button fast, expecting superior gains within days or weeks.
However, if markets suffer a decline or if the company cannot keep up with the rising expectations, investors' risk appetite decreases fast and these stocks can fall much harder than less volatile stocks.
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The market has punished Abbvie stock since the start of the year. The stock may continue to struggle through much of 2019. However, patient ABBV bulls will probably be proven right to believe in the management's commitment to create shareholder value and to further grow the company both organically and through acquisitions. In the meantime, they can continue to collect high dividends.
As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A Hiccup in the Robust Fundamental Story In 2013, Abbott Laboratories (NYSE: ABT ) spun off its research-based pharmaceuticals business, creating AbbVie, an independent biopharmaceutical company. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, I'd like to discuss the outlook for AbbVie (NYSE: ABBV ), the $116-billion-market-cap biopharmaceutical stock, whose shares have been in a downtrend for almost a year and have especially been hammered following its earning report of Jan. 25. Source: Shutterstock Top 7 Service Sector Stocks That Will Pay You to Own Them There could be further price volatility and weakness in the ABBV stock price in the coming weeks, pushing it toward the low-$70's or even mid-$60's level. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, I'd like to discuss the outlook for AbbVie (NYSE: ABBV ), the $116-billion-market-cap biopharmaceutical stock, whose shares have been in a downtrend for almost a year and have especially been hammered following its earning report of Jan. 25. A Hiccup in the Robust Fundamental Story In 2013, Abbott Laboratories (NYSE: ABT ) spun off its research-based pharmaceuticals business, creating AbbVie, an independent biopharmaceutical company. Reinvesting the Sweet Dividend Yield of ABBV stock Income investors know that they can compound their returns through reinvesting dividends from high-yielding shares. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, I'd like to discuss the outlook for AbbVie (NYSE: ABBV ), the $116-billion-market-cap biopharmaceutical stock, whose shares have been in a downtrend for almost a year and have especially been hammered following its earning report of Jan. 25. The Bottom Line on AbbVie Stock Like most biopharma stocks, AbbVie is a high-momentum stock. More From InvestorPlace 2 Toxic Pot Stocks You Should Avoid 7 Financial Stocks to Invest In Today 7 Single-Digit P/E Stocks With Massive Upside 5 Chip Stocks on the Rise Compare Brokers The post Why You Should Buy ABBV Stock for Income and Value appeared first on InvestorPlace . | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Today, I'd like to discuss the outlook for AbbVie (NYSE: ABBV ), the $116-billion-market-cap biopharmaceutical stock, whose shares have been in a downtrend for almost a year and have especially been hammered following its earning report of Jan. 25. The Bottom Line on AbbVie Stock Like most biopharma stocks, AbbVie is a high-momentum stock. Source: Shutterstock Top 7 Service Sector Stocks That Will Pay You to Own Them There could be further price volatility and weakness in the ABBV stock price in the coming weeks, pushing it toward the low-$70's or even mid-$60's level. |
25049.0 | 2019-03-19 00:00:00 UTC | FDA puts partial hold on clinical trials of AbbVie's cancer drug | ABBV | https://www.nasdaq.com/articles/fda-puts-partial-hold-clinical-trials-abbvies-cancer-drug-2019-03-19 | nan | nan | March 19 () - AbbVie Inc said on Tuesday the U.S. Food and Drug Administration placed a partial clinical hold on all trials of its cancer drug Venclexta for multiple myeloma, after a review of data found a higher proportion of deaths in the Venclexta arm of the late-stage study.
Data review from the trial showed a higher number of deaths among patients taking Venclexta, compared to those given a placebo alongside other treatment.
However, the clinical hold does not impact any of the approved indications for Venclexta, and is limited to investigational clinical trials in multiple myeloma, AbbVie said.
The drug is already approved to treat other types of cancer, including chronic lymphocytic leukemia and acute myeloid leukemia. It brought in $344 million revenue for AbbVie in 2018.
Venclexta is jointly sold by AbbVie and Roche AG in the United States, while AbbVie sells it in other markets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | March 19 () - AbbVie Inc said on Tuesday the U.S. Food and Drug Administration placed a partial clinical hold on all trials of its cancer drug Venclexta for multiple myeloma, after a review of data found a higher proportion of deaths in the Venclexta arm of the late-stage study. However, the clinical hold does not impact any of the approved indications for Venclexta, and is limited to investigational clinical trials in multiple myeloma, AbbVie said. It brought in $344 million revenue for AbbVie in 2018. | March 19 () - AbbVie Inc said on Tuesday the U.S. Food and Drug Administration placed a partial clinical hold on all trials of its cancer drug Venclexta for multiple myeloma, after a review of data found a higher proportion of deaths in the Venclexta arm of the late-stage study. However, the clinical hold does not impact any of the approved indications for Venclexta, and is limited to investigational clinical trials in multiple myeloma, AbbVie said. It brought in $344 million revenue for AbbVie in 2018. | March 19 () - AbbVie Inc said on Tuesday the U.S. Food and Drug Administration placed a partial clinical hold on all trials of its cancer drug Venclexta for multiple myeloma, after a review of data found a higher proportion of deaths in the Venclexta arm of the late-stage study. However, the clinical hold does not impact any of the approved indications for Venclexta, and is limited to investigational clinical trials in multiple myeloma, AbbVie said. It brought in $344 million revenue for AbbVie in 2018. | March 19 () - AbbVie Inc said on Tuesday the U.S. Food and Drug Administration placed a partial clinical hold on all trials of its cancer drug Venclexta for multiple myeloma, after a review of data found a higher proportion of deaths in the Venclexta arm of the late-stage study. It brought in $344 million revenue for AbbVie in 2018. However, the clinical hold does not impact any of the approved indications for Venclexta, and is limited to investigational clinical trials in multiple myeloma, AbbVie said. |
25050.0 | 2019-03-18 00:00:00 UTC | AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-sinks-as-market-gains%3A-what-you-should-know-2019-03-18 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $80.65, moving -0.85% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.34%.
Coming into today, shares of the drugmaker had gained 1.02% in the past month. In that same time, the Medical sector gained 1.34%, while the S&P 500 gained 1.83%.
ABBV will be looking to display strength as it nears its nex t earnings release. In tha t report , analysts expect ABBV to post earnings of $2.05 per share. This would mark year-over-year growth of 9.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.75 billion, down 2.35% from the year-ago period.
ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. These results would represent year-over-year changes of +9.73% and +0.12%, respectively.
Any recent changes to analyst estimates for ABBV should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. ABBV currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ABBV has a Forward P/E ratio of 9.37 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.27.
Meanwhile, ABBV's PEG ratio is currently 1.23. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.14 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABBV in the coming trading sessions, be sure to utilize Zacks.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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. AbbVie (ABBV) closed the most recent trading day at $80.65, moving -0.85% from the previous trading session. ABBV will be looking to display strength as it nears its nex t earnings release. | AbbVie (ABBV) closed the most recent trading day at $80.65, moving -0.85% from the previous trading session. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. ABBV will be looking to display strength as it nears its nex t earnings release. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. AbbVie (ABBV) closed the most recent trading day at $80.65, moving -0.85% from the previous trading session. ABBV will be looking to display strength as it nears its nex t earnings release. | ABBV's full-year Zacks Consensus Estimates are calling for earnings of $8.68 per share and revenue of $32.79 billion. Any recent changes to analyst estimates for ABBV should also be noted by investors. AbbVie (ABBV) closed the most recent trading day at $80.65, moving -0.85% from the previous trading session. |
25051.0 | 2019-03-17 00:00:00 UTC | 2 Things Investors Are Missing About AbbVie | ABBV | https://www.nasdaq.com/articles/2-things-investors-are-missing-about-abbvie-2019-03-17 | nan | nan | AbbVie (NYSE: ABBV) has seen better days. After a 54% gain in 2017, the big-pharma stock lost ground last year. So far in 2019, AbbVie's share price has fallen by a double-digit percentage.
Are investors missing something about AbbVie? The company's president, Michael Severino, thinks so. He fielded questions at the Cowen Healthcare Conference on Tuesday. At the end of the session, Severino was asked to identify one or two things that investors are missing about AbbVie. Here are the two things that he listed.
1. The overall strength of AbbVie's business
Severino quickly pointed out that AbbVie's business remains very strong overall. Obviously, the company faces challenges for Humira with biosimilars on the market in Europe. AbbVie provided disappointing guidance in its Q4 update primarily because of declining sales for its top-selling drug in the face of this competition.
However, Severino said that AbbVie remains confident that it won't see direct biosimilar competition in the U.S. until 2023. The U.S. is the biggest market for Humira, so that means much of the drug's revenue should be relatively safe. In the meantime, he thinks that investors should understand just how much growth AbbVie can deliver from its other products.
Sales continue to soar for the company's top cancer drugs, Imbruvica and Venclexta. The latter drug has a lot of potential in additional indications, especially as a first-line treatment for chronic lymphocytic leukemia (CLL) and in treating acute myeloid leukemia (AML) and multiple myeloma.
Severino didn't spend a lot of time talking about Orilissa. However, the drug is off to a good start with its first approved indication in managing endometriosis pain. AbbVie expects to pick up another indication for Orilissa in treating uterine fibroids. With approvals for both indications, the drug could become another blockbuster for the company.
The big story, though, is AbbVie's new immunology drugs that could soon hit the market. Risankizumab appears likely to win Food and Drug Administration (FDA) approval in April for treating psoriasis. Upadacitinib shouldn't be too far behind, with an anticipated approval for treating rheumatoid arthritis in the third quarter of 2019.
These two candidates are both expected to be tremendous commercial successes. Along with Imbruvica, Venclexta, and Orilissa, they're key components of AbbVie's goal to generate $35 billion in non-Humira sales by 2025. By comparison, AbbVie made $32.7 billion last year, with Humira accounting for more than 60% of the total.
2. The strength of AbbVie's earlier-stage pipeline
AbbVie's late-stage pipeline deservedly gets the most attention with the blockbuster potential for risankizumab and upadacitinib. However, Michael Severino thinks that some investors could be overlooking the strength of the company's earlier-stage pipeline.
Severino said that there will be a lot of data released over the next 12 to 18 months from earlier programs in AbbVie's pipeline. He especially pointed out the company's work in immunology and oncology. AbbVie has a promising rheumatoid arthritis drug in phase 2 clinical studies with ABBV-599, which combines a BTK inhibitor with upadacitinib. Its pipeline also includes multiple oncology candidates in phase 1 studies that target solid tumors for which Severino expects significant progress.
The company also has serious development efforts underway in neuroscience. AbbVie isn't viewed as a leader in neuroscience, although it does have one approved product in the category with Parkinson's disease drug Duodopa. That could change in the future.
AbbVie has drugs in phase 2 testing that target treatment of Alzheimer's disease, multiple sclerosis, and progressive supranuclear palsy (PSP). In addition, the big drugmaker is evaluating a couple of experimental drugs in early-stage testing for treating Parkinson's disease and spinal cord injury.
Another thing you don't want to miss
Was Michael Severino right that many investors are missing out on these two strengths for AbbVie? I think so. The stock has been hammered so much that it now trades at a dirt cheap valuation. Even with the real pipeline risk that AbbVie faces, the company's legitimate growth prospects make the stock a bargain.
There's also one other thing that investors shouldn't overlook with AbbVie: Its rock-solid dividend. AbbVie's dividend now yields nearly 5.5%. With this great dividend, the company wouldn't have to generate very high earnings growth to deliver total returns that beat the 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie has drugs in phase 2 testing that target treatment of Alzheimer's disease, multiple sclerosis, and progressive supranuclear palsy (PSP). AbbVie (NYSE: ABBV) has seen better days. So far in 2019, AbbVie's share price has fallen by a double-digit percentage. | The overall strength of AbbVie's business Severino quickly pointed out that AbbVie's business remains very strong overall. AbbVie has drugs in phase 2 testing that target treatment of Alzheimer's disease, multiple sclerosis, and progressive supranuclear palsy (PSP). AbbVie (NYSE: ABBV) has seen better days. | The overall strength of AbbVie's business Severino quickly pointed out that AbbVie's business remains very strong overall. The strength of AbbVie's earlier-stage pipeline AbbVie's late-stage pipeline deservedly gets the most attention with the blockbuster potential for risankizumab and upadacitinib. Another thing you don't want to miss Was Michael Severino right that many investors are missing out on these two strengths for AbbVie? | AbbVie isn't viewed as a leader in neuroscience, although it does have one approved product in the category with Parkinson's disease drug Duodopa. AbbVie (NYSE: ABBV) has seen better days. So far in 2019, AbbVie's share price has fallen by a double-digit percentage. |
25052.0 | 2019-03-15 00:00:00 UTC | IWV, UNH, ABBV, HON: Large Inflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/iwv-unh-abbv-hon-large-inflows-detected-etf-2019-03-15 | 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 3000 ETF (Symbol: IWV) where we have detected an approximate $66.4 million dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 58,600,000 to 59,000,000). Among the largest underlying components of IWV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.7%, and Honeywell International Inc (Symbol: HON) is relatively unchanged. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average:
Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $166.47. 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.
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 IWV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.7%, and Honeywell International Inc (Symbol: HON) is relatively unchanged. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $166.47. 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 IWV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.7%, and Honeywell International Inc (Symbol: HON) is relatively unchanged. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $166.47. 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 IWV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.7%, and Honeywell International Inc (Symbol: HON) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $66.4 million dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 58,600,000 to 59,000,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $166.47. | Among the largest underlying components of IWV, in trading today UnitedHealth Group Inc (Symbol: UNH) is off about 0.6%, AbbVie Inc (Symbol: ABBV) is down about 0.7%, and Honeywell International Inc (Symbol: HON) is relatively unchanged. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares Russell 3000 ETF (Symbol: IWV) where we have detected an approximate $66.4 million dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 58,600,000 to 59,000,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $166.47. |
25053.0 | 2019-03-14 00:00:00 UTC | 3 Dividend Aristocrats to Buy and Hold Forever | ABBV | https://www.nasdaq.com/articles/3-dividend-aristocrats-buy-and-hold-forever-2019-03-14 | nan | nan | Dividend Aristocrats -- or companies that have raised their dividends for a minimum of 25 consecutive years -- are always worth considering as long-term investing vehicles. These elite income stocks, after all, have trounced the performance of the broader markets for nearly 30 straight years at this point.
We thus asked three of our Motley Fool contributors which Dividend Aristocrats they would choose to buy and hold for basically forever. They choose AbbVie (NYSE: ABBV) , PepsiCo (NASDAQ: PEP) , and McDonald's (NYSE: MCD) . Here's why.
A perfect buying opportunity
George Budwell (AbbVie): AbbVie, an Illinois-based drugmaker, is a Dividend Aristocrat by virtue of its former parent company, Abbott Laboratories . Even so, this top biopharma has done a lot to earn this coveted label on its own. Since going public in 2013, for instance, AbbVie has raised its dividend by an astounding 168% -- among the fastest within the large-cap biopharma space.
Despite its top-notch dividend growth rate and its industry-leading levels of revenue growth over the past five years, AbbVie's stock has fallen out of favor with investors in 2019. AbbVie's shares have dropped by over 14% during just the first two and a half months of 2019. The long and short of it is that investors simply aren't buying that the company is capable of replacing Humira's revenue stream once the drug loses patent protection in the United States starting in 2023.
Why? Well, AbbVie did experience a significant setback with the clinical failure of its cancer treatment Rova-T last year. However, this dire outlook arguably isn't warranted, even after this major clinical flop. AbbVie still has five other promising drugs that should comfortably offset any future dip in revenue stemming from Humira's loss of exclusivity.
Specifically, the company's cancer franchise is growing by leaps and bounds due to the breakout success of both Imbruvica and Venclexta; its new endometriosis drug called Orilissa is expected to ramp up slowly, but eventually achieve blockbuster status within the next decade; its hepatitis C medicine, Mavyret, should remain a stable source of revenue for at least another eight years; and the drugmaker's two high-value immunology assets -- risankizumab and upadacitinib -- should both gain key regulatory approvals later this year.
Stated simply, AbbVie should have little trouble maintaining its elite dividend program for the long term thanks to its well-rounded product portfolio and top-shelf clinical pipeline.
A sturdy beverage and snack giant
Keith Noonan (PepsiCo): A lot of the talk around PepsiCo and the beverage industry as a whole in recent years has revolved around the decline of soda. That might raise concerns about PepsiCo's ability to continue thriving and returning cash to shareholders if the business depended too heavily on sugary drinks. However, the company is actually pretty well diversified , and it enjoys substantial scale and infrastructure advantages that should help it continue delivering a solid performance.
Pepsi's North American beverage segment accounted for roughly 32.5% of the company's revenue in 2018, with its Frito-Lay and Quaker brands filling out its product offerings, and sales in non-domestic markets completing the sales picture. The company's Frito-Lay Snack division in particular has helped to deliver solid performance even as the fizz in domestic soda sales has gone worse than flat, allowing Pepsi to post 4% organic revenue growth in 2018.
While the domestic soda slowdown has hurt performance, the shift in the market has not been abrupt or dramatic in a way that's caught Pepsi flat-footed, and it gives the company a reasonable timeline to continue modifying its beverage portfolio to better cater to market tastes. The beverage giant has already made significant progress on that front, and thankfully, the soda headwinds aren't affecting all geographic segments. With an international distribution imprint that has the distinction of being both incredibly impressive in scale and still open for growth, PepsiCo has long-term opportunities as it steadily expands and takes advantage of new operating efficiencies.
Pepsi yields roughly 3.2% and has raised its dividend on an annual basis for 47 years running. With the business looking strong and the cost of covering its current forward distribution coming in at a reasonable payout of 60% of trailing free cash flow, investors can continue to rely on the stock for steady payout growth for decades to come.
The fast-food king
Jeremy Bowman (McDonald's): One Dividend Aristocrat I'd feel comfortable holding forever is McDonald's. The global fast-food leader has consistently delivered strong returns for investors, and it has raised its dividend every year for 43 years straight. Today, it offers a dividend yield of 2.6%, and it last raised its quarterly payout by 15% to $1.16 in Sept. 2018. Considering the company's reasonable payout ratio at 61.5%, investors should expect continuing dividend increases, though they won't be as high as 15% every year.
Like many Dividend Aristocrats, McDonald's is a great choice for investors looking for defensive stocks, or investments that are resilient during a recession or a market downturn. As a fast-food restaurant chain offering cheap, convenient foods in places like city centers, interstate exits, malls, and airports, McDonald's business is relatively stable regardless of the overall health of the economy or consumer spending.
The company's franchise model further protects it from the vicissitudes of the economy as it is not directly responsible for things like labor costs at most of its restaurants. Like any industry, fast food is evolving with the influence of fast-casual chains like Chipotle and the popularity of delivery, but McDonald's is pivoting with it, remodeling restaurants in a program it calls Experience of the Future and partnering with UberEats on delivery.
While the intricacies of the fast-food industry may change over time, the need for people to get fast, cheap, convenient food where they are is lasting, and no company has built a stronger position to meet that demand than McDonald's.
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George Budwell owns shares of AbbVie. Jeremy Bowman owns shares of Chipotle Mexican Grill. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Chipotle Mexican Grill. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | They choose AbbVie (NYSE: ABBV) , PepsiCo (NASDAQ: PEP) , and McDonald's (NYSE: MCD) . A perfect buying opportunity George Budwell (AbbVie): AbbVie, an Illinois-based drugmaker, is a Dividend Aristocrat by virtue of its former parent company, Abbott Laboratories . Since going public in 2013, for instance, AbbVie has raised its dividend by an astounding 168% -- among the fastest within the large-cap biopharma space. | A perfect buying opportunity George Budwell (AbbVie): AbbVie, an Illinois-based drugmaker, is a Dividend Aristocrat by virtue of its former parent company, Abbott Laboratories . They choose AbbVie (NYSE: ABBV) , PepsiCo (NASDAQ: PEP) , and McDonald's (NYSE: MCD) . Since going public in 2013, for instance, AbbVie has raised its dividend by an astounding 168% -- among the fastest within the large-cap biopharma space. | A perfect buying opportunity George Budwell (AbbVie): AbbVie, an Illinois-based drugmaker, is a Dividend Aristocrat by virtue of its former parent company, Abbott Laboratories . Despite its top-notch dividend growth rate and its industry-leading levels of revenue growth over the past five years, AbbVie's stock has fallen out of favor with investors in 2019. They choose AbbVie (NYSE: ABBV) , PepsiCo (NASDAQ: PEP) , and McDonald's (NYSE: MCD) . | They choose AbbVie (NYSE: ABBV) , PepsiCo (NASDAQ: PEP) , and McDonald's (NYSE: MCD) . A perfect buying opportunity George Budwell (AbbVie): AbbVie, an Illinois-based drugmaker, is a Dividend Aristocrat by virtue of its former parent company, Abbott Laboratories . Since going public in 2013, for instance, AbbVie has raised its dividend by an astounding 168% -- among the fastest within the large-cap biopharma space. |
25054.0 | 2019-03-13 00:00:00 UTC | Theravance (TBPH) Starts Dosing in Ulcerative Colitis Study | ABBV | https://www.nasdaq.com/articles/theravance-tbph-starts-dosing-in-ulcerative-colitis-study-2019-03-13 | nan | nan | Theravance Biopharma, Inc.TBPH has dosed the first patient in a phase IIb/III study on its gut-selective pan-Janus kinase (JAK) inhibitor, TD-1473 in patients with moderately to severely active ulcerative colitis. TD-1473 is currently being developed in collaboration with Janssen, a subsidiary of Johnson & Johnson JNJ , for treating inflammatory intestinal diseases.
The phase IIb dose-finding induction portion of the study will assess the effect of eight weeks of treatment with select once-daily doses of TD-1473 on change from baseline in total Mayo score as the primary endpoint. The phase IIb portion of the study will also assess rates of clinical response and remission, endoscopic mucosal healing, safety, and tolerability.
Based on the efficacy, safety and tolerability findings from the dose-finding portion of the study, one or more doses of TD-1473 will be selected and evaluated in the phase III induction portion of the study, with primary objectives of assessing clinical remission rates with TD-1473 compared to placebo at week 8, and safety and tolerability of the candidate.
The patients who receive clinical responses during the induction stage of the study, either from the phase IIb or phase III portion of the study, will then be immediately enrolled in the phase III maintenance portion of the study.
Shares of the company have decreased 18.9% in the past year compared with the industry 's decline of 16.5%.
We would like to remind investors that in February 2018, Theravance entered into a global co-development and commercialization agreement with Janssen to evaluate TD-1473 for treating inflammatory intestinal diseases, such as ulcerative colitis and Crohn's disease. Theravance received an upfront payment of $100 million and is eligible to receive another $900 million as potential payments, if Janssen decides to continue the collaboration following the completion of phase II activities. Both the companies will be sharing profits and expenses in the United States related to a potential phase III study.
The initiation of the phase IIb/III study of TD-1473 in ulcerative colitis follows the previously-announced initiation of a phase II study in patients with Crohn's disease.
Some marketed ulcerative colitis treatments include Pfizer's PFE JAK inhibitor, Xeljanz and AbbVie's ABBV Humira.
Theravance Biopharma, Inc. Price
Theravance Biopharma, Inc. Price | Theravance Biopharma, Inc. Quote
Zacks Rank
Theravance currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here .
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From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Some marketed ulcerative colitis treatments include Pfizer's PFE JAK inhibitor, Xeljanz and AbbVie's ABBV Humira. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Theravance Biopharma, Inc. (TBPH): Free Stock Analysis Report To read this article on Zacks.com click here. The phase IIb dose-finding induction portion of the study will assess the effect of eight weeks of treatment with select once-daily doses of TD-1473 on change from baseline in total Mayo score as the primary endpoint. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Theravance Biopharma, Inc. (TBPH): Free Stock Analysis Report To read this article on Zacks.com click here. Some marketed ulcerative colitis treatments include Pfizer's PFE JAK inhibitor, Xeljanz and AbbVie's ABBV Humira. Based on the efficacy, safety and tolerability findings from the dose-finding portion of the study, one or more doses of TD-1473 will be selected and evaluated in the phase III induction portion of the study, with primary objectives of assessing clinical remission rates with TD-1473 compared to placebo at week 8, and safety and tolerability of the candidate. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Theravance Biopharma, Inc. (TBPH): Free Stock Analysis Report To read this article on Zacks.com click here. Some marketed ulcerative colitis treatments include Pfizer's PFE JAK inhibitor, Xeljanz and AbbVie's ABBV Humira. The patients who receive clinical responses during the induction stage of the study, either from the phase IIb or phase III portion of the study, will then be immediately enrolled in the phase III maintenance portion of the study. | Some marketed ulcerative colitis treatments include Pfizer's PFE JAK inhibitor, Xeljanz and AbbVie's ABBV Humira. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Theravance Biopharma, Inc. (TBPH): Free Stock Analysis Report To read this article on Zacks.com click here. Theravance Biopharma, Inc.TBPH has dosed the first patient in a phase IIb/III study on its gut-selective pan-Janus kinase (JAK) inhibitor, TD-1473 in patients with moderately to severely active ulcerative colitis. |
25055.0 | 2019-03-12 00:00:00 UTC | Pfizer's Herceptin Biosimilar Trazimera Gets FDA Approval | ABBV | https://www.nasdaq.com/articles/pfizers-herceptin-biosimilar-trazimera-gets-fda-approval-2019-03-12 | nan | nan | Pfizer, Inc. PFE announced FDA approval of Trazimera, a biosimilar version Roche's RHHBY breast cancer drug, Herceptin.
Trazimera is approved for the treatment of HER2 overexpressing breast cancer and HER2 overexpressing metastatic gastric cancer. We remind investors that in April last year, the FDA had given a complete response letter (CRL) to Pfizer's biologics license application (BLA) for Herceptin biosimilar. The FDA, back then, had asked for additional technical information though it was not related to safety or clinical data submitted in the application.
The BLA filing was based on a comprehensive data package, which included data from the REFLECTIONS B3271002 study, a comparative safety and efficacy study of Trazimera in combination with paclitaxel versus a combination of Herceptin and paclitaxel in first-line patients with HER2-positive metastatic breast cancer. Data from the study showed that the primary endpoint of objective response rate (ORR) was equivalent for Trazimera and Herceptin.
We remind investors that in January this year, Samsung Bioepis Co., Ltd and its partner, Merck received FDA approval for their Herceptin biosimilar, Ontruzant. Ontruzant was Samsung Bioepis' first oncology biosimilar to receive FDA approval. In December last year, Celltrion and Teva Pharmaceutical Industries' biosimilar version of Herceptin, Herzuma gained FDA's approval
Pfizer's shares have declined 4.9% this year so far against an increase of 2.1% for the industry .
Trazimera is Pfizer's first oncology biosimilar to get approved in the United States. At present, in the United States, Pfizer marketsInflectra, its first biosimilar version of J&J/Merck's Remicade,which was launched inNovember 2016. In Europe and United States, Pfizer also markets biosimilar versions of Amgen's AMGN drugs, Neupogen and Epogen.
Gradually, Pfizer is venturing into the oncology biosimilars space. Biosimilar versions of Roche's other cancer drugs Rituxan and Avastin (Zirabev) arealsounder review in the United States with FDA decisions on all expected in 2019. With a biosimilar version of AbbVie's ABBV Humira also under review in the United States, Pfizer expects potential U.S. approvals for up to four biosimilar products in 2019.
Biosimilar versions of Herceptin and Avastin are already approved in the EU while that of Rituxan is under review in the EU. Meanwhile, Pfizer is evaluating several biosimilar molecules in various stages of development.
Pfizer currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With a biosimilar version of AbbVie's ABBV Humira also under review in the United States, Pfizer expects potential U.S. approvals for up to four biosimilar products in 2019. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. We remind investors that in April last year, the FDA had given a complete response letter (CRL) to Pfizer's biologics license application (BLA) for Herceptin biosimilar. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. With a biosimilar version of AbbVie's ABBV Humira also under review in the United States, Pfizer expects potential U.S. approvals for up to four biosimilar products in 2019. Pfizer, Inc. PFE announced FDA approval of Trazimera, a biosimilar version Roche's RHHBY breast cancer drug, Herceptin. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. With a biosimilar version of AbbVie's ABBV Humira also under review in the United States, Pfizer expects potential U.S. approvals for up to four biosimilar products in 2019. Pfizer, Inc. PFE announced FDA approval of Trazimera, a biosimilar version Roche's RHHBY breast cancer drug, Herceptin. | With a biosimilar version of AbbVie's ABBV Humira also under review in the United States, Pfizer expects potential U.S. approvals for up to four biosimilar products in 2019. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The BLA filing was based on a comprehensive data package, which included data from the REFLECTIONS B3271002 study, a comparative safety and efficacy study of Trazimera in combination with paclitaxel versus a combination of Herceptin and paclitaxel in first-line patients with HER2-positive metastatic breast cancer. |
25056.0 | 2019-03-12 00:00:00 UTC | Noteworthy Tuesday Option Activity: AMG, NRG, ABBV | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-amg-nrg-abbv-2019-03-12 | nan | nan | Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Affiliated Managers Group Inc. (Symbol: AMG), where a total of 5,202 contracts have traded so far, representing approximately 520,200 underlying shares. That amounts to about 115.9% of AMG's average daily trading volume over the past month of 448,925 shares. Especially high volume was seen for the $105 strike put option expiring March 15, 2019 , with 2,601 contracts trading so far today, representing approximately 260,100 underlying shares of AMG. Below is a chart showing AMG's trailing twelve month trading history, with the $105 strike highlighted in orange:
NRG Energy Inc (Symbol: NRG) saw options trading volume of 29,695 contracts, representing approximately 3.0 million underlying shares or approximately 82.4% of NRG's average daily trading volume over the past month, of 3.6 million shares. Particularly high volume was seen for the $34 strike put option expiring June 21, 2019 , with 9,275 contracts trading so far today, representing approximately 927,500 underlying shares of NRG. Below is a chart showing NRG's trailing twelve month trading history, with the $34 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 34,650 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 60.3% of ABBV's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $77.50 strike put option expiring March 15, 2019 , with 10,990 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $77.50 strike highlighted in orange:
For the various different available expirations for AMG options , NRG options , or ABBV options , visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 $77.50 strike put option expiring March 15, 2019 , with 10,990 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing NRG's trailing twelve month trading history, with the $34 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 34,650 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 60.3% of ABBV's average daily trading volume over the past month, of 5.7 million shares. | Below is a chart showing NRG's trailing twelve month trading history, with the $34 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 34,650 contracts thus far today. Especially high volume was seen for the $77.50 strike put option expiring March 15, 2019 , with 10,990 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 60.3% of ABBV's average daily trading volume over the past month, of 5.7 million shares. | Especially high volume was seen for the $77.50 strike put option expiring March 15, 2019 , with 10,990 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing NRG's trailing twelve month trading history, with the $34 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 34,650 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 60.3% of ABBV's average daily trading volume over the past month, of 5.7 million shares. | Especially high volume was seen for the $77.50 strike put option expiring March 15, 2019 , with 10,990 contracts trading so far today, representing approximately 1.1 million underlying shares of ABBV. Below is a chart showing NRG's trailing twelve month trading history, with the $34 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 34,650 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 60.3% of ABBV's average daily trading volume over the past month, of 5.7 million shares. |
25057.0 | 2019-03-11 00:00:00 UTC | Should Value Investors Consider Abbvie (ABBV) Stock Now? | ABBV | https://www.nasdaq.com/articles/should-value-investors-consider-abbvie-abbv-stock-now-2019-03-11 | nan | nan | Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn't want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let's put Abbvie Inc . ABBV stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar o f earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock's current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Abbvie has a trailing twelve months PE ratio of 9.8, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 stands at about 17.4. If we focus on the long-term PE trend, Abbvie's current PE level puts it below its midpoint of 14.6 over the past five years. Moreover, the current level stands well below the highs for the stock, suggesting that it can be a solid entry point.
We should also point out that Abbvie has a forward PE ratio (price relative to this year's earnings) of just 8.9, so it is fair to say that a slightly more value-oriented path may be ahead for Abbvie stock in the near term too.
P/CF Ratio
An often overlooked ratio that can still be a great indicator of value is the price/cash flow metric. This ratio doesn't take amortization and depreciation into account, so can give a more accurate picture of the financial health in a business. This is a preferred metric to some valuation investors because cash flows are (a) generally less prone to manipulation by the company's management, and (b) are less affected by variation in accounting policies between different companies.
The ratio is generally applied to find out whether a company's stock is overpriced or underpriced with reference to its cash flows generation potential compared with its competitors. However, it is not commonly used for cross-industry comparison, as the average price to cash flow ratio varies from industry to industry.
In this case, Abbvie's P/CF ratio of 15.6 is lower than the Zacks Large Cap Pharmaceuticals industry average of 15.8, which indicates that the stock is somewhat undervalued in this respect.
Broad Value Outlook
In aggregate, Abbvie currently has a Value Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Abbvie a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, the PEG ratio for Abbvie is just 1.2, a level that is far lower than the industry average of 2.1. The PEG ratio is a modified PE ratio that takes into account the stock's earnings growth rate. Clearly, ABBV is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Abbvie might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth Score of B and a Momentum Score of D. This gives ABBV a Zacks VGM score - or its overarching fundamental grade - of B. (You can read more about the Zacks Style Scores here >> )
Meanwhile, the company's recen t earnings estimates have been mixed at best. The current quarter has seen one estimate go higher in the past sixty days compared to one downward revision, while the full year estimate has seen two upward and five downward revisions in the same time period.
This has had a mixed impact on the consensus estimate as the current quarter consensus estimate has risen by 1% in the past two months, while the full year estimate has inched lower by 0.3%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
AbbVie Inc. Price and Consensus
AbbVie Inc. Price and Consensus | AbbVie Inc. Quote
This somewhat mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.
Bottom Line
Abbvie is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. However, with a sluggish industry rank (bottom 44% of more than 250 industries) and a Zacks Rank #3, it is hard to get too excited about this company overall. Nevertheless, over the past two years, the Zacks Computer-Mini industry has outperformed the broader market, as you can see below:
So, value investors might want to wait for estimates to turn around in this name first, but once that happens, this stock could be a compelling pick.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this case, Abbvie's P/CF ratio of 15.6 is lower than the Zacks Large Cap Pharmaceuticals industry average of 15.8, which indicates that the stock is somewhat undervalued in this respect. Let's put Abbvie Inc . ABBV stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. | If we focus on the long-term PE trend, Abbvie's current PE level puts it below its midpoint of 14.6 over the past five years. You can see the consensus estimate trend and recent price action for the stock in the chart below: AbbVie Inc. Price and Consensus AbbVie Inc. Price and Consensus | AbbVie Inc. Quote This somewhat mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term. Let's put Abbvie Inc . | ABBV stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. You can see the consensus estimate trend and recent price action for the stock in the chart below: AbbVie Inc. Price and Consensus AbbVie Inc. Price and Consensus | AbbVie Inc. Quote This somewhat mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term. Let's put Abbvie Inc . | ABBV stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks: PE Ratio A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. If we focus on the long-term PE trend, Abbvie's current PE level puts it below its midpoint of 14.6 over the past five years. Let's put Abbvie Inc . |
25058.0 | 2019-03-11 00:00:00 UTC | AbbVie (ABBV) Gains But Lags Market: What You Should Know | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-gains-but-lags-market%3A-what-you-should-know-2019-03-11 | nan | nan | AbbVie (ABBV) closed the most recent trading day at $78.08, moving +0.64% from the previous trading session. This change lagged the S&P 500's 1.47% gain on the day. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 2.02%.
Prior to today's trading, shares of the drugmaker had lost 2.01% over the past month. This has lagged the Medical sector's gain of 1.05% and the S&P 500's gain of 1.5% in that time.
Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. The company is expected to report EPS of $2.05, up 9.63% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.75 billion, down 2.35% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.68 per share and revenue of $32.79 billion, which would represent changes of +9.73% and +0.12%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ABBV. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% lower. ABBV is currently a Zacks Rank #3 (Hold).
Digging into valuation, ABBV currently has a Forward P/E ratio of 8.94. This valuation marks a discount compared to its industry's average Forward P/E of 15.26.
We can also see that ABBV currently has a PEG ratio of 1.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.08 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.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.
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) closed the most recent trading day at $78.08, moving +0.64% from the previous trading session. Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. Investors should also note any recent changes to analyst estimates for ABBV. | AbbVie (ABBV) closed the most recent trading day at $78.08, moving +0.64% from the previous trading session. Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. Investors should also note any recent changes to analyst estimates for ABBV. | AbbVie (ABBV) closed the most recent trading day at $78.08, moving +0.64% from the previous trading session. Investors will be hoping for strength from ABBV as it approaches its nex t earnings release. Investors should also note any recent changes to analyst estimates for ABBV. | Investors should also note any recent changes to analyst estimates for ABBV. ABBV is currently a Zacks Rank #3 (Hold). AbbVie (ABBV) closed the most recent trading day at $78.08, moving +0.64% from the previous trading session. |
25059.0 | 2019-03-10 00:00:00 UTC | 4 Stocks to Buy With Dividends Yielding More Than 4% | ABBV | https://www.nasdaq.com/articles/4-stocks-buy-dividends-yielding-more-4-2019-03-10 | nan | nan | You won't have any trouble finding stocks with high dividend yields of 4% or more. There are hundreds of them. But many high-yield stocks are ones you shouldn't touch with a 10-foot pole. Their dividends are just too shaky.
There are some solid dividend stocks that yield 4% or more that do appear to be great picks to buy right now, though. Here's why AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , Medical Properties Trust (NYSE: MPW) , and Verizon Communications (NYSE: VZ) especially stand out.
1. AbbVie
Big drugmaker AbbVie pays a dividend that yields nearly 5.5%. The company has boosted its dividend by an impressive 168% since Abbott Labs spun it off in 2013.
AbbVie's immunology drug Humira remains the world's top-selling drug. Humira now faces biosimilar competition in Europe, and biosimilars will enter the U.S. market in 2023. However, AbbVie isn't worried .
The biopharma company's current lineup includes a couple of cancer drugs with tremendous momentum -- Imbruvica and Venclexta. AbbVie's endometriosis drug Orilissa is likely to become a blockbuster success. The company also claims a strong pipeline that includes two of the most promising immunology candidates in years, risankizumab and upadacitinib.
2. Brookfield Infrastructure Partners
Brookfield Infrastructure Partners' dividend yield is 4.98%. The limited partnership's goal is to increase its dividend by at least 5% annually. Over the past five years, Brookfield Infrastructure has done even better, raising its dividend by 57%.
The company's business model should ensure the dividend checks keep flowing. As its name implies, Brookfield Infrastructure focuses on infrastructure assets. Its assets include communications towers, energy transmission lines, ports, railroads, and toll roads. These infrastructure assets provide the company with a steady revenue stream.
Demand for infrastructure will increase in the future, especially as the economies of developing countries expand. Brookfield Infrastructure CEO Sam Pollock noted in the company's Q4 conference call that he thinks there could be great opportunities in South America especially. Pollock said Brookfield Infrastructure plans to "buy higher-growth businesses, where we can apply our operational expertise, thus earning higher returns." That's what dividend investors like to hear.
3. Medical Properties Trust
Medical Properties Trust's dividend yields 5.53%. Because it's organized as a real estate investment trust (REIT) , MPT must distribute at least 90% of its taxable income to shareholders in the form o f dividends .
The company owns 276 healthcare properties in the U.S. and several other countries. Last year, 76% of MPT's total revenue came from general acute care hospitals. MPT leases its facilities to healthcare operating companies through long-term leases that require the tenants to assume most of the costs associated with the properties. It also makes mortgage loans to some healthcare operators, with their real estate assets serving as collateral.
MPT stock has performed really well over the last year, reaching an all-time high in February. The company ranked as the No. 1 healthcare REIT over the last 10 years in total shareholder return. With its dependable revenue stream from leasing its current properties and opportunities to expand in more international markets, MPT appears likely to continue to generate solid returns for investors and keep the high-yield dividends coming.
4. Verizon
Verizon pays a dividend that currently yields 4.33%. Its dividend hasn't increased by a whole lot in recent years. However, the telecommunications giant has increased its dividend for 12 consecutive years.
Although Verizon competes against formidable rivals, it's still the No. 1 wireless provider in the United States. Verizon claims to have the best nationwide wireless network in the nation and continues to attract new subscribers while holding on to most of its existing customers.
One huge opportunity for Verizon that's just getting started is high-speed 5G networks. Verizon launched its 5G Home service in a handful of cities in October 2018. The company should enjoy solid growth as it rolls out its 5G services throughout the U.S. over the next few years.
Some risks, but solid overall
Each of these dividend stocks faces some risks. AbbVie's pipeline candidates could stumble in clinical studies. Brookfield Infrastructure, Medical Properties Trust, and Verizon could be hurt if interest rates rise significantly. All of the stocks could fall if the global economy falters.
However, each of these companies claims a solid business model with viable long-term growth prospects. AbbVie, Brookfield Infrastructure Properties, Medical Properties Trust, and Verizon should appeal to investors seeking reliable high dividend yields.
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Keith Speights owns shares of AbbVie. The Motley Fool recommends Brookfield Infrastructure Partners and Verizon Communications. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here's why AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , Medical Properties Trust (NYSE: MPW) , and Verizon Communications (NYSE: VZ) especially stand out. AbbVie Big drugmaker AbbVie pays a dividend that yields nearly 5.5%. AbbVie's immunology drug Humira remains the world's top-selling drug. | Here's why AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , Medical Properties Trust (NYSE: MPW) , and Verizon Communications (NYSE: VZ) especially stand out. AbbVie Big drugmaker AbbVie pays a dividend that yields nearly 5.5%. AbbVie's immunology drug Humira remains the world's top-selling drug. | Here's why AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , Medical Properties Trust (NYSE: MPW) , and Verizon Communications (NYSE: VZ) especially stand out. AbbVie, Brookfield Infrastructure Properties, Medical Properties Trust, and Verizon should appeal to investors seeking reliable high dividend yields. AbbVie Big drugmaker AbbVie pays a dividend that yields nearly 5.5%. | AbbVie, Brookfield Infrastructure Properties, Medical Properties Trust, and Verizon should appeal to investors seeking reliable high dividend yields. Here's why AbbVie (NYSE: ABBV) , Brookfield Infrastructure Partners (NYSE: BIP) , Medical Properties Trust (NYSE: MPW) , and Verizon Communications (NYSE: VZ) especially stand out. AbbVie Big drugmaker AbbVie pays a dividend that yields nearly 5.5%. |
25060.0 | 2019-03-08 00:00:00 UTC | Roche's (RHHBY) Tecentriq Gets EC Nod for First-Line NSCLC | ABBV | https://www.nasdaq.com/articles/roches-rhhby-tecentriq-gets-ec-nod-for-first-line-nsclc-2019-03-08 | nan | nan | Swiss pharma company, RocheRHHBY announced that the European Commission (EC) has approved and granted marketing authorization to immuno-oncology drug, Tecentriq in combination with Avastin, paclitaxel and carboplatin for the first-line treatment of adults with metastatic non-squamous non-small cell lung cancer (NSCLC).
The approval includes EGFR mutant or ALK-positive NSCLC after failure of a targeted therapy.
The EC approval was based on positive results from the phase III IMpower150 study, which showed that Tecentriq in combination with Avastin and chemotherapy enabled patients live significantly longer as compared to the combination of Avastin and chemotherapy. The safety profile of the Tecentriq combination was consistent with that observed in previous studies.
The label expansion of the drug should further boost sales, given the market potential for first-line NSCLC, which accounts for 85% of all lung cancer cases in the world.
We remind investors that Tecentriq is already approved in the European Union and the United States for previously treated metastatic NSCLC and for certain types of untreated or previously treated metastatic urothelial carcinoma (mUC). The FDA recently approved Tecentriq in combination with Avastin and chemotherapy for the initial treatment of people with metastatic non-squamous NSCLC.
Roche is working to expand the drug's label further. Nine phase III lung cancer studies are ongoing, evaluating Tecentriq alone or in combination with other medicines.
However, competition is stiff in the promising first-line NSCLC market with the likes of Merck's MRK Keytruda.
Earlier, Roche announced that it submitted a supplemental New Drug Application (sNDA) for leukemia drug, Venclexta in combination with of Gazyva. The company is seeking label expansion of the drug for the treatment of previously untreated chronic lymphocytic leukemia (CLL) and co-existing medical conditions.
The FDA is reviewing the application under the Real-Time Oncology Review pilot program, which should speed up the process to ensure availability of safe and effective treatments for patients as early as possible.
We remind investors that the combination was earlier granted Breakthrough Therapy designation by the FDA, which should expedite the review process.
Roche has a collaboration agreement with AbbVie, Inc. ABBV for Venclexta. Both the companies jointly commercialize the drug in the United States, while AbbVie commercializes it outside the United States.
Venclexta is already approved for the treatment of CLL in adults with or without 17p deletion who have received at least one prior treatment.
Roche's stock has gained 11.5% in the past six months compared with the industry's growth of 3.4%.
Approval of new drugs and label expansion of existing drugs bode well for the company as biosimilars pose stiff competition for some of its key drugs.
Separately, Roche announced that it has commenced a cash tender offer for all of the outstanding shares of common stock of Spark Therapeutics, Inc. ONCE at $114.50 per share. The acquisition will strengthen Roche's position in the hemophilia market.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Roche has a collaboration agreement with AbbVie, Inc. ABBV for Venclexta. Both the companies jointly commercialize the drug in the United States, while AbbVie commercializes it outside the United States. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Spark Therapeutics, Inc. (ONCE): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Spark Therapeutics, Inc. (ONCE): Free Stock Analysis Report To read this article on Zacks.com click here. Roche has a collaboration agreement with AbbVie, Inc. ABBV for Venclexta. Both the companies jointly commercialize the drug in the United States, while AbbVie commercializes it outside the United States. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Spark Therapeutics, Inc. (ONCE): Free Stock Analysis Report To read this article on Zacks.com click here. Roche has a collaboration agreement with AbbVie, Inc. ABBV for Venclexta. Both the companies jointly commercialize the drug in the United States, while AbbVie commercializes it outside the United States. | Roche has a collaboration agreement with AbbVie, Inc. ABBV for Venclexta. Both the companies jointly commercialize the drug in the United States, while AbbVie commercializes it outside the United States. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Roche Holding AG (RHHBY): Free Stock Analysis Report Spark Therapeutics, Inc. (ONCE): Free Stock Analysis Report To read this article on Zacks.com click here. |
25061.0 | 2019-03-07 00:00:00 UTC | Vertex's VX-445 Triple Combo Cystic Fibrosis Trials Succeed | ABBV | https://www.nasdaq.com/articles/vertexs-vx-445-triple-combo-cystic-fibrosis-trials-succeed-2019-03-07 | nan | nan | Vertex Pharmaceuticals IncorporatedVRTX announced that two phase III studies evaluating its next-generation CFTR corrector, VX-445 in combination with tezacaftor and Kalydeco (ivacaftor) met the primary endpoint of significant improvement in lung function in patients suffering from cystic fibrosis ("CF").
The improvement in lung function was measured as mean absolute improvements in percent predicted forced expiratory volume in one second, or ppFEV1. Cystic fibrosis is a rare genetic disease that causes chronic lung infections and progressive lung damage.
While one study is evaluating the triple combination regimen in patients with one F508del mutation and one minimal function mutation, the other study is evaluating patients with two F508del mutations.
In the study evaluating patients with one F508del mutation and one minimal function mutation, the interim data showed that the triple combination regimen led to a mean absolute improvement in ppFEV1 of 13.8 percentage points from baseline through week four of treatment compared to placebo.
The second study yielded a mean absolute improvement in ppFEV1 of 10.0 percentage points from baseline at week four when VX-445 was added in patients already receiving tezacaftor and ivacaftor compared to placebo plus tezacaftor and ivacaftor. Vertex believes that safety and efficacy profile observed in the study supports a potential NDA submission.
Other than VX-445, Vertex is also evaluating another next-generation CFTR corrector, VX-659 in phase III studies as part of a triple combination with tezacaftor and ivacaftor. Vertex is also evaluating this combination in two separate studies for F508del/Min and F508del homozygous patients. In November, the VX-659 phase III studies also met the primary endpoint showing a significant improvement in lung function. The safety and efficacy profile shown in VX-659 studies also supported a NDA submission.
Given the similarity of the four-week data between the studies of the two regimens, Vertex has decided to wait for the final 24-week data for both regimens, expected to be available in the second quarter of 2019. Accordingly, it will file a regulatory application in the United States for the better of the two regimens in both F508del/Min and F508del homozygous patient populations in the third quarter of 2019. A regulatory application in the EU is expected to be filed in the fourth quarter. The regulatory filing timeline has been slightly delayed from prior timeline of no later than mid-2019 to select the drugs for filing after including the 24-week data in global submissions.
Despite the positive data from the of VX-445 studies, Vertex's shares were down almost 4% on Wednesday as the company delayed the timeline for the regulatory filing. Vertex's stock has increased 9.3% this year so far compared with the industry's increase of 14.5%.
If the triple-combo regimes are successful, Vertex can address a significantly larger CF patient population - almost 90% of patients with CF - in the future. This can expand its reach in the CF market. At present, approximately half of all CF patients are eligible to be treated with a marketed Vertex CF medicine - Kalydeco, Orkambi or Symdeko.
Meanwhile, many other companies like AbbVie ABBV and Proteostasis Therapeutics, Inc. PTI are also developing triple CFTR combinations for CF. Proteostasis Therapeutics is expected to report top-line data from its triple combo CF medicine in 2019.
In 2017, Vertex bought Concert Pharmaceuticals, Inc.'s CNCE CF pipeline candidate, VX-561 (previously CTP-656) and expanded its ongoing triple combination studies to add cohorts to develop VX-561 as a potential once-daily triple combination regimen with its other pipeline drugs (VX-561 + VX-659+ tezacaftor and VX-561 + VX-445+ tezacaftor) to treat the underlying cause of CF.
Positive phase II data were announced in 2018. Phase III studies of the once-daily triple combination regimen are expected to be initiated after data from a dose-ranging phaseII study of VX-561, as a monotherapy in gating mutations, are available.
Vertex has a Zacks Rank #5 (Strong Sell).
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, many other companies like AbbVie ABBV and Proteostasis Therapeutics, Inc. PTI are also developing triple CFTR combinations for CF. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Proteostasis Therapeutics, Inc. (PTI): Free Stock Analysis Report Concert Pharmaceuticals, Inc. (CNCE): Free Stock Analysis Report To read this article on Zacks.com click here. Vertex Pharmaceuticals IncorporatedVRTX announced that two phase III studies evaluating its next-generation CFTR corrector, VX-445 in combination with tezacaftor and Kalydeco (ivacaftor) met the primary endpoint of significant improvement in lung function in patients suffering from cystic fibrosis ("CF"). | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Proteostasis Therapeutics, Inc. (PTI): Free Stock Analysis Report Concert Pharmaceuticals, Inc. (CNCE): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, many other companies like AbbVie ABBV and Proteostasis Therapeutics, Inc. PTI are also developing triple CFTR combinations for CF. Vertex Pharmaceuticals IncorporatedVRTX announced that two phase III studies evaluating its next-generation CFTR corrector, VX-445 in combination with tezacaftor and Kalydeco (ivacaftor) met the primary endpoint of significant improvement in lung function in patients suffering from cystic fibrosis ("CF"). | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Proteostasis Therapeutics, Inc. (PTI): Free Stock Analysis Report Concert Pharmaceuticals, Inc. (CNCE): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, many other companies like AbbVie ABBV and Proteostasis Therapeutics, Inc. PTI are also developing triple CFTR combinations for CF. Vertex Pharmaceuticals IncorporatedVRTX announced that two phase III studies evaluating its next-generation CFTR corrector, VX-445 in combination with tezacaftor and Kalydeco (ivacaftor) met the primary endpoint of significant improvement in lung function in patients suffering from cystic fibrosis ("CF"). | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Proteostasis Therapeutics, Inc. (PTI): Free Stock Analysis Report Concert Pharmaceuticals, Inc. (CNCE): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, many other companies like AbbVie ABBV and Proteostasis Therapeutics, Inc. PTI are also developing triple CFTR combinations for CF. Vertex Pharmaceuticals IncorporatedVRTX announced that two phase III studies evaluating its next-generation CFTR corrector, VX-445 in combination with tezacaftor and Kalydeco (ivacaftor) met the primary endpoint of significant improvement in lung function in patients suffering from cystic fibrosis ("CF"). |
25062.0 | 2019-03-07 00:00:00 UTC | 2 Biotech Stocks With Major Incoming Catalysts | ABBV | https://www.nasdaq.com/articles/2-biotech-stocks-major-incoming-catalysts-2019-03-07 | nan | nan | The end of the first quarter is just a few weeks away and more than a few biotechs still haven't delivered the important clinical trial results they told investors to expect before the end of the period. The clock's ticking for Axsome Therapeutics (NASDAQ: AXSM) , Galapagos (NASDAQ: GLPG) and their experimental treatments.
Here's why investors are so eager to get their hands on their trial readouts.
Axsome Therapeutics: Hooray for cough syrup?
Physicians have been treating depression with bupropion, the active component in Wellbutrin, since the 1980s, and it could get an unexpected costar in 2019. Physicians and pharmacists generally issue stern warnings not to mix the common cough suppressant dextromethorphan with their bupropion, but Axsome is testing a fixed combination of the pair called AXS-05.
You're not supposed to mix the drugs that are in AXS-05 because they amplify each other's effects. Axsome is testing its fixed-dose combination as a treatment for major depressive disorder (MDD) that resists other drugs. AXS-05 is in a pivotal trial right now, and it looks like the combination has longer legs than anyone expected.
Axsome blew everyone away in January with mid-stage trial data that suggest AXS-05 really does the trick. After six weeks, 47% of patients treated with AXS-05 achieved clinical remission compared to just 16% of the placebo group.
Cough medicine isn't the only surprising antidepressant booster. The FDA recently approved Spravato, Johnson & Johnson 's (NYSE: JNJ) brand of ketamine nasal spray, to be used along with standard oral antidepressants such as Cymbalta or Zoloft.
Patients who want to use Spravato need to see a healthcare professional, who will squirt the popular party drug from the 1990s up the patient's nose and observe them for at least two hours before letting them drive. Despite ketamine's drawbacks, J&J thinks it can eventually deliver $1 billion in annual sales at its peak.
Around 6.7% of all U.S. adults suffer a major depressive episode each year, and around a third of patients don't respond to standard treatments. If pivotal study results for the easy-to-swallow combination of AXS-05 continue to impress, those blockbuster sales J&J's expecting for Spravato will head toward Axsome.
Galapagos: Fingers crossed
Galapagos and its collaboration partner, Gilead Sciences (NASDAQ: GILD) , are supposed to release results from two pivotal trials with rheumatoid arthritis patients taking their experimental Janus kinase (JAK) inhibitor, filgotinib, before the end of March. Investors are hoping that none of the patients had problems with blood clots that can start in the extremities then break free and lodge themselves in blood vessels that supply the heart and lungs.
Humira is one of several older rheumatoid arthritis treatments, and it raked in $19.9 billion for AbbVie (NYSE: ABBV) in 2018. Humira's an injection that a lot of patients can't tolerate, and a more effective, easy-to-swallow option could be incredibly successful as well.
Not so long ago, JAK inhibitors seemed like the future for patients with rheumatoid arthritis and related chronic autoimmune disorders. Unfortunately, a small number of potentially lethal blood clots, or venous thromboembolisms (VTEs), observed during clinical trials with Olumiant, a JAK inhibitor from Eli Lilly , put the FDA on guard. The agency limited its approval of Olumiant to a small dosage that isn't expected to generate significant sales.
AbbVie's JAK inhibitor, upadacitinib, is receiving a priority review that the FDA should wrap up in the third quarter. During trials supporting upadacitinib's application, there were a small number of fatal events, but it doesn't look like exposure to upadacitinib raises the risk of VTEs based on exposure times.
There are an estimated 23.7 million people worldwide with rheumatoid arthritis, and most of them are otherwise healthy. That means one potentially lethal event among a few thousand treated during trials can incite the FDA to shut down a program. During the 648-patient Finch 2 study, Gilead and Galapagos didn' t report any VTEs, and maintaining a clean safety profile is crucial to filgotinib's future. Finch 1 and Finch 3 contained thousands more patients than Finch 2, and the results are due before the end of March.
If Finch 1 and Finch 3 contain some unwelcome surprises, Gilead Sciences stock could dip, but the highly profitable biotech won't have any trouble making dividend payments. Galapagos is about a million times riskier, but it might be worth it.
Worth the risk?
If filgotinib flops, Galapagos' $5.4 billion market cap could get cut in half overnight, but this biotech isn't a one-trick pony. The company's pipeline boasts a handful of clinical-stage programs licensed to big pharma partners, plus some wholly owned assets in clinical-stage testing. The company recorded $359 million in milestone payments last year, which narrowed its annual loss to just $33 million.
Investors can rest a bit easier knowing that there was $1.5 billion in cash on the company's balance sheet at the end of 2018. I was hesitant to call Galapagos a buy last September, but it's probably worth the risk at recent prices.
Axsome could be on to something with its combination of cough medicine and Wellbutrin, and the company recently started another pivotal study with another combination for the treatment of migraine headaches. These aren't exciting innovations, but proprietary formulations of old drugs can generate significant sales, and often succeed.
Axsome's recent $290 million market cap could swell to several times its size if the company gets a chance to market AXS-05. Since both components are well known, approval seems likely enough to make this stock look like a buy.
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Cory Renauer owns shares of Gilead Sciences and Johnson & Johnson. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Humira is one of several older rheumatoid arthritis treatments, and it raked in $19.9 billion for AbbVie (NYSE: ABBV) in 2018. AbbVie's JAK inhibitor, upadacitinib, is receiving a priority review that the FDA should wrap up in the third quarter. Physicians and pharmacists generally issue stern warnings not to mix the common cough suppressant dextromethorphan with their bupropion, but Axsome is testing a fixed combination of the pair called AXS-05. | Humira is one of several older rheumatoid arthritis treatments, and it raked in $19.9 billion for AbbVie (NYSE: ABBV) in 2018. AbbVie's JAK inhibitor, upadacitinib, is receiving a priority review that the FDA should wrap up in the third quarter. Galapagos: Fingers crossed Galapagos and its collaboration partner, Gilead Sciences (NASDAQ: GILD) , are supposed to release results from two pivotal trials with rheumatoid arthritis patients taking their experimental Janus kinase (JAK) inhibitor, filgotinib, before the end of March. | Humira is one of several older rheumatoid arthritis treatments, and it raked in $19.9 billion for AbbVie (NYSE: ABBV) in 2018. AbbVie's JAK inhibitor, upadacitinib, is receiving a priority review that the FDA should wrap up in the third quarter. The end of the first quarter is just a few weeks away and more than a few biotechs still haven't delivered the important clinical trial results they told investors to expect before the end of the period. | Humira is one of several older rheumatoid arthritis treatments, and it raked in $19.9 billion for AbbVie (NYSE: ABBV) in 2018. AbbVie's JAK inhibitor, upadacitinib, is receiving a priority review that the FDA should wrap up in the third quarter. The end of the first quarter is just a few weeks away and more than a few biotechs still haven't delivered the important clinical trial results they told investors to expect before the end of the period. |
25063.0 | 2019-03-07 00:00:00 UTC | The Kiplinger Dividend 15 Is On a Roll | ABBV | https://www.nasdaq.com/articles/kiplinger-dividend-15-roll-2019-03-07 | nan | nan | The Kiplinger Dividend 15 , our favorite stocks for dividend income, have bounced back nicely from the 2018 correction. The 15 stocks have an avera ge dividend yield of 3.7%, compared with 2.0% for Standard & Poor's 500-stock index. Since we last visited the Dividend 15 in our December issue, the stocks have returned an average 4.9%, while the S&P 500 eked out 1.0%. Our dividend darlings have slightly outperformed the S&P 500 for the past 12 months as well. (Prices and returns are as of February 15.)
See Also: 14 Blue-Chip Dividend Stocks Yielding 4% or More
It's nice to beat the S&P 500, but the main reason to invest in any of the Kiplinger Dividend 15 is for a reliable income stream that will grow over time. All 15 stocks have raised their dividends over the past 12 months.
Among our stars, Realty Income is up 27.3% over the past four months and 47.2% over the past 12 months. The real estate investment trust is the landlord for Walgreens and 7-Eleven, among others. The soaring share price has pushed Realty Income's yield below our 4% threshold for high-yield dividend stocks . This is a nice problem to have, but we're keeping an eye on the payout to see if the yield climbs back above 4%. The company has raised its dividend 100 times since its listing on the New York Stock Exchange in 1994. It still sports a respectable yield of 3.9%.
Cleaning up. Procter & Gamble ( PG ) has gained 26.7% since we last checked in four months ago. The maker of Gillette razors and Tide detergent has trimmed its brands from 100 to 65 and kept a laser focus on costs. The company beat analysts' sales and earnings expectations in its fiscal second quarter, which ended in December.
Our biggest loser was pharmaceutical giant AbbVie ( ABBV ), down 9.7% since mid October. The firm's lates t earnings report revealed soft international sales of Humira, its rheumatoid arthritis drug. But AbbVie has a strong pipeline of new drugs. And the shares now trade at nine times estimated earnings for the year ahead.
Lower oil prices have taken a toll on ExxonMobil ( XOM ), which is down 2.5% over the past four months. The firm tends to moderate the size of its dividend hikes when oil is under pressure--but it has raised its dividend for 36 years in a row, averaging about 6% annually.
We divide the Dividend 15 into three groups. Dividend stalwarts have raised their payouts each year for at least 20 years. There are no guarantees, but Walmart, for one, has raised its annual dividend from 5 cents a share in March 1974 to $2.12 per share today. Our dividend growth category includes companies that can continue to deliver generous dividend hikes, fueled by strong growth in sales and profits. Home Depot ( HD ) has beaten Wall Street's earnings expectations for the past five years. High yields can be a danger sign if they result from a sinking stock price. But our four high-yielders have a long history of generous dividends and the cash flow to keep paying them.
See Also: 57 Dividend Stocks You Can Count On in 2019
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Our biggest loser was pharmaceutical giant AbbVie ( ABBV ), down 9.7% since mid October. But AbbVie has a strong pipeline of new drugs. The soaring share price has pushed Realty Income's yield below our 4% threshold for high-yield dividend stocks . | Our biggest loser was pharmaceutical giant AbbVie ( ABBV ), down 9.7% since mid October. But AbbVie has a strong pipeline of new drugs. The Kiplinger Dividend 15 , our favorite stocks for dividend income, have bounced back nicely from the 2018 correction. | Our biggest loser was pharmaceutical giant AbbVie ( ABBV ), down 9.7% since mid October. But AbbVie has a strong pipeline of new drugs. The Kiplinger Dividend 15 , our favorite stocks for dividend income, have bounced back nicely from the 2018 correction. | But AbbVie has a strong pipeline of new drugs. Our biggest loser was pharmaceutical giant AbbVie ( ABBV ), down 9.7% since mid October. All 15 stocks have raised their dividends over the past 12 months. |
25064.0 | 2019-03-06 00:00:00 UTC | Are You Looking for a High-Growth Dividend Stock? AbbVie (ABBV) Could Be a Great Choice | ABBV | https://www.nasdaq.com/articles/are-you-looking-for-a-high-growth-dividend-stock-abbvie-abbv-could-be-a-great-choice-1 | nan | nan | All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show tha t dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
AbbVie in Focus
Headquartered in North Chicago, AbbVie (ABBV) is a Medical stock that has seen a price change of -14.41% so far this year. The drugmaker is paying out a dividend of $1.07 per share at the moment, with a dividend yield of 5.42% compared to the Large Cap Pharmaceuticals industry's yield of 2.74% and the S&P 500's yield of 1.93%.
In terms of dividend growth, the company's current annualized dividend of $4.28 is up 19.2% from last year. Over the last 5 years, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Right now, AbbVie's payout ratio is 49%, which means it paid out 49% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for ABBV for this fiscal year. The Zacks Consensus Estimate for 2019 is $8.68 per share, with earnings expected to increase 9.70% from the year ago period.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, ABBV is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie in Focus Headquartered in North Chicago, AbbVie (ABBV) is a Medical stock that has seen a price change of -14.41% so far this year. Over the last 5 years, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. Right now, AbbVie's payout ratio is 49%, which means it paid out 49% of its trailing 12-month EPS as dividend. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie in Focus Headquartered in North Chicago, AbbVie (ABBV) is a Medical stock that has seen a price change of -14.41% so far this year. Over the last 5 years, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. | AbbVie in Focus Headquartered in North Chicago, AbbVie (ABBV) is a Medical stock that has seen a price change of -14.41% so far this year. Over the last 5 years, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. Right now, AbbVie's payout ratio is 49%, which means it paid out 49% of its trailing 12-month EPS as dividend. | AbbVie in Focus Headquartered in North Chicago, AbbVie (ABBV) is a Medical stock that has seen a price change of -14.41% so far this year. Over the last 5 years, AbbVie has increased its dividend 5 times on a year-over-year basis for an average annual increase of 18.92%. Right now, AbbVie's payout ratio is 49%, which means it paid out 49% of its trailing 12-month EPS as dividend. |
25065.0 | 2019-03-05 00:00:00 UTC | The Zacks Analyst Blog Highlights: Intel, AbbVie, United Technologies, Simon Property and FirstEnergy | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-intel-abbvie-united-technologies-simon-property-and | nan | nan | For Immediate Release
Chicago, IL -March 5, 2019 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: IntelINTC , AbbVieABBV , United TechnologiesUTX , Simon Property GroupSPG and FirstEnergyFE .
Here are highlights from Monday's Analyst Blog:
Top Research Reports for Intel, AbbVie and United Technologies
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel, AbbVie and United Technologies. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Intel 's shares have outperformed the S&P 500 in the past year, gaining +7.1% vs. +3%. Intel is one of the world's largest manufacturers of semiconductor products. Rising demand witnessed in company's higher performance products, both in data center and client domains acted as a catalyst.
The Zacks analyst thinks the company is benefiting from robust performance of the DCG, IoT Group, NVM Solutions and PSG. These segments form the crux of Intel's data-centric business model. The company's strategy of expanding TAM beyond CPU to adjacent product lines like silicon photonics, fabric, network ASICs and 3D XPoint memory is bearing fruit.
However, a declining trend in PC shipments is detrimental to business prospects of Intel, which continues to depend substantially on PC sales. Further, the company provided a tepid forthcoming outlook. Also, delays in transition to the 10-nm process is a concern. Moreover, intensifying competition remains a headwind.
(You can read the full research report on Intel here >>> ).
Shares of AbbVie have lost -15.3% in the past six months, underperforming the S&P 500's decline of -3%. The Zacks analyst thinks AbbVie's key drug, Humira has been performing well in the United States based on strong demand trends despite new competition.
Moreover, Imbruvica has multibillion dollar potential. Mavyret saw a stronger-than-expected launch and has become a significant contributor to sales. AbbVie has also been successful in expanding approvals for its cancer drugs, Imbruvica and Venclexta.
The company has an impressive late-stage pipeline comprising several products with multibillion-dollar potential expected to be launched in the near term. However, AbbVie's shares have underperformed the industry this year so far.
Sales erosion due to direct biosimilar competition to Humira in international markets will be a big headwind in 2019. Also, costs to support expected new product/line extension launches should hurt profits in 2019.
(You can read the full research report on AbbVie here >>> ).
Buy-ranked United Technologies ' shares have gained +4.1% over the past three months, outperforming the S&P 500, which has increased +3.8% over the same period. The Zacks analyst thinks strength in commercial and military aftermarket businesses and impressive contribution from its acquired Rockwell Collins business sales will likely continue to boost United Technologies' near-term revenues.
Also, improved revenues and cost-cutting measures are expected to enhance profitability, going forward. Backed by these positives, the company has given bullish full-year 2019 revenue guidance.
The company intends to become more competent on the back of meaningful business acquisitions. Notably, the Rockwell Collins buyout is likely to boost sales in 2019. Moreover, separation of the company's existing business will create higher values and customer satisfaction.
(You can read the full research report on United Technologies here >>> ).
Other noteworthy reports we are featuring today include Simon Property Group and FirstEnergy.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The Zacks analyst thinks AbbVie's key drug, Humira has been performing well in the United States based on strong demand trends despite new competition. Stocks recently featured in the blog include: IntelINTC , AbbVieABBV , United TechnologiesUTX , Simon Property GroupSPG and FirstEnergyFE . Here are highlights from Monday's Analyst Blog: Top Research Reports for Intel, AbbVie and United Technologies The Zacks Research Daily presents the best research output of our analyst team. | Here are highlights from Monday's Analyst Blog: Top Research Reports for Intel, AbbVie and United Technologies The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel, AbbVie and United Technologies. Click to get this free report FirstEnergy Corporation (FE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report Simon Property Group, Inc. (SPG): Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Monday's Analyst Blog: Top Research Reports for Intel, AbbVie and United Technologies The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel, AbbVie and United Technologies. Click to get this free report FirstEnergy Corporation (FE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report United Technologies Corporation (UTX): Free Stock Analysis Report Intel Corporation (INTC): Free Stock Analysis Report Simon Property Group, Inc. (SPG): Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Monday's Analyst Blog: Top Research Reports for Intel, AbbVie and United Technologies The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Intel, AbbVie and United Technologies. The Zacks analyst thinks AbbVie's key drug, Humira has been performing well in the United States based on strong demand trends despite new competition. |
25066.0 | 2019-03-04 00:00:00 UTC | AbbVie Gets CHMP Nod for Psoriasis Candidate Risankizumab | ABBV | https://www.nasdaq.com/articles/abbvie-gets-chmp-nod-for-psoriasis-candidate-risankizumab-2019-03-04 | nan | nan | AbbVie, Inc.ABBV announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has given a positive opinion, recommending marketing approval for risankizumab, its investigational interleukin-23 (IL-23) inhibitor, which has been developed for the treatment of moderate-to-severe plaque psoriasis. Risankizumab will be marketed by the trade name of Skyrizi.
AbbVie had filed the marketing application in the EU in May and in the United States in April, which was supported by data from four pivotal phase III studiesevaluating more than 2,000 patients. Data from these studies showed that more than half of the patients receiving risankizumab achieved complete skin clearance at one year.AbbVie's application will now be reviewed by the European Commission, which will announce its decision in two months' time. The FDA's decision is also expected in the first half of the year.
AbbVie has developed risankizumab in collaboration with Boehringer Ingelheim and the candidate is also being evaluated in phase III studies in psoriasis, Crohn's disease and psoriatic arthritis.
AbbVie's stock has declined 13.1% this year so far against an increase of 3.9% recorded by the industry .
AbbVie expects approval decision on another key pipeline candidate upadacitinib this year. Upadacitinib, an oral investigational JAK inhibitor, has been developed for the treatment of adult patients with moderate-to-severe rheumatoid arthritis. Approval and successful commercialization of upadacitinib are critical for long-term growth at AbbVie, especially as biosimilar competition looms for its blockbuster RA drug, Humira.
Several companies have made biosimilar versions of Humira. With Humira accounting for around 61% of AbbVie's sales, the entry of biosimilars will have a huge impact on the company's financials. Per settlements with seven manufacturers including Amgen AMGN , Biogen BIIB , Pfizer PFE and Momenta, Humira biosimilars are expected to be launched in the United States in 2023. However, AbbVie faces direct biosimilar competition in Europe and other countries, which account for approximately 25% of total global Humira revenues. Humira biosimilars were first launched in the EU in October last year. In 2019, AbbVie expects a decline of 30%, or $2 billion, in international Humira sales.
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Pfizer Inc. (PFE): Free Stock Analysis Report
Amgen Inc. (AMGN): Free Stock Analysis Report
Biogen Inc. (BIIB): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Data from these studies showed that more than half of the patients receiving risankizumab achieved complete skin clearance at one year.AbbVie's application will now be reviewed by the European Commission, which will announce its decision in two months' time. AbbVie has developed risankizumab in collaboration with Boehringer Ingelheim and the candidate is also being evaluated in phase III studies in psoriasis, Crohn's disease and psoriatic arthritis. AbbVie, Inc.ABBV announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has given a positive opinion, recommending marketing approval for risankizumab, its investigational interleukin-23 (IL-23) inhibitor, which has been developed for the treatment of moderate-to-severe plaque psoriasis. | AbbVie, Inc.ABBV announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has given a positive opinion, recommending marketing approval for risankizumab, its investigational interleukin-23 (IL-23) inhibitor, which has been developed for the treatment of moderate-to-severe plaque psoriasis. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie had filed the marketing application in the EU in May and in the United States in April, which was supported by data from four pivotal phase III studiesevaluating more than 2,000 patients. | AbbVie, Inc.ABBV announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has given a positive opinion, recommending marketing approval for risankizumab, its investigational interleukin-23 (IL-23) inhibitor, which has been developed for the treatment of moderate-to-severe plaque psoriasis. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie had filed the marketing application in the EU in May and in the United States in April, which was supported by data from four pivotal phase III studiesevaluating more than 2,000 patients. | With Humira accounting for around 61% of AbbVie's sales, the entry of biosimilars will have a huge impact on the company's financials. AbbVie, Inc.ABBV announced that the European Medicines Agency's (EMA) Committee for Medicinal Products for Human Use (CHMP) has given a positive opinion, recommending marketing approval for risankizumab, its investigational interleukin-23 (IL-23) inhibitor, which has been developed for the treatment of moderate-to-severe plaque psoriasis. AbbVie had filed the marketing application in the EU in May and in the United States in April, which was supported by data from four pivotal phase III studiesevaluating more than 2,000 patients. |
25067.0 | 2019-03-04 00:00:00 UTC | Here's Why Voyager Therapeutics Stock Rose as Much as 13% Today | ABBV | https://www.nasdaq.com/articles/heres-why-voyager-therapeutics-stock-rose-much-13-today-2019-03-04 | nan | nan | What happened
Shares of Voyager Therapeutics (NASDAQ: VYGR) jumped as much as 13% today after the nascent field of gene therapy saw yet another acquisition this week. Biogen offered to buy Nightstar Therapeutics for roughly $877 million . The deal would give the biotech giant access to a promising late-stage gene therapy candidate aimed at treating a rare eye disease.
The proposed acquisition follows last week's news that Roche will acquire the eye-targeting gene therapy portfolio of Spark Therapeutics for a cool $4.8 billion. While Voyager Therapeutics isn't focused on gene therapies for vision-related ailments, investors are speculating the biopharma's recent deals with leading pharma companies could make it the next acquisition target among its peers.
As of 3:36 p.m. EST on Monday, the stock had settled to an 11% gain.
So what
There's no denying that the field of gene therapy is hot to the touch right now. The Spark Therapeutics deal sent shares of many early-stage gene therapy and gene editing companies soaring last week. The Nightstar Therapeutics deal is lifting shares of many companies again, although with a little less pull this week.
Why are investors so excited about Voyager Therapeutics? Well, in late January, it announced a huge partnership with Neurocrine Biosciences . It followed that up by announcing a sizable deal with AbbVie in late February. The two deals combined landed the gene-therapy focused biotech $230 million in cash and equity investment up front, the potential to receive over $1.95 billion in milestone payments, and the potential to earn royalties on future sales.
Voyager Therapeutics can also expand its partnership with AbbVie to other clinical candidates. In that scenario, it could earn an additional $728 million in milestones per candidate and "up to a total of" $500 million in commercial milestones (it's not clear if that's per candidate or for all candidates combined).
Now what
Given the heightened appetite for deals in the gene therapy space, the enormous potential outlined in recent deals, and the fact the company trades at a market cap of just $600 million today, investors are thinking Voyager Therapeutics might be a good takeover candidate. While it's always fun to speculate, investors shouldn't get too far ahead of themselves.
Gene therapies don't have a great track record in the clinic. And although Voyager Therapeutics has significantly de-risked its pipeline, the gene therapy candidates involved in recent deals have to deliver in human studies before anyone can begin penciling in milestone payments. Simply put, given the early-stage nature of the field, gene therapy and gene editing stocks might not pan out quite like investors are hoping.
10 stocks we like better than Voyager Therapeutics
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Maxx Chatsko has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Biogen. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | It followed that up by announcing a sizable deal with AbbVie in late February. Voyager Therapeutics can also expand its partnership with AbbVie to other clinical candidates. The deal would give the biotech giant access to a promising late-stage gene therapy candidate aimed at treating a rare eye disease. | It followed that up by announcing a sizable deal with AbbVie in late February. Voyager Therapeutics can also expand its partnership with AbbVie to other clinical candidates. While Voyager Therapeutics isn't focused on gene therapies for vision-related ailments, investors are speculating the biopharma's recent deals with leading pharma companies could make it the next acquisition target among its peers. | It followed that up by announcing a sizable deal with AbbVie in late February. Voyager Therapeutics can also expand its partnership with AbbVie to other clinical candidates. While Voyager Therapeutics isn't focused on gene therapies for vision-related ailments, investors are speculating the biopharma's recent deals with leading pharma companies could make it the next acquisition target among its peers. | Voyager Therapeutics can also expand its partnership with AbbVie to other clinical candidates. It followed that up by announcing a sizable deal with AbbVie in late February. What happened Shares of Voyager Therapeutics (NASDAQ: VYGR) jumped as much as 13% today after the nascent field of gene therapy saw yet another acquisition this week. |
25068.0 | 2019-02-28 00:00:00 UTC | 3 Top Stocks With High Dividend Yields | ABBV | https://www.nasdaq.com/articles/3-top-stocks-high-dividend-yields-2019-02-28 | nan | nan | High-yield stocks , or dividend stocks that dole out yields above that of the S&P 500 or an income benchmark like the U.S. Treasury Note, can hugely boost your income and build wealth in the long run. Of course, not all high-yield stocks are safe, but the ones that offer strong yields backed by a steady dividend payout -- even dividend growth -- are the ones that offer the highest return potential.
Fortunately for investors looking for ways to supplement their income, some top stocks in the market today are offering yields as high as 5% or more that look fairly sustainable in the long run. Plane leasing company Aircastle (NYSE: AYR) , clean-energy play Brookfield Renewable Partners (NYSE: BEP) , and pharma giant AbbVie (NYSE: ABBV) are three such dividend stocks our Motley Fool contributors recommend.
A stock that has plenty of airspace
Rich Duprey(Aircastle): Although the aircraft industry was slightly weaker last year than it was the prior two years, traffic still remained well above capacity by 6.1%, according to data from the International Air Transport Association. It also notes 2018 was the fourth consecutive year global airline profits exceeded $30 billion for the year, and it's forecasting this year's industry profits to hit $35.5 billion.
With that as the backdrop, investors should take a closer look at Aircastle, a leading aircraft leasing player. Leasing helps airlines meet their need for planes globally, and because business is so geographically widespread, when a particular market declines, another is likely to pick up, and analysts see it growing almost 5% a year for the next few years, hitting $62 billion by 2023.
Aircastle reported fourth-quarter earnings recently that showed revenues grew 48% to $292.6 million, with adjusted net income rising to $109.9 million, or $1.43 per share, from $57 million, or $0.72 per share. It had some issues with Brazil's fourth-largest airline, Avianca Brasil, filing for bankruptcy in December, which should depress margins slightly in the first half of 2019. But that should right itself afterward, as Aircastle has placements for the aircraft it will eventually regain control of once that issue is resolved.
Aircastle has made 51 consecutive quarterly payments on its dividend, which currently yields 5.9%. It returned a total of $158 million to shareholders last year through a combination of dividend payments ($89 million) and stock buybacks (almost $70 million). It looks to be a solid business that should continue to take flight.
This is an industry you can't afford to ignore
Neha Chamaria(Brookfield Renewable Partners): The International Energy Agency projects renewable energy to contribute 12.4% to global energy demand by 2023 compared with 10.3% in 2017. Furthermore, within renewables, hydropower should be the largest, contributing 16% to the world's electricity demand in 2023. If there's any company best poised to ride the trend, it's Brookfield Renewable Partners. To top its growth potential, the stock offers a hefty dividend yield of 6.8%.
Brookfield is one of the largest pure-play renewable-energy companies in the world, with an installed capacity of nearly 17,400 megawatts. Hydroelectric sources generate 76% of its power, and the remaining amount comes from solar and wind. The company is coming off a solid fiscal 2018, having grown its funds from operations (FFO) by 18% in 2018, backed by capacity expansion and acquisitions. Brookfield invested nearly $550 million in growth during the year and advanced nearly 350 megawatts of power-generation projects from its pipeline.
Brookfield also made a smart move on its balance sheet last year by extending the maturity of its near-term debt, thanks to which it doesn't have to worry about any material debt repayments until 2023. Brookfield's financial fortitude and strong cash flows have rewarded shareholders richly over the years: The company increased its dividend by 5% last year, in line with its long-term goal to grow dividends by 5% to 9% annually. Brookfield has increased its dividends every year since it was established in 2011 after being spun off from parent company Brookfield Asset Management . If not for dividend growth, Brookfield shares may not have offered generous yields consistently.
Renewable energy undeniably has a bright future, and there's little reason to believe Brookfield won't benefit. For income investors, Brookfield Renewable makes for an incredible high-yield stock to own .
Big biotech's black sheep
George Budwell (AbbVie): During AbbVie's first five full years as an independent entity, the company produced a total return on capital for early-bird shareholders of 333% (including dividends). The biotech's performance during this golden era was easily the best among its large-cap peer group, and it nearly doubled the returns of the broader biotech industry as a whole -- shown by the graph below.
ABBV Total Return Price data by YCharts .
In the past year, though, AbbVie's stock has turned into a factory of sadness for investors. In fact, the drugmaker's stock has lost more than a third of its value since hitting a high-water mark in early 2018 -- despite additional dividend hikes and exceptional revenue growth over this period.
What went wrong? Investors are deeply concerned that AbbVie will be the next big biotech to struggle after losing exclusivity for a key product. AbbVie's main source of revenue -- Humira -- is currently facing biosimilar competition in Europe, and knockoff drugs could enter the American scene within the next four years as well.
While investors do have some solid reasons to fear this issue following AbbVie's setback in lung cancer with Rova-T and this year's projected drop-off in Humira's international sales, the deeper truth is that this top drugmaker is on solid financial footing.
The company's robust clinical pipeline is set to produce a bevy of next-generation products that most industry insiders believe will return the company to growth as soon as 2020. Meanwhile, investors can sit back and collect AbbVie's monstrous dividend yield of 5.32% as the biotech's next set of growth products continues to come online.
10 stocks we like better than AbbVie
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George Budwell owns shares of AbbVie. Neha Chamaria has no position in any of the stocks mentioned. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of Brookfield Asset Management. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, investors can sit back and collect AbbVie's monstrous dividend yield of 5.32% as the biotech's next set of growth products continues to come online. Plane leasing company Aircastle (NYSE: AYR) , clean-energy play Brookfield Renewable Partners (NYSE: BEP) , and pharma giant AbbVie (NYSE: ABBV) are three such dividend stocks our Motley Fool contributors recommend. Big biotech's black sheep George Budwell (AbbVie): During AbbVie's first five full years as an independent entity, the company produced a total return on capital for early-bird shareholders of 333% (including dividends). | Plane leasing company Aircastle (NYSE: AYR) , clean-energy play Brookfield Renewable Partners (NYSE: BEP) , and pharma giant AbbVie (NYSE: ABBV) are three such dividend stocks our Motley Fool contributors recommend. See the 10 stocks *Stock Advisor returns as of February 1, 2019 George Budwell owns shares of AbbVie. Big biotech's black sheep George Budwell (AbbVie): During AbbVie's first five full years as an independent entity, the company produced a total return on capital for early-bird shareholders of 333% (including dividends). | Plane leasing company Aircastle (NYSE: AYR) , clean-energy play Brookfield Renewable Partners (NYSE: BEP) , and pharma giant AbbVie (NYSE: ABBV) are three such dividend stocks our Motley Fool contributors recommend. Big biotech's black sheep George Budwell (AbbVie): During AbbVie's first five full years as an independent entity, the company produced a total return on capital for early-bird shareholders of 333% (including dividends). ABBV Total Return Price data by YCharts . | Big biotech's black sheep George Budwell (AbbVie): During AbbVie's first five full years as an independent entity, the company produced a total return on capital for early-bird shareholders of 333% (including dividends). Plane leasing company Aircastle (NYSE: AYR) , clean-energy play Brookfield Renewable Partners (NYSE: BEP) , and pharma giant AbbVie (NYSE: ABBV) are three such dividend stocks our Motley Fool contributors recommend. ABBV Total Return Price data by YCharts . |
25069.0 | 2019-02-28 00:00:00 UTC | IYH, ABT, MDT, ABBV: Large Outflows Detected at ETF | ABBV | https://www.nasdaq.com/articles/iyh-abt-mdt-abbv-large-outflows-detected-etf-2019-02-28 | 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 U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $58.2 million dollar outflow -- that's a 2.4% decrease week over week (from 12,450,000 to 12,150,000). Among the largest underlying components of IYH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average:
Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.16. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average » .
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs 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.
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 IYH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.16. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IYH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.16. 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 IYH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $58.2 million dollar outflow -- that's a 2.4% decrease week over week (from 12,450,000 to 12,150,000). For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.16. | Among the largest underlying components of IYH, in trading today Abbott Laboratories (Symbol: ABT) is up about 0.7%, Medtronic PLC (Symbol: MDT) is up about 0.2%, and AbbVie Inc (Symbol: ABBV) is lower by about 0.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.16. 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). |
25070.0 | 2019-02-27 00:00:00 UTC | Big Pharma's Showdown With Congress Over Drug Pricing: What It Really Means for You | ABBV | https://www.nasdaq.com/articles/big-pharmas-showdown-congress-over-drug-pricing-what-it-really-means-you-2019-02-27 | nan | nan | There were some fireworks in Washington, D.C., on Tuesday. And they went off in the Dirksen Senate Office Building.
Seven executives of big pharma faced a grilling from members of the U.S. Senate Committee on Finance, as it looked into how to lower drug prices in the United States. CEOs from AbbVie (NYSE: ABBV) , AstraZeneca (NYSE: AZN) , Bristol-Myers Squibb (NYSE: BMY) , Merck (NYSE: MRK) , Pfizer (NYSE: PFE) , and Sanofi (NASDAQ: SNY) , along with an executive vice president from Johnson & Johnson (NYSE: JNJ) , responded to the committee's sometimes heated questions.
But does big pharma's showdown with Congress really impact ordinary Americans? Yes and no.
All smoke and no fire?
Ranking minority member Sen. Ron Wyden, D.-Ore., blasted the drugmakers, stating that the executives were called to the Senate hearing "because the way you do business is unacceptable and unsustainable." He attacked AbbVie for using patents to protect exclusivity for immunology drug Humira, and tying executives' compensation to sales of the top-selling drug.
Wyden railed against AstraZeneca, J&J, Merck, Pfizer, and Sanofi for hiking drug prices. And he singled out Bristol-Myers Squibb for criticism by pointing out that the company's spending on dividends, stock buybacks, and administrative, sales, and marketing expenses was nearly three times greater than its investment in research and development.
Committee chairman Sen. Chuck Grassley, R.-Iowa, wasn't nearly as hostile toward the executives. However, Grassley said that he was "sick and tired of the blame game" of different players in the prescription-drug supply chain pointing the finger at other players as the main culprits for high drug prices.
So did the leaders of the world's biggest drugmakers promise to slash drug prices to avoid the wrath of Congress? No. Don't expect your out-of-pocket costs for prescription medications to fall anytime soon because Sen. Wyden detests big pharma and Sen. Grassley doesn't like finger-pointing.
Do investors have to worry that Bristol-Myers Squibb or others will cut their dividends because a senator doesn't agree with their spending priorities? Again, the answer is no.
The reality is that congressional hearings are often a lot of smoke and no fire. Very little will change for American consumers who buy prescription drugs, or for the millions of investors who own shares of big drugmakers, in the near term.
Some changes could be on the way
Still, the political winds appear to favor some changes. The most likely change would probably be to the current system, in which drugmakers give rebates to pharmacy benefits managers (PBMs) and insurers. This lowers the cost of drugs for the PBMs, but the rebates aren't always passed on to consumers. The Trump administration has already proposed eliminating rebates.
Pfizer CEO Albert Bourla was one of several of the executives who stated that their companies would lower list prices if this proposal was enacted. Bourla said: "It is our very clear intention that we will not keep a single dollar from these rebates. We will try to move every single penny to the patients."
There could also be bipartisan support for removing regulatory obstacles to value-based pricing for prescription drugs. In such pricing arrangements, drugmakers and payers negotiate pricing based on a drug's overall benefit.
Merck CEO Kenneth Frazier expressed strong support for that type of pricing, stating that "moving to a system where we are reimbursed for the value our medicines provide would be revolutionary." Other executives, including AstraZeneca CEO Pascal Soriot, agreed that value-based pricing would help lower overall costs.
The pharmaceutical industry doesn't like one change that could be on the table: Medicare negotiating directly with drugmakers over drug prices. But the approach has support among Democrats, and has been endorsed by President Trump in the past.
Perhaps the most controversial suggestion, though, is the idea of tying Medicare's payments for drugs to prices charged for those drugs in other countries. The Trump administration has proposed such an approach, but AbbVie CEO Rick Gonzalez warned that his company would have to cut back its investment in developing new drugs if U.S. drug prices fell to the levels charged in other countries.
How you might be impacted
While you might not be affected in the short term by the showdown over drug pricing, there will likely be some repercussions over the long run. The growth rates for prescription drug prices could moderate if several of the proposed changes are put into place. Many drugs could become more affordable for patients.
The devil is in the details of what specific changes are made and how they're implemented, though. Drugmakers invest billions of dollars in research and development in the hopes of making significant profits. If their opportunities for generating returns lower too much, they will -- as AbbVie's Gonzalez mentioned -- have financial incentives to reduce their investments in developing new drugs. That could end up costing the healthcare system, and patients, more over the long run.
Although there have been plenty of theatrics in Washington over drug pricing, J&J executive Jennifer Taubert correctly pointed out that prescription medications represent only 14% of total healthcare spending in the U.S., and that industry net prices for prescription drugs have increased at a much lower rate than that of overall medical inflation.
High drug prices are a problem, but they're arguably not the biggest problem for the U.S. healthcare system.
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The author(s) may have a position in any stocks mentioned.
Keith Speights owns shares of AbbVie and Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | CEOs from AbbVie (NYSE: ABBV) , AstraZeneca (NYSE: AZN) , Bristol-Myers Squibb (NYSE: BMY) , Merck (NYSE: MRK) , Pfizer (NYSE: PFE) , and Sanofi (NASDAQ: SNY) , along with an executive vice president from Johnson & Johnson (NYSE: JNJ) , responded to the committee's sometimes heated questions. He attacked AbbVie for using patents to protect exclusivity for immunology drug Humira, and tying executives' compensation to sales of the top-selling drug. The Trump administration has proposed such an approach, but AbbVie CEO Rick Gonzalez warned that his company would have to cut back its investment in developing new drugs if U.S. drug prices fell to the levels charged in other countries. | CEOs from AbbVie (NYSE: ABBV) , AstraZeneca (NYSE: AZN) , Bristol-Myers Squibb (NYSE: BMY) , Merck (NYSE: MRK) , Pfizer (NYSE: PFE) , and Sanofi (NASDAQ: SNY) , along with an executive vice president from Johnson & Johnson (NYSE: JNJ) , responded to the committee's sometimes heated questions. The Trump administration has proposed such an approach, but AbbVie CEO Rick Gonzalez warned that his company would have to cut back its investment in developing new drugs if U.S. drug prices fell to the levels charged in other countries. He attacked AbbVie for using patents to protect exclusivity for immunology drug Humira, and tying executives' compensation to sales of the top-selling drug. | The Trump administration has proposed such an approach, but AbbVie CEO Rick Gonzalez warned that his company would have to cut back its investment in developing new drugs if U.S. drug prices fell to the levels charged in other countries. CEOs from AbbVie (NYSE: ABBV) , AstraZeneca (NYSE: AZN) , Bristol-Myers Squibb (NYSE: BMY) , Merck (NYSE: MRK) , Pfizer (NYSE: PFE) , and Sanofi (NASDAQ: SNY) , along with an executive vice president from Johnson & Johnson (NYSE: JNJ) , responded to the committee's sometimes heated questions. He attacked AbbVie for using patents to protect exclusivity for immunology drug Humira, and tying executives' compensation to sales of the top-selling drug. | CEOs from AbbVie (NYSE: ABBV) , AstraZeneca (NYSE: AZN) , Bristol-Myers Squibb (NYSE: BMY) , Merck (NYSE: MRK) , Pfizer (NYSE: PFE) , and Sanofi (NASDAQ: SNY) , along with an executive vice president from Johnson & Johnson (NYSE: JNJ) , responded to the committee's sometimes heated questions. He attacked AbbVie for using patents to protect exclusivity for immunology drug Humira, and tying executives' compensation to sales of the top-selling drug. The Trump administration has proposed such an approach, but AbbVie CEO Rick Gonzalez warned that his company would have to cut back its investment in developing new drugs if U.S. drug prices fell to the levels charged in other countries. |
25071.0 | 2019-02-26 00:00:00 UTC | U.S. senators tell drug company execs pricing is 'morally repugnant' | ABBV | https://www.nasdaq.com/articles/us-senators-tell-drug-company-execs-pricing-morally-repugnant-2019-02-26 | nan | nan | By Yasmeen Abutaleb and Michael Erman
WASHINGTON/NEW YORK, Feb 26 () - U.S. senators called drug pricing practices "morally repugnant" and told drug company executives they do not want to hear them blame others for the high prices, taking an aggressive stance at a Senate hearing on the rising costs of prescription medicines.
Senators took aim in particular at Abbvie Inc Chief Executive Richard Gonzalez and his company's rheumatoid arthritis drug Humira - the world's top-selling prescription medicine.
The executives pointed to their companies' records of developing lifesaving medications, saying profits generated in the lucrative U.S. market help them fund expensive research and development of future treatments.
"American research-based companies are leading the next wave of biomedical innovation to help patients whose diseases cannot be adequately treated with today's medicines. We should work to ensure policies that support and reward these investments," said Bristol-Myers CEO Giovanni Caforio.
The executives also voiced support for plans to reform the industry-wide system of rebates that pharmacy benefit managers (PBMs) and health insurers receive from drugmakers in exchange for preferential coverage of their medicines.
In his opening statement, Senator Ron Wyden, the Finance Committee's top Democrat, tore into each company one-by-one for "profiteering and two-faced scheming."
"Drugmakers behave as if patients and taxpayers are unlocked ATMs full of cash to be extracted, and their shareholders are the customers they value above all else," Wyden said.
Senators from both parties targeted AbbVie's Gonzalez, with Wyden noting that the CEO's bonus was partially tied to Humira sales, which reached nearly $20 billion globally last year. Republican Senator John Cornyn criticized the company's web of more than 130 patents that protects Humira's exclusivity.
The drug has a list price of more than $60,000 a year, nearly double what it was in 2014, according to Rx Savings Solutions, which helps health plans and employers seek lower cost prescription medicines.
"I support drug companies recovering a profit based on their research and development and development of innovative drugs. But at some point, that patent has to end, that exclusivity has to end, to be able to get it at a much cheaper cost," said Cornyn, the No. 2 Senate Republican from Texas.
Cornyn suggested that the powerful Senate Judiciary Committee should examine the U.S. patent system under which drug companies protect the exclusivity of their medicines.
Congress has already held several hearings on rising prescription drug prices in both the Democrat-controlled House of Representatives and the Republican-led Senate, but Tuesday's hearing is the first time drug company executives, most of them CEOs, will face lawmakers in more than two years.
U.S. President Donald Trump has said drugmakers are "getting away with murder," and his administration has made bringing down prescription medicine costs for U.S. consumers a top priority.
The U.S. Department of Health and Human Services (HHS) last year rolled out a plan to lower drug prices and has introduced several modest proposals to curb medicine costs, but Democrats have said the Trump administration is not doing enough.
HHS has proposed a rule to eliminate rebates for drugs paid for by Medicare and Medicaid, the government health insurance programs.
Several drugmakers temporarily froze price increases last year after criticism from Trump, but they raised prices on more than 250 prescription drugs at the start of this year, albeit at lower levels than in years past.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Senators took aim in particular at Abbvie Inc Chief Executive Richard Gonzalez and his company's rheumatoid arthritis drug Humira - the world's top-selling prescription medicine. Senators from both parties targeted AbbVie's Gonzalez, with Wyden noting that the CEO's bonus was partially tied to Humira sales, which reached nearly $20 billion globally last year. The executives also voiced support for plans to reform the industry-wide system of rebates that pharmacy benefit managers (PBMs) and health insurers receive from drugmakers in exchange for preferential coverage of their medicines. | Senators took aim in particular at Abbvie Inc Chief Executive Richard Gonzalez and his company's rheumatoid arthritis drug Humira - the world's top-selling prescription medicine. Senators from both parties targeted AbbVie's Gonzalez, with Wyden noting that the CEO's bonus was partially tied to Humira sales, which reached nearly $20 billion globally last year. "I support drug companies recovering a profit based on their research and development and development of innovative drugs. | Senators took aim in particular at Abbvie Inc Chief Executive Richard Gonzalez and his company's rheumatoid arthritis drug Humira - the world's top-selling prescription medicine. Senators from both parties targeted AbbVie's Gonzalez, with Wyden noting that the CEO's bonus was partially tied to Humira sales, which reached nearly $20 billion globally last year. By Yasmeen Abutaleb and Michael Erman WASHINGTON/NEW YORK, Feb 26 () - U.S. senators called drug pricing practices "morally repugnant" and told drug company executives they do not want to hear them blame others for the high prices, taking an aggressive stance at a Senate hearing on the rising costs of prescription medicines. | Senators took aim in particular at Abbvie Inc Chief Executive Richard Gonzalez and his company's rheumatoid arthritis drug Humira - the world's top-selling prescription medicine. Senators from both parties targeted AbbVie's Gonzalez, with Wyden noting that the CEO's bonus was partially tied to Humira sales, which reached nearly $20 billion globally last year. Republican Senator John Cornyn criticized the company's web of more than 130 patents that protects Humira's exclusivity. |
25072.0 | 2019-02-26 00:00:00 UTC | Drug company execs to testify before U.S. Senate | ABBV | https://www.nasdaq.com/articles/drug-company-execs-testify-us-senate-2019-02-26 | nan | nan | By Yasmeen Abutaleb and Michael Erman
WASHINGTON/NEW YORK, Feb 26 () - Seven drug company executives will testify about rising prescription drug prices before a powerful U.S. Senate Committee on Tuesday, marking a sharp escalation in lawmakers' promises to address high medicine costs.
Executives from Abbvie Inc, AstraZeneca PLC, Sanofi SA, Pfizer Inc, Merck & Co, Johnson & Johnson and Bristol-Myers Squibb Co are all expected to answer questions from members of the U.S. Senate Finance Committee.
U.S. President Donald Trump has said drugmakers are "getting away with murder," and his administration has made bringing down prescription medicine prices a top priority. The U.S. Department of Health and Human Services (HHS) last year rolled out a plan to lower drug prices and has introduced several modest proposals to curb medicine costs, but Democrats have said Trump and his administration are not doing enough.
Several drugmakers temporarily froze price increases last year after criticism from Trump, but they raised prices on more than 250 prescription drugs at the start of this year.
Pharmaceutical companies have blamed high research and development costs for their prices and after-market discounts called rebates that they must provide to pharmacy benefits managers in order to gain patient access to their products by having them included on preferred coverage lists. HHS has proposed a rule to eliminate rebates in Medicare and Medicaid, the government health insurance programs.
In prepared remarks, all seven company executives pointed to their records of innovation in developing lifesaving medications, and several noted they have spent billions of dollars on research and development.
"American research-based companies are leading the next wave of biomedical innovation to help patients whose diseases cannot be adequately treated with today's medicines. We should work to ensure policies that support and reward these investments," said Bristol-Myers Chief Executive Giovanni Caforio.
Senate Finance Committee Chairman Chuck Grassley, a Republican, wrote on Twitter on Monday that he hoped the executives on Tuesday "don't try to blame everyone but themselves/take no responsibility for their role in fixing the problem."
Caforio and other executives called for reform of rebates that pharmacy benefit managers (PBMs) receive from drugmakers. And he spoke out against a Trump administration plan that would seek to lower prescription drug prices for the government's Medicare program by basing its prices for some medications on the lower prices paid in other countries.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Executives from Abbvie Inc, AstraZeneca PLC, Sanofi SA, Pfizer Inc, Merck & Co, Johnson & Johnson and Bristol-Myers Squibb Co are all expected to answer questions from members of the U.S. Senate Finance Committee. The U.S. Department of Health and Human Services (HHS) last year rolled out a plan to lower drug prices and has introduced several modest proposals to curb medicine costs, but Democrats have said Trump and his administration are not doing enough. Pharmaceutical companies have blamed high research and development costs for their prices and after-market discounts called rebates that they must provide to pharmacy benefits managers in order to gain patient access to their products by having them included on preferred coverage lists. | Executives from Abbvie Inc, AstraZeneca PLC, Sanofi SA, Pfizer Inc, Merck & Co, Johnson & Johnson and Bristol-Myers Squibb Co are all expected to answer questions from members of the U.S. Senate Finance Committee. Pharmaceutical companies have blamed high research and development costs for their prices and after-market discounts called rebates that they must provide to pharmacy benefits managers in order to gain patient access to their products by having them included on preferred coverage lists. Caforio and other executives called for reform of rebates that pharmacy benefit managers (PBMs) receive from drugmakers. | Executives from Abbvie Inc, AstraZeneca PLC, Sanofi SA, Pfizer Inc, Merck & Co, Johnson & Johnson and Bristol-Myers Squibb Co are all expected to answer questions from members of the U.S. Senate Finance Committee. By Yasmeen Abutaleb and Michael Erman WASHINGTON/NEW YORK, Feb 26 () - Seven drug company executives will testify about rising prescription drug prices before a powerful U.S. Senate Committee on Tuesday, marking a sharp escalation in lawmakers' promises to address high medicine costs. Pharmaceutical companies have blamed high research and development costs for their prices and after-market discounts called rebates that they must provide to pharmacy benefits managers in order to gain patient access to their products by having them included on preferred coverage lists. | Executives from Abbvie Inc, AstraZeneca PLC, Sanofi SA, Pfizer Inc, Merck & Co, Johnson & Johnson and Bristol-Myers Squibb Co are all expected to answer questions from members of the U.S. Senate Finance Committee. The U.S. Department of Health and Human Services (HHS) last year rolled out a plan to lower drug prices and has introduced several modest proposals to curb medicine costs, but Democrats have said Trump and his administration are not doing enough. Pharmaceutical companies have blamed high research and development costs for their prices and after-market discounts called rebates that they must provide to pharmacy benefits managers in order to gain patient access to their products by having them included on preferred coverage lists. |
25073.0 | 2019-02-26 00:00:00 UTC | 3 Top Dividend Stocks With Yields Over 5% | ABBV | https://www.nasdaq.com/articles/3-top-dividend-stocks-yields-over-5-2019-02-26 | nan | nan | If you are looking for dividend stocks with big yields, Enviva Partners LP (NYSE: EVA) , VEREIT Inc. (NYSE: VER) , and AbbVie Inc. (NYSE: ABBV) are worth a close look today. The stocks all offer a yield over 5% and there's a compelling story behind each name. From clean energy to healthcare, with a stopover in real estate in between, one of these high-yielding dividend stocks, if not more, is likely find its way into your stock portfolio if you take the time to do a deep dive today.
The only 5%-plus yielder I own
Brian Stoffel (Enviva Partners LP): I won't parse words: I'm not a dividend investor. Of all the companies I own, only one has a payout. Perhaps that means you should take my opinion with a grain of salt -- or perhaps the fact that I've chosen it gives extra credence to my conviction in the stock.
That stock is Enviva Partners -- and based on the payouts over the past year, it currently yields over 8%. The business model is pretty simple to understand: Enviva provides wood pellets for international energy companies looking to cut down on greenhouse gas emissions. Those agreements are, on average, for between nine and 10 years.
Once signed, Enviva tries to cut down on the internal costs for supplying those pellets and gives the difference -- its distributable cash flow -- to its investors. Its production plants and deep-water ports along the American southeast are helping to improve efficiency. The company has even recovered from a fire at one of its ports earlier this year.
But be warned: Eventually, many of these power companies may transition to wind or solar power. The best way to tell this wave is coming is by keeping track of the average contract length. If it continues to fall, it means wood pellets will be losing favor -- and that it's time to find better high-yielders for your portfolio.
Legal costs are better defined
Reuben Gregg Brewer (VEREIT Inc.): Under the leadership of industry veteran Glenn Rufrano, VEREIT has gone through a major transformation. It is now a pure-play, diversified net lease real estate investment trust, or REIT , with a solid balance sheet and well-covered dividend (the funds from operations payout ratio was a healthy 76% in the third quarter). This is a big change from the company that announced an accounting error in 2014, leading to a management overhaul (bringing in Rufrano and his crew) and a suspension of the dividend.
Although a great deal of progress has been made at VEREIT, there's still one major lingering issue: lawsuits. The legal tussle left over from the accounting issue is a wild card worrying investors and depressing the REIT's shares. That's left the yield up at a hefty 6.7%, easily one of the highest in the net lease space (net lease REITs own properties for which their lessees pay most of the operating costs). To be fair, there's no way to fully quantify the financial risk here, but progress is being made.
VER Dividend Yield (TTM) data by YCharts .
For example, the company has settled with roughly a third of shareholders at a cost of around $233 million. Assuming that the rest of the shareholders settle for roughly the same financial consideration suggests that the bill will be, at worst, around $1 billion. VEREIT has around $1.7 billion available on its credit facility at last check. It should be able to handle such a hit without missing a step. And once the legal issues are behind it, investors are likely to price the stock more in line with peers. Now, however, is the time to act if you want to catch the fat yield.
A high-yield biotech bargain
Keith Speights (AbbVie Inc.): If you like dividends, you should love AbbVie. The big biotech pays a dividend that yields 5.3%. It has increased its dividend by a whopping 168% since being spun off from parent Abbott Laboratories in 2013. And including its time as a part of Abbott, AbbVie has hiked its dividend for 47 consecutive years.
But AbbVie isn't just a great dividend stock; it's also a pretty good bargain right now. Shares trade at around 8.5 times expected earnings. This discounted valuation is primarily due to investors' concerns about the prospects for AbbVie's top-selling drug, Humira, which now faces biosimilar competition in Europe.
However, AbbVie isn't worried about the challenges for Humira . The drug shouldn't face biosimilar rivals in the U.S. until 2023. AbbVie's other current products, including cancer drugs Imbruvica and Venclexta and hepatitis C drug Mavyret, continue to perform very well. Even better, the company has promising new drugs on the way in the near future, notably including immunology drugs risankizumab and upadacitinib. AbbVie thinks these two drugs by themselves will contribute $10 billion or more in incremental revenue by 2025.
AbbVie is a high-yield biotech bargain for now. But as the company's newer products, like endometriosis pain drug Orilissa, pick up steam and pipeline candidates win approval, I don't think it will remain a bargain for too much longer.
10 stocks we like better than AbbVie
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and AbbVie 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 January 31, 2019
Brian Stoffel owns shares of Enviva Partners. Keith Speights owns shares of AbbVie. Reuben Gregg Brewer owns shares of VEREIT. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | If you are looking for dividend stocks with big yields, Enviva Partners LP (NYSE: EVA) , VEREIT Inc. (NYSE: VER) , and AbbVie Inc. (NYSE: ABBV) are worth a close look today. A high-yield biotech bargain Keith Speights (AbbVie Inc.): If you like dividends, you should love AbbVie. And including its time as a part of Abbott, AbbVie has hiked its dividend for 47 consecutive years. | If you are looking for dividend stocks with big yields, Enviva Partners LP (NYSE: EVA) , VEREIT Inc. (NYSE: VER) , and AbbVie Inc. (NYSE: ABBV) are worth a close look today. A high-yield biotech bargain Keith Speights (AbbVie Inc.): If you like dividends, you should love AbbVie. And including its time as a part of Abbott, AbbVie has hiked its dividend for 47 consecutive years. | If you are looking for dividend stocks with big yields, Enviva Partners LP (NYSE: EVA) , VEREIT Inc. (NYSE: VER) , and AbbVie Inc. (NYSE: ABBV) are worth a close look today. But AbbVie isn't just a great dividend stock; it's also a pretty good bargain right now. A high-yield biotech bargain Keith Speights (AbbVie Inc.): If you like dividends, you should love AbbVie. | But AbbVie isn't just a great dividend stock; it's also a pretty good bargain right now. If you are looking for dividend stocks with big yields, Enviva Partners LP (NYSE: EVA) , VEREIT Inc. (NYSE: VER) , and AbbVie Inc. (NYSE: ABBV) are worth a close look today. A high-yield biotech bargain Keith Speights (AbbVie Inc.): If you like dividends, you should love AbbVie. |
25074.0 | 2019-02-25 00:00:00 UTC | Momenta (MNTA) Q4 Loss Narrower Than Expected, Revenues Beat | ABBV | https://www.nasdaq.com/articles/momenta-mnta-q4-loss-narrower-than-expected-revenues-beat-2019-02-25 | nan | nan | Shares of Momenta Pharmaceuticals Inc.MNTA gained 8.6% after the company reported better-than-expected results for the fourth quarter.
The company reported loss per share of 7 cents in the quarter (excluding restructuring charges), narrower than the Zacks Consensus Estimate of 46 cents and the year-ago loss of 18 cents.
Revenues in the quarter came in at $42.8 million, which declined from $64.6 million in the year-ago quarter but beat the Zacks Consensus Estimate of $21.1 million.
Quarter in Detail
Momenta's top line comprises product revenues of $10.8 million earned from Sandoz's sales of Glatopa, a generic version of Copaxone (20 mg), compared with $13.4 million in the year-ago quarter due to increasing competition from Mylan's MYL entry into the Copaxone market.
Research and development revenues came in at $32.1 million compared with $51.2 million in the year-ago quarter.
Research and development expenses decreased to $28.7 million from $36.1 million in the year-ago quarter, due to decrease in spending on biosimilars program. As a result of its strategic review (results announced in October 2018), Momenta concluded to advance two late-stage biosimilar assets - M923, which is its wholly-owned proposed biosimilar to AbbVie's ABBV Humira, and M710, which is a proposed biosimilar to Regeneron's Eylea being developed in collaboration with Mylan. The company decided to exit participation in the development of its five other biosimilar programs, including M834, a proposed biosimilar to Orencia.
General and administrative expenses were $21.5 million, up 36.1% year over year due to increased legal costs and depreciation.
Pipeline Update
Momenta entered into a settlement agreement with AbbVie in November 2018, providing worldwide rights to launch M923. Under the terms of the agreements and subject to approval by health regulatory authorities, Momenta may launch M923 worldwide based on agreed-to launch dates, including in the United States in November 2023. In August 2018, Mylan initiated a clinical trial in patients with diabetic macular edema to compare safety, efficacy and immunogenicity of M710 with Eylea.
Momenta's novel auto-immune portfolio includes M230, a Selective Immunomodulator of Fc receptors (SIF3); M281, an anti-FcRn monoclonal antibody; and M254.
Momenta initiated two phase II proof of concept clinical trials on M281, one in generalized myasthenia gravis (gMG) and the other in hemolytic disease of the fetus and newborn (HDFN), with top-line results anticipated in 2020 and 2021, respectively. Momenta also plans to initiate a third study of M281 in an additional autoimmune indication in 2019.
In January 2019, Momenta announced that the first subject was dosed in the phase I/II clinical trial of M254 in immune thrombocytopenia (ITP). The multi-part study will first enroll healthy volunteers, and includes single and multiple dose studies, and a randomized cross-over study comparing M254 to IVIg. Preliminary clinical data is expected in 2020.
The phase I trial on M230 in healthy volunteers to evaluate the safety and tolerability is ongoing. Momenta's partner, CSL expects to complete the phase I study by the end of 2019.
2018 Results
Momenta generated revenues of $75.6 million in 2018, significantly down from $138.8 million in 2017.
2019 Guidance
Momenta expects 2019 expenses to be $45-$55 million. The company completed a $230-million equity financing in December and ended the year with a cash balance of $449 million.
Our Take
Momenta's fourth-quarter results were better than expected. Last year was a transformational year for Momenta as it undertook a strategic review with the goal to transform the company from its dual focus on novel drugs in biosimilars to a company primarily focused on the discovery and development of novel drugs to treat rare, immune-mediated disorders. The company has narrowed its focus on its biosimilars portfolio.
Earlier, the FDA approval of Glatopa 40 mg relieved Momenta, but competition was stiff as Mylan had already won the FDA's approval for a generic version of Teva Pharmaceuticals' TEVA Copaxone 40 mg, thereby limiting gains.
Hence, Momenta is now focussing on its novel drugs portfolio. We expect investors to focus on further updates from the drug candidates in development as the year progress.
Zacks Rank
Momenta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | As a result of its strategic review (results announced in October 2018), Momenta concluded to advance two late-stage biosimilar assets - M923, which is its wholly-owned proposed biosimilar to AbbVie's ABBV Humira, and M710, which is a proposed biosimilar to Regeneron's Eylea being developed in collaboration with Mylan. Pipeline Update Momenta entered into a settlement agreement with AbbVie in November 2018, providing worldwide rights to launch M923. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Momenta Pharmaceuticals, Inc. (MNTA): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Momenta Pharmaceuticals, Inc. (MNTA): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. As a result of its strategic review (results announced in October 2018), Momenta concluded to advance two late-stage biosimilar assets - M923, which is its wholly-owned proposed biosimilar to AbbVie's ABBV Humira, and M710, which is a proposed biosimilar to Regeneron's Eylea being developed in collaboration with Mylan. Pipeline Update Momenta entered into a settlement agreement with AbbVie in November 2018, providing worldwide rights to launch M923. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Momenta Pharmaceuticals, Inc. (MNTA): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. As a result of its strategic review (results announced in October 2018), Momenta concluded to advance two late-stage biosimilar assets - M923, which is its wholly-owned proposed biosimilar to AbbVie's ABBV Humira, and M710, which is a proposed biosimilar to Regeneron's Eylea being developed in collaboration with Mylan. Pipeline Update Momenta entered into a settlement agreement with AbbVie in November 2018, providing worldwide rights to launch M923. | As a result of its strategic review (results announced in October 2018), Momenta concluded to advance two late-stage biosimilar assets - M923, which is its wholly-owned proposed biosimilar to AbbVie's ABBV Humira, and M710, which is a proposed biosimilar to Regeneron's Eylea being developed in collaboration with Mylan. Pipeline Update Momenta entered into a settlement agreement with AbbVie in November 2018, providing worldwide rights to launch M923. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Momenta Pharmaceuticals, Inc. (MNTA): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. |
25075.0 | 2019-02-25 00:00:00 UTC | The Zacks Analyst Blog Highlights: Merck, Design, Roche and AbbVie | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-merck-design-roche-and-abbvie-2019-02-25 | nan | nan | For Immediate Release
Chicago, IL - February 25, 2019 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include:Merck MRK , Design Corp. IMDZ , Roche RHHBY and AbbVie ABBV .
Here are highlights from Tuesday's Analyst Blog:
Pharma Stock Roundup: MRK, IMDZ, FDA Grants & More
This week Merck announced a definitive agreement to buy late-stage immunotherapy company Immune Design Corp. for approximately $300 million. Its PD-L1 inhibitor Keytruda was in focus as it gained FDA approval for adjuvant melanoma but failed in a pivotal liver cancer study. Meanwhile, the FDA granted priority review and accepted regulatory applications filed by Merck, Roche and AbbVie looking for approval of their respective pipeline candidates or line extensions of their marketed drugs.
Recap of the Week's Most Important Headlines
Merck to Buy Immune Design; Keytruda in Focus: Continuing the trend of aggressive M&A activity by pharma giants this year, Merck announced its intention to buy small caner focused biotech, Immune Design for $5.85 per share in cash for an approximate value of $300 million. The offer price of $5.85 represents a premium of 312% on Immune Design's closing price on Feb 20. Immune Design employs next-generation in vivo approaches to boost the body's immune system to fight disease. It is developing multiple candidates on its two proprietary technologies - ZVex and GLAAS. The primary candidate in its portfolio is G100, which is being evaluated in patients with merkel cell carcinoma (MCC), sarcoma and follicular non-Hodgkin lymphoma (NHL). The candidate enjoys Orphan Drug designation for NHL from the FDA. The acquisition is expected to beef up Merck's already strong oncology franchise, which has been doing well, thanks to Keytruda.
Keytruda gained FDA approval as an adjuvant therapy for the treatment of patients with high-risk stage III melanoma. The approval in the adjuvant setting will help Merck to gain access to a broader melanoma patient population in the United States. Please note that this is the first approval in the United States for Keytruda in the adjuvant setting. Keytruda was approved for adjuvant melanoma in the EU in December last year.
However, Keytruda plus best supportive care failed to show statistical significant improvement in the co-primary endpoints of overall survival (OS) and progression-free survival (PFS) in a pivotal phase III study ( KEYNOTE-240 ) evaluating it for the second line treatment of advanced hepatocellular carcinoma (HCC), the most common type of liver cancer.
FDA Grants Priority Review to Several Candidates : The FDA accepted regulatory applications and granted priority review to several pipeline candidates this week, in line with its efforts to expedite the approval of drugs.
A supplemental biologics license application (sBLA) looking for approval of Keytruda in combination with Pfizer's Inlyta for the first-line treatment of advanced or metastatic renal cell carcinoma (RCC), the most common type of kidney cancer was granted priority review by the FDA. With the FDA granting priority review, a decision is expected on Jun 20, 2019. The sBLA filing is based on data from the pivotal phase III KEYNOTE-426 study as well as supporting data from an early stage study - KEYNOTE-035.
Another sBLA looking for approval of Keytruda monotherapy for the third-line treatment of advanced small cell lung cancer (SCLC) was also granted priority review by the FDA. The FDA's decision is expected on Jun 17, 2019. The sBLA filing was based on data from the SCLC cohorts of the phase II KEYNOTE-158 and phase Ib KEYNOTE-028 studies.
The FDA also granted priority review to AbbVie's new drug application (NDA) looking for approval of its investigational oral JAK1-selective inhibitor, upadacitinib for the treatment of adults with moderate-to-severe rheumatoid arthritis (RA). With the FDA granting priority review , a decision is expected in the third quarter of 2019. A similar application is also under review in the EU. The regulatory filings are based on the SELECT phase III program, which evaluated more than 4,000 patients with RA. Please note that AbbVie used a priority review voucher to expedite review of the upadacitinib NDA. Upadacitinib is being evaluated in several multiple immune-mediated diseases.
The FDA granted priority review to two of Roche's candidates, polatuzumab vedotin for previously treated diffuse large B-cell lymphoma (DLBCL), an aggressive form of lymphoma and its personalized medicine entrectinib for a range of hard-to-treat and rare NTRK fusion-positive tumors. FDA decision on both the products is expected in August.
Pfizer/Lilly's Tanezumab Succeeds in Chronic Low Back Pain Study : Pfizer and partner Lilly announced positive top-line data from a phase III study evaluating their key pipeline candidate tanezumab in patients with chronic low back pain . The data showed that treatment with tanezumab 10 mg dose led to a statistically significant improvement in pain - the primary endpoint - compared to placebo at 16 weeks. However, for the 5 mg dose, though numerical improvement in pain was observed, the results were not statistically significant. Tanezumab is also being evaluated in studies in osteoarthritis (OA) pain and cancer pain (due to bone metastases). The companies so far have reported positive data from two studies in OA pain.
Pfizer also gained approval for Zirabev, its biosimilar version of Roche's cancer drug Avastin for several types of cancer. This is Pfizer's second oncology biosimilar to be approved in Europe, the first being biosimilar of Roche's another cancer drug, Herceptin. Meanwhile, Zirabev is also under review in the United States along with biosimilar versions of Rituxan and Herceptin with FDA decisions on all expected in 2019.
Novo Nordisk Gets FDA Nod for New Haemophilia A Medicine: Novo Nordisk gained FDA approval for turoctocog alfa pegol , N8-GP for routine prophylaxis to reduce bleeding episodes in adults and children with haemophilia A. The product will be marketed by the trade name of Esperoct. However, the company cannot launch Esperoct before 2020 due to some third-party IP agreements.
The NYSE ARCA Pharmaceutical Index rose 1% in the last four trading sessions.
Large Cap Pharmaceuticals Industry 5YR % Return
In the last four trading sessions, while Lilly recorded the highest gain of 1.6%, Bristol-Myers declined the most (1.4%).
In the past six months, Lilly has been the biggest gainer (17.1%) while Bristol-Myers declined the most (16.6%).
(See the last pharma stock roundup here: Q4 Earnings at MRK, LLY, CHMP Nod for Several Drugs )
What's Next in the Pharma World?
Watch out for pipeline and regulatory updates next week.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Meanwhile, the FDA granted priority review and accepted regulatory applications filed by Merck, Roche and AbbVie looking for approval of their respective pipeline candidates or line extensions of their marketed drugs. Stocks recently featured in the blog include:Merck MRK , Design Corp. IMDZ , Roche RHHBY and AbbVie ABBV . The FDA also granted priority review to AbbVie's new drug application (NDA) looking for approval of its investigational oral JAK1-selective inhibitor, upadacitinib for the treatment of adults with moderate-to-severe rheumatoid arthritis (RA). | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Immune Design Corp. (IMDZ): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include:Merck MRK , Design Corp. IMDZ , Roche RHHBY and AbbVie ABBV . Meanwhile, the FDA granted priority review and accepted regulatory applications filed by Merck, Roche and AbbVie looking for approval of their respective pipeline candidates or line extensions of their marketed drugs. | Meanwhile, the FDA granted priority review and accepted regulatory applications filed by Merck, Roche and AbbVie looking for approval of their respective pipeline candidates or line extensions of their marketed drugs. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report Immune Design Corp. (IMDZ): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include:Merck MRK , Design Corp. IMDZ , Roche RHHBY and AbbVie ABBV . | Meanwhile, the FDA granted priority review and accepted regulatory applications filed by Merck, Roche and AbbVie looking for approval of their respective pipeline candidates or line extensions of their marketed drugs. Stocks recently featured in the blog include:Merck MRK , Design Corp. IMDZ , Roche RHHBY and AbbVie ABBV . The FDA also granted priority review to AbbVie's new drug application (NDA) looking for approval of its investigational oral JAK1-selective inhibitor, upadacitinib for the treatment of adults with moderate-to-severe rheumatoid arthritis (RA). |
25076.0 | 2019-02-25 00:00:00 UTC | AbbVie Extends Deal With Voyager to Make Parkinson's Drugs | ABBV | https://www.nasdaq.com/articles/abbvie-extends-deal-with-voyager-to-make-parkinsons-drugs-2019-02-25 | nan | nan | AbbVie, Inc.ABBV announced an expansion of its global strategic collaboration and option agreement with small biotech Voyager Therapeutics, Inc. VYGR to develop potential gene therapies for Parkinson's disease (PD) and other synucleinopathies.
Per the deal, Voyager will develop vectorized antibodies targeting pathological species of alpha-synuclein. An abnormal accumulation of misfolded alpha-synuclein protein eventually leads to the formation of protein deposits and progressive neurodegeneration in patients with PD and other synucleinopathies.
Per the deal, Voyager will develop vectorized antibodies in preclinical stage, after which AbbVie has an option to in-license the vectorized alpha-synuclein antibody program for further clinical development.
Voyager is entitled to receive $65 million upfront from AbbVie and up to $245 million in preclinical and phase I option payments. Meanwhile, Voyager will also be entitled to potential development, regulatory, and commercial milestone payments of up to $728 million and royalties on future sales.
Last year, AbbVie signed a collaboration with Voyager to develop potential new treatments for Alzheimer's disease and other tau-related neurodegenerative diseases.
Shares of Voyager were up almost 23% on announcement of the deal with AbbVie.
AbbVie has always been actively pursuing partnership deals and collaborations for candidates across several therapeutic areas including oncology, immunology, neuroscience, and infectious diseases. Some partners include Roche RHHBY , J&J JNJ and Boehringer Ingelheim among others. We believe the company will continue pursuing deals like the one with Voyager to grow its pipeline.
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie, Inc.ABBV announced an expansion of its global strategic collaboration and option agreement with small biotech Voyager Therapeutics, Inc. VYGR to develop potential gene therapies for Parkinson's disease (PD) and other synucleinopathies. AbbVie has always been actively pursuing partnership deals and collaborations for candidates across several therapeutic areas including oncology, immunology, neuroscience, and infectious diseases. Per the deal, Voyager will develop vectorized antibodies in preclinical stage, after which AbbVie has an option to in-license the vectorized alpha-synuclein antibody program for further clinical development. | Per the deal, Voyager will develop vectorized antibodies in preclinical stage, after which AbbVie has an option to in-license the vectorized alpha-synuclein antibody program for further clinical development. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Voyager Therapeutics, Inc. (VYGR): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie, Inc.ABBV announced an expansion of its global strategic collaboration and option agreement with small biotech Voyager Therapeutics, Inc. VYGR to develop potential gene therapies for Parkinson's disease (PD) and other synucleinopathies. | AbbVie, Inc.ABBV announced an expansion of its global strategic collaboration and option agreement with small biotech Voyager Therapeutics, Inc. VYGR to develop potential gene therapies for Parkinson's disease (PD) and other synucleinopathies. Per the deal, Voyager will develop vectorized antibodies in preclinical stage, after which AbbVie has an option to in-license the vectorized alpha-synuclein antibody program for further clinical development. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Voyager Therapeutics, Inc. (VYGR): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie, Inc.ABBV announced an expansion of its global strategic collaboration and option agreement with small biotech Voyager Therapeutics, Inc. VYGR to develop potential gene therapies for Parkinson's disease (PD) and other synucleinopathies. Per the deal, Voyager will develop vectorized antibodies in preclinical stage, after which AbbVie has an option to in-license the vectorized alpha-synuclein antibody program for further clinical development. Voyager is entitled to receive $65 million upfront from AbbVie and up to $245 million in preclinical and phase I option payments. |
25077.0 | 2019-02-24 00:00:00 UTC | Why Is AbbVie (ABBV) Down 6.8% Since Last Earnings Report? | ABBV | https://www.nasdaq.com/articles/why-is-abbvie-abbv-down-6.8-since-last-earnings-report-2019-02-24 | nan | nan | It has been about a month since the las t earnings report for AbbVie (ABBV). Shares have lost about 6.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is AbbVie due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recen t earnings report in order to get a better handle on the important drivers.
AbbVie Q4 Earnings & Sales Miss, Humira Ex-U.S. Sales Decline
Fourth-quarter 2018 earnings of $1.90 per share missed the Zacks Consensus Estimate of $1.92. Earnings rose 28.4% year over year driven by higher sales, share repurchases and lower tax. Earnings per share were within the guided range of $1.89 and $1.91.
In the quarter, AbbVie recorded an impairment charge of $2.75 per share on assets from the 2016 acquisition of Stemcentrx due to recent Rova-T clinical setbacks. Including this charge, loss per share was $1.23 per share against earnings per share of 3 cents in the year-ago quarter.
Revenues of $8.31 billion missed the Zacks Consensus Estimate of $8.36 billion. Sales rose 7.3% on a reported basis. Excluding a 1% unfavorable impact from foreign exchange rate fluctuations, operational revenues rose 8.3% backed by higher sales of Humira in U.S. market and its hematological/oncology products, Imbruvica and Venclexta. Operational revenue growth was better than the expectation of approximately 7%.
Quarter in Details
Humira sales rose 0.5% (1.4% on an operational basis) to $4.9 billion.
Sales in the United States increased 9.1% to $3.6 billion driven by strong prescription volume growth and favorable pricing. Humira sales in the ex-U.S. markets were down 14.8% on an operational basis and 17.5% on reported basis to $4.92 billion.
International sales were severely impacted by the launch of several direct biosimilar drugs in Europe and other international markets. On the call, the company said that biosimilar competitors are giving more aggressive discounts than AbbVie anticipated, which severely hurt international sales.
In the U.S. market, Humira sales are expected to rise approximately 7% in 2019, which is less than growth of 10% in 2018 due to lighter price contribution for the year. In 2019, international Humira sales are expected to decline approximately 30% on an operational basis, a sharper decline that previous expectation of a range of 26-27%.
AbbVie's oncology/hematology (including Imbruvica and Venclexta) sales rose 50.2% to $1.13 billion in the quarter. Fourth-quarter net revenues from Imbruvica were $1 billion, up 42% year over year. U.S. sales of Imbruvica grossed $839 million, up 43.2% from the year-ago figure primarily driven by continued uptake in the frontline CLL segment. AbbVie logged $167 million of international profit sharing with J&J, up 36.4% year over year.
Venclexta brought in revenues of $124 million, up more than 100% year over year driven by uptake in the second-line plus setting following approval in the broad relapsed/refractory CLL segment (MURANO study) in June.
In 2019, Imbruvica global revenues are expected to approach $4.4 billion with sales in the United States growing approximately 21%. Venclexta sales are expected to be approximately $725 million. Total global oncology/hematology sales are expected to be approximately $5.1 billion.
HCV products, including Viekira and Mavyret, recorded sales of $862 million, up 69.3% year over year, on the back of strong demand for Mavyret, which was launched in the second half of 2017.
Mavyret alone accounted for $819 million in the quarter, up more than 100% year over year driven by rapid uptake. On the call, the company said that Mavyret continue to command roughly 50% market share globally.
In 2019, global HCV sales are expected to be higher than $3.3 billion with roughly flat performance in the United States and international sales of approximately $1.7 billion.
Other products that performed well include Lupron ($236 million, up 5.3% year over year), Creon ($261 million, up 11.4%), Duodopa ($113 million, up 14%) and Synthroid ($209 million, up 2%). Sales of Synagis, AndroGel, Sevoflurane and Kaletra declined in the quarter.
Regarding, newly launched Orilissa, AbbVie said the early launch was impressive with demand expected to ramp up given recent increased formulary access, which stands at approximately 70%. Orilissa sales are expected to be approximately $200 million in 2019.
Margins Rise
Adjusted gross margin rose 80 bps to 79.8% in the quarter. Adjusted SG&A expenses increased 9.2% to $1.8 billion. As a percentage of sales, SG&A expenses rose 30 bps to 21.6% in the quarter. R&D expenses rose 3.1% to $1.37 billion in the quarter due to greater investments in the pipeline. Adjusted operating margin was 41.7% of sales in the reported quarter, up 100 bps year over year.
Both gross and operating margins declined sequentially in the quarter.
2018 Results
Earnings per share were $7.91 for full-year 2018, up 41.3% year over year and within the guided range of $7.90-$7.92.
Full-year 2018 revenues were $32.73 billion, up 16% year over year. Revenues were in line with management's expectation of approaching $32.7 billion. Revenues were up 15.2% on an operational basis, in line with expectations.
2019 Guidance
AbbVie expects adjusted EPS to be in the range of $8.65-$8.75 for 2019. The earnings guidance indicates a year-over-year increase of 10% at the mid-point.
Revenues are expected to grow approximately 1% on an operational basis in 2019. Currency headwinds are expected to hurt 2019 revenues by less than 1%.
In 2019, AbbVie expects roughly $2 billion of erosion related to international biosimilar competition to Humira. In addition, it expects a $400 million headwind from generic competition to AndroGel in 2019. Also, costs to support expected launches of five new products and line extensions should put pressure on margins. However, these new products will be at early stages of their launch trajectory in 2019 and will not be a significant offset to international biosimilar impact. However, AbbVie believes the products will grow over the next few years and provide significant offset to the 2023 U.S. biosimilar event.
In 2019, AbbVie believes that the loss of international Humira revenues will be made up for by U.S. Humira and hematological oncology franchise growth.
Adjusted gross margin is expected to be above 82.5% of sales in 2019. While, R&D is expected to be approximately 15.5% of sales, SG&A is expected to be approximately 20.5% of sales
Operating margin is expected to be just above 46.5%, an increase of roughly 200 basis points year over year.
On the fourth-quarter call, the company said it is not contemplating any large M&A deal.
First-Quarter 2019 Outlook
First-quarter earnings are expected between $2.05 and $2.07 per share. Revenues are estimated to be approximately $7.7 billion. Foreign exchange is expected to have approximately 2% unfavorable impact on sales in the quarter.
While U.S. Humira sales are expected to be approximately $3.2 billion, international Humira sales are expected to be approximately $1.2 billion. Imbruvica is expected to record sales of approximately $1 billion.
While adjusted gross margin ratio is expected to be in line with full-year guidance of 82.5%, costs are expected to be higher in the first quarter relative to the full year due to the timing of the spending.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, AbbVie has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
AbbVie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In the quarter, AbbVie recorded an impairment charge of $2.75 per share on assets from the 2016 acquisition of Stemcentrx due to recent Rova-T clinical setbacks. It has been about a month since the las t earnings report for AbbVie (ABBV). Will the recent negative trend continue leading up to its next earnings release, or is AbbVie due for a breakout? | It has been about a month since the las t earnings report for AbbVie (ABBV). Will the recent negative trend continue leading up to its next earnings release, or is AbbVie due for a breakout? AbbVie Q4 Earnings & Sales Miss, Humira Ex-U.S. | It has been about a month since the las t earnings report for AbbVie (ABBV). Will the recent negative trend continue leading up to its next earnings release, or is AbbVie due for a breakout? AbbVie Q4 Earnings & Sales Miss, Humira Ex-U.S. | It has been about a month since the las t earnings report for AbbVie (ABBV). Will the recent negative trend continue leading up to its next earnings release, or is AbbVie due for a breakout? AbbVie Q4 Earnings & Sales Miss, Humira Ex-U.S. |
25078.0 | 2019-02-22 00:00:00 UTC | Why Voyager Therapeutics Is Skyrocketing Today | ABBV | https://www.nasdaq.com/articles/why-voyager-therapeutics-skyrocketing-today-2019-02-22 | nan | nan | What happened
Shares of Voyager Therapeutics (NASDAQ: VYGR) were skyrocketing 21.7% higher as of 11:22 a.m. EST on Friday. The small biotech announced a collaboration with AbbVie (NYSE: ABBV) to develop vectorized antibodies to treat Parkinson's disease and other diseases characterized by the abnormal accumulation of misfolded alpha-synuclein protein.
Under the terms of the deal, Voyager will receive $65 million up front and up to $245 million in preclinical and phase 1 option payments. Voyager also stands to receive potential development, regulatory, and commercial milestone payments down the road of up to $728 million as well as royalties on sales of any approved drugs resulting from the collaboration.
So what
The most tangible impact of Voyager's deal with AbbVie is a nice infusion of cash. Voyager continues to lose more than $20 million each quarter. Expenses are likely to rise as the company advances its preclinical candidates into early-stage clinical studies.
A partnership with a major drugmaker like AbbVie also helps boost investors' enthusiasm about the prospects for Voyager's experimental gene therapies. AbbVie already has an approved drug for treating Parkinson's disease, Duodopa. The big pharma company also has an experimental Parkinson's disease drug, ABBV-951, in phase 1 testing.
This is the second significant deal for Voyager Therapeutics in recent weeks . On Jan. 29, 2019, the company announced that it was licensing four gene-therapy programs to Neurocrine Biosciences for $165 million up front and up to $1.7 billion in potential milestone payments.
Now what
For Voyager to make the most of its collaboration with AbbVie, it will have to deliver the goods. The small biotech will conduct research and preclinical development. If all goes well, AbbVie has the option to select one or more vectorized antibodies to move into phase 1 clinical studies. This would open the door for Voyager to receive option payments from AbbVie.
If phase 1 testing is successful, AbbVie then has an option to license the selected program for continued clinical development and future global commercialization. And that's when the big money for Voyager could start rolling in.
It's still really early, though. The primary thing for investors to watch with Voyager Therapeutics in the immediate future is the biotech's Q4 update, scheduled for Feb. 26, 2019.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A partnership with a major drugmaker like AbbVie also helps boost investors' enthusiasm about the prospects for Voyager's experimental gene therapies. If phase 1 testing is successful, AbbVie then has an option to license the selected program for continued clinical development and future global commercialization. The small biotech announced a collaboration with AbbVie (NYSE: ABBV) to develop vectorized antibodies to treat Parkinson's disease and other diseases characterized by the abnormal accumulation of misfolded alpha-synuclein protein. | The small biotech announced a collaboration with AbbVie (NYSE: ABBV) to develop vectorized antibodies to treat Parkinson's disease and other diseases characterized by the abnormal accumulation of misfolded alpha-synuclein protein. If phase 1 testing is successful, AbbVie then has an option to license the selected program for continued clinical development and future global commercialization. So what The most tangible impact of Voyager's deal with AbbVie is a nice infusion of cash. | The small biotech announced a collaboration with AbbVie (NYSE: ABBV) to develop vectorized antibodies to treat Parkinson's disease and other diseases characterized by the abnormal accumulation of misfolded alpha-synuclein protein. So what The most tangible impact of Voyager's deal with AbbVie is a nice infusion of cash. A partnership with a major drugmaker like AbbVie also helps boost investors' enthusiasm about the prospects for Voyager's experimental gene therapies. | If all goes well, AbbVie has the option to select one or more vectorized antibodies to move into phase 1 clinical studies. If phase 1 testing is successful, AbbVie then has an option to license the selected program for continued clinical development and future global commercialization. The small biotech announced a collaboration with AbbVie (NYSE: ABBV) to develop vectorized antibodies to treat Parkinson's disease and other diseases characterized by the abnormal accumulation of misfolded alpha-synuclein protein. |
25079.0 | 2019-02-22 00:00:00 UTC | Energy Sector Update for 02/22/2019: VYGR, ABBV | ABBV | https://www.nasdaq.com/articles/energy-sector-update-02222019-vygr-abbv-2019-02-22 | nan | nan | Voyager Therapeutics ( VYGR ), a gene therapy group targeting neurological diseases, and AbbVie ( ABBV ), a biopharmaceutical firm, disclosed Friday an exclusive global collaboration and agreement to develop and commercialize vectorized antibodies.
Shares of Voyager surged more than 21% intraday and the AbbVie stock also traded 1.6% higher intraday.
The antibodies are directed at pathological species of alpha-synuclein for the potential treatment of Parkinson's disease and other diseases - synucleinopathies - characterized by the abnormal accumulation of misfolded alpha-synuclein protein.
"The expansion of AbbVie's partnership with Voyager represents the potential we see in the ability of its vectorized antibody platform to surpass the blood-brain barrier and more effectively deliver biologic therapies," Jim Summers, a vice-president at AbbVie, said.
Parkinson's disease is the second most common neurodegenerative disorder worldwide.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Voyager Therapeutics ( VYGR ), a gene therapy group targeting neurological diseases, and AbbVie ( ABBV ), a biopharmaceutical firm, disclosed Friday an exclusive global collaboration and agreement to develop and commercialize vectorized antibodies. "The expansion of AbbVie's partnership with Voyager represents the potential we see in the ability of its vectorized antibody platform to surpass the blood-brain barrier and more effectively deliver biologic therapies," Jim Summers, a vice-president at AbbVie, said. Shares of Voyager surged more than 21% intraday and the AbbVie stock also traded 1.6% higher intraday. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Voyager Therapeutics ( VYGR ), a gene therapy group targeting neurological diseases, and AbbVie ( ABBV ), a biopharmaceutical firm, disclosed Friday an exclusive global collaboration and agreement to develop and commercialize vectorized antibodies. Shares of Voyager surged more than 21% intraday and the AbbVie stock also traded 1.6% higher intraday. | Voyager Therapeutics ( VYGR ), a gene therapy group targeting neurological diseases, and AbbVie ( ABBV ), a biopharmaceutical firm, disclosed Friday an exclusive global collaboration and agreement to develop and commercialize vectorized antibodies. "The expansion of AbbVie's partnership with Voyager represents the potential we see in the ability of its vectorized antibody platform to surpass the blood-brain barrier and more effectively deliver biologic therapies," Jim Summers, a vice-president at AbbVie, said. Shares of Voyager surged more than 21% intraday and the AbbVie stock also traded 1.6% higher intraday. | Voyager Therapeutics ( VYGR ), a gene therapy group targeting neurological diseases, and AbbVie ( ABBV ), a biopharmaceutical firm, disclosed Friday an exclusive global collaboration and agreement to develop and commercialize vectorized antibodies. Shares of Voyager surged more than 21% intraday and the AbbVie stock also traded 1.6% higher intraday. "The expansion of AbbVie's partnership with Voyager represents the potential we see in the ability of its vectorized antibody platform to surpass the blood-brain barrier and more effectively deliver biologic therapies," Jim Summers, a vice-president at AbbVie, said. |
25080.0 | 2019-02-21 00:00:00 UTC | What Pharma Investors Need to Know About Pfizer's Latest Disaster | ABBV | https://www.nasdaq.com/articles/what-pharma-investors-need-know-about-pfizers-latest-disaster-2019-02-21 | nan | nan | Pfizer (NYSE: PFE) recently shared some unfortunate news related to its blockbuster anti-inflammation drug, Xeljanz. A safety problem for this popular tablet could open doors for similar treatments that AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are shepherding through late-stage development right now, or it could spell trouble for the entire class of drugs.
Xeljanz isn't the only drug of its class associated with lethal blood clots, and there's a chance the Food and Drug Administration could try to hinder AbbVie and Gilead Sciences from launching another one. Here's how Pfizer's latest problem could shake out for everyone involved.
What happened
Two years after Xeljanz earned approval to treat rheumatoid arthritis (RA), Pfizer began a safety study with 4,400 RA patients to look for safety differences between older injections like Humira and two Xeljanz doses currently in use for the treatment of ulcerative colitis. The trial is still running, but the data safety monitors noticed a statistically important difference in the occurrence of blood clots that caused a pulmonary embolism among patients given 10 mg twice daily, compared to those treated with Humira.
Data monitors also reported a higher rate of overall mortality among patients given 10 mg twice daily, compared to patients given 5 mg twice daily or Humira. In response, Pfizer will transition all the patients in the 10 mg group to the 5 mg cohort and hope for the best.
Reasons to relax
It's important to note that all the RA patients in Pfizer's post-marketing study were over 50 years old and at risk of a cardiovascular event. Also, the 10 mg twice-daily dosage is only used to treat ulcerative colitis. In 2016, Pfizer launched an 11 mg extended-release version of Xeljanz that patients with RA take once a day, and 5 mg instant-release tablets twice daily are still an option. If Pfizer ends up removing the 10 mg twice-daily dosage from the market, most patients who use it won't even notice.
Last year, Eli Lilly (NYSE: LLY) became the second company to launch a Janus kinase (JAK) inhibitor for RA, called Olumiant. Potentially lethal blood clots were reported by five patients out of 997 given the dosage widely considered effective for treating RA. In response, the FDA only approved a half-dose last year, and it isn't gaining much traction against Xeljanz.
The FDA recently started reviewing an application for another JAK inhibitor from AbbVie: Upadacitinib could receive an approval decision for RA by the end of the third quarter. And Gilead Sciences isn't far behind with the safest member of its class to date; Gilead's filgotinib is the only JAK inhibitor in development that hasn't been associated with lethal blood clots during clinical trials with RA patients.
Reasons to be nervous
Xeljanz earned approval to treat ulcerative colitis less than a year ago, and these patients are supposed to take 10 mg twice daily for at least eight weeks. If Pfizer has to pull this dosage from the market before it can launch an extended-release option for ulcerative colitis patients, gaining a large share of this space could become even more difficult.
In decades past, the FDA learned the hard way that one patient death in a thousand is far too many for long-term therapies meant to treat large groups. Don't be surprised if the agency requires Xeljanz and Olumiant to complete additional post-marketing studies, and puts upadacitinib and filgotinib under a microscope.
Who will step up?
The future for JAK inhibitors is still hazy, but their efficacy rates are similar enough to make one important prediction: The treatment with the safest prescribing label will outperform its peers.
Xeljanz already has a black box on its label to let prescribing physicians know that some patients treated with it have developed lymphoma and other cancers. Adding another warning about potentially fatal blood clots won't make selling Xeljanz any easier.
Eli Lilly's Olumiant reminds physicians about cases of lymphoma and lethal blood clots that occurred during clinical trials, and so far sales of the drug have been fairly disappointing.
What to look for
Pharma investors should keep an eye on the FDA's treatment of AbbVie's JAK inhibitor. Cases of deadly blood clots were reported among patients receiving upadacitinib during the studies that support its application. Unlike with Olumiant and more recently Xeljanz, though, blood clots in patients on upadacitinib occurred at a rate in line with those given a placebo, and much lower than in those given Humira. The FDA will almost certainly assemble a panel of independent experts to pore through the safety data, and if they don't like what they see, upadacitinib's sales team could struggle with black-box warnings as well.
Right now it looks like Gilead's JAK inhibitor is the only one that hasn't been associated with blood clots or malignancies, but we're still waiting for some pivotal trial data. If filgotinib's safety profile remains unbesmirched, the last member of this drug class to reach the FDA will probably overtake all its peers in the commercial setting.
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Cory Renauer owns shares of Gilead Sciences. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A safety problem for this popular tablet could open doors for similar treatments that AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are shepherding through late-stage development right now, or it could spell trouble for the entire class of drugs. Xeljanz isn't the only drug of its class associated with lethal blood clots, and there's a chance the Food and Drug Administration could try to hinder AbbVie and Gilead Sciences from launching another one. The FDA recently started reviewing an application for another JAK inhibitor from AbbVie: Upadacitinib could receive an approval decision for RA by the end of the third quarter. | A safety problem for this popular tablet could open doors for similar treatments that AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are shepherding through late-stage development right now, or it could spell trouble for the entire class of drugs. Xeljanz isn't the only drug of its class associated with lethal blood clots, and there's a chance the Food and Drug Administration could try to hinder AbbVie and Gilead Sciences from launching another one. The FDA recently started reviewing an application for another JAK inhibitor from AbbVie: Upadacitinib could receive an approval decision for RA by the end of the third quarter. | A safety problem for this popular tablet could open doors for similar treatments that AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are shepherding through late-stage development right now, or it could spell trouble for the entire class of drugs. Xeljanz isn't the only drug of its class associated with lethal blood clots, and there's a chance the Food and Drug Administration could try to hinder AbbVie and Gilead Sciences from launching another one. The FDA recently started reviewing an application for another JAK inhibitor from AbbVie: Upadacitinib could receive an approval decision for RA by the end of the third quarter. | Xeljanz isn't the only drug of its class associated with lethal blood clots, and there's a chance the Food and Drug Administration could try to hinder AbbVie and Gilead Sciences from launching another one. A safety problem for this popular tablet could open doors for similar treatments that AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD) are shepherding through late-stage development right now, or it could spell trouble for the entire class of drugs. The FDA recently started reviewing an application for another JAK inhibitor from AbbVie: Upadacitinib could receive an approval decision for RA by the end of the third quarter. |
25081.0 | 2019-02-20 00:00:00 UTC | Notable ETF Outflow Detected - IYH, ABT, MDT, ABBV | ABBV | https://www.nasdaq.com/articles/notable-etf-outflow-detected-iyh-abt-mdt-abbv-2019-02-20 | 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 U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $68.2 million dollar outflow -- that's a 2.7% decrease week over week (from 12,800,000 to 12,450,000). Among the largest underlying components of IYH, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average:
Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.19. 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.
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 IYH, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.19. 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 IYH, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.19. 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 IYH, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares U.S. Healthcare ETF (Symbol: IYH) where we have detected an approximate $68.2 million dollar outflow -- that's a 2.7% decrease week over week (from 12,800,000 to 12,450,000). For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.19. | Among the largest underlying components of IYH, in trading today Abbott Laboratories (Symbol: ABT) is down about 0.4%, Medtronic PLC (Symbol: MDT) is up about 0.1%, and AbbVie Inc (Symbol: ABBV) is lower by about 1.4%. For a complete list of holdings, visit the IYH Holdings page » The chart below shows the one year price performance of IYH, versus its 200 day moving average: Looking at the chart above, IYH's low point in its 52 week range is $166.89 per share, with $204.83 as the 52 week high point - that compares with a last trade of $194.19. 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). |
25082.0 | 2019-02-19 00:00:00 UTC | 2 Pharma Stocks in the Middle of an Oncology Sales Explosion | ABBV | https://www.nasdaq.com/articles/2-pharma-stocks-middle-oncology-sales-explosion-2019-02-19 | nan | nan | Global spending on cancer drugs has soared in recent years along with the number of expensive new treatments reaching patients in need of new options. Roche (NASDAQOTH: RHHBY) led the industry with around $26 billion in oncology sales last year, but losses from aging brands will soon push the Swiss pharmaceutical giant out of the top spot.
Who's going to take over Roche's position in the years ahead? AstraZeneca (NYSE: AZN) and AbbVie (NYSE: ABBV) don't have the largest oncology businesses at the moment, but they reported more growth in 2018 than their peers. Here's a look at what their oncology programs are doing right.
1. AstraZeneca: Triple threat
This big British pharma reported total oncology sales that soared 50% higher in 2018, thanks to a handful of new treatments. Tagrisso earned an important approval to treat newly diagnosed lung cancer patients with tumors that harbor certain mutations last April. The expanded population drove annual Tagrisso sales 95% higher in 2018 to $1.9 billion, and it could reach $5 billion in 2022.
AstraZeneca's PD-1 checkpoint inhibitor, Imfinzi, probably won't overtake Keytruda , but it brought in $633 million during its first full year on the market thanks to an approval to treat inoperable lung cancer patients while they're responding to their first round of chemotherapy or radiation. The treatment reduced patients chances of disease progression by 48% compared to a placebo, which could drive enough demand to push annual sales to $2.8 billion by 2023.
Lynparza has been around since 2014, but it didn't gain much traction until earning label expansions in 2018 to treat relapsed breast cancer patients, and newly diagnosed ovarian cancer patients while they're responding to standard first-line chemotherapy. Annual Lynparza sales jumped 118% to $647 million in 2018 and could rocket up to more than $3 billion in a few short years.
Despite having the fastest-growing oncology segment in the industry, AstraZeneca's chances of becoming the world's top oncology company aren't great. Total oncology sales rose 50% to $6.0 billion last year, which was around $20 billion less than the leader, Roche.
2. AbbVie: Exceeding expectations
AbbVie's oncology presence has surged along with sales of two blood cancer drugs, Imbruvica and Venclexta. Since becoming the first chemo-free treatment option for newly diagnosed chronic lymphocytic leukemia (CLL) patients in 2016, Imbruvica's popularity has exceeded all expectations and it isn't finished yet. Annual Imbruvica sales climbed 40% in 2018 to $3.6 billion, and it could reach $6 billion at its peak.
Venclexta sales reached $344 million in 2018 thanks to an approval that expanded its patient population to include CLL patients following their first therapy to prevent a relapse. Rituxan plus chemotherapy was the standard treatment for this setting, but not for much longer. Adding Venclexta to Rituxan, instead of chemo, reduced patients risk of a relapse by 81%, and that's not the only big approval the drug earned last year.
In November, the Food and Drug Administration approved Venclexta in combination with low-dose chemotherapy for acute myeloid leukemia (AML) patients that are too old or frail to safely complete a round of chemotherapy at an effective dosage. A majority of patients diagnosed with AML fit this description, and going forward they'll probably receive Venclexta plus low-dose chemo as their first treatment. That could drive enough demand to push annual Venclexta sales from just $344 million last year to more than $5 billion at its peak
In 2019, an estimated 20,940 adults will be diagnosed with CLL and another 19,520 will receive their first AML diagnosis. AbbVie may have just two big cancer drugs driving growth for its oncology segment, but they've got room to grow. In 2018, annual sales of the company's blood cancer drugs rose 46% to $3.9 billion, and will probably double by the end of 2021.
On the way down
Before you run out and buy up shares of AbbVie and AstraZeneca because their oncology segments are roaring to life, it's important to remember these companies are made of multiple moving pieces that don't always move in the direction you want them to. Soaring oncology sales will help these pharma giants to offset sales of aging blockbusters, but you might not be satisfied with total revenue figures that could stagnate or decline this year and into the foreseeable future.
In 2018, Humira lost market exclusivity in the European Union, and total sales of the company's flagship drug will probably decline slowly from a peak last year of $19.9 billion. Humira's U.S. market will probably unravel in 2023 and it's going to take more than two cancer drugs to make up the difference. AbbVie still relies on the anti-inflammation injection for 59% of total revenue.
Growth from AstraZeneca's oncology segment was offset by sinking sales for three of the company's top four products last year. AstraZeneca still relies on Symbicort, Nexium, and Crestor for around 27% of total product sales, and they're all in steep decline since losing patent protection.
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Cory Renauer 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AstraZeneca (NYSE: AZN) and AbbVie (NYSE: ABBV) don't have the largest oncology businesses at the moment, but they reported more growth in 2018 than their peers. AbbVie: Exceeding expectations AbbVie's oncology presence has surged along with sales of two blood cancer drugs, Imbruvica and Venclexta. AbbVie may have just two big cancer drugs driving growth for its oncology segment, but they've got room to grow. | AstraZeneca (NYSE: AZN) and AbbVie (NYSE: ABBV) don't have the largest oncology businesses at the moment, but they reported more growth in 2018 than their peers. AbbVie: Exceeding expectations AbbVie's oncology presence has surged along with sales of two blood cancer drugs, Imbruvica and Venclexta. AbbVie may have just two big cancer drugs driving growth for its oncology segment, but they've got room to grow. | AstraZeneca (NYSE: AZN) and AbbVie (NYSE: ABBV) don't have the largest oncology businesses at the moment, but they reported more growth in 2018 than their peers. AbbVie: Exceeding expectations AbbVie's oncology presence has surged along with sales of two blood cancer drugs, Imbruvica and Venclexta. AbbVie may have just two big cancer drugs driving growth for its oncology segment, but they've got room to grow. | AbbVie may have just two big cancer drugs driving growth for its oncology segment, but they've got room to grow. AstraZeneca (NYSE: AZN) and AbbVie (NYSE: ABBV) don't have the largest oncology businesses at the moment, but they reported more growth in 2018 than their peers. AbbVie: Exceeding expectations AbbVie's oncology presence has surged along with sales of two blood cancer drugs, Imbruvica and Venclexta. |
25083.0 | 2019-02-19 00:00:00 UTC | U.S. settles with Teva over keeping generic drugs off market | ABBV | https://www.nasdaq.com/articles/us-settles-teva-over-keeping-generic-drugs-market-2019-02-19 | nan | nan | WASHINGTON, Feb 19 () - The U.S. government has reached a settlement with Teva Pharmaceuticals Industries Ltd over charges that its agreements with rivals impeded consumer access to lower-priced generic drugs.
The Federal Trade Commission on Tuesday said it had settled three reverse payment fights with units of Teva, which will be prohibited from making similar agreements with competitors in the future.
The FTC has long fought against so-called "pay for delay" settlements, in which a brand-name drugmaker pays or otherwise compensates a generic rival to delay releasing a cheaper version of its product. The deal is often struck to resolve patent litigation.
"We are very pleased to put these litigations against the FTC behind us," said Brendan O'Grady, a Teva executive vice president.
The FTC believes that paying rivals to stay off the market is a violation of antitrust law and fought one case to the Supreme Court, which agreed that it could be in some circumstances.
The agency has said that the deals cost consumers billions annually in higher drug costs.
In Congress, Senator Amy Klobuchar, a Democrat now running for president, and Senator Chuck Grassley, the Republican chair of the Judiciary Committee, introduced legislation in January to make such deals explicitly illegal.
The oldest of the three cases settled on Tuesday dates to 2009, when the FTC sued Solvay Pharmaceuticals for paying off Watson Pharmaceuticals, Par Pharmaceutical Co and Paddock Laboratories to delay bringing out a generic version of AndroGel, a testosterone cream. Watson is now owned by Teva.
The second case dates to 2014 and also involves AndroGel. In this instance, AbbVie Inc, which had acquired the drug, was accused of paying off Teva and another generic maker to again delay bringing out a cheaper version of the medicine.
In the third case, Endo Pharmaceuticals was accused of paying generic companies, including Watson, to refrain from bringing out a generic version of Lidoderm, which is used to relieve nerve pain. Endo settled with the FTC in 2017.
FTC litigation continues against Solvay and other of the brand name drug companies. The agency also said it would press on with a lawsuit accusing AbbVie and a partner for filing baseless patent litigation claims.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In this instance, AbbVie Inc, which had acquired the drug, was accused of paying off Teva and another generic maker to again delay bringing out a cheaper version of the medicine. The agency also said it would press on with a lawsuit accusing AbbVie and a partner for filing baseless patent litigation claims. WASHINGTON, Feb 19 () - The U.S. government has reached a settlement with Teva Pharmaceuticals Industries Ltd over charges that its agreements with rivals impeded consumer access to lower-priced generic drugs. | In this instance, AbbVie Inc, which had acquired the drug, was accused of paying off Teva and another generic maker to again delay bringing out a cheaper version of the medicine. The agency also said it would press on with a lawsuit accusing AbbVie and a partner for filing baseless patent litigation claims. The oldest of the three cases settled on Tuesday dates to 2009, when the FTC sued Solvay Pharmaceuticals for paying off Watson Pharmaceuticals, Par Pharmaceutical Co and Paddock Laboratories to delay bringing out a generic version of AndroGel, a testosterone cream. | In this instance, AbbVie Inc, which had acquired the drug, was accused of paying off Teva and another generic maker to again delay bringing out a cheaper version of the medicine. The agency also said it would press on with a lawsuit accusing AbbVie and a partner for filing baseless patent litigation claims. The FTC has long fought against so-called "pay for delay" settlements, in which a brand-name drugmaker pays or otherwise compensates a generic rival to delay releasing a cheaper version of its product. | In this instance, AbbVie Inc, which had acquired the drug, was accused of paying off Teva and another generic maker to again delay bringing out a cheaper version of the medicine. The agency also said it would press on with a lawsuit accusing AbbVie and a partner for filing baseless patent litigation claims. The FTC has long fought against so-called "pay for delay" settlements, in which a brand-name drugmaker pays or otherwise compensates a generic rival to delay releasing a cheaper version of its product. |
25084.0 | 2019-02-19 00:00:00 UTC | Roche's (RHHBY) BLA for Lymphoma Drug Gets Priority Review | ABBV | https://www.nasdaq.com/articles/roches-rhhby-bla-for-lymphoma-drug-gets-priority-review-2019-02-19 | nan | nan | RocheRHHBY announced that the FDA has accepted the company's Biologics License Application (BLA) for anti-CD79b antibody drug conjugate (ADC) polatuzumab vedotin in combination with bendamustine plus Rituxan (BR), for the treatment of patients suffering from relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL), and granted Priority Review status to the same.
A decision from the FDA is expected by Aug 19, 2019.
We note that Priority Review designation is granted to drugs that have the potential to provide significant improvements in the safety and effectiveness of the treatment, prevention or diagnosis of a serious disease.
Polatuzumab vedotin was earlier granted Breakthrough Therapy designation by the FDA and PRIME (PRIority MEdicines) designation by the European Medicines Agency for the treatment of patients with R/R DLBCL in 2017. Polatuzumab vedotin is being evaluated for the treatment of several types of non-Hodgkin lymphoma (NHL).
A potential approval will boost Roche's hematology portfolio, which comprises approved drugs like MabThera/Rituxan, Tecentriq, Gazyva and Venclexta in collaboration with AbbVie ABBV .
The pipeline includes polatuzumab vedotin and a small molecule that inhibits the interaction of MDM2 with p53 (idasanutlin/RG7388). The company also has Hemlibra in its portfolio, a bispecific monoclonal antibody for the treatment of haemophilia A.
Concurrently, the FDA accepted the company's New Drug Applications (NDAs) and granted Priority Review status to pipeline candidate entrectinib. The candidate is being evaluated for the treatment of adult and pediatric patients with neurotrophic tropomyosin receptor kinase (NTRK) fusion-positive, locally advanced or metastatic solid tumors who have either progressed following prior therapies or as an initial therapy when there are no acceptable standard therapies, and for the treatment of people with metastatic, ROS1-positive non-small cell lung cancer (NSCLC). A decision from the FDA is expected by Aug 18, 2019.
The candidate is being developed across a range of solid tumor types, including breast, cholangiocarcinoma, colorectal, gynaecological, neuroendocrine, non-small cell lung, salivary gland, pancreatic, sarcoma and thyroid cancers.
Roche's stock has gained 12.6% in the last six months compared with the industry 's growth of 2.5%.
Approval of new drugs and a potential label expansion of existing drugs bode well for Roche, as its legacy drugs like Herceptin and MabThera are facing competition from biosimilars.
Novartis NVS has already launched its bisomilar version of Rituxan/ MabThera in Europe. Amgen AMGN also obtained FDA approval for a biosimilar version of Avastin for the treatment of five types of cancers including lung, colorectal, glioblastoma, renal cell carcinoma and cervix. Entry of biosimilars of these key drugs adversely impacted sales in Europe in 2018.
Zacks Rank
Roche currently carries a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A potential approval will boost Roche's hematology portfolio, which comprises approved drugs like MabThera/Rituxan, Tecentriq, Gazyva and Venclexta in collaboration with AbbVie ABBV . Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. RocheRHHBY announced that the FDA has accepted the company's Biologics License Application (BLA) for anti-CD79b antibody drug conjugate (ADC) polatuzumab vedotin in combination with bendamustine plus Rituxan (BR), for the treatment of patients suffering from relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL), and granted Priority Review status to the same. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. A potential approval will boost Roche's hematology portfolio, which comprises approved drugs like MabThera/Rituxan, Tecentriq, Gazyva and Venclexta in collaboration with AbbVie ABBV . Polatuzumab vedotin was earlier granted Breakthrough Therapy designation by the FDA and PRIME (PRIority MEdicines) designation by the European Medicines Agency for the treatment of patients with R/R DLBCL in 2017. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. A potential approval will boost Roche's hematology portfolio, which comprises approved drugs like MabThera/Rituxan, Tecentriq, Gazyva and Venclexta in collaboration with AbbVie ABBV . RocheRHHBY announced that the FDA has accepted the company's Biologics License Application (BLA) for anti-CD79b antibody drug conjugate (ADC) polatuzumab vedotin in combination with bendamustine plus Rituxan (BR), for the treatment of patients suffering from relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL), and granted Priority Review status to the same. | A potential approval will boost Roche's hematology portfolio, which comprises approved drugs like MabThera/Rituxan, Tecentriq, Gazyva and Venclexta in collaboration with AbbVie ABBV . Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. RocheRHHBY announced that the FDA has accepted the company's Biologics License Application (BLA) for anti-CD79b antibody drug conjugate (ADC) polatuzumab vedotin in combination with bendamustine plus Rituxan (BR), for the treatment of patients suffering from relapsed or refractory (R/R) diffuse large B-cell lymphoma (DLBCL), and granted Priority Review status to the same. |
25085.0 | 2019-02-17 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On David Dreman - 2/17/2019 | ABBV | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-david-dreman-2172019-2019-02-17 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman . This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
EXELIXIS, INC. ( EXEL ) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 79% 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: Exelixis, Inc. is a biopharmaceutical company. The Company is focused on discovery, development and commercialization of new medicines to manage care and outcomes for people with cancer. The Company's cabozantinib product is an inhibitor of multiple tyrosine kinases, including MET, AXL, and VEGF receptors. The Company's CABOMETYX tablets are approved for previously treated advanced kidney cancer and COMETRIQ capsules are approved for progressive, metastatic medullary thyroid cancer. The third product, Cotellic, is a formulation of cobimetinib, a selective inhibitor of MEK is approved as part of a combination regimen to treat advanced melanoma. Both cabozantinib and cobimetinib have shown potential in a range of forms of cancer and are the subjects of broad clinical development programs. The Company's XL888 is a small molecule oral inhibitor of Heat Shock Protein 90 (HSP90), a molecular chaperone protein.
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
SENIOR HOUSING PROPERTIES TRUST ( SNH ) is a mid-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on David Dreman is 70% 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: Senior Housing Properties Trust is a real estate investment trust (REIT). The Company's segments include triple net senior living communities that provide short term and long term residential care and other services for residents; managed senior living communities that provide short term and long term residential care and other services for residents; properties leased to medical providers, medical related businesses, clinics and biotech laboratory tenants (MOBs), and all other, including certain properties that offer wellness, fitness and spa services to members. Properties in triple net senior living communities segment include leased independent living communities, assisted living communities and skilled nursing facilities. Properties in managed senior living communities segment include managed independent living communities and assisted living communities.
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
ASSERTIO THERAPEUTICS INC ( ASRT ) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 69% 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: Assertio Therapeutics, Inc. is a specialty pharmaceutical company. The Company focuses on pain and other central nervous system ( CNS ) conditions. Its products include NUCYNTA ER (tapentadol extended release tablets), NUCYNTA IR (NUCYNTA) (tapentadol), Gralise (gabapentin), Cambia (diclofenac potassium for oral solution), Xartemis XR and Zipsor (diclofenac potassium). Its NUCYNTA ER (tapentadol extended release tablets) is a product for the management of pain severe enough to require daily long term opioid treatment, including neuropathic pain associated with diabetic peripheral neuropathy (DPN) in adults, and its NUCYNTA (tapentadol) is a product for the management of moderate to severe acute pain in adults. Its Gralise (gabapentin) is a once-daily product for the management of postherpetic neuralgia (PHN). Its Cambia (diclofenac potassium for oral solution) is a product for the acute treatment of migraine attacks.
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 David Dreman is 64% 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
ICON PLC (ICLR) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 64% 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: ICON public limited company is a contract research organization (CRO), which is engaged in providing outsourced development services to the pharmaceutical, biotechnology and medical device industries. The Company is engaged in the strategic development, management and analysis of programs that support the various stages of the clinical development process, from compound selection to Phase I-IV clinical studies. Its services include clinical trials management, biometric activities, consulting, imaging, contract staffing, informatics and laboratory services. The Company's information systems offerings include ICONIK, Firecrest, ADDPLAN, AptivAdvantage and Aptiv Insite. It conducts various laboratory tests on the patient's blood, urine and other bodily fluids at appropriate intervals during the trial. The Company offers clinical development services, including investigator recruitment, patient registries, outcomes research, clinical data management, immunoassay development and others.
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 David Dreman has returned 107.36% vs. 179.21% for the S&P 500. For more details on this strategy, click here
About David Dreman : Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
About Validea : Validea is an investment research service 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.
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 Contrarian Investor model based on the published strategy of David Dreman . | 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 Company's segments include triple net senior living communities that provide short term and long term residential care and other services for residents; managed senior living communities that provide short term and long term residential care and other services for residents; properties leased to medical providers, medical related businesses, clinics and biotech laboratory tenants (MOBs), and all other, including certain properties that offer wellness, fitness and spa services to members. | 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 Company's segments include triple net senior living communities that provide short term and long term residential care and other services for residents; managed senior living communities that provide short term and long term residential care and other services for residents; properties leased to medical providers, medical related businesses, clinics and biotech laboratory tenants (MOBs), and all other, including certain properties that offer wellness, fitness and spa services to members. | 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 Contrarian Investor model based on the published strategy of David Dreman . |
25086.0 | 2019-02-16 00:00:00 UTC | These 3 Value Stocks Are Absurdly Cheap Right Now | ABBV | https://www.nasdaq.com/articles/these-3-value-stocks-are-absurdly-cheap-right-now-2019-02-16 | nan | nan | Value investing often ends up leading investors into just one or two out-of-favor sectors. You can't create a diversified portfolio going that route. So it's important to broaden your horizons, and at times your view of what constitutes value. Here are three stocks from vastly different industries that all look absurdly cheap right now: Twitter (NYSE: TWTR ) in the technology space, ExxonMobil (NYSE: XOM) in energy, and Abbvie (NYSE: ABBV) in pharmaceuticals.
Believe it or not, Twitter is a value
Brian Stoffel (Twitter): I'm not your traditional value investor. Five stocks constitute over 50% of my real-life holdings. One isn't profitable, and the average P/E of the other four stocks is north of 50! With that as a backdrop, of all the stocks I own, Twitter appears to be the best value play right now.
Before you roll your eyes, consider this: The company may not ever reach the same user base as Facebook -- and that's OK. CEO Jack Dorsey has largely accepted this, and narrowed Twitter's workforce and scope to match this reality. That has resulted in a much more profitable venture : While "monetizable daily active users" (mDAU) were up 9% in the fourth quarter of 2018, non- GAAP net income jumped a remarkable 73%.
Twitter is wrestling with a lot of issues right now -- none more so than how to police abusive behavior without enforcing a nanny-state that tramples on the free speech rights of its users. That's a herculean task that few have ever faced before and none -- including Facebook -- have ever managed. It also has investors pessimistic.
But that pessimism has created opportunity. Twitter is the undeniable source for live, in-the-moment events. It has signed over 100 partnerships as a result. And over the past 12 months, it generated $1.34 billion in cash from operations -- and free cash flow of $856 million. The company currently has a P/E below 19.
It might not sound like value to most, but remember that free cash flow grew by 55% last year. And that was despite capital expenditures jumping 73%. The fastest-growing companies will often never be considered to have value stocks, but with Twitter, you might be getting the next best thing: growth at a very reasonable price.
Act now before investors catch on
Reuben Gregg Brewer (ExxonMobil Corporation): The shares of integrated energy giant ExxonMobil are trading near 30-year lows based on price to tangible book value (PTBV). Its current PTVB, meanwhile, is nearly 30% below its 10-year average for the metric. For reference, peer Chevron , also trading at a multiyear-low PTVB, is only 10% below its 10-year average for this valuation metric. Exxon looks absurdly cheap right now. Which helps explain the impressive 4.4% dividend yield.
Investors are clearly worried, and perhaps rightly so. In recent years, Exxon's production has fallen, and its return on capital employed (which tracks how well it puts shareholder money to work) has dropped into the middle of its peer group. But the oil giant has a plan to get back on track , with a long-term goal of roughly doubling earnings by 2025. That goal, meanwhile, only requires that oil sell for around $50 to $60 a barrel.
XOM Price to Tangible Book Value data by YCharts.
Early results are starting to look pretty encouraging. For example, production increased sequentially between the second and third quarters and between the third and fourth quarters. That's a notable shift from the steady drift lower over the last few years. And that upturn was driven by just one of the company's long-term production growth drivers (onshore U.S. oil drilling). Its ratio of return on capital employed, meanwhile, has started to tick up again as Exxon has moved to take greater control of its big growth projects.
Not only does Exxon look cheap, but it also looks like it's at a key inflection point. Once investors catch on to that, Exxon's discount will likely narrow...and that big dividend will shrink. Now is the time to do a deep dive.
A big pharma that's a big bargain
Keith Speights (AbbVie) : I'd call a stock that trades for only 8.5 times expected earnings inexpensive. If the stock also was likely to generate average annual earnings growth of close to 10% over the next five years, I'd say it was a bargain. And if the stock also paid out a dividend that yielded over 5%, I'd jump at the chance to buy it. One stock that meets all of these criteria is AbbVie.
There's usually a reason that a stock has an attractive valuation. In AbbVie's case, investors are worried about what will happen to the company's fortunes with its top-selling drug, Humira, facing competition from biosimilars. I don't think those concerns should make long-term investors afraid of AbbVie, though.
For one thing, Humira won't be threatened by biosimilars in the U.S. market until 2023. Humira appears likely to remain the world's best-selling drug at least through 2024 . That gives AbbVie plenty of time for its other products and pipeline candidates to step up.
Cancer drugs Imbruvica and Venclexta continue to enjoy strong momentum. Orilissa, which has already won approval for managing endometriosis pain and could secure another indication in treating uterine fibroids, has blockbuster potential. AbbVie also should have huge winners on the way with immunology drugs risankizumab and upadacitinib.
AbbVie believes that it will more than offset the anticipated sales declines for Humira. With its bargain valuation and attractive dividend, I think this big pharma stock is a solid pick right now
10 stocks we like better than Twitter
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Brian Stoffel owns shares of Twitter. Keith Speights owns shares of AbbVie and Chevron. Reuben Gregg Brewer owns shares of ExxonMobil. The Motley Fool owns shares of and recommends Twitter. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Here are three stocks from vastly different industries that all look absurdly cheap right now: Twitter (NYSE: TWTR ) in the technology space, ExxonMobil (NYSE: XOM) in energy, and Abbvie (NYSE: ABBV) in pharmaceuticals. A big pharma that's a big bargain Keith Speights (AbbVie) : I'd call a stock that trades for only 8.5 times expected earnings inexpensive. One stock that meets all of these criteria is AbbVie. | A big pharma that's a big bargain Keith Speights (AbbVie) : I'd call a stock that trades for only 8.5 times expected earnings inexpensive. Here are three stocks from vastly different industries that all look absurdly cheap right now: Twitter (NYSE: TWTR ) in the technology space, ExxonMobil (NYSE: XOM) in energy, and Abbvie (NYSE: ABBV) in pharmaceuticals. One stock that meets all of these criteria is AbbVie. | Here are three stocks from vastly different industries that all look absurdly cheap right now: Twitter (NYSE: TWTR ) in the technology space, ExxonMobil (NYSE: XOM) in energy, and Abbvie (NYSE: ABBV) in pharmaceuticals. A big pharma that's a big bargain Keith Speights (AbbVie) : I'd call a stock that trades for only 8.5 times expected earnings inexpensive. One stock that meets all of these criteria is AbbVie. | In AbbVie's case, investors are worried about what will happen to the company's fortunes with its top-selling drug, Humira, facing competition from biosimilars. Here are three stocks from vastly different industries that all look absurdly cheap right now: Twitter (NYSE: TWTR ) in the technology space, ExxonMobil (NYSE: XOM) in energy, and Abbvie (NYSE: ABBV) in pharmaceuticals. A big pharma that's a big bargain Keith Speights (AbbVie) : I'd call a stock that trades for only 8.5 times expected earnings inexpensive. |
25087.0 | 2019-02-13 00:00:00 UTC | AbbVie (ABBV) is a Top Dividend Stock Right Now: Should You Buy? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-is-a-top-dividend-stock-right-now%3A-should-you-buy-2019-02-13 | nan | nan | Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show tha t dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
AbbVie in Focus
AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. The stock has seen a price change of -13.3% since the start of the year. The drugmaker is currently shelling out a dividend of $1.07 per share, with a dividend yield of 5.35%. This compares to the Large Cap Pharmaceuticals industry's yield of 2.77% and the S&P 500's yield of 1.93%.
Looking at dividend growth, the company's current annualized dividend of $4.28 is up 19.2% from last year. AbbVie has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18.92%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. AbbVie's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, ABBV expects solid earnings growth. The Zacks Consensus Estimate for 2019 is $8.69 per share, with earnings expected to increase 9.86% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, ABBV is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. AbbVie has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18.92%. AbbVie's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. AbbVie has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18.92%. | AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. AbbVie has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18.92%. AbbVie's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend. | AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. AbbVie has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18.92%. AbbVie's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend. |
25088.0 | 2019-02-12 00:00:00 UTC | Better Buy: Gilead Sciences vs. Pfizer | ABBV | https://www.nasdaq.com/articles/better-buy-gilead-sciences-vs-pfizer-2019-02-12 | nan | nan | Neither Gilead Sciences (NASDAQ: GILD) nor Pfizer (NYSE: PFE) is expecting any sales growth this year. As a result, the market's already taken a swipe at both stocks, and they're starting to look like a bargain.
Both of these drugmakers have products that throw off huge cash flows, and they're committed to delivering as much of their profit to shareholders as possible. Here's a side-by-side comparison to find out which one can probably deliver the most.
The case for Gilead Sciences
Gilead Sciences isn't expecting any top-line revenue growth in 2019 because expiring U.S. patents for Letairis and Ranexa could lead to a loss of around $1.2 billion. The company also expects around $900 million in lost sales because of competition with AbbVie (NYSE: ABBV) for a share of a hepatitis C antiviral (HCV) market that's been steadily shrinking. Total HCV sales plummeted from $9.1 billion in 2017 to just $3.7 billion in 2018, and Gilead's new cellular cancer therapy, Yescarta, is proving more difficult to sell than anticipated.
On the plus side, Gilead's new single-tablet HIV regimen, Biktarvy, is beating expectations. Sales of the drug hit an annualized $2.3 billion run rate during the last three months of 2018, which was only the third full quarter since its U.S. launch. Last year, EvaluatePharma predicted that Biktarvy sales would reach $6.1 billion annually by 2024, and at this rate, it will meet that deadline early.
Unlike HCV, HIV still can't be stamped out completely and patients need to take an antiviral for the rest of their lives. In the U.S., and more recently Germany, Biktarvy's already become the most commonly prescribed HIV regimen for people switching to a new antiviral, and for those taking one for the first time.
In the first half of 2019, Gilead will present phase 3 data from two new drugs that could drive the stock higher. The company's most advanced non-alcoholic steatohepatitis (NASH) candidate, selonsertib, recently failed to help patients with advanced cirrhosis significantly reduce liver scarring. Another NASH study with less severely affected patients could put the selonsertib program back on track when Gilead reads out the results during the second quarter. Since there aren't any available treatments for millions of patients with NASH, an eventual approval for just a limited percentage of the overall population could lead to blockbuster sales.
Gilead's experimental tablet for rheumatoid arthritis, filgotinib, is far behind its potential competitors on the development timeline, but it's winning in the safety department. Gilead will report data from two pivotal filgotinib studies during the first quarter, and if its safety profile remains untattered, it could earn more than $5 billion annually at its peak.
The case for Pfizer
America's largest pharmaceutical company thinks the upcoming loss of market exclusivity for Lyrica will lop $2.6 billion off its top line this year. Despite the impending loss, Pfizer expects sales and adjusted earnings to remain flat in 2019.
Once pain from ripping off the Lyrica bandage subsides, Pfizer won't have to offset losses from another big product until at least 2026. Pfizer has a lot of moving pieces that generated $53.6 billion in revenue last year, and pulling the entire train uphill isn't easy. With a handful of potential growth drivers on the horizon, though, Pfizer could start growing by double digits again in a couple of short years.
An impressive four new cancer drug approvals during the last four months of 2018 will bolster an oncology segment that seems unstoppable. Sales of the company's breast cancer drug, Ibrance, surged 58% during the fourth quarter to an annualized $4.5 billion, and recently approved Talzenna could perform just as well as a treatment for newly diagnosed breast cancer patients harboring BRCA mutations.
Daurismo could become a blockbuster blood cancer therapy as an important new option for older adults newly diagnosed with acute myeloid leukemia who are too frail to handle standard chemotherapy at an effective dosage. Adding Daurismo to low-dose chemo decreased patients' risk of death by 54% compared with low-dose chemo on its own.
Running the numbers
At recent prices, Gilead's stock trades at just 10.2 times forward earnings expectations, plus it offers a juicy 3.7% dividend yield. Pfizer's stock has been trading at a slightly higher price 14.5 times earnings expectations, and its dividend yield of 3.4% is a bit lower. Both of these companies produce an enormous profit that keeps their dividends well funded, and we should see some payout bumps in the years ahead.
Gilead's hepatitis sales have probably reached a bottom, and as a smaller company, it won't be quite as hard for Gilead to push the needle forward. Both stocks are tempting, but Gilead probably has a better chance to deliver market-beating gains. That makes it the better buy today.
Editor's Note: This article has been updated to reflect Gilead's phase 3 selonsertib study outcome.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company also expects around $900 million in lost sales because of competition with AbbVie (NYSE: ABBV) for a share of a hepatitis C antiviral (HCV) market that's been steadily shrinking. The case for Pfizer America's largest pharmaceutical company thinks the upcoming loss of market exclusivity for Lyrica will lop $2.6 billion off its top line this year. Daurismo could become a blockbuster blood cancer therapy as an important new option for older adults newly diagnosed with acute myeloid leukemia who are too frail to handle standard chemotherapy at an effective dosage. | The company also expects around $900 million in lost sales because of competition with AbbVie (NYSE: ABBV) for a share of a hepatitis C antiviral (HCV) market that's been steadily shrinking. The case for Gilead Sciences Gilead Sciences isn't expecting any top-line revenue growth in 2019 because expiring U.S. patents for Letairis and Ranexa could lead to a loss of around $1.2 billion. Running the numbers At recent prices, Gilead's stock trades at just 10.2 times forward earnings expectations, plus it offers a juicy 3.7% dividend yield. | The company also expects around $900 million in lost sales because of competition with AbbVie (NYSE: ABBV) for a share of a hepatitis C antiviral (HCV) market that's been steadily shrinking. The case for Gilead Sciences Gilead Sciences isn't expecting any top-line revenue growth in 2019 because expiring U.S. patents for Letairis and Ranexa could lead to a loss of around $1.2 billion. Sales of the company's breast cancer drug, Ibrance, surged 58% during the fourth quarter to an annualized $4.5 billion, and recently approved Talzenna could perform just as well as a treatment for newly diagnosed breast cancer patients harboring BRCA mutations. | The company also expects around $900 million in lost sales because of competition with AbbVie (NYSE: ABBV) for a share of a hepatitis C antiviral (HCV) market that's been steadily shrinking. The case for Gilead Sciences Gilead Sciences isn't expecting any top-line revenue growth in 2019 because expiring U.S. patents for Letairis and Ranexa could lead to a loss of around $1.2 billion. Sales of the company's breast cancer drug, Ibrance, surged 58% during the fourth quarter to an annualized $4.5 billion, and recently approved Talzenna could perform just as well as a treatment for newly diagnosed breast cancer patients harboring BRCA mutations. |
25089.0 | 2019-02-11 00:00:00 UTC | IWV, PEP, ABBV, AMGN: ETF Outflow Alert | ABBV | https://www.nasdaq.com/articles/iwv-pep-abbv-amgn-etf-outflow-alert-2019-02-11 | 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 3000 ETF (Symbol: IWV) where we have detected an approximate $103.9 million dollar outflow -- that's a 1.1% decrease week over week (from 60,350,000 to 59,700,000). Among the largest underlying components of IWV, in trading today PepsiCo Inc (Symbol: PEP) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is off about 0.5%, and Amgen Inc (Symbol: AMGN) is up by about 0.1%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average:
Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $160.00. 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.
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 IWV, in trading today PepsiCo Inc (Symbol: PEP) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is off about 0.5%, and Amgen Inc (Symbol: AMGN) is up by about 0.1%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $160.00. 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 IWV, in trading today PepsiCo Inc (Symbol: PEP) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is off about 0.5%, and Amgen Inc (Symbol: AMGN) is up by about 0.1%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $160.00. 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 IWV, in trading today PepsiCo Inc (Symbol: PEP) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is off about 0.5%, and Amgen Inc (Symbol: AMGN) is up 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 3000 ETF (Symbol: IWV) where we have detected an approximate $103.9 million dollar outflow -- that's a 1.1% decrease week over week (from 60,350,000 to 59,700,000). For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $160.00. | Among the largest underlying components of IWV, in trading today PepsiCo Inc (Symbol: PEP) is off about 0.1%, AbbVie Inc (Symbol: ABBV) is off about 0.5%, and Amgen Inc (Symbol: AMGN) is up by about 0.1%. For a complete list of holdings, visit the IWV Holdings page » The chart below shows the one year price performance of IWV, versus its 200 day moving average: Looking at the chart above, IWV's low point in its 52 week range is $137.4493 per share, with $174.73 as the 52 week high point - that compares with a last trade of $160.00. 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). |
25090.0 | 2019-02-11 00:00:00 UTC | 5 High-Growth Stocks Undervalued by the Market | ABBV | https://www.nasdaq.com/articles/5-high-growth-stocks-undervalued-by-the-market-2019-02-11 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
High-growth stocks draw the lion's share of the attention in financial media. These securities usually show higher levels of volatility and often represent the future of the American economy. Today, these equities often revolve around new technologies like AI, VR and the Internet of Things (IoT).
However, concepts that we might consider "new again" also draw this interest. Due to decades of suppression, cannabis has become one of these areas. Also, judging by the performance of Chipotle (NYSE: CMG ), even equities revolving around fast food can turn into high-growth stocks with the right approach.
10 Best Dividend Stocks to Buy for the Next 10 Months
As one might expect, the overwhelming majority of these stocks carry the high P/E ratio that goes along with elevated growth. However, not all prospective buyers want that level of risk. Fortunately, a few high-growth stocks also fall into the "undervalued stocks" category. The following equities constitute some of the best stocks for combining growth with value:
Source: Shutterstock
AbbVie (ABBV)
Drug equities don't often make lists of high-growth stocks. AbbVie (NYSE: ABBV ) formed in 2013 when it split from Abbott Laboratories (NYSE: ABT ). It constitutes what was once Abbott's pharma division.
ABBV stock has suffered in recent months as its old blockbuster drug, Humira, faces patent expirations in many countries. However, AbbVie's drug pipeline has received favorable reviews. For this reason, most analysts believe that a new drug or a combination of future best sellers will more than replace the income lost from generic versions of Humira.
Still, due to the uncertainty, ABBV stock trades at only 8.4 times forward earnings. However, even with a single-digit P/E ratio, Wall Street predicts 10.6% profit growth for 2019. They also believe the average increase will come in at almost 13.4% per year over the next five years.
ABBV also offers one key benefit stemming from its former association with Abbott - dividend aristocrat status. Walking away from its 46-year streak of payout hikes would put ABBV stock at risk. Hence, one can assume the increases will continue. Their board also approved a 40% increase in 2018 and a 19% hike for this year. Given the pressure to raise dividend payments every year, this is a remarkable show of confidence. Moreover, thanks to a lower stock price and higher dividends, the yield now stands at 5.4%.
Investing in ABBV stock now involves some faith. However, with a single-digit P/E, double-digit profit growth, and a generous, growing dividend, investors could receive tremendous rewards for believing.
Source: Apple
Apple (AAPL)
With its $800 billion market cap and massive slide last fall, Apple (NASDAQ: AAPL ) might seem like a strange choice for a high-growth stocks list. Indeed, both the stock and the earnings projection saw a considerable move lower as iPhone sales fell well short of initial estimates. Also, laws of mathematics weigh on growth. An increase in AAPL's market cap of just 10% would mean $80 billion in growth, eight times the minimum size of a large-cap stock.
However, as smartphone prices fall, Apple is working to make itself less iPhone-dependent. It no longer reports iPhone unit sales. Moreover, moves into services and healthcare should bring new sources of revenue.
Due to tepid iPhone sales, profit growth for the year will come in at only 0.3%. But it should reclaim its high-growth status assuming the predicted 11.5% growth (and higher in the years after) comes to pass.
7 Bank Stocks to Buy After the BB&T-Suntrust Mega-Merger
AAPL stock may suffer for a time as it works to diversify sales away from the iPhone. However, with its enormous cash hoard and its ability to pioneer new technologies, AAPL stock will remain a solid growth story as it works to reclaim its $1 trillion market cap.
Source: Shutterstock
CannTrust (CNTTF)
I normally would not place an equity with a 51.5 trailing P/E ratio in the "cheap" category, but compared to peers in the cannabis space, CannTrust (OTCMKTS: CNTTF ) remains inexpensive. Although one can place almost every marijuana equity in the "high-growth stocks" category right now, CannTrust stands out with its consistent profitability.
For those concerned about the OTC listing, CannTrust applied to trade on the NYSE last month. Once that listing occurs, more traders can buy it, so it should see some increase at that time.
As most know, the Canadian marijuana boom came to an abrupt end in October when the product gained full legal status in Canada. However, legalization of one form of cannabis, hemp, has reignited this boom south of the Canadian border. The equities of larger peers such as Canopy Growth (NYSE: CGC ) have already recovered most of the losses which occurred following legalization in Canada. CNTTF stock has also risen by more than 60% from its December low.
Even if full legal status does not come soon, both hemp and CBD-related products alone should allow for massive growth across the U.S. With its specialty in cannabis oils, CannTrust should benefit. The company also expanded into Europe by becoming the first and only foreign seller of cannabis oil in Denmark beginning in October.
At this moment, most cannabis equities could be described as high-growth stocks. However, with its relatively low P/E, its focus on cannabis oil, and the move to the NYSE, CannTrust delivers this growth at a lower risk compared with its key peers.
Source: Qualcomm
Qualcomm (QCOM)
Qualcomm (NASDAQ: QCOM ) stock has suffered in recent years. A long-running legal dispute with Apple has resulted in the exclusion of Qualcomm chips from the later models of the iPhone. This and other legal battles regarding its licensing practices have weighted on QCOM. As a result, the stock trades nearly 40% below a multi-year high last seen in 2014.
However, a great deal of anticipation surrounds its 5G-capable Snapdragon 855 chip. Carriers have begun to launch 5G networks, and most expect 5G capable phones to see a wide release beginning later this year. While QCOM's chip will not appear in the iPhone, makers of Android-powered smartphones have shown an interest. As a result, analysts believe that profit increases will again see double-digit increases beginning in 2020. After years of profit declines, Wall Street predicts that annual growth will average 10.7% per year over the next five years. This will occur just as the company's forward P/E ratio falls to around 11.6.
QCOM stock has also quietly developed a reputation as a dividend-paying stock. Despite declining profits in past years, Qualcomm has hiked its payout for eight years in a row. As a result of the increases and the lower stock price, the dividend yield has risen to about 4.9%.
7 Breakout Stocks In Early 2019
Yes, its dispute with Apple has weighed on the stock. However, thanks to 5G, the company has developed a new source of revenue. Investors can also collect a generous dividend while waiting for 5G to revive QCOM. Thanks to that dividend, QCOM stock should pay off even if it does not pay off in growth.
Source: Shutterstock
Spirit (SAVE)
Spirit (NYSE: SAVE ) has offered value and growth to an industry not known for fostering high-growth stocks: airlines. For decades, Southwest (NYSE: LUV ) brought innovation to the industry as its take on air travel brought lower fares, profits, and high-growth to a stagnant, unprofitable industry.
Today, Spirit leads that charge. As the leader of the ultra-low-fare segment of the industry, it continues to see massive profit growth and expansion in both domestic and international markets. Spirit has won over price-sensitive customers who will trade perks such as in-flight beverages and carry-on bags for lower costs.
Like Southwest, Spirit has depended on one plane type. However, the company now plans to add a type of regional jet to its fleet. This will allow SAVE to bring low fares to smaller markets dominated by legacy carriers.
Even without smaller markets, it has already seen growth numbers that shoot toward the stratosphere. Analysts forecast profit growth of 45.7% for 2019. They also believe earnings increases will average above 20% per year for the foreseeable future.
Despite this growth, Spirit, like other airlines, has struggled to achieve higher P/E ratios. This may explain why its multiple is only slightly higher than slower-growth airlines such as American (NASDAQ: AAL ) or Delta (NYSE: DAL ). SAVE's forward P/E currently stands at around 9.6.
Admittedly, few gravitate to airlines when looking for cheap, high-growth stocks. However, the massive profit growth and continuous expansion show that Spirit has become the king of the ultra-low-fare airline sector. Driven by small markets and foreign expansion, profits should continue to climb.
As of this writing, Will Healy is long ABBV and CNTTF stock. You canfollow Will on Twitterat @HealyWriting.
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The post 5 High-Growth Stocks Undervalued by the Market 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The following equities constitute some of the best stocks for combining growth with value: Source: Shutterstock AbbVie (ABBV) Drug equities don't often make lists of high-growth stocks. AbbVie (NYSE: ABBV ) formed in 2013 when it split from Abbott Laboratories (NYSE: ABT ). ABBV stock has suffered in recent months as its old blockbuster drug, Humira, faces patent expirations in many countries. | The following equities constitute some of the best stocks for combining growth with value: Source: Shutterstock AbbVie (ABBV) Drug equities don't often make lists of high-growth stocks. AbbVie (NYSE: ABBV ) formed in 2013 when it split from Abbott Laboratories (NYSE: ABT ). ABBV stock has suffered in recent months as its old blockbuster drug, Humira, faces patent expirations in many countries. | The following equities constitute some of the best stocks for combining growth with value: Source: Shutterstock AbbVie (ABBV) Drug equities don't often make lists of high-growth stocks. AbbVie (NYSE: ABBV ) formed in 2013 when it split from Abbott Laboratories (NYSE: ABT ). ABBV stock has suffered in recent months as its old blockbuster drug, Humira, faces patent expirations in many countries. | The following equities constitute some of the best stocks for combining growth with value: Source: Shutterstock AbbVie (ABBV) Drug equities don't often make lists of high-growth stocks. AbbVie (NYSE: ABBV ) formed in 2013 when it split from Abbott Laboratories (NYSE: ABT ). ABBV stock has suffered in recent months as its old blockbuster drug, Humira, faces patent expirations in many countries. |
25091.0 | 2019-02-11 00:00:00 UTC | Here's Why Coherus BioSciences Rose 48.7% in January | ABBV | https://www.nasdaq.com/articles/heres-why-coherus-biosciences-rose-487-january-2019-02-11 | nan | nan | What happened
Shares of Coherus BioSciences (NASDAQ: CHRS) gained nearly 49% last month, according to data provided by S&P Global Market Intelligence . The company announced a global settlement with AbbVie that will allow the small-cap biopharma to commercialize a biosimilar to Humira, which was developed as CHS-1420. The pair had previously sparred over patents related to formulating the antibody.
The settlement gives Coherus Biosciences a license to the formulation patents, although it won't be able to sell CHS-1420 in the United States until December 2023. Additionally, it will have to provide royalties to AbbVie on all domestic sales just for using the patent portfolio. Given the size of the market, investors seem to think that won't matter in the end. Are they right?
So what
Humira treats immune diseases such as rheumatoid arthritis. It's the world's best-selling drug right now and the second-most-successful drug franchise of all time ranked by lifetime sales. The franchise generated $75 billion in total revenue from its launch on the last day of 2002 through 2017, according to FiercePharma . That number is likely closer to $90 billion after 2018 and will continue to grow for the foreseeable future. Humira is projected to become the first drug ever to hit annual sales of $20 billion before most of its U.S. patents expire in late 2023.
It will still generate significant sales after 2023, although it will have to share the market with biosimilar developers such as Coherus BioSciences. The recent licensing deal doesn't mean the small-cap biopharma is done visiting courtrooms, however.
After securing the licensing deal with AbbVie, Coherus BioSciences announced it was suing Amgen for infringing on its patents. Unfortunately, that's become an all-too-common tactic for biosimilar developers in the United States. The move is likely intended to stave off Amgen for a few quarters or years to give CHS-1420 a head start in the massive U.S. market and to possibly wrangle royalty payments from the biotech giant.
Now what
Coherus BioSciences went all in on the potentially lucrative market for biosimilars. While that's been a popular investment theme in the last five years or so, the first biosimilars didn't hit the market until late 2018 -- and the competition is fierce . Considering the business reported an operating loss of $144 million through the first nine months of 2018, there's a lot of pressure for biosimilars to live up to their lofty expectations. Investors will get their first signs of the success -- or stumbles -- of the strategy as revenue totals for the company's Neulasta biosimilar trickle in throughout 2019.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The company announced a global settlement with AbbVie that will allow the small-cap biopharma to commercialize a biosimilar to Humira, which was developed as CHS-1420. Additionally, it will have to provide royalties to AbbVie on all domestic sales just for using the patent portfolio. After securing the licensing deal with AbbVie, Coherus BioSciences announced it was suing Amgen for infringing on its patents. | After securing the licensing deal with AbbVie, Coherus BioSciences announced it was suing Amgen for infringing on its patents. The company announced a global settlement with AbbVie that will allow the small-cap biopharma to commercialize a biosimilar to Humira, which was developed as CHS-1420. Additionally, it will have to provide royalties to AbbVie on all domestic sales just for using the patent portfolio. | The company announced a global settlement with AbbVie that will allow the small-cap biopharma to commercialize a biosimilar to Humira, which was developed as CHS-1420. Additionally, it will have to provide royalties to AbbVie on all domestic sales just for using the patent portfolio. After securing the licensing deal with AbbVie, Coherus BioSciences announced it was suing Amgen for infringing on its patents. | The company announced a global settlement with AbbVie that will allow the small-cap biopharma to commercialize a biosimilar to Humira, which was developed as CHS-1420. Additionally, it will have to provide royalties to AbbVie on all domestic sales just for using the patent portfolio. After securing the licensing deal with AbbVie, Coherus BioSciences announced it was suing Amgen for infringing on its patents. |
25092.0 | 2019-02-09 00:00:00 UTC | Here's Why AbbVie's Stock Tanked in January | ABBV | https://www.nasdaq.com/articles/heres-why-abbvies-stock-tanked-january-2019-02-09 | nan | nan | What happened
Unlike the vast majority of biopharma stocks, AbbVie 's (NYSE: ABBV) stock actually lost ground in January. The drugmaker's shares, in fact, fell by an unsightly 12.9% during the first month of the new year, according to data from S&P Global Market Intelligence .
What went wrong for this top biopharma last month? AbbVie's January swoon can be directly attributed to its disappointing fourth-quarter earnings report released on Jan. 25.
So what
Not only did the company miss consensus on revenue for the three-month period, but it also posted a loss of $1.23 per share on a GAAP basis due to a $4.1 billion impairment charge associated with the 2016 acquisition of Stemcentrx. AbbVie apparently decided to write-off this costly acquisition after Rova-T repeatedly failed to hit the mark as a later-line lung cancer treatment last year.
Topping it off, AbbVie also noted that international sales of its flagship anti-inflammatory medicine Humira fell by a whopping 14.8% year over year as a result of biosimilar competition in certain markets. This double-digit sales decline wasn't exactly a surprise by any means, but it does arguably mark the end of a particularly fruitful era for the company.
Now what
Can AbbVie rebound after this weak start to the new year? Unfortunately, this blue chip biopharma seems destined to struggle this year. The core issue is that the biopharma's next-generation immunology drug candidates -- risankizumab and upadacitinib -- aren't expected to ramp up quickly enough to offset Humira's declining international sales this year.
On the bright side, AbbVie's fortunes are expected to change for the better as soon as 2020. Bargain hunters, therefore, might want to take advantage of this temporary lull to grab some shares of this top drugmaker.
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George Budwell 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie apparently decided to write-off this costly acquisition after Rova-T repeatedly failed to hit the mark as a later-line lung cancer treatment last year. What happened Unlike the vast majority of biopharma stocks, AbbVie 's (NYSE: ABBV) stock actually lost ground in January. AbbVie's January swoon can be directly attributed to its disappointing fourth-quarter earnings report released on Jan. 25. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. What happened Unlike the vast majority of biopharma stocks, AbbVie 's (NYSE: ABBV) stock actually lost ground in January. AbbVie's January swoon can be directly attributed to its disappointing fourth-quarter earnings report released on Jan. 25. | What happened Unlike the vast majority of biopharma stocks, AbbVie 's (NYSE: ABBV) stock actually lost ground in January. Topping it off, AbbVie also noted that international sales of its flagship anti-inflammatory medicine Humira fell by a whopping 14.8% year over year as a result of biosimilar competition in certain markets. See the 10 stocks *Stock Advisor returns as of January 31, 2019 George Budwell owns shares of AbbVie. | See the 10 stocks *Stock Advisor returns as of January 31, 2019 George Budwell owns shares of AbbVie. What happened Unlike the vast majority of biopharma stocks, AbbVie 's (NYSE: ABBV) stock actually lost ground in January. AbbVie's January swoon can be directly attributed to its disappointing fourth-quarter earnings report released on Jan. 25. |
25093.0 | 2019-02-07 00:00:00 UTC | ABBV March 29th Options Begin Trading | ABBV | https://www.nasdaq.com/articles/abbv-march-29th-options-begin-trading-2019-02-07 | nan | nan | Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 29th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the ABBV options chain for the new March 29th contracts and identified one put and one call contract of particular interest.
The put contract at the $72.50 strike price has a current bid of 14 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $72.50, but will also collect the premium, putting the cost basis of the shares at $72.36 (before broker commissions). To an investor already interested in purchasing shares of ABBV, that could represent an attractive alternative to paying $78.78/share today.
Because the $72.50 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 75%. 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 0.19% return on the cash commitment, or 1.41% 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 $72.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $80.50 strike price has a current bid of 56 cents. If an investor was to purchase shares of ABBV stock at the current price level of $78.78/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $80.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 2.89% if the stock gets called away at the March 29th 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 $80.50 strike highlighted in red:
Considering the fact that the $80.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 57%. 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 0.71% boost of extra return to the investor, or 5.19% 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 $78.78) to be 33%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls 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.
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 $80.50 strike highlighted in red: Considering the fact that the $80.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 29th expiration. | Below is a chart showing ABBV's trailing twelve month trading history, with the $80.50 strike highlighted in red: Considering the fact that the $80.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 29th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the ABBV options chain for the new March 29th 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 $72.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $80.50 strike price has a current bid of 56 cents. Below is a chart showing ABBV's trailing twelve month trading history, with the $80.50 strike highlighted in red: Considering the fact that the $80.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 29th expiration. | At Stock Options Channel , our YieldBoost formula has looked up and down the ABBV options chain for the new March 29th 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 $80.50 strike highlighted in red: Considering the fact that the $80.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in AbbVie Inc (Symbol: ABBV) saw new options begin trading today, for the March 29th expiration. |
25094.0 | 2019-02-06 00:00:00 UTC | Pfizer CEO Bourla plans to testify at Senate drug pricing hearing | ABBV | https://www.nasdaq.com/articles/pfizer-ceo-bourla-plans-testify-senate-drug-pricing-hearing-2019-02-06 | nan | nan | NEW YORK, Feb 6 () - U.S. drugmaker Pfizer Inc said on Wednesday that its Chief Executive Albert Bourla plans to testify later this month at a Senate hearing examining rising prescription drug prices.
Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee on Monday invited executives from seven pharmaceutical companies to testify at the hearing.
Merck & Co Inc said on Tuesday that its CEO Ken Frazier plans to testify. The other companies invited to send executives are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson and Sanofi SA.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The other companies invited to send executives are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson and Sanofi SA. NEW YORK, Feb 6 () - U.S. drugmaker Pfizer Inc said on Wednesday that its Chief Executive Albert Bourla plans to testify later this month at a Senate hearing examining rising prescription drug prices. Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee on Monday invited executives from seven pharmaceutical companies to testify at the hearing. | The other companies invited to send executives are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson and Sanofi SA. NEW YORK, Feb 6 () - U.S. drugmaker Pfizer Inc said on Wednesday that its Chief Executive Albert Bourla plans to testify later this month at a Senate hearing examining rising prescription drug prices. Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee on Monday invited executives from seven pharmaceutical companies to testify at the hearing. | The other companies invited to send executives are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson and Sanofi SA. NEW YORK, Feb 6 () - U.S. drugmaker Pfizer Inc said on Wednesday that its Chief Executive Albert Bourla plans to testify later this month at a Senate hearing examining rising prescription drug prices. Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee on Monday invited executives from seven pharmaceutical companies to testify at the hearing. | The other companies invited to send executives are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson and Sanofi SA. NEW YORK, Feb 6 () - U.S. drugmaker Pfizer Inc said on Wednesday that its Chief Executive Albert Bourla plans to testify later this month at a Senate hearing examining rising prescription drug prices. Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee on Monday invited executives from seven pharmaceutical companies to testify at the hearing. |
25095.0 | 2019-02-05 00:00:00 UTC | Merck CEO Frazier plans to testify at Senate drug pricing hearing | ABBV | https://www.nasdaq.com/articles/merck-ceo-frazier-plans-testify-senate-drug-pricing-hearing-2019-02-05 | nan | nan | By Michael Erman and Yasmeen Abutaleb
NEW YORK/WASHINGTON, Feb 5 () - U.S. drugmaker Merck & Co Inc said on Tuesday that its Chief Executive Ken Frazier plans to testify at a Senate hearing later this month examining rising prescription drug prices.
Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee, on Monday invited executives from seven pharmaceutical companies, including Merck, to testify. The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA.
A Sanofi spokeswoman said the French drugmaker was reviewing Chief Executive Olivier Brandicourt's scheduling to determine if he can attend the hearing. Britain-based AstraZeneca said it was reviewing the request and will respond to the committee.
Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment.
The United States, which leaves drug pricing to market competition, has higher prices than in other countries, where governments directly or indirectly control costs. That makes it by far the world's most lucrative market for manufacturers.
Congress has been targeting the pharmaceutical industry over the rising cost of prescription drugs for U.S. consumers, particularly since Democrats took over the House of Representatives in January.
Last week, the House Oversight Committee and the Senate Finance Committee brought in patient advocates and health policy experts to discuss the burden of high drug costs on consumers.
Senators and congressmen have also written to insulin manufacturers requesting information on why its cost has skyrocketed in recent years and how much the companies profit from the life-sustaining diabetes treatment.
Drug pricing is also a top priority of the administration of President Donald Trump, who had made it a central issue of the 2016 presidential campaign.
Drugmakers have slowed and limited U.S. price increases as scrutiny on their practices has intensified over the past few years.
They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA. Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment. They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk. | They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk. The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA. Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment. | They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk. The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA. Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment. | The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA. Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment. They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk. |
25096.0 | 2019-02-05 00:00:00 UTC | Lilly/Incyte's Olumiant Meets Endpoint in Eczema Studies | ABBV | https://www.nasdaq.com/articles/lilly-incytes-olumiant-meets-endpoint-in-eczema-studies-2019-02-05 | nan | nan | Eli Lilly and CompanyLLY and Incyte Corporation INCY announced positive top-line data from two late-stage studies evaluating their oral JAK inhibitor, Olumiant (baricitinib), as monotherapy for moderate-to-severe atopic dermatitis ("AD"), a type of eczema. Data from the phase III studies - BREEZE-AD1 and BREEZE-AD2 - showed that the candidate met the primary endpoints of statistically significant improvements in patients compared to placebo as measured by Investigator's Global Assessment for AD ("IGA") score after treatment of 16 weeks.
Detailed data from these studies along with ongoing phase III studies on barcitinib will be presented and published at future scientific venues and in peer-reviewed journals later in 2019.
Olumiant was first approved in early 2017 for treating moderately-to-severely active rheumatoid arthritis ("RA") in patients with inadequate response or intolerant to TNF inhibitor therapies in Europe. In June 2018, Olumiant received approval in the United States for similar indication. However, the FDA allowed only the lower dose of the drug.
In the past six months, Lilly's shares have outperformed the industry . The stock gained 17.8% while the industry rose 1.3% in the said time frame.
Olumiant is one of the drugs in Lilly's new pharmaceutical product portfolio, which is anticipated to be a key top-line driver going ahead. The drug generated $132.5 million in the first nine months of 2018. Although sales in Europe were upbeat for the drug on the back of launch in new markets, U.S. sales were weak in the third quarter. Olumiant's fourth-quarter sales may provide an idea about the drug's demand in the country.
Lilly is also developing Olumiant as treatment for systemic lupus erythematosus and alopecia areata in mid-to-late stage studies.
Meanwhile, competition is on the rise in the JAK inhibitor segment as well as the eczema market with several approved as well as under-development therapies from several companies. Regeneron Pharmaceuticals and Sanofi's Dupixent is approved for treating AD since 2017 while AbbVie ABBV and Pfizer PFE are developing their respective candidates for the indication in late-stage studies..
Eli Lilly and Company Price
Eli Lilly and Company Price | Eli Lilly and Company Quote
Zacks Rank
Lilly currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Regeneron Pharmaceuticals and Sanofi's Dupixent is approved for treating AD since 2017 while AbbVie ABBV and Pfizer PFE are developing their respective candidates for the indication in late-stage studies.. Eli Lilly and Company Price Eli Lilly and Company Price | Eli Lilly and Company Quote Zacks Rank Lilly currently carries a Zacks Rank #2 (Buy). Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Pfizer Inc. (PFE): Get Free Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Get Free Report To read this article on Zacks.com click here. Eli Lilly and CompanyLLY and Incyte Corporation INCY announced positive top-line data from two late-stage studies evaluating their oral JAK inhibitor, Olumiant (baricitinib), as monotherapy for moderate-to-severe atopic dermatitis ("AD"), a type of eczema. | Regeneron Pharmaceuticals and Sanofi's Dupixent is approved for treating AD since 2017 while AbbVie ABBV and Pfizer PFE are developing their respective candidates for the indication in late-stage studies.. Eli Lilly and Company Price Eli Lilly and Company Price | Eli Lilly and Company Quote Zacks Rank Lilly currently carries a Zacks Rank #2 (Buy). Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Pfizer Inc. (PFE): Get Free Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Get Free Report To read this article on Zacks.com click here. Eli Lilly and CompanyLLY and Incyte Corporation INCY announced positive top-line data from two late-stage studies evaluating their oral JAK inhibitor, Olumiant (baricitinib), as monotherapy for moderate-to-severe atopic dermatitis ("AD"), a type of eczema. | Regeneron Pharmaceuticals and Sanofi's Dupixent is approved for treating AD since 2017 while AbbVie ABBV and Pfizer PFE are developing their respective candidates for the indication in late-stage studies.. Eli Lilly and Company Price Eli Lilly and Company Price | Eli Lilly and Company Quote Zacks Rank Lilly currently carries a Zacks Rank #2 (Buy). Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Pfizer Inc. (PFE): Get Free Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Get Free Report To read this article on Zacks.com click here. Eli Lilly and CompanyLLY and Incyte Corporation INCY announced positive top-line data from two late-stage studies evaluating their oral JAK inhibitor, Olumiant (baricitinib), as monotherapy for moderate-to-severe atopic dermatitis ("AD"), a type of eczema. | Regeneron Pharmaceuticals and Sanofi's Dupixent is approved for treating AD since 2017 while AbbVie ABBV and Pfizer PFE are developing their respective candidates for the indication in late-stage studies.. Eli Lilly and Company Price Eli Lilly and Company Price | Eli Lilly and Company Quote Zacks Rank Lilly currently carries a Zacks Rank #2 (Buy). Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Pfizer Inc. (PFE): Get Free Report AbbVie Inc. (ABBV): Free Stock Analysis Report Incyte Corporation (INCY): Get Free Report To read this article on Zacks.com click here. In the past six months, Lilly's shares have outperformed the industry . |
25097.0 | 2019-02-05 00:00:00 UTC | 3 Biotech Stocks That Pay Solid Dividends | ABBV | https://www.nasdaq.com/articles/3-biotech-stocks-that-pay-solid-dividends-2019-02-05 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although many biotech stocks have been hit hard at the start of 2019 while the general market has rallied, this underperformance in the biotechnology space has presented at least two key benefits for investors looking to invest in the area.
First, and perhaps the most obvious, is that being able to enter biotech stocks at a cheaper price - assuming the companies are not fundamentally broken - is much better than going in while the stocks are overpriced or in "rally mode". Second, in situations like this, companies' dividend yields go up.
What all of this means is that despite the seemingly grim picture for biotech, there are actually several solid biotech dividend stocks to invest in now. The struggle is sifting through all the names and finding which of them are the best dividend stocks to invest in.
10 F-Rated Stocks That Could Break Your Portfolio
But don't worry, I've done the hard work for you. Below are three of the best biotech dividend stocks to buy now.
Source: Shutterstock
AbbVie (ABBV)
AbbVie (NYSE: ABBV ) trades at a modest price-to-earnings ratio of 21X, while shares yield 5.45%.
Although short-term investors might be concerned that ABBV shares have been on a downtrend since topping in May 2018 at $122, there is still plenty of longer-term potential in ABBV to be hyped about.
Much of the downside ABBV experienced occurred after its latest earnings report. AbbVie reported fourth-quarter adjusted profits that grew a solid 28% over last year; at $1.90 a share, the company achieved its guidance for the quarter. But the stock gave up around $10 a share, falling from $88 to around $78, after the report. Investors fretted over the 15% drop in international Humira sales. Biosimilar competition in Europe, which makes up 75% of its international Humira business, was expected.
However, generic competition for its flagship drug does not concern ABBV management. It's likely that they're banking on a slew of new product releases in 2019 to offset the aggressive discounting from competitors.
In fact, AbbVie is funding five major products for launch indications this year. This should drive revenue higher and lead to double-digit earnings-per-share growth for the company. All of which makes it one of the notable biotech dividend stocks to buy.
Source: Everjean via Flickr
Allergan (AGN)
Allergan plc (NYSE: AGN ) ended its last rally in October 2018, with AGN shares finally bottoming by the end of last year at around $130. The stock fell again from $160 to a recent price of $144 after reporting Q4 results.
Right now, AGN shares will pay you a modest 2.1% dividend. And if the stock rebounds, the total return will be higher.
The botox specialist reported $4.08 billion in revenue, down 5.7% from last year. Non-GAAP income fell 15.4% to $1.45 billion. Encouragingly, sales of Botox rose 9.4%, while the Juvederm collection, Lo Loestrin and Vraylar all rose in the double digits. Although these products are a smaller part of total revenue, it is enough for management to forecast revenue of $15 billion - $15.3 billion this year.
7 Stocks That Won Super Bowl Sunday
With management forecasting lighter results for the year, why should investors buy AGN stock for the dividends? The firm has six late-stage clinical programs, plans of one to two new product launches annually and the company has strong margins. It made $5.64 billion in operating cash flow last year. This is more than the $976 million it needs for the dividend.
Source: Shutterstock
Sanofi (SNY)
After settling at around $42 at the start of 2019, Sanofi (NASDAQ: SNY ) rallied steadily to close at around $43.45 recently. Now, at its 50-day simple moving average, shares have a dividend yield of 4.28%.
Sanofi's underperformance is unusual. Other than trading at a slightly higher valuation at a P/E of 22X, the company did not report any negative news. If anything, the collaborations that this biotech firm has with RegeneronPharmaceuticals (NASDAQ: REGN ) should bolster investor confidence. Regeneron's Dupixent is becoming a blockbuster hit for treating Atopic Dermatitis. Alongside its efforts with REGN, SNY is also supplying the active ingredient of avanafil to Vivus (NASDAQ: VVUS ).
Another promising aspect bolstering the case for SNY stock is that on Jan. 23, the Food and Drug Administration approved the use of Sanofi's Fluzone in young children.
When it reports earnings on Feb. 7, the company should not bring up any negative surprises. It should be consistent like Q3's report where the company reported sales growing 6.3% (at constant exchange rates). Its Bioverativ acquisition should continue to contribute meaningfully to sales.
Looking ahead, an EMA decision in the first half of this year for its oncology drug Libtayo, plus an FDA action date of Feb. 6 for Cablivi, which treats a rare blood disorder, should keep investor confidence high.
As of this writing, Chris Lau held shares of ABBV.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | AbbVie reported fourth-quarter adjusted profits that grew a solid 28% over last year; at $1.90 a share, the company achieved its guidance for the quarter. Source: Shutterstock AbbVie (ABBV) AbbVie (NYSE: ABBV ) trades at a modest price-to-earnings ratio of 21X, while shares yield 5.45%. Although short-term investors might be concerned that ABBV shares have been on a downtrend since topping in May 2018 at $122, there is still plenty of longer-term potential in ABBV to be hyped about. | Source: Shutterstock AbbVie (ABBV) AbbVie (NYSE: ABBV ) trades at a modest price-to-earnings ratio of 21X, while shares yield 5.45%. Although short-term investors might be concerned that ABBV shares have been on a downtrend since topping in May 2018 at $122, there is still plenty of longer-term potential in ABBV to be hyped about. Much of the downside ABBV experienced occurred after its latest earnings report. | Source: Shutterstock AbbVie (ABBV) AbbVie (NYSE: ABBV ) trades at a modest price-to-earnings ratio of 21X, while shares yield 5.45%. Although short-term investors might be concerned that ABBV shares have been on a downtrend since topping in May 2018 at $122, there is still plenty of longer-term potential in ABBV to be hyped about. Much of the downside ABBV experienced occurred after its latest earnings report. | Source: Shutterstock AbbVie (ABBV) AbbVie (NYSE: ABBV ) trades at a modest price-to-earnings ratio of 21X, while shares yield 5.45%. Although short-term investors might be concerned that ABBV shares have been on a downtrend since topping in May 2018 at $122, there is still plenty of longer-term potential in ABBV to be hyped about. Much of the downside ABBV experienced occurred after its latest earnings report. |
25098.0 | 2019-02-05 00:00:00 UTC | Merck CEO Frazier to testify at Senate drug pricing hearing | ABBV | https://www.nasdaq.com/articles/merck-ceo-frazier-testify-senate-drug-pricing-hearing-2019-02-05 | nan | nan | By Michael Erman and Yasmeen Abutaleb
NEW YORK/WASHINGTON, Feb 5 () - U.S. drugmaker Merck & Co Inc said on Tuesday that its Chief Executive Ken Frazier plans to testify at a Senate hearing later this month examining rising prescription drug prices.
Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee, on Monday invited executives from seven pharmaceutical companies, including Merck, to testify. The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA.
A Sanofi spokeswoman said the French drugmaker was reviewing Chief Executive Olivier Brandicourt's scheduling to determine if he can attend the hearing. Britain-based AstraZeneca said it was reviewing the request and will respond to the committee.
Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment.
The United States, which leaves drug pricing to market competition, has higher prices than in other countries, where governments directly or indirectly control costs. That makes it by far the world's most lucrative market for manufacturers.
Congress has been targeting the pharmaceutical industry over the rising cost of prescription drugs for U.S. consumers, particularly since Democrats took over the House of Representatives in January.
Last week, the House Oversight Committee and the Senate Finance Committee brought in patient advocates and health policy experts to discuss the burden of high drug costs on consumers.
Senators and congressmen have also written to insulin manufacturers requesting information on why its cost has skyrocketed in recent years and how much the companies profit from the life-sustaining diabetes treatment.
Drug pricing is also a top priority of the administration of President Donald Trump, who had made it a central issue of the 2016 presidential campaign.
Drugmakers have slowed and limited U.S. price increases as scrutiny on their practices has intensified over the past few years.
They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA. Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment. They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk. | They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk. The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA. Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment. | They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk. The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA. Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment. | The others are AbbVie Inc, AstraZeneca Plc , Bristol-Myers Squibb Co, Johnson & Johnson, Pfizer Inc and Sanofi SA. Pfizer, Bristol-Myers, and J&J did not immediately have a statement on the invitation to testify, while AbbVie did not respond to a request for comment. They nonetheless increased prices on hundreds of drugs in January, including a 6.2 percent increase on the world's top-selling drug - AbbVie's rheumatoid arthritis treatment Humira - and hikes on insulin prices by Sanofi and Novo Nordisk. |
25099.0 | 2019-02-04 00:00:00 UTC | Powerful U.S. Senate committee invites pharma execs to testify | ABBV | https://www.nasdaq.com/articles/powerful-us-senate-committee-invites-pharma-execs-testify-2019-02-04 | nan | nan | WASHINGTON, Feb 4 () - A powerful U.S. Senate committee on Monday invited seven pharmaceutical companies to testify at a hearing later this month examining rising prescription drug prices.
Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee, invited executives from AbbVie Inc, AstraZeneca PLC, Bristol-Myers Squibb Co, Johnson & Johnson, Merck & Co Inc, Pfizer Inc and Sanofi SA.
The U.S. Congress has been intensifying scrutiny of the pharmaceutical industry as rising prescription drug prices consistently poll as a top voter concern. It is also a priority for the administration of President Donald Trump, who made it a central issue of the 2016 presidential campaign.
The Senate is controlled by Republicans and the House of Representatives is controlled by Democrats.
The invitation follows a slew of actions by lawmakers to heighten scrutiny of the pharmaceutical industry. The House Oversight Committee also held a drug pricing hearing in January, and a handful of House Democrats have sent letters to drug companies asking for information on their pricing practices.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee, invited executives from AbbVie Inc, AstraZeneca PLC, Bristol-Myers Squibb Co, Johnson & Johnson, Merck & Co Inc, Pfizer Inc and Sanofi SA. WASHINGTON, Feb 4 () - A powerful U.S. Senate committee on Monday invited seven pharmaceutical companies to testify at a hearing later this month examining rising prescription drug prices. The U.S. Congress has been intensifying scrutiny of the pharmaceutical industry as rising prescription drug prices consistently poll as a top voter concern. | Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee, invited executives from AbbVie Inc, AstraZeneca PLC, Bristol-Myers Squibb Co, Johnson & Johnson, Merck & Co Inc, Pfizer Inc and Sanofi SA. WASHINGTON, Feb 4 () - A powerful U.S. Senate committee on Monday invited seven pharmaceutical companies to testify at a hearing later this month examining rising prescription drug prices. The U.S. Congress has been intensifying scrutiny of the pharmaceutical industry as rising prescription drug prices consistently poll as a top voter concern. | Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee, invited executives from AbbVie Inc, AstraZeneca PLC, Bristol-Myers Squibb Co, Johnson & Johnson, Merck & Co Inc, Pfizer Inc and Sanofi SA. WASHINGTON, Feb 4 () - A powerful U.S. Senate committee on Monday invited seven pharmaceutical companies to testify at a hearing later this month examining rising prescription drug prices. The House Oversight Committee also held a drug pricing hearing in January, and a handful of House Democrats have sent letters to drug companies asking for information on their pricing practices. | Republican Senator Chuck Grassley, chairman of the Senate Finance Committee, and Democratic Senator Ron Wyden, ranking member of the committee, invited executives from AbbVie Inc, AstraZeneca PLC, Bristol-Myers Squibb Co, Johnson & Johnson, Merck & Co Inc, Pfizer Inc and Sanofi SA. WASHINGTON, Feb 4 () - A powerful U.S. Senate committee on Monday invited seven pharmaceutical companies to testify at a hearing later this month examining rising prescription drug prices. The U.S. Congress has been intensifying scrutiny of the pharmaceutical industry as rising prescription drug prices consistently poll as a top voter concern. |
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