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25500.0 | 2018-05-28 00:00:00 UTC | AbbVie (ABBV) Up 5.9% Since Earnings Report: Can It Continue? | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-up-5.9-since-earnings-report%3A-can-it-continue-2018-05-28 | nan | nan | A month has gone by since the last earnings report for AbbVie Inc.ABBV . Shares have added about 5.9% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is ABBV due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
AbbVie Tops Q1 Earnings & Revenue Estimates, Ups 2018 Guidance
AbbVie reported better-than-expected earnings and sales for the first quarter of 2018. Importantly, it raised its earnings expectations for 2018 based on strong Q1 performance and an optimistic outlook for future quarters.
AbbVie reported first-quarter 2018 earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.80 by 3.9% and ahead of the guided range of $1.77 and $1.79. Earnings grew 46.1% year over year. Strong sales performance and higher operating profits led to the bottom-line beat.
Revenues of $7.9 billion in the reported quarter marginally beat the Zacks Consensus Estimate of $7.7 billion. Sales increased 21.4% year over year. Excluding a 3.8% favorable impact from foreign exchange rate fluctuations, operational revenues rose 17.6% backed by continued strong performances by Humira and Imbruvica and solid uptake of new HCV medicine, Mavyret. Operational revenue growth was in line with management expectations of growth in a mid-teen range. Currency tailwinds of 3.8% were also better than 3% expected by the company.
Quarter in Details
Humira recorded sales growth of 14.4% (10.7% on an operational basis) with revenues coming in at $4.7 billion, reflecting continued strong demand trends.
Sales in the United States increased 11.4% to $3 billion driven by strong prescription volume growth across all three major market categories. Humira sales in the ex-U.S. market were up 9.3% on an operational basis and 20% on a reported basis to $1.71 billion driven primarily by market growth across indications.
Humira holds the leading market position as a front-line therapy in all three major market categories despite stiffer competition from new classes of drugs as well as an indirect biosimilar competition in the international markets
However, on the call, AbbVie said that retail specialty pharmacy destocking hurt sales of Humira somewhat in the quarter.
In 2018, Humira sales in the United States are expected to be approximately $13.7 billion, which is lower than the prior expectation of $14.0 billion-$14.1 billion. Humira U.S. sales expectations were softer than the previous outlook due to the impact of a retail specialty pharmacy destocking in the first quarter and a conservative stance on co-pay costs associated with co-pay accumulator programs.
Internationally, Humira sales are expected to approach $6.4 billion, up from $6.2 billion previously, which includes the expected impact of biosimilar entrants in Europe in the fourth quarter.
First-quarter net revenues from Imbruvica were $762 million, up 38.5% year over year. This included U.S. sales of $624 million, up 36.7%, and $138 million (up 47.2%) of international profit sharing with Johnson & Johnson.
Continued uptake in the front-line CLL market and steady gains across other indications led to the strong performance of Imbruvica.
In 2018, Imbruvica global revenues are expected to exceed $3.3 billion with sales in the United States likely to cross $2.7 billion.
Other products that performed well include Lupron ($219 million, up 13.3% year over year) Duodopa ($103 million, up 28.9% year over year) and Creon ($209 million, up 13%).
Despite competitive dynamics in the HCV market, AbbVie HCV sales, including Viekira and Mavyret, were $919 million in the quarter, up 80.2% on a sequential basis. Mavyret alone accounted for nearly $850 million in the quarter driven by better-than-expected launch uptake in the United States and international markets. Mavyret commands a market share of 45% in the United States with less than a year on the market. The medicine has also established a strong position in other major countries as well, such as Japan, Germany, Spain, and Italy. Viekira sales declined in the quarter.
In 2018, global HCV sales are expected to be approximately $3.5 billion, higher than $2.5 billion expected previously.
Adjusted gross margin rose 30 bps to 80.2% in the quarter. Adjusted SG&A expenses increased 21.4% to $1.67 billion. As a percentage of sales, SG&A expenses rose 20 bps to 21.0% in the quarter, reflecting new product launch costs. R&D expenses escalated 7.2% to $1.19 billion in the quarter due to greater investments in the pipeline. Adjusted operating margin was 44.1% of sales in the reported quarter, up 200 bps year over year.
2018 Outlook
AbbVie raised its adjusted EPS guidance to a range of $7.66-$7.76 for 2018 compared with $7.33-$7.43 predicted earlier. A strong first-quarter performance coupled with an optimistic outlook for stronger underlying business performance through the rest of the year and the benefit from the planned share buybacks through the 'Dutch' tender offer propelled the increase in earnings guidance. The earnings guidance reflects a year-over-year surge of 38% at the mid-point versus 32% previously.
Revenues are expected to approach $32.6 billion, up from the previous expectation of $32 billion. Currency impact is expected to benefit revenues by 2% in 2018 compared with 1.5% expected previously.
While R&D expense is expected to be slightly more than 16% of revised sales outlook, SG&A is expected to be about 20.5% of sales. Operating margin is expected to be above 43.5%, roughly 100 basis points above 2017 levels. Previously, AbbVie expected operating margin to be approximately 44% of sales. AbbVie decreased the projected 2018 operating margin expectations as it plans to increase investments in upcoming product launches.
Adjusted tax rate is expected to be approximately 9% in 2018. The normalized tax rate expectation over the next five years is 13%.
Second-Quarter 2018 Outlook
Second-quarter earnings are expected between $1.94 and $1.96. Revenues are estimated to grow approximately 15% on an operational basis. Foreign exchange is expected to have approximately 3% favorable impact on sales in the second quarter.
U.S. Humira sales are expected to grow at approximately 10% year over year. Internationally, sales are expected to be approximately $1.6 billion. Imbruvica U.S. sales are expected to be approximately $700 million. Global HCV sales are expected to be approximately $950 million with approximately 40% of those sales coming from U.S. sales.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been six revisions higher for the current quarter.
AbbVie Inc. Price and Consensus
AbbVie Inc. Price and Consensus | AbbVie Inc. Quote
VGM Scores
At this time, ABBV has a nice Growth Score of B, however its Momentum is doing a bit better with an A. The stock was also allocated a grade of B on the value side, putting it in the second 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.
Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, ABBV 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. | A month has gone by since the last earnings report for AbbVie Inc.ABBV . Will the recent positive trend continue leading up to its next earnings release, or is ABBV due for a pullback? AbbVie Tops Q1 Earnings & Revenue Estimates, Ups 2018 Guidance AbbVie reported better-than-expected earnings and sales for the first quarter of 2018. | AbbVie Inc. Price and Consensus AbbVie Inc. Price and Consensus | AbbVie Inc. Quote VGM Scores At this time, ABBV has a nice Growth Score of B, however its Momentum is doing a bit better with an A. A month has gone by since the last earnings report for AbbVie Inc.ABBV . Will the recent positive trend continue leading up to its next earnings release, or is ABBV due for a pullback? | A month has gone by since the last earnings report for AbbVie Inc.ABBV . Will the recent positive trend continue leading up to its next earnings release, or is ABBV due for a pullback? AbbVie Tops Q1 Earnings & Revenue Estimates, Ups 2018 Guidance AbbVie reported better-than-expected earnings and sales for the first quarter of 2018. | AbbVie Tops Q1 Earnings & Revenue Estimates, Ups 2018 Guidance AbbVie reported better-than-expected earnings and sales for the first quarter of 2018. Previously, AbbVie expected operating margin to be approximately 44% of sales. A month has gone by since the last earnings report for AbbVie Inc.ABBV . |
25501.0 | 2018-05-25 00:00:00 UTC | After Hours Most Active for May 25, 2018 : ABBV, KR, QQQ, IBM, V, CPE, LOW, SBUX, QCOM, TXN, CELG, INTC | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-may-25-2018-abbv-kr-qqq-ibm-v-cpe-low-sbux-qcom-txn-celg-intc-2018 | nan | nan | The NASDAQ 100 After Hours Indicator is down -2.59 to 6,958.33. The total After hours volume is currently 19,826,015 shares traded.
The following are the most active stocks for the after hours session :
AbbVie Inc. ( ABBV ) is unchanged at $101.08, with 4,304,722 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $1.97. ABBV's current last sale is 89.45% of the target price of $113.
Kroger Company (The) ( KR ) is unchanged at $24.61, with 2,522,631 shares traded. KR's current last sale is 91.15% of the target price of $27.
Invesco QQQ Trust, Series 1 ( QQQ ) is -0.14 at $169.58, with 1,954,021 shares traded. This represents a 24.87% increase from its 52 Week Low.
International Business Machines Corporation ( IBM ) is unchanged at $143.64, with 1,201,972 shares traded. IBM's current last sale is 82.08% of the target price of $175.
Visa Inc. ( V ) is +0.2 at $131.48, with 1,175,332 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $1.1. As reported by Zacks, the current mean recommendation for V is in the "buy range".
Callon Petroleum Company ( CPE ) is unchanged at $11.96, with 1,103,523 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $0.22. As reported by Zacks, the current mean recommendation for CPE is in the "buy range".
Lowe's Companies, Inc. ( LOW ) is unchanged at $96.69, with 946,020 shares traded. Over the last four weeks they have had 10 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2018. The consensus EPS forecast is $2.01. As reported by Zacks, the current mean recommendation for LOW is in the "buy range".
Starbucks Corporation ( SBUX ) is unchanged at $57.92, with 756,630 shares traded. As reported by Zacks, the current mean recommendation for SBUX is in the "buy range".
QUALCOMM Incorporated ( QCOM ) is -0.01 at $59.95, with 539,821 shares traded. QCOM's current last sale is 103.36% of the target price of $58.
Texas Instruments Incorporated ( TXN ) is unchanged at $111.56, with 454,663 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $1.3. TXN's current last sale is 96.17% of the target price of $116.
Celgene Corporation ( CELG ) is unchanged at $78.63, with 445,595 shares traded. As reported by Zacks, the current mean recommendation for CELG is in the "buy range".
Intel Corporation ( INTC ) is -0.11 at $55.33, with 413,670 shares traded. Over the last four weeks they have had 13 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $0.86. As reported by Zacks, the current mean recommendation for INTC is in the "buy range".
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 are the most active stocks for the after hours session : AbbVie Inc. ( ABBV ) is unchanged at $101.08, with 4,304,722 shares traded. ABBV's current last sale is 89.45% of the target price of $113. International Business Machines Corporation ( IBM ) is unchanged at $143.64, with 1,201,972 shares traded. | The following are the most active stocks for the after hours session : AbbVie Inc. ( ABBV ) is unchanged at $101.08, with 4,304,722 shares traded. ABBV's current last sale is 89.45% of the target price of $113. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. | The following are the most active stocks for the after hours session : AbbVie Inc. ( ABBV ) is unchanged at $101.08, with 4,304,722 shares traded. ABBV's current last sale is 89.45% of the target price of $113. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. | The following are the most active stocks for the after hours session : AbbVie Inc. ( ABBV ) is unchanged at $101.08, with 4,304,722 shares traded. ABBV's current last sale is 89.45% of the target price of $113. Visa Inc. ( V ) is +0.2 at $131.48, with 1,175,332 shares traded. |
25502.0 | 2018-05-23 00:00:00 UTC | Analysts Expect 10% Gains Ahead For The Holdings of FTHI | ABBV | https://www.nasdaq.com/articles/analysts-expect-10-gains-ahead-holdings-fthi-2018-05-23 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust BuyWrite Income ETF (Symbol: FTHI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $24.76 per unit.
With FTHI trading at a recent price near $22.56 per unit, that means that analysts see 9.74% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FTHI's underlying holdings with notable upside to their analyst target prices are Alphabet Inc (Symbol: GOOGL), Verizon Communications Inc (Symbol: VZ), and AbbVie Inc (Symbol: ABBV). Although GOOGL has traded at a recent price of $1075.31/share, the average analyst target is 14.90% higher at $1235.53/share. Similarly, VZ has 14.54% upside from the recent share price of $48.81 if the average analyst target price of $55.91/share is reached, and analysts on average are expecting ABBV to reach a target price of $119.38/share, which is 12.38% above the recent price of $106.23. Below is a twelve month price history chart comparing the stock performance of GOOGL, VZ, and ABBV:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of GOOGL, VZ, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTHI's underlying holdings with notable upside to their analyst target prices are Alphabet Inc (Symbol: GOOGL), Verizon Communications Inc (Symbol: VZ), and AbbVie Inc (Symbol: ABBV). Similarly, VZ has 14.54% upside from the recent share price of $48.81 if the average analyst target price of $55.91/share is reached, and analysts on average are expecting ABBV to reach a target price of $119.38/share, which is 12.38% above the recent price of $106.23. | Three of FTHI's underlying holdings with notable upside to their analyst target prices are Alphabet Inc (Symbol: GOOGL), Verizon Communications Inc (Symbol: VZ), and AbbVie Inc (Symbol: ABBV). Similarly, VZ has 14.54% upside from the recent share price of $48.81 if the average analyst target price of $55.91/share is reached, and analysts on average are expecting ABBV to reach a target price of $119.38/share, which is 12.38% above the recent price of $106.23. Below is a twelve month price history chart comparing the stock performance of GOOGL, VZ, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, VZ has 14.54% upside from the recent share price of $48.81 if the average analyst target price of $55.91/share is reached, and analysts on average are expecting ABBV to reach a target price of $119.38/share, which is 12.38% above the recent price of $106.23. Below is a twelve month price history chart comparing the stock performance of GOOGL, VZ, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTHI's underlying holdings with notable upside to their analyst target prices are Alphabet Inc (Symbol: GOOGL), Verizon Communications Inc (Symbol: VZ), and AbbVie Inc (Symbol: ABBV). | Below is a twelve month price history chart comparing the stock performance of GOOGL, VZ, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTHI's underlying holdings with notable upside to their analyst target prices are Alphabet Inc (Symbol: GOOGL), Verizon Communications Inc (Symbol: VZ), and AbbVie Inc (Symbol: ABBV). Similarly, VZ has 14.54% upside from the recent share price of $48.81 if the average analyst target price of $55.91/share is reached, and analysts on average are expecting ABBV to reach a target price of $119.38/share, which is 12.38% above the recent price of $106.23. |
25503.0 | 2018-05-23 00:00:00 UTC | Eli Lilly Gets FDA Approval for Taltz in Genital Psoriasis | ABBV | https://www.nasdaq.com/articles/eli-lilly-gets-fda-approval-for-taltz-in-genital-psoriasis-2018-05-23 | nan | nan | Eli Lilly & CompanyLLY announced that the FDA has approved the inclusion of additional data on the label of its psoriasis injection, Taltz. With the latest approval, Taltz label will now include data for psoriasis involving the genital area, which impacts roughly 63% of psoriasis patients over the course of their disease.
Taltz is already marketed for the treatment of adult patients with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy as well as for active psoriatic arthritis. Taltz works by specifically targeting IL-17A, a protein that plays a role in driving underlying inflammation in psoriasis.
The drug recorded sales of $146.5 million in the first quarter of 2018. The label expansion will expand the eligible patient population of the drug, which should drive sales going forward.
The approval for genital psoriasis was based on data from a study evaluating patients with moderate-to-severe psoriasis involving the genital area. In the study, Taltz demonstrated a significant improvement compared to placebo at 12 weeks in the severity of psoriasis affecting the genital area, overall psoriasis, genital itch and the impact of genital psoriasis on sexual activity in such patients.
Though many other drugs like Novartis' NVS Cosentyx, J&J's JNJ Tremfya and AbbVie's ABBV Humira are approved to treat plaque psoriasis, Lilly claims Taltz is now the first and only FDA approved treatment for genital psoriasis
Taltz is also being studied in a late-stage study for axial spondyloarthritis.
Year to date, Lilly's shares have declined 2.6% compared with the industry 's decline of 3.8%.
Lilly 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. | Though many other drugs like Novartis' NVS Cosentyx, J&J's JNJ Tremfya and AbbVie's ABBV Humira are approved to treat plaque psoriasis, Lilly claims Taltz is now the first and only FDA approved treatment for genital psoriasis Taltz is also being studied in a late-stage study for axial spondyloarthritis. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Eli Lilly & CompanyLLY announced that the FDA has approved the inclusion of additional data on the label of its psoriasis injection, Taltz. | Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Though many other drugs like Novartis' NVS Cosentyx, J&J's JNJ Tremfya and AbbVie's ABBV Humira are approved to treat plaque psoriasis, Lilly claims Taltz is now the first and only FDA approved treatment for genital psoriasis Taltz is also being studied in a late-stage study for axial spondyloarthritis. With the latest approval, Taltz label will now include data for psoriasis involving the genital area, which impacts roughly 63% of psoriasis patients over the course of their disease. | Though many other drugs like Novartis' NVS Cosentyx, J&J's JNJ Tremfya and AbbVie's ABBV Humira are approved to treat plaque psoriasis, Lilly claims Taltz is now the first and only FDA approved treatment for genital psoriasis Taltz is also being studied in a late-stage study for axial spondyloarthritis. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. In the study, Taltz demonstrated a significant improvement compared to placebo at 12 weeks in the severity of psoriasis affecting the genital area, overall psoriasis, genital itch and the impact of genital psoriasis on sexual activity in such patients. | Though many other drugs like Novartis' NVS Cosentyx, J&J's JNJ Tremfya and AbbVie's ABBV Humira are approved to treat plaque psoriasis, Lilly claims Taltz is now the first and only FDA approved treatment for genital psoriasis Taltz is also being studied in a late-stage study for axial spondyloarthritis. Click to get this free report Eli Lilly and Company (LLY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The approval for genital psoriasis was based on data from a study evaluating patients with moderate-to-severe psoriasis involving the genital area. |
25504.0 | 2018-05-23 00:00:00 UTC | Better Buy: AbbVie Inc. vs. Pfizer Inc. | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-inc-vs-pfizer-inc-2018-05-23 | nan | nan | If you're looking to buy a big pharma stock, both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) have a lot to offer. AbbVie has been the bigger winner in recent years. The stock is up close to 130% over the past five years, while Pfizer's share price gained only 25% during the period.
But past performance doesn't count for much in deciding between two stocks. Which of these two pharmaceutical stocks is the better pick for long-term investors now? Here's how AbbVie and Pfizer compare.
The case for AbbVie
Growth, income, and value. Those are the reasons to buy AbbVie. And they're three really good reasons to do so.
Let's first look at the company's growth prospects. AbbVie still lays claim to the biggest-selling drug in the world: Humira. While the drug will face generic competition in Europe beginning later this year, AbbVie is set to enjoy several more years of generic-free worries in the more lucrative U.S. market. That gives the company plenty of time for its other drugs and pipeline candidates to generate more revenue.
Imbruvica should play a key role in accomplishing that goal. It's projected to become the No. 4 best-selling cancer drug in the world by 2022, with sales of $7.5 billion. AbbVie has another sure-fire blockbuster on the market now also with hepatitis C drug Mavyret.
But it's AbbVie's pipeline that should really excite investors. The company hopes to win FDA approval for elagolix in treating endometriosis-associated pain in the third quarter of 2018. AbbVie recently submitted for approval of risankizumab in treating plaque psoriasis. Another autoimmune disease drug, upadacitinib, could win approval next year. In addition, the company hopes to secure more approved indications for several drugs already on the market, notably including cancer drug Venclexta.
As for income, AbbVie's dividend currently yields just under 4%. The drugmaker has increased its dividend by a whopping 140% since being spun off from Abbott Labs in 2013. AbbVie uses only 42% of its free cash flow to fund the dividend, indicating plenty of flexibility for more dividend hikes in the future.
You might think that a stock with strong growth prospects and a great dividend would be somewhat pricey. That's not the case for AbbVie. The stock trades at less than 12 times expected earnings. Factoring in the company's projected growth gives AbbVie a PEG ratio of only 0.75 -- making this big pharma a big bargain.
The case for Pfizer
While AbbVie relies on one drug -- Humira -- for close to 60% of its total revenue, Pfizer has a much more diversified portfolio. The company claimed eight blockbuster drugs in 2017, none of which generated more than 11% of Pfizer's total revenue.
Instead of facing the prospects of generic competition for its top drugs, Pfizer is moving past its patent cliff. Although the company's revenue growth continues to be weighed down somewhat by declining sales for several products that have lost patent exclusivity, the negative impact is becoming a lesser problem each year.
Like AbbVie, Pfizer has several growth drivers. The "big three" for Pfizer right now are cancer drug Ibrance, anticoagulant Eliquis, and autoimmune disease drug Xeljanz. The company also claims several newer drugs that should be significant winners: atopic dermatitis drug Eucrisa and type 2 diabetes drugs Steglatro, Steglujan, and Segluromet.
Pfizer awaits regulatory approval for several drugs. Two that should especially fuel growth for the company are lung cancer drugs dacomitinib and lorlatinib. Pfizer's pipeline also includes 28 late-stage programs. The company's head of research and development, Mikael Dolsten, said earlier this year that Pfizer expects to win approval for up to 15 blockbuster drugs or new indications for existing drugs over the next five years, up from five blockbuster launches between 2011 and 2016.
Its dividend is another draw for Pfizer. The dividend currently yields 3.83%. Pfizer has a long track record of dividend increases, broken only by a dividend cut in 2009 in connection with a big acquisition. The company's management prioritizes the dividend program very highly now. Pfizer uses a little over half of its free cash flow to fund the dividend, giving it similar flexibility as AbbVie in rolling out future dividend increases.
Like AbbVie, Pfizer looks like a good bargain with its forward earnings multiple of 11.7. However, the drugmaker's PEG ratio of 1.86 is higher, primarily because falling sales for Pfizer's older drugs are expected to hold back overall growth.
Better buy
In some ways, Pfizer and AbbVie are like the proverbial tortoise and the hare. AbbVie will enjoy faster growth, but Pfizer might not experience the volatility its rival could have. We saw some of this volatility for AbbVie in March when a clinical failure for experimental cancer drug Rova-T wiped out a big chunk of the company's market cap.
I personally own both of these stocks and expect both of them to be winners over the long run. AbbVie's and Pfizer's great dividends give them an immediate advantage in generating solid total returns.
If I could only choose one of them, though, I'd go with AbbVie. It has better overall growth prospects despite the Rova-T setback and a slightly higher dividend yield. AbbVie is more exposed to pipeline risk because of its dependence on Humira. However, I think this big pharma stock makes a nice addition to the portfolios of investors looking for solid growth, value, and income.
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*Stock Advisor returns as of May 8, 2018
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. | We saw some of this volatility for AbbVie in March when a clinical failure for experimental cancer drug Rova-T wiped out a big chunk of the company's market cap. If you're looking to buy a big pharma stock, both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) have a lot to offer. AbbVie has been the bigger winner in recent years. | AbbVie uses only 42% of its free cash flow to fund the dividend, indicating plenty of flexibility for more dividend hikes in the future. Factoring in the company's projected growth gives AbbVie a PEG ratio of only 0.75 -- making this big pharma a big bargain. Pfizer uses a little over half of its free cash flow to fund the dividend, giving it similar flexibility as AbbVie in rolling out future dividend increases. | The case for Pfizer While AbbVie relies on one drug -- Humira -- for close to 60% of its total revenue, Pfizer has a much more diversified portfolio. Pfizer uses a little over half of its free cash flow to fund the dividend, giving it similar flexibility as AbbVie in rolling out future dividend increases. If you're looking to buy a big pharma stock, both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) have a lot to offer. | If you're looking to buy a big pharma stock, both AbbVie (NYSE: ABBV) and Pfizer (NYSE: PFE) have a lot to offer. AbbVie has been the bigger winner in recent years. Here's how AbbVie and Pfizer compare. |
25505.0 | 2018-05-23 00:00:00 UTC | After Hours Most Active for May 23, 2018 : GE, F, BAC, MSFT, ABBV, CFG, INTC, CSCO, DCUD, MDLZ, AAPL, AMAT | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-may-23-2018-ge-f-bac-msft-abbv-cfg-intc-csco-dcud-mdlz-aapl-amat | nan | nan | The NASDAQ 100 After Hours Indicator is down -4.68 to 6,948.95. The total After hours volume is currently 43,262,928 shares traded.
The following are the most active stocks for the after hours session :
General Electric Company ( GE ) is -0.01 at $14.17, with 5,334,570 shares traded. GE's current last sale is 76.59% of the target price of $18.5.
Ford Motor Company ( F ) is +0.08 at $11.52, with 3,182,779 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2018. The consensus EPS forecast is $0.36. F's current last sale is 85.33% of the target price of $13.5.
Bank of America Corporation ( BAC ) is -0.02 at $30.42, with 3,119,431 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Microsoft Corporation ( MSFT ) is -0.09 at $98.57, with 2,021,912 shares traded. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $1.08. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
AbbVie Inc. ( ABBV ) is unchanged at $105.60, with 1,839,379 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $1.97. ABBV's current last sale is 93.45% of the target price of $113.
Citizens Financial Group, Inc. ( CFG ) is unchanged at $41.79, with 1,806,811 shares traded. As reported by Zacks, the current mean recommendation for CFG is in the "buy range".
Intel Corporation ( INTC ) is unchanged at $55.21, with 1,772,742 shares traded. Over the last four weeks they have had 13 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $0.86. As reported by Zacks, the current mean recommendation for INTC is in the "buy range".
Cisco Systems, Inc. ( CSCO ) is unchanged at $43.68, with 1,540,311 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2018. The consensus EPS forecast is $0.63. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Dominion Energy, Inc. ( DCUD ) is -0.3615 at $43.07, with 1,512,939 shares traded.
Mondelez International, Inc. ( MDLZ ) is unchanged at $39.45, with 1,456,638 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2018. The consensus EPS forecast is $0.63. As reported by Zacks, the current mean recommendation for MDLZ is in the "buy range".
Apple Inc. ( AAPL ) is +0.01 at $188.37, with 1,451,519 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $2.19. AAPL's current last sale is 96.6% of the target price of $195.
Applied Materials, Inc. ( AMAT ) is -0.09 at $50.25, with 1,428,183 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2018. The consensus EPS forecast is $1.16. As reported by Zacks, the current mean recommendation for AMAT is in the "buy range".
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 ) is unchanged at $105.60, with 1,839,379 shares traded. ABBV's current last sale is 93.45% of the target price of $113. The following are the most active stocks for the after hours session : General Electric Company ( GE ) is -0.01 at $14.17, with 5,334,570 shares traded. | AbbVie Inc. ( ABBV ) is unchanged at $105.60, with 1,839,379 shares traded. ABBV's current last sale is 93.45% of the target price of $113. Over the last four weeks they have had 12 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. | AbbVie Inc. ( ABBV ) is unchanged at $105.60, with 1,839,379 shares traded. ABBV's current last sale is 93.45% of the target price of $113. As reported by Zacks, the current mean recommendation for BAC is in the "buy range". | AbbVie Inc. ( ABBV ) is unchanged at $105.60, with 1,839,379 shares traded. ABBV's current last sale is 93.45% of the target price of $113. Intel Corporation ( INTC ) is unchanged at $55.21, with 1,772,742 shares traded. |
25506.0 | 2018-05-22 00:00:00 UTC | Noteworthy Tuesday Option Activity: ABBV, GRA, WSM | ABBV | https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-abbv-gra-wsm-2018-05-22 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 37,171 contracts has been traded thus far today, a contract volume which is representative of approximately 3.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.4% of ABBV's average daily trading volume over the past month, of 7.2 million shares. Particularly high volume was seen for the $120 strike call option expiring June 08, 2018 , with 8,500 contracts trading so far today, representing approximately 850,000 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange:
Grace & Co (Symbol: GRA) options are showing a volume of 5,263 contracts thus far today. That number of contracts represents approximately 526,300 underlying shares, working out to a sizeable 49.9% of GRA's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $80 strike call option expiring September 21, 2018 , with 3,859 contracts trading so far today, representing approximately 385,900 underlying shares of GRA. Below is a chart showing GRA's trailing twelve month trading history, with the $80 strike highlighted in orange:
And Williams Sonoma Inc (Symbol: WSM) saw options trading volume of 6,457 contracts, representing approximately 645,700 underlying shares or approximately 48.9% of WSM's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $50 strike put option expiring June 15, 2018 , with 1,537 contracts trading so far today, representing approximately 153,700 underlying shares of WSM. Below is a chart showing WSM's trailing twelve month trading history, with the $50 strike highlighted in orange:
For the various different available expirations for ABBV options , GRA options , or WSM 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 $120 strike call option expiring June 08, 2018 , with 8,500 contracts trading so far today, representing approximately 850,000 underlying shares of ABBV. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 37,171 contracts has been traded thus far today, a contract volume which is representative of approximately 3.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.4% of ABBV's average daily trading volume over the past month, of 7.2 million shares. | Particularly high volume was seen for the $120 strike call option expiring June 08, 2018 , with 8,500 contracts trading so far today, representing approximately 850,000 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $120 strike highlighted in orange: Grace & Co (Symbol: GRA) options are showing a volume of 5,263 contracts thus far today. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 37,171 contracts has been traded thus far today, a contract volume which is representative of approximately 3.7 million underlying shares (given that every 1 contract represents 100 underlying shares). | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 37,171 contracts has been traded thus far today, a contract volume which is representative of approximately 3.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $120 strike call option expiring June 08, 2018 , with 8,500 contracts trading so far today, representing approximately 850,000 underlying shares of ABBV. That number works out to 51.4% of ABBV's average daily trading volume over the past month, of 7.2 million shares. | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AbbVie Inc (Symbol: ABBV), where a total volume of 37,171 contracts has been traded thus far today, a contract volume which is representative of approximately 3.7 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $120 strike call option expiring June 08, 2018 , with 8,500 contracts trading so far today, representing approximately 850,000 underlying shares of ABBV. That number works out to 51.4% of ABBV's average daily trading volume over the past month, of 7.2 million shares. |
25507.0 | 2018-05-22 00:00:00 UTC | The Zacks Analyst Blog Highlights: Procter & Gamble, AbbVie, McDonald???s and PepsiCo | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-procter-gamble-abbvie-mcdonalds-and-pepsico-2018-05-0 | nan | nan | For Immediate Release
Chicago, IL - May 22, 2018 - 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 Procter & GamblePG , AbbVieABBV , McDonald'sMCD and PepsiCoPEP .
Here are highlights from Monday's Analyst Blog:
Top Analyst Reports for P&G, AbbVie, McDonalds and Pepsico
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 17 major stocks, including Procter & Gamble, AbbVie, McDonald's and PepsiCo. These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Procter & Gamble 's shares have underperformed the Zacks Soap and Cleaning Materials industry over the last six months (-16.9% vs. -10.2%). P&G reported third-quarter fiscal 2018 results, wherein earnings and revenues surpassed expectations, benefiting from higher demand for skincare products, along with fabric and home care products.
Adjusted earnings grew 4% from the year-ago level, aided by productivity cost savings. Top line grew 4% on organic sales growth of 1%, comprising 2% volume growth. The Zacks analyst emphasizes that Procter & Gamble remains focused on improved product, packaging and marketing initiatives, and productivity cost-savings plan.
Meanwhile, it intends to acquire the consumer-health unit of Merck KGaA, which will enhance P&G's existing consumer healthcare capabilities. However, core gross and operating margin declined 110 bps and 100 bps, respectively, in the quarter.
Lower pricing, higher commodity costs and increased competition continued to hurt results. P&G's shares have lost around 20.1% year to date. Estimates for fiscal 2018 and 2019 have moved down 0.2% and 1.3%, over the past 60 days.
Shares of AbbVie have gained +9.6% year to date, outperforming the Zacks Large Cap Pharmaceuticals industry, which has declined -3.8% over the same period. AbbVie beat estimates for both earnings and sales in the first quarter. It also raised its earnings expectations for 2018 based on strong Q1 performance and an optimistic outlook for future quarters.
AbbVie's key drug, Humira, has been performing well based on strong demand trends, despite new competition. Moreover, Imbruvica has multibillion dollar potential and AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. Mavyret's launch has also been stronger than expected. AbbVie has an impressive late-stage pipeline with label expansions for both new and existing products expected over the next few years.
The Zacks analyst thinks promising data from several pivotal studies and settlement of its second Humira patent dispute with Biogen are key positives. However, Viekira's sales continue to be hurt by intensifying competition.
McDonald 's shares have gained +8.6% over the past one year, outperforming the Zacks Restaurants industry which has gained +1.7% over the same period. The Zacks analyst thinks McDonald's impressive earnings surprise history, various sales and digital initiatives as well as positive comparable sales are major positives.
Earnings surpassed the estimate for 15th straight quarter, as it reported first-quarter 2018 results. Furthermore, increased focus on delivery and accelerated deployment of Experience of the Future restaurants in the United States should boost its performance.
Efforts to attract customers in International Lead & High Growth Markets also bode well. In fact, global comps at McDonald's have been positive over the trailing eleven quarters. Yet, high labor costs and currency headwinds are major concerns.
Moreover, revenues have been under pressure for quite some time due to strategic refranchising initiative. Even so, its augmented focus on refranchising should cut the capital requirements and facilitate EPS growth in the long run.
Shares of PepsiCo have decreased -18.7% year to date, underperforming the Zacks Soft Beverages industry, which has declined -12.3% over the same period. PepsiCo's first-quarter 2018 earnings and revenues both beat expectations. Notably, this is the eighth consecutive quarter of positive earnings surprise.
The improvement was mainly due to strong performances in its international divisions, propelled by higher revenue growth in the developing and emerging markets. Core earnings and revenues grew 3% and 4.3% year over year, respectively. Organic revenues were 2.3% in the quarter, same as the prior quarter.
However, NAB division reported dismal results with revenues and operating profit decreasing 1% and 22%, respectively. Volumes declined 2.5%, led by 4% decline in CSDs and 1% decrease in Non CSDs. Shift in consumer preferences toward healthier options is a potent headwind. Earnings estimates have moved 0.2% and 0.5% south for 2018 and 2019, respectively, over the past 30 days.
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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. | Moreover, Imbruvica has multibillion dollar potential and AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. Stocks recently featured in the blog include Procter & GamblePG , AbbVieABBV , McDonald'sMCD and PepsiCoPEP . Here are highlights from Monday's Analyst Blog: Top Analyst Reports for P&G, AbbVie, McDonalds and Pepsico The Zacks Research Daily presents the best research output of our analyst team. | Here are highlights from Monday's Analyst Blog: Top Analyst Reports for P&G, AbbVie, McDonalds and Pepsico The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 17 major stocks, including Procter & Gamble, AbbVie, McDonald's and PepsiCo. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report Procter & Gamble Company (The) (PG): Free Stock Analysis Report To read this article on Zacks.com click here. | Here are highlights from Monday's Analyst Blog: Top Analyst Reports for P&G, AbbVie, McDonalds and Pepsico The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 17 major stocks, including Procter & Gamble, AbbVie, McDonald's and PepsiCo. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Pepsico, Inc. (PEP): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report Procter & Gamble Company (The) (PG): Free Stock Analysis Report To read this article on Zacks.com click here. | Today's Research Daily features new research reports on 17 major stocks, including Procter & Gamble, AbbVie, McDonald's and PepsiCo. Stocks recently featured in the blog include Procter & GamblePG , AbbVieABBV , McDonald'sMCD and PepsiCoPEP . Here are highlights from Monday's Analyst Blog: Top Analyst Reports for P&G, AbbVie, McDonalds and Pepsico The Zacks Research Daily presents the best research output of our analyst team. |
25508.0 | 2018-05-22 00:00:00 UTC | Vanguard Growth ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/vanguard-growth-etf-experiences-big-outflow-2018-05-22 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $66.7 million dollar outflow -- that's a 0.2% decrease week over week (from 232,882,000 to 232,433,141). Among the largest underlying components of VUG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Comcast Corp (Symbol: CMCSA) is up about 0.7%, and Walt Disney Co. (Symbol: DIS) is higher by about 0.9%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average:
Looking at the chart above, VUG's low point in its 52 week range is $125.792 per share, with $152.38 as the 52 week high point - that compares with a last trade of $148.46. 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 VUG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Comcast Corp (Symbol: CMCSA) is up about 0.7%, and Walt Disney Co. (Symbol: DIS) is higher by about 0.9%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $125.792 per share, with $152.38 as the 52 week high point - that compares with a last trade of $148.46. 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 VUG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Comcast Corp (Symbol: CMCSA) is up about 0.7%, and Walt Disney Co. (Symbol: DIS) is higher by about 0.9%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $125.792 per share, with $152.38 as the 52 week high point - that compares with a last trade of $148.46. 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 VUG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Comcast Corp (Symbol: CMCSA) is up about 0.7%, and Walt Disney Co. (Symbol: DIS) is higher by about 0.9%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard Growth ETF (Symbol: VUG) where we have detected an approximate $66.7 million dollar outflow -- that's a 0.2% decrease week over week (from 232,882,000 to 232,433,141). For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $125.792 per share, with $152.38 as the 52 week high point - that compares with a last trade of $148.46. | Among the largest underlying components of VUG, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Comcast Corp (Symbol: CMCSA) is up about 0.7%, and Walt Disney Co. (Symbol: DIS) is higher by about 0.9%. For a complete list of holdings, visit the VUG Holdings page » The chart below shows the one year price performance of VUG, versus its 200 day moving average: Looking at the chart above, VUG's low point in its 52 week range is $125.792 per share, with $152.38 as the 52 week high point - that compares with a last trade of $148.46. 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). |
25509.0 | 2018-05-22 00:00:00 UTC | Health Care Sector Update for 05/22/2018: VBIV,CTMX,RDY,BMRN | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-05222018-vbivctmxrdybmrn-2018-05-22 | nan | nan | Top Health Care Stocks
JNJ -0.74%
PFE -0.18%
ABT -1.23%
MRK -0.19%
AMGN +0.99%
Health care stocks were ending moderately lower today after giving back narrow gains earlier in the session. At last look, the NYSE Health Care Index was falling slightly almost 0.3% in recent trade. Also today, shares of health care companies in the S&P 500 were down slightly more than 0.3% as a group although the Nasdaq Biotechnology index was rising nearly 0.3% this afternoon.
Among health care stocks moving on news:
+ VBI Vaccines ( VBIV ) was hanging on to a small gain shortly before Tuesday's closing bell, easing from a 5% advance earlier in today's session, that followed the early-stage drugmaker saying it was on the brink of "really important" human clinical data readouts across three different programs representing a "very different spectrum of risk and return". In prepared remarks, CEO Jeff Baxter described its prospective Hepatitis B vaccine as having an extremely low risk and a very strong potential return. He also its CMV vaccine candidate was "in the middle, probably (at) 50-50" while its GBM vaccine program was at the other end of the spectrum. "It is an extremely high risk, but extremely important for people with this terrible disease, and could really be a "knock out of the park" in terms of financial return for investors," if successful.
In other sector news:
+ CytomX Therapeutics ( CTMX ) advanced Tuesday, at one point climbing almost 3%, after the specialty pharmaceuticals company said federal regulators have cleared its CX-2029 drug candidate to treat several forms of solid and hematologic cancers. CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the U.S. Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie.
+ Dr. Reddy's Laboratories Ltd ( RDY ) was almost 2% higher this afternoon despite the Indian drugmaker reporting a smaller per-share profit and a drop in revenue compared with year-ago levels. The company earned $0.28 per share during the three months ended March 31, down from $0.29 per share last year, while revenue declined to $543 million from $546 million during the first three months of 2017. Analyst estimates were not available for comparison.
- BioMarin Pharmaceutical ( BMRN ) was nearly 3% lower in late Tuesday trading, roughly halving a 6% decline during the first 30 minutes of today's regular session that followed the company reporting improved two-year results among patients with hemophilia who were treated with its valoctocogene roxaparvovec gene therapy, including a 96% mean reduction in use of Factor VIII, a blood-clotting protein considered the standard of care. Quality of life also improved, BioMarin said, observing a median 17.3-point increase over baseline levels in a patient assessment of their symptoms and more than tripling the 5.2-point increase considered to be the minimal clinically important difference.
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. | CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the U.S. Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie. In other sector news: + CytomX Therapeutics ( CTMX ) advanced Tuesday, at one point climbing almost 3%, after the specialty pharmaceuticals company said federal regulators have cleared its CX-2029 drug candidate to treat several forms of solid and hematologic cancers. + Dr. Reddy's Laboratories Ltd ( RDY ) was almost 2% higher this afternoon despite the Indian drugmaker reporting a smaller per-share profit and a drop in revenue compared with year-ago levels. | CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the U.S. Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie. Health care stocks were ending moderately lower today after giving back narrow gains earlier in the session. Also today, shares of health care companies in the S&P 500 were down slightly more than 0.3% as a group although the Nasdaq Biotechnology index was rising nearly 0.3% this afternoon. | CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the U.S. Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie. Also today, shares of health care companies in the S&P 500 were down slightly more than 0.3% as a group although the Nasdaq Biotechnology index was rising nearly 0.3% this afternoon. Among health care stocks moving on news: + VBI Vaccines ( VBIV ) was hanging on to a small gain shortly before Tuesday's closing bell, easing from a 5% advance earlier in today's session, that followed the early-stage drugmaker saying it was on the brink of "really important" human clinical data readouts across three different programs representing a "very different spectrum of risk and return". | CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the U.S. Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie. Top Health Care Stocks Health care stocks were ending moderately lower today after giving back narrow gains earlier in the session. |
25510.0 | 2018-05-22 00:00:00 UTC | Health Care Sector Update for 05/22/2018: CTMX,RDY | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-05222018-ctmxrdy-2018-05-22 | nan | nan | Top Health Care Stocks
JNJ -0.68%
PFE +0.29%
ABT -1.03%
MRK +0.34%
AMGN +1.54%
Health care stocks were little changed Tuesday after giving back narrow gains earlier in the session. The NYSE Health Care Index was falling slightly more than 0.1% in recent trading. Shares of health care companies in the S&P 500 were up slightly more than 0.1% as a group although the Nasdaq Biotechnology index was rising nearly 0.8% this afternoon.
Among health care stocks moving on news:
+ CytomX Therapeutics ( CTMX ) advanced Tuesday, climbing more than 3%, after the specialty pharmaceuticals company said federal regulators have cleared its CX-2029 drug candidate to treat several forms of solid and hematologic cancers. CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the US Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie.
In other sector news:
+ Dr. Reddy's Laboratories Ltd ( RDY ) was almost 2% higher Tuesday afternoon despite the Indian drugmaker reporting a smaller per-share profit and a drop in revenue compared with year-ago levels. The company earned $0.28 per share during the three months ended March 31, down from $0.29 per share last year, while revenue declined to $543 million from $546 million during the first three months of 2017. Analyst estimates were not available for comparison.
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. | CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the US Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie. Health care stocks were little changed Tuesday after giving back narrow gains earlier in the session. Among health care stocks moving on news: + CytomX Therapeutics ( CTMX ) advanced Tuesday, climbing more than 3%, after the specialty pharmaceuticals company said federal regulators have cleared its CX-2029 drug candidate to treat several forms of solid and hematologic cancers. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the US Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie. Among health care stocks moving on news: + CytomX Therapeutics ( CTMX ) advanced Tuesday, climbing more than 3%, after the specialty pharmaceuticals company said federal regulators have cleared its CX-2029 drug candidate to treat several forms of solid and hematologic cancers. | CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the US Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie. Shares of health care companies in the S&P 500 were up slightly more than 0.1% as a group although the Nasdaq Biotechnology index was rising nearly 0.8% this afternoon. Among health care stocks moving on news: + CytomX Therapeutics ( CTMX ) advanced Tuesday, climbing more than 3%, after the specialty pharmaceuticals company said federal regulators have cleared its CX-2029 drug candidate to treat several forms of solid and hematologic cancers. | CytomX is co-developing CX-2029 with AbbVie ( ABBV ) and this week's approval by the US Food and Drug Admnistration of the company's investigational new drug application triggers a $25 million milestone payment to CytomX from Abbvie. Top Health Care Stocks Shares of health care companies in the S&P 500 were up slightly more than 0.1% as a group although the Nasdaq Biotechnology index was rising nearly 0.8% this afternoon. |
25511.0 | 2018-05-21 00:00:00 UTC | Roche (RHHBY) Announces Positive Data on Hemophilia Drug | ABBV | https://www.nasdaq.com/articles/roche-rhhby-announces-positive-data-on-hemophilia-drug-2018-05-21 | nan | nan | Roche RHHBY announced full results from the phase III study, HAVEN 3, evaluating haemophilia A drug Hemlibra (emicizumab).
The randomized multicenter, open-label, phase III study evaluated the efficacy, safety and pharmacokinetics of Hemlibra prophylaxis versus no prophylaxis (episodic/on-demand factor VIII treatment) in patients with hemophilia A without factor VIII inhibitors.
The trial results show that Hemlibra reduced treated bleeds by 96% compared to no prophylaxis in HAVEN 3 study in haemophilia A without factor VIII inhibitors. Moreover, in a subset of patients included in the study, who previously received factor VIII prophylaxis, which is the standard of care, Hemlibra reduced bleeds by 68% compared to their prior therapy.
Almost 55.6% of patients treated with Hemlibra every week and 60% of patients treated with Hemlibra every two weeks experienced zero treated bleeds, compared to none of patients treated with no prophylaxis.
Additionally, results from another phase III study, HAVEN 4, showed Hemlibra administered every four weeks provides clinically meaningful control of bleeding in people with or without factor VIII inhibitors.
We remind investors that the FDA granted Breakthrough Therapy Designation to Hemlibra in April 2018 for patients with hemophilia A without factor VIII inhibitors, based on data from the HAVEN 3 study. The drug is already approved by the FDA for routine prophylaxis to prevent or reduce the frequency of bleeding episodes in adults and children with haemophilia A with factor VIII inhibitors.
Hemlibra was also approved by the European Commission in February 2018 for routine prophylaxis of bleeding episodes in people with haemophilia A with factor VIII inhibitors.
Roche's hematology portfolio includes approved drugs like MabThera/Rituxan, Gazyva/Gazyvaro, Tecentriq and Venclexta.
We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . Both companies are jointly commercializing the drug in the United States. AbbVie is commercializing the drug outside the United States as well.
Approval of new drugs and a potential label expansion of existing drugs bode well for Roche as its legacy drugs like Herceptin, MabThera are facing competition from biosimilars.
Roche's stock has lost 7.3% in the last six months compared with industry's gain of 0.5%.
Novartis NVS has already launched its biosimilar version of Rituxan/ MabThera in Europe. Amgen AMGN has also obtained FDA approval for a biosimilar version of Avastin for treatment of five types of cancers including lung cancer, colorectal cancer, glioblastoma, renal cell carcinoma and cervix cancer.
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. | We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States as well. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States as well. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States as well. | We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States as well. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25512.0 | 2018-05-18 00:00:00 UTC | 5 Things AbbVie Investors Need to Know | ABBV | https://www.nasdaq.com/articles/5-things-abbvie-investors-need-know-2018-05-18 | nan | nan | Has the luster faded for AbbVie (NYSE: ABBV) ?
The big pharma company ranked as the best performer among its peers in 2017, with an impressive gain of 54%. AbbVie started off 2018 great as well. However, disappointing results from a phase 2 clinical study of cancer drug Rova-T caused the stock to skid.
Still, AbbVie's top executives remain very optimistic about the company's prospects. AbbVie CEO Rick Gonzalez, CFO Bill Chase, and Chief Scientific Officer Michael Severino fielded questions about current products and key pipeline candidates at the Bank of America Merrill Lynch Health Care Conference on Wednesday. Here are five things they said that AbbVie investors will want to know.
1. Count on continued solid sales for Mavyret
When AbbVie reported its first-quarter results last month, new hepatitis C virus (HCV) drug Mavyret was the star of the show. The company posted $919 million in HCV revenue during the quarter, with most of that amount generated by Mavyret. But will Mavyret continue to perform so well? Rick Gonzalez thinks it will.
Gonzalez said the HCV market pretty much boils down to a one-on-one match-up between AbbVie and Gilead Sciences . That's exactly what Gilead's management team thinks also. He doesn't expect dramatic pricing changes going forward. Gonzalez also thinks Mavyret will hold on to the market share it's gained. And while the number of HCV patients will trend downward over time, he said there should still be enough for AbbVie's HCV drug to produce solid sales for years to come.
2. The threat to Imbruvica isn't a big worry
Imbruvica is a key component of AbbVie's growth strategy. But the drug has new competition from AstraZeneca 's (NYSE: AZN) Calquence, which won FDA approval as a second-line treatment for mantle cell lymphoma (MCL) in October 2017. AbbVie's executives don't appear to be too worried about the threat from Calquence, though.
Gonzalez noted that around 60% of the new patients that are using Calquence didn't respond to treatment by Imbruvica, so they don't present a net decline in market share for AbbVie's drug. He also pointed out that first-to-market "innovator" cancer drugs like Imbruvica tend to hold on to most of their market share even with new rivals on the scene because physicians and patients get comfortable with the innovator drug.
3. Elagolix is moving forward as expected
Some investors might have been concerned when AbbVie announced in April that the FDA was pushing back its review of elagolix in treating endometriosis by three months. However, AbbVie Chief Scientific Officer Mike Severino said that the delay related to "a very straightforward request" by the FDA for additional information.
Severino added that AbbVie responded promptly to the FDA's request for more information, and that the company's review of the data was "reassuring" to the AbbVie team. He said elagolix is moving forward as expected. An approval decision on the drug is anticipated in 2018 Q3. Rick Gonzalez stated that AbbVie is planning for a relatively slow initial ramp-up of sales assuming the drug is approved, because there will be a need for educating the market about the new treatment for endometriosis.
4. Upadacitinib shouldn't face the challenges that baricitinib has
Eli Lilly (NYSE: LLY) and Incyte (NASDAQ: INCY) didn't succeed on their first attempt last year to win approval for JAK inhibitor baricitinib in treating rheumatoid arthritis. The two companies regrouped to resubmit for approval of the drug but received mixed results in April from an FDA advisory committee, which recommended approval for a lower dose of baricitinib, but not the higher dose of the drug.
Should AbbVie be worried that its own JAK inhibitor, upadacitinib, could face similar challenges? Severino said the company "feels good about the position" it's in with upadacitinib. He pointed out that in unblinded results for upadacitinib so far, there hasn't been an imbalance in venous thromboembolic events (VTEs) or a pattern of platelet elevations. Severino maintained that "there are important differences" between AbbVie's drug and baricitinib.
5. The market overreacted to the Rova-T setback
AbbVie's management team didn't talk much about the clinical setback for Rova-T. However, Gonzalez did state that the company felt that the market overreacted to the news. And AbbVie put money on the line based on that belief.
Gonzalez said AbbVie accelerated the timing of a $10 billion stock buyback that was originally intended to extend over a two-to-three year period. This stock repurchase is a component of what Gonzalez referred to as AbbVie's second-highest priority in capital deployment: returning cash to shareholders. The other component in that priority, of course, is paying dividends.
What's AbbVie's top priority for its capital? Investing back into the business. Based on Gonzalez's comments, though, investors probably shouldn't expect any major acquisitions anytime soon. Gonzalez said that "valuations are pretty high right now." He added that the company isn't in a position where it must pick up additional late-stage assets. Don't completely rule out a big deal, though: Gonzalez stated that "if we find the right assets, you will see us move forward on those."
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Keith Speights owns shares of AbbVie and Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short May 2018 $85 calls on 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. | AbbVie CEO Rick Gonzalez, CFO Bill Chase, and Chief Scientific Officer Michael Severino fielded questions about current products and key pipeline candidates at the Bank of America Merrill Lynch Health Care Conference on Wednesday. Rick Gonzalez stated that AbbVie is planning for a relatively slow initial ramp-up of sales assuming the drug is approved, because there will be a need for educating the market about the new treatment for endometriosis. Has the luster faded for AbbVie (NYSE: ABBV) ? | The threat to Imbruvica isn't a big worry Imbruvica is a key component of AbbVie's growth strategy. The market overreacted to the Rova-T setback AbbVie's management team didn't talk much about the clinical setback for Rova-T. Has the luster faded for AbbVie (NYSE: ABBV) ? | Gonzalez noted that around 60% of the new patients that are using Calquence didn't respond to treatment by Imbruvica, so they don't present a net decline in market share for AbbVie's drug. Severino added that AbbVie responded promptly to the FDA's request for more information, and that the company's review of the data was "reassuring" to the AbbVie team. Rick Gonzalez stated that AbbVie is planning for a relatively slow initial ramp-up of sales assuming the drug is approved, because there will be a need for educating the market about the new treatment for endometriosis. | Gonzalez said the HCV market pretty much boils down to a one-on-one match-up between AbbVie and Gilead Sciences . Has the luster faded for AbbVie (NYSE: ABBV) ? AbbVie started off 2018 great as well. |
25513.0 | 2018-05-17 00:00:00 UTC | Bear of the Day: Scotts Miracle-Gro (SMG) | ABBV | https://www.nasdaq.com/articles/bear-day-scotts-miracle-gro-smg-2018-05-17 | nan | nan | Known for its popular lawn and garden care products, Scotts Miracle-Gro Co. (SMG) is one of the most recognized names in the gardening industry. Its U.S. brands include Scotts, Miracle-Gro, Ortho, and Smith & Hawken. The company's customers are wide-ranging, from home improvement centers and hardware chains to nurseries and specialty crop growers.
Over the years, Scotts has been making a name for itself in the marijuana industry. It has been developing potting soil specifically for growing marijuana, as well as acquiring key hydroponics companies.
Disappointing Q2 Results
The Zacks Rank #5 (Strong Sell) stock reported second quarter fiscal 2018 results a couple of weeks ago, and both earnings and revenues missed our consensus estimate.
EPS was $2.88 per share, falling way behind the Zacks Consensus of $3.42 per share.
Revenues fell 7% year-over-year to $1.01 billion, while U.S. Consumer segment sales were down 6% and Hawthorne segment sales were down 29% to $41.8 million.
The decline in revenues was primarily due to a delayed start to the lawn and garden season in the U.S after a long winter. CEO Jim Hagedorn also noted that "consumer purchases entering May are down double digits from a year ago" but in markets like California and Florida, consumer purchases were in-line with last year's results.
Company-wide gross margin declined 240 basis points to 40.4%.
Earnings Outlook
Estimates took a hit in the days following the report.
For the current quarter, two analysts cut their outlook in the last 60 days, and the consensus has dipped nine cents from $2.77 to $2.98 per share. Earnings are only expected to grow around 1.9% for the quarter.
Five analysts have revised their estimates downward for the current fiscal year, and earnings are projected to increase a minimal 1%. The consensus has decreased from $4.68 to $3.98 per share.
Looking at the next fiscal year, earnings could grow about 20%, and the current consensus sits at $4.80 per share.
Can SMG Stock Turn Around?
Shares of Scotts Miracle-Gro are down 18% so far this year and have slipped about 2% in the past one year. Compared to the S&P 500, the index has gained 1.9% and 15.6%, respectively.
Scotts Miracle-Gro Company (The) Price and Consensus
Scotts Miracle-Gro Company (The) Price and Consensus | Scotts Miracle-Gro Company (The) Quote
The company is currently trading at a forward P/E of 21.2X.
Despite its lackluster Q2 earnings report and widespread downgrades as a result, analysts at SunTrust Robinson Humphrey feel there's potential in SMG, and upgraded the stock to a Buy.
According to SunTrust, Scotts stock has now "bottomed," and there's "potential for upside"; the firm also notes that the company's shares tend to rise from June to January rather than the spring planting season.
Additionally, SunTrust believes SMG can be a "call option on [the] cannabis legalization trend." The company did just buy hydroponics company Sunlight Supply earlier this year and bought General Hydroponics back in 2015.
But, Scotts has been having problems with its marijuana-linked Hawthorne business division, with 2018 sales to be flat year-over-year at best.
For investors wanting exposure to marijuana stocks, and one with more near-term potential, they should consider AbbVie (ABBV), a large cap biopharmaceutical company that has one of the first FDA approved cannabis-based drugs, Marinol, on the market. It's a #3 (Hold) on the Zacks Rank right now, but earnings could grow almost 39% for the current fiscal 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. | For investors wanting exposure to marijuana stocks, and one with more near-term potential, they should consider AbbVie (ABBV), a large cap biopharmaceutical company that has one of the first FDA approved cannabis-based drugs, Marinol, on the market. Click to get this free report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Despite its lackluster Q2 earnings report and widespread downgrades as a result, analysts at SunTrust Robinson Humphrey feel there's potential in SMG, and upgraded the stock to a Buy. | Click to get this free report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. For investors wanting exposure to marijuana stocks, and one with more near-term potential, they should consider AbbVie (ABBV), a large cap biopharmaceutical company that has one of the first FDA approved cannabis-based drugs, Marinol, on the market. Scotts Miracle-Gro Company (The) Price and Consensus Scotts Miracle-Gro Company (The) Price and Consensus | Scotts Miracle-Gro Company (The) Quote The company is currently trading at a forward P/E of 21.2X. | Click to get this free report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. For investors wanting exposure to marijuana stocks, and one with more near-term potential, they should consider AbbVie (ABBV), a large cap biopharmaceutical company that has one of the first FDA approved cannabis-based drugs, Marinol, on the market. Disappointing Q2 Results The Zacks Rank #5 (Strong Sell) stock reported second quarter fiscal 2018 results a couple of weeks ago, and both earnings and revenues missed our consensus estimate. | For investors wanting exposure to marijuana stocks, and one with more near-term potential, they should consider AbbVie (ABBV), a large cap biopharmaceutical company that has one of the first FDA approved cannabis-based drugs, Marinol, on the market. Click to get this free report Scotts Miracle-Gro Company (The) (SMG): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Disappointing Q2 Results The Zacks Rank #5 (Strong Sell) stock reported second quarter fiscal 2018 results a couple of weeks ago, and both earnings and revenues missed our consensus estimate. |
25514.0 | 2018-05-15 00:00:00 UTC | 3 Top Healthcare Stocks to Buy in May | ABBV | https://www.nasdaq.com/articles/3-top-healthcare-stocks-buy-may-2018-05-15 | nan | nan | Healthcare products tend to remain in demand no matter what is going on in the global economy. That's why the sector is a great place to hunt for high-quality investments.
So which stocks do our healthcare experts have their eye on right now? We asked these three Motley Fool investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Cardinal Health (NYSE: CAH) , and Masimo (NASDAQ: MASI) .
A big pharma stock that has it all
Keith Speights (AbbVie): AbbVie was rocking along, with the stock soaring more than 50% in 2017 and up over 20% year to date in 2018. But the good times came to a screeching halt in late March when the company announced disappointing results for experimental lung cancer drug Rova-T. AbbVie lost all its gains made so far this year and then some.
But AbbVie continues to be the best big-pharma stock on the market, in my opinion. While the Rova-T setback certainly stung, the company still has a pipeline loaded with potential winners, including endometriosis and uterine fibroid drug elagolix, and autoimmune disease drugs risankizumab and upadacitinib.
AbbVie's Q1 results reminded investors just how much the company has going for it even without its strong pipeline candidates. The company blew past Wall Street estimates on soaring sales for immunology drug Humira, cancer drug Imbruvica, and a surprisingly strong launch for new hepatitis-C drug Mavyret.
Investors looking for growth should still like AbbVie despite its Rova-T challenges. Income-seeking investors have just as much to like. AbbVie's dividend yield currently stands just a notch below 4%. The company has increased its dividend payout by a whopping 140% since it was spun off from parent Abbott Labs (NYSE: ABT) in 2013.
Thanks to the sell-off following the Rova-T update in March, AbbVie stock now trades at 11.4 times expected earnings. With its great growth prospects, that's a bargain price. AbbVie is a big-pharma stock that has it all: growth, income, and a great value.
Betting on a long-term rebound
Sean Williams(Cardinal Health): Sometimes I find that the most intriguing stocks are those being avoided like the plague by Wall Street. If you're looking for a solid turnaround candidate and income play in the healthcare sector, I'd suggest taking a closer look at the beaten-down Cardinal Health.
There's no sugarcoating that Cardinal Health -- which supplies medical devices, generic drugs, and other supply-chain needs for hospitals, medical offices, and ambulatory surgical centers -- bombed in its recently reported third-quarter results. Shares of the company had their worst day in 14 years (a 19% decline) after Cardinal Health announced that a higher effective tax rate, along with weaker generic drug pricing, caused its profit to miss the mark -- a 33% decline in adjusted earnings per share (EPS) from the prior-year quarter to $0.81. Cardinal Health's full-year adjusted EPS guidance was also reduced to a new range of $4.85 to $4.95, down from $5.25 to $5.50.
That probably sounds bad on the surface, but the issues impacting Cardinal Health are generally cosmetic and should be resolved within the next 12 to 18 months, in my opinion.
The first issue -- the higher-than-expected tax rate -- was derived from inventory write-offs at medical device producer Cordis, which Cardinal Health acquired from Johnson & Johnson (NYSE: JNJ) three years ago. Here's the thing about Cordis: It's growing. Top-line sales of the cardiovascular device maker have steadily pushed higher as the division has given Cardinal Health a broader geographic presence. The issue lies in working out the kinks in Cordis' supply chain. Though this won't happen overnight, management has implemented measures that should yield positive results in 2019.
As for weaker generic-drug pricing, this isn't anything new. Generic drugmakers like Teva Pharmaceutical Industries (NYSE: TEVA) have been pressured by weaker generic drug prices since the third quarter of last year. However, weakness in pricing has recently shown signs of stabilizing. Generic drug manufacturers and Wall Street analysts both seem to believe that 2019 will offer much-needed price stabilization for generic therapies. Considering that generics make up the bulk of total written prescription -- about nine out of 10 -- it seems only logical that pricing power will return to generic drugmakers and distributors sooner rather than later.
What we're left with is a healthcare company valued at less than 10 times Wall Street's 2019 EPS consensus that also happened to increase its quarterly dividend by 3% this past week. For you income seekers at home, this value stock is now yielding 3.6%! Though it could take some time to find its legs again, Cardinal Health looks to be an intriguing turnaround play for value- and income-oriented investors.
Slow and steady wins the race
Brian Feroldi (Masimo): Medical device stocks might not grab as many headlines as biotechnology stocks, but they sure can make wonderful long-term investments.
Consider Masimo, a medical device company that sells noninvasive devices that monitor oxygen levels in the blood . This company has been steadily winning market share for years, which has helped drive consistent gains on its top and bottom lines. The stock has followed suit, and investors who bought in during the company's IPO in 2007 are sitting on total gains of more than 370%.
The company's most recent quarter proved yet again that its competitive position is as strong as ever. Revenue grew more than 8% to $213 million thanks to healthy reorders from existing customers and new business wins. Adjusted EPS grew 15% thanks to margin improvements and stock buybacks . Wall Street expects that the prosperity can continue for years as current estimates call for double-digit gains on the bottom line over the next five years.
The only knock against investing in Masimo that I see is that the stock isn't particularly cheap right now. Shares trade for more than 32 times forward earnings, which is certainly pricing in a lot of prosperity. However, Masimo boasts a debt-free balance sheet, is run by its founder, is highly profitable, and has a strong history of outperforming expectations. Those are highly attractive qualities that make me believe this is a company that deserves its premium price tag.
10 stocks we like better than Masimo
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 Masimo 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 May 8, 2018
Brian Feroldi has no position in any of the stocks mentioned. Keith Speights owns shares of AbbVie. Sean Williams owns shares of Teva Pharmaceutical Industries. The Motley Fool owns shares of and recommends Johnson & Johnson and Masimo. The Motley Fool has the following options: short May 2018 $140 calls on Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But the good times came to a screeching halt in late March when the company announced disappointing results for experimental lung cancer drug Rova-T. AbbVie lost all its gains made so far this year and then some. We asked these three Motley Fool investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Cardinal Health (NYSE: CAH) , and Masimo (NASDAQ: MASI) . A big pharma stock that has it all Keith Speights (AbbVie): AbbVie was rocking along, with the stock soaring more than 50% in 2017 and up over 20% year to date in 2018. | We asked these three Motley Fool investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Cardinal Health (NYSE: CAH) , and Masimo (NASDAQ: MASI) . A big pharma stock that has it all Keith Speights (AbbVie): AbbVie was rocking along, with the stock soaring more than 50% in 2017 and up over 20% year to date in 2018. But the good times came to a screeching halt in late March when the company announced disappointing results for experimental lung cancer drug Rova-T. AbbVie lost all its gains made so far this year and then some. | We asked these three Motley Fool investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Cardinal Health (NYSE: CAH) , and Masimo (NASDAQ: MASI) . A big pharma stock that has it all Keith Speights (AbbVie): AbbVie was rocking along, with the stock soaring more than 50% in 2017 and up over 20% year to date in 2018. But the good times came to a screeching halt in late March when the company announced disappointing results for experimental lung cancer drug Rova-T. AbbVie lost all its gains made so far this year and then some. | We asked these three Motley Fool investors to weigh in, and they picked AbbVie (NYSE: ABBV) , Cardinal Health (NYSE: CAH) , and Masimo (NASDAQ: MASI) . AbbVie's Q1 results reminded investors just how much the company has going for it even without its strong pipeline candidates. A big pharma stock that has it all Keith Speights (AbbVie): AbbVie was rocking along, with the stock soaring more than 50% in 2017 and up over 20% year to date in 2018. |
25515.0 | 2018-05-11 00:00:00 UTC | Trump Announces Plan to Reign In Drug Prices and Pharma Stocks Rally. | ABBV | https://www.nasdaq.com/articles/trump-announces-plan-reign-drug-prices-and-pharma-stocks-rally-2018-05-11 | nan | nan | On Friday, President Trump unveiled his much-anticipated plan to control drug prices in the U.S. During his presidential campaign, Trump had promised to take on the big drug companies and it was feared that the plan would include provisions that would hurt profits in the pharmaceutical industry.
As the president began speaking, the stock prices of the biggest drug companies did in fact briefly decline, only to reverse course and ended the day broadly higher.
The reason? The plan doesn't seem to be "taking them on" at all.
The biggest fear was that the new plan would include provisions for Medicare to negotiate directly with drug companies on price. Roughly 30% of the dollar value of prescriptions filled in the U.S. is paid for by Medicare, making the U.S. government the single biggest customer for pharmaceuticals by a wide margin. Drug companies have been staunchly opposed to the idea of direct negotiation as it would almost certainly damage profits.
Once it was clear direct negotiation wasn't on the agenda, investors snapped up shares of the biggest U.S. drug makers, including Abbvie ( ABBV ), Amgen ( AMGN ) and Merck ( MRK ), each of which finished the day 2% or more above their mid-speech lows.
The President Takes on Softer Targets.
Trump decried the participation of what he referred to as "middlemen", meaning primarily Pharmacy Benefit Managers - intermediaries between manufacturers and doctors and pharmacies.
He also took aim at small pharmaceutical companies who buy up off-patent generic drugs and raise the prices sharply. Because this strategy is mainly the practice of small companies (think Martin Shkreli and Turing Pharmaceutical), it won't affect the big names and Trump's plan to speed FDA approval of generic drugs could actually help big pharma.
Finally, Trump took aim at a familiar target - foreign countries. Explaining that other countries pay "a tiny fraction of what the medicine costs in the U.S." Trump continued, "…it's time to end the global freeloading."
Drug prices in the U.S. can often be three times as much as in the U.K. and the E.U. and the president thinks those countries should pay their fair share of the costs of research and development of U.S. manufactured pharmaceuticals. It's not immediately clear how exactly the administration could go about raising drug prices off of U.S. soil, but the mere suggestion of concentrating on higher prices elsewhere as a catalyst to lower prices here at home was wind in the sales of the drug makers.
Cancer Drugs are Attractive
In the large cap drug space, investors should consider Eli Lilly ( LLY ). Having just reported a strong quarter with $1.34/share in earnings, beating the Zacks Consensus Estimate of $$1.11/share, LLY has seen 7 upwards estimates for 2018 in the past 30 days and earns a Zacks rank #1 (Strong Buy).
Eli Lilly also recently announced its planned acquisition of Armo Biosciences, bolstering its position in the hot field of immunotherapies for cancer treatment.
In the Biomedical and Genetics sector, Excelixis Inc ( EXEL ) shares have been moving lower lately despite a blowout earnings beat in Q1, topping estimates by 131%. In the report EXEL highlighted several promising cancer treatments in its research pipeline and reaffirmed revenue guidance of $430M to $460M for 2018.
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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. | Once it was clear direct negotiation wasn't on the agenda, investors snapped up shares of the biggest U.S. drug makers, including Abbvie ( ABBV ), Amgen ( AMGN ) and Merck ( MRK ), each of which finished the day 2% or more above their mid-speech lows. Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. As the president began speaking, the stock prices of the biggest drug companies did in fact briefly decline, only to reverse course and ended the day broadly higher. | Once it was clear direct negotiation wasn't on the agenda, investors snapped up shares of the biggest U.S. drug makers, including Abbvie ( ABBV ), Amgen ( AMGN ) and Merck ( MRK ), each of which finished the day 2% or more above their mid-speech lows. Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. On Friday, President Trump unveiled his much-anticipated plan to control drug prices in the U.S. During his presidential campaign, Trump had promised to take on the big drug companies and it was feared that the plan would include provisions that would hurt profits in the pharmaceutical industry. | Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Once it was clear direct negotiation wasn't on the agenda, investors snapped up shares of the biggest U.S. drug makers, including Abbvie ( ABBV ), Amgen ( AMGN ) and Merck ( MRK ), each of which finished the day 2% or more above their mid-speech lows. On Friday, President Trump unveiled his much-anticipated plan to control drug prices in the U.S. During his presidential campaign, Trump had promised to take on the big drug companies and it was feared that the plan would include provisions that would hurt profits in the pharmaceutical industry. | Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report Exelixis, Inc. (EXEL): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Once it was clear direct negotiation wasn't on the agenda, investors snapped up shares of the biggest U.S. drug makers, including Abbvie ( ABBV ), Amgen ( AMGN ) and Merck ( MRK ), each of which finished the day 2% or more above their mid-speech lows. The biggest fear was that the new plan would include provisions for Medicare to negotiate directly with drug companies on price. |
25516.0 | 2018-05-10 00:00:00 UTC | 3 Dividend Stocks for In-the-Know Investors | ABBV | https://www.nasdaq.com/articles/3-dividend-stocks-know-investors-2018-05-10 | nan | nan | Finding dividend stocks that provide the right amount of growth, long-term stability, and consistent yields can be difficult. But they aren't impossible to find, if you know where to look.
To help you track down a few of these companies for your portfolio, we reached out to some Motley Fool contributors for dividend stock ideas. They came back with Uniti Group (NASDAQ: UNIT) , AbbVie (NYSE: ABBV) , and American Tower (NYSE: AMT) . Here's why.
The best telecom REIT you've never heard of
Anders Bylund (Uniti Group): This real estate investment trust currently has a 12.6% dividend yield, which is often a red flag. Extremely high yields tend to come with very low share prices, which in turn is a healthy market reaction to deeply troubled business operations.
But maybe pigs do fly after all. This huge yield seems to stem from a misunderstanding, not some profound insight about impending doom.
It's true that Uniti is tethered to another company that really does deserve plenty of crimson-flag-waving. Regional telecom Windstream Holdings (NASDAQ: WIN) reported a $2.1 billion net loss over the last four quarters, along with roughly breakeven free cash flow and negative EBITDA (earnings before interest, taxes, depreciation, and amortization) profit. Uniti is the new embodiment of Windstream's former network infrastructure operations, which were spun out as a stand-alone business three years ago. Since then, Windstream's future has only darkened, while Uniti has been edging away from its old parent company in many ways.
Sometimes, Uniti is punished for Windstream's sins . But it's obvious to me that Uniti walked away from the 2015 separation with the better deal. What we see today is a struggling telecom that spun out its most valuable and effective operations in a Hail Mary attempt to gain some financial stability. In the future, I fully expect Windstream to either go bankrupt or agree to a pennies-on-the-dollar buyout, just to salvage a tiny bit of shareholder and debt-writer value. When that happens, Uniti will go on supplying its services through some 4.8 million miles of fiber-optic network strands and 700 wireless towers, but to a whole new set of clients.
If and when that day comes, Uniti shares will take another big hit as many investors expect the dying Windstream to drag this company down behind it. Maybe I'll buy more shares at that point, because Uniti's long-term story is solid.
And in the meantime, you can't beat that ultragenerous dividend yield.
A top income stock that's in the bargain bin
Todd Campbell (AbbVie): If you typically don't invest in healthcare, you might not know that shares in the biopharma giant AbbVie fell out of favor last month, following disappointing news on its solid-tumor cancer drug, Rova-T.
AbbVie had hoped definitive midstage trial data for Rova-T could allow it to file for accelerated approval from the Food and Drug Administration, but unfortunately, the data wasn't good enough for that to happen. Instead, the company will need to wait until results from future trials are available before it submits Rova-T for approval, and that could mean a wait of a year or more.
The setback caused AbbVie's shares to fall by more than 20%, but it's far from a deal-breaker for the company. Importantly, the sell-off could be creating a great opportunity to add this top dividend stock to your income portfolios.
AbbVie inherited Abbott Labs' dividend track record when it was spun off in 2013, so it's considered a Dividend Aristocrat . It appears to take that badge of honor seriously, because its quarterly dividend has increased to $0.96 from $0.40 since its initial public offering.
Following the drop in its shares, its forward dividend yield has increased to almost 4%. That's a healthy dividend for any company, but what really makes AbbVie an interesting buy is that its dividend could continue climbing because of double-digit revenue growth. In Q1 2018, sales grew 21% year over year. And since generic biosimilars to its best-seller, Humira, aren't expected in the U.S. until 2023 , there's plenty of opportunity for investors to own AbbVie and pocket increasingly larger dividend checks.
A company sending a strong signal to dividend investors
Chris Neiger (American Tower): American Tower may not be a household name, but its business is as ubiquitous as it can get. The company owns more than 160,000 cell tower sites throughout the U.S. and across the globe, and rents out the space to wireless carriers. This means that in the U.S. the top wireless service providers pay American Tower to put up signals on its towers, and when they need more capacity -- and carriers always do -- they have to fork over more money to American Tower.
The demand for wireless data is poised to increase: From 2016 to 2021, mobile data usage is expected to jump 700%. American Tower benefits by entering into long-term lease agreements; the stability from those contracts allows the company to earn about 99% of its sales from recurring revenue.
The great news for dividend investors is that American Tower is a real estate investment trust (REIT), which means that the majority of its net income is paid out as dividends. So as data usage grows -- and revenue and income increase -- so do the company's dividends.
American Tower can experience up and downs in sales and earnings just like any other company, and in the first quarter its revenue climbed 7.8% year over year, but earnings fell 8.8%. But that shouldn't discourage investors. Management expects full-year 2018 sales to increase by 6% and net earnings to rise by 13% year over year, both at the midpoint of guidance.
The company should also benefit from the ongoing wireless evolution, including the upcoming 5G standard . Carriers are already testing 5G, and as they ramp up usage they'll have to update and expand their signals on cell towers.
American Tower pays a forward yield of 2.19% right now, and has raised its dividend for a modest, but not insignificant, six consecutive years. If you're looking for a bet on the future of wireless communication -- and want a reliable dividend too -- you may want to consider this towering tech play.
10 stocks we like better than American Tower
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 American Tower wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of May 8, 2018
Anders Bylund owns shares of Uniti Group Inc. Chris Neiger has no position in any of the stocks mentioned. Todd Campbell has no position in any of the stocks mentioned.
The Motley Fool owns shares of and recommends American Tower. The Motley Fool has the following options: short October 2018 $135 calls on American Tower and long January 2019 $80 calls on American Tower. 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. | And since generic biosimilars to its best-seller, Humira, aren't expected in the U.S. until 2023 , there's plenty of opportunity for investors to own AbbVie and pocket increasingly larger dividend checks. They came back with Uniti Group (NASDAQ: UNIT) , AbbVie (NYSE: ABBV) , and American Tower (NYSE: AMT) . A top income stock that's in the bargain bin Todd Campbell (AbbVie): If you typically don't invest in healthcare, you might not know that shares in the biopharma giant AbbVie fell out of favor last month, following disappointing news on its solid-tumor cancer drug, Rova-T. AbbVie had hoped definitive midstage trial data for Rova-T could allow it to file for accelerated approval from the Food and Drug Administration, but unfortunately, the data wasn't good enough for that to happen. | They came back with Uniti Group (NASDAQ: UNIT) , AbbVie (NYSE: ABBV) , and American Tower (NYSE: AMT) . A top income stock that's in the bargain bin Todd Campbell (AbbVie): If you typically don't invest in healthcare, you might not know that shares in the biopharma giant AbbVie fell out of favor last month, following disappointing news on its solid-tumor cancer drug, Rova-T. AbbVie had hoped definitive midstage trial data for Rova-T could allow it to file for accelerated approval from the Food and Drug Administration, but unfortunately, the data wasn't good enough for that to happen. The setback caused AbbVie's shares to fall by more than 20%, but it's far from a deal-breaker for the company. | They came back with Uniti Group (NASDAQ: UNIT) , AbbVie (NYSE: ABBV) , and American Tower (NYSE: AMT) . A top income stock that's in the bargain bin Todd Campbell (AbbVie): If you typically don't invest in healthcare, you might not know that shares in the biopharma giant AbbVie fell out of favor last month, following disappointing news on its solid-tumor cancer drug, Rova-T. AbbVie had hoped definitive midstage trial data for Rova-T could allow it to file for accelerated approval from the Food and Drug Administration, but unfortunately, the data wasn't good enough for that to happen. The setback caused AbbVie's shares to fall by more than 20%, but it's far from a deal-breaker for the company. | They came back with Uniti Group (NASDAQ: UNIT) , AbbVie (NYSE: ABBV) , and American Tower (NYSE: AMT) . A top income stock that's in the bargain bin Todd Campbell (AbbVie): If you typically don't invest in healthcare, you might not know that shares in the biopharma giant AbbVie fell out of favor last month, following disappointing news on its solid-tumor cancer drug, Rova-T. AbbVie had hoped definitive midstage trial data for Rova-T could allow it to file for accelerated approval from the Food and Drug Administration, but unfortunately, the data wasn't good enough for that to happen. The setback caused AbbVie's shares to fall by more than 20%, but it's far from a deal-breaker for the company. |
25517.0 | 2018-05-04 00:00:00 UTC | Gilead Sciences, Inc. Stock Will Recover… Eventually | ABBV | https://www.nasdaq.com/articles/gilead-sciences-inc-stock-will-recover-eventually-2018-05-04 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It appeared that Gilead Sciences, Inc. (NASDAQ: GILD ) had turned the corner earlier this year after a long slump. Just three years ago, Gilead reached a high of $120 per share at the height of its HCV treatment sales surge. Then its revenues went into decline and took GILD stock with it; Gilead would go on to lose as much as half its value. But, in 2018, GILD stock was rallying again, it moved up from $70 in November to as high as $90 in January.
7 Hot IPOs Yet to Come in 2018 and Beyond
Sadly for Gilead holders, the company's illness has returned. Shares slid to the $70s and then gapped way lower on a big earnings whiff. By the end of Thursday's trading, GILD stock hit $65 and change, reaching levels near last summer's low. And make no mistake, this earnings report wasn't just short of expectations, it was a massive miss.
Earnings: What Went Wrong
The company reported earnings per share of $1.48, way below the $1.67 consensus guess. Revenues came in light as well, with Gilead generating $5.1 billion on the quarter. That missed estimates by $300 million and represents a 22% decline versus the same quarter last year.
The big problem for Gilead continues to be its fading HCV franchise. Gilead's bold $11 billion purchase of Pharmasset in 2011 paved the way for the company's stunning success this decade. The HCV cure it acquired in that acquisition, powered GILD stock from $20 at the time to the triple digits.
Unfortunately, that magic is now running in reverse. Since Gilead's drugs cure the disease, rather than just treat it, revenues are now on the decline as a larger and larger portion of the potential patient pool is now healthy. Gilead's HCV revenues were already in notable decline and now a new issue has emerged. Rival AbbVie Inc (NASDAQ: ABBV ) has brought its own rival HCV product, Mavyret, to market. It's starting to win over major adoption since it requires a shorter treatment time. Gilead stock bulls expected the HCV revenues to keep sliding, but the entrant of fierce competition is making it fade out even faster than expected.
There was also a slowdown in Gilead's other main product family, its HIV drugs. There it is facing increasing pressure from generic drugs. On top of that, Gilead sold through less inventory of some of its drugs as it is preparing to launch its new treatment regimen Biktarvy and, thus, pharmacies needed less of the soon-to-be-obsolete current options.
What Gilead Needs to Get Back on Track
GILD stock bulls now are looking at three main areas that can get the company back on track in 2018. Keep in mind that Gilead maintained its 2018 guidance and management was buying back stock at much higher prices in the first quarter. Clearly, they haven't thrown in the towel in 2018. Here's what could turn things around:
First up, Gilead needs to slow the erosion in HCV sales to AbbVie and its Mavyret. Sure, HCV sales will continue to decline over time. But the speed of decline should drop if Gilead can demonstrate that it still has the best products in the space. Management gives the impression that this is true, but they need to show stronger results in coming quarters.
Next, it needs to demonstrate more momentum on the launch of its recently acquired Yescarta. Purchased in another blockbuster deal from Kite Pharma , Gilead has bet a ton of its HCV profits on Kite's revolutionary CAR-T cancer therapy. In its first full quarter on the market, Yescarta did a modest $40 million in revenues. Analysts see Yescarta becoming a multi-billion-dollar-per-year drug by the early 2020s. If it gets there, it will do a ton to reinvigorate the bullish argument for GILD stock. But there's a lot to prove before that happens, in particular to its extremely high price per treated patient.
Finally, the retooling of the HIV product line offers opportunity. The newer treatment regimen should improve patient compliance. This may reduce the tragically large number of US HIV patients that do not currently use drugs for their condition. Additionally, Gilead may be able to take market share from GlaxoSmithKline (NYSE: GSK ) in the HIV space.
Is GILD Stock Cheap Yet?
Before moving to valuation, it's worth noting that Gilead has a deep pipeline with several different potential blockbuster products. However, from a value investing standpoint, it's important to focus on more predictable earnings rather than what may - or maynot - emerge from future research efforts.
With that in mind, Gilead is now selling at just under 9 times trailing earnings following the stock's plunge on Wednesday and Thursday. Analysts see earnings falling from $7.79 to $6.63 per share over the next 12 months, putting GILD stock right around 10x forward earnings.
In theory, that sounds great. However, Gilead has been trading at a single-digit PE ratio for several years now, and the stock keeps going down. A low PE ratio does little to protect the value of your stock if earnings keep shrinking. That said, earnings should bottom pretty soon. The current analyst consensus (subject to revision after this stinker quarter) has nearly flat earnings in 2019 and 10% growth back to $7.36/share for 2020.
10 Dividend Stocks to Buy in May
And that seems plausible. Slow the decline in HCV, pick up some market share in HIV, and launch Yescarta strongly toward billion-dollar status. It's a path to renewed EPS growth and a much stronger GILD stock price.
Unfortunately, all of that is going to take at least a few quarters to play out. It's hard to see GILD stock surging in the near future unless biotech stocks as a sector really pick up. Gilead stock offers an attractive 3.4% dividend yield at the moment, and it's probably undervalued here. But don't expect a big run-up in price just yet.
At the time of this writing, Ian Bezek owned GILD stock. You can reach him on Twitter at @irbezek.
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The post Gilead Sciences, Inc. Stock Will Recover… Eventually 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. | Rival AbbVie Inc (NASDAQ: ABBV ) has brought its own rival HCV product, Mavyret, to market. Here's what could turn things around: First up, Gilead needs to slow the erosion in HCV sales to AbbVie and its Mavyret. Just three years ago, Gilead reached a high of $120 per share at the height of its HCV treatment sales surge. | Rival AbbVie Inc (NASDAQ: ABBV ) has brought its own rival HCV product, Mavyret, to market. Here's what could turn things around: First up, Gilead needs to slow the erosion in HCV sales to AbbVie and its Mavyret. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It appeared that Gilead Sciences, Inc. (NASDAQ: GILD ) had turned the corner earlier this year after a long slump. | Rival AbbVie Inc (NASDAQ: ABBV ) has brought its own rival HCV product, Mavyret, to market. Here's what could turn things around: First up, Gilead needs to slow the erosion in HCV sales to AbbVie and its Mavyret. InvestorPlace - Stock Market News, Stock Advice & Trading Tips It appeared that Gilead Sciences, Inc. (NASDAQ: GILD ) had turned the corner earlier this year after a long slump. | Rival AbbVie Inc (NASDAQ: ABBV ) has brought its own rival HCV product, Mavyret, to market. Here's what could turn things around: First up, Gilead needs to slow the erosion in HCV sales to AbbVie and its Mavyret. Sure, HCV sales will continue to decline over time. |
25518.0 | 2018-05-04 00:00:00 UTC | 3 Value Stocks for Income Investors | ABBV | https://www.nasdaq.com/articles/3-value-stocks-income-investors-2018-05-04 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It's been a difficult market for value investors over the past few months. But that doesn't mean there aren't bargains to be had. And even better, these value stocks are also great dividend plays.
Several big name stocks have been on the decline as investors question whether or not their businesses are headed in the right direction. However, a closer look at their future potential - coupled with sizable and relatively secure dividend payments - makes these 3 stocks all worth considering. Especially if you're looking for value stocks that will also deliver income.
7 Hot IPOs Yet to Come in 2018 and Beyond
Here are 3 value stocks for income investors:
Value Stocks for Income Investors: IBM ( IBM )
Source: Shutterstock
If you're a value investor, IBM stock is almost certainly on your radar. Following the company's recent plummet after its first-quarter results , the company is looking like a good long-term play for both value and income investors.
At just $142 per share IBM stock is miles below its previous 52-week low. And although I'll admit the company isn't exactly thriving right now, I don't think its exodus was deserved.
IBM is in the throws of a turnaround. But because of its size and business, it's taking longer than expected to right the ship. However, the tech firm is moving in the right direction- albeit slowly. The company's Q1 results showed "strategic imperatives" now make up 47% of the business. And that figure should continue growing over the next few years.
Strategic imperatives are essentially all the things that IBM is doing right - cloud computing, blockchain, cybersecurity and AI. All of those arms are growing at IBM and should continue to grow in the future. However, progress on that side of IBM's business has been offset by its less-profitable, antiquated hardware and operating systems business, which is a concern for traders.
While it's certainly going to take some time before IBM stock is able to turn in the kind of growth investors are looking for, the company offers a compelling income play with a 4.33% dividend yield. This is a relatively high payout for the sector. And IBM's operations generate more than enough cash to make it reliable. The company also has a track record of consistently raising its dividend and management is expected to continue with its share repurchase program this year.
Value Stocks for Income Investors: AbbVie Inc. (ABBV)
Source: Black Stripe via Wikimedia (Modified)
Biotech firm AbbVie Inc. (NYSE: ABBV ) is another stock whose recent nosedive makes it a compelling long-term play for both value and income investors. After reaching highs of $125 per share in January, the ABBV stock came crashing down to just $100 per share after some bad news regarding its Rova-T drug studies.
Rova-T, a lung cancer treatment, was meant to be a growth engine for ABBV. But its Phase 2 clinical trials indicated that the drug may not be as effective as management was hoping. That's certainly a setback for ABBV, but the company still has a pipeline of drugs that look promising .
The firm has three new drugs in various states of clinical trials that treat rheumatoid arthritis, psoriasis and certain types of leukemia. All three have performed well so far in clinical trials, particularly upadacitnib which could be used treat up to six different conditions making its addressable market huge.
10 Dividend Stocks to Buy in May
Unlike IBM, ABBV stock looks likely recover sooner rather than later. Positive news from the firm's other clinical trials would probably take the stock near its previous levels. However, even if you do have to wait out a lull, ABBV pays a respectable 3.76% dividend yield, making it a compelling income play as well. With a payout ratio of 47.52%, that payment looks very secure and makes ABBV stock worth considering.
Value Stock for Income Investors: Kimberly-Clark (KMB)
Source: Shutterstock
Like IBM, consumer products maker Kimberly Clark Corp (NYSE: KMB ) has been stuck in a rut, and its slow recovery has caused investors to turn their backs on the stock. KMB stock is trading near 52-week lows as management works to make the necessary changes to get the business back on track. But investors who are willing to wait it out could be pleasantly surprised.
Sales growth at KMB has been disappointing for the past five years but the most recent quarter bucked the trend. Net sales were up 5% from the previous quarter, a vast improvement from the company's Q4 fail. Full year sales are also expected to rise between 2% and 3%, suggesting that the firm's turnaround efforts are finally taking hold.
Management has been aggressively cost cutting as part of its new strategy as well. And those improvements have helped offset pricing challenges. The firm's restructuring plan - which includes getting rid of weak brands, shrinking its physical footprint and reducing its workforce - marks a huge shift for the company and it will take time to set in. KMB is planning to use its savings in order to grow its most profitable brands like Kleenex and Huggies.
The benefit to owning KMB is that it makes items that consumers consider 'essential'. That means the company is more likely to survive poor economic conditions should they arise. Not only that, but the company's new leaner, more focused organization should translate into better profits in a few years' time.
KMB's most recent earnings report suggests that the firm is on track with its new initiatives, but like any turnaround story there are likely to be more bumps in the road. However, while you're waiting for the turnaround to fully materialize, the firm's 3.88% dividend yield can tide you over.
As of this writing Laura Hoy 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. | Value Stocks for Income Investors: AbbVie Inc. (ABBV) Source: Black Stripe via Wikimedia (Modified) Biotech firm AbbVie Inc. (NYSE: ABBV ) is another stock whose recent nosedive makes it a compelling long-term play for both value and income investors. After reaching highs of $125 per share in January, the ABBV stock came crashing down to just $100 per share after some bad news regarding its Rova-T drug studies. Rova-T, a lung cancer treatment, was meant to be a growth engine for ABBV. | Value Stocks for Income Investors: AbbVie Inc. (ABBV) Source: Black Stripe via Wikimedia (Modified) Biotech firm AbbVie Inc. (NYSE: ABBV ) is another stock whose recent nosedive makes it a compelling long-term play for both value and income investors. After reaching highs of $125 per share in January, the ABBV stock came crashing down to just $100 per share after some bad news regarding its Rova-T drug studies. Rova-T, a lung cancer treatment, was meant to be a growth engine for ABBV. | Value Stocks for Income Investors: AbbVie Inc. (ABBV) Source: Black Stripe via Wikimedia (Modified) Biotech firm AbbVie Inc. (NYSE: ABBV ) is another stock whose recent nosedive makes it a compelling long-term play for both value and income investors. After reaching highs of $125 per share in January, the ABBV stock came crashing down to just $100 per share after some bad news regarding its Rova-T drug studies. Rova-T, a lung cancer treatment, was meant to be a growth engine for ABBV. | After reaching highs of $125 per share in January, the ABBV stock came crashing down to just $100 per share after some bad news regarding its Rova-T drug studies. Value Stocks for Income Investors: AbbVie Inc. (ABBV) Source: Black Stripe via Wikimedia (Modified) Biotech firm AbbVie Inc. (NYSE: ABBV ) is another stock whose recent nosedive makes it a compelling long-term play for both value and income investors. Rova-T, a lung cancer treatment, was meant to be a growth engine for ABBV. |
25519.0 | 2018-05-04 00:00:00 UTC | Is Gilead Sciences Stock Finally a Bargain? | ABBV | https://www.nasdaq.com/articles/gilead-sciences-stock-finally-bargain-2018-05-04 | nan | nan | After releasing downright worrisome first-quarter results , Gilead Sciences (NASDAQ: GILD) has seen its shares drop by a noteworthy 11.7% in the past few days. The big concern is that Gilead's ailing hepatitis C franchise has yet to stabilize in the wake of newfound competition from AbbVie 's (NYSE: ABBV) Mavyret.
For instance, the company reported that first-quarter hepatitis C drug sales came in at $1 billion, reflecting a 59% year-over-year downturn and a 30% quarter-over-quarter drop. With AbbVie's drug just starting to gain commercial momentum, Gilead's hepatitis C franchise appears set to continue falling in the quarters ahead.
But is the market making a mountain out of a molehill? After all, Gilead does have a solid HIV franchise to fall back on, a stellar clinical pipeline, and one of the best cash positions in the industry. With these facts in mind, let's consider if this top biotech stock is worth picking up after this sudden decline.
Gilead as a value play
At 10 times forward earnings, Gilead definitely qualifies as a value stock at this point. AbbVie, a stock that had its own share of problems this year, after all, is still trading at over 11 times forward earnings, and the vast majority of Gilead's immediate peer group (large-cap biotechs) are trading at valuations well north of 13 times forward-looking earnings. In fact, Celgene and Shire are the only large-cap biopharmas with lower valuations based on this particular metric right now.
Gilead's rock-bottom valuation, though, could be a misleading indicator if its hepatitis C sales fail to stabilize by mid-year, as the company predicts. So, as a near-term value buy, this stock does require a leap of faith of sorts. If management is wrong, and hepatitis C sales accelerate to this downside even further, Gilead's shares are sure to print new lows as a result.
Still, Gilead does have some compelling clinical assets and more than enough cash to create value for long-term oriented shareholders. The biotech's various clinical assets in non-alcoholic steatohepatitis and anti-inflammatory drug candidate filgotinib both have the potential to generate several billion in sales at peak.
Gilead's deep dive into cellular therapeutics with the acquisitions of Kite Pharma and Cell Design Labs, along with the subsequent licensing deal with Sangamo Therapeutics to develop off-the-shelf cell therapies, is another key value creator that's arguably being under-appreciated by the market. Adoptive cell therapy for hard-to-treat blood cancers, after all, are widely expected to be the standard of care within a decade, and it should therefore grow to become one of the most lucrative markets in all of biotech.
Apart from its rich clinical pipeline, Gilead also has one of the largest cash positions in biotech. The company exited the most recent quarter with a jaw-dropping $32.1 billion in cash and investments. That's more than enough to go on a shopping spree to add some much-needed revenue in the event that hepatitis C sales fail to find a bottom soon.
What's the verdict?
The market was probably right to revalue Gilead after this latest earnings fiasco. The company sorely needs new sources of revenue given that its clinical pipeline isn't all that close to delivering another major blockbuster. A longer-term outlook, though, suggests that Gilead is still in excellent overall shape -- despite its faltering share price and falling revenue.
Eventually, Gilead will bring at least some of its other value drivers in cancer, inflammatory diseases, and non-hep C liver diseases online. Perhaps some of these endeavors will go askew, but there's enough here to consider Gilead as a strong value play over the long haul. Gilead, after all, still has the option of literally buying its way out of this funk if things don't pick up soon.
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George Budwell has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Celgene and Gilead Sciences. The Motley Fool has the following options: short May 2018 $85 calls on 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. | With AbbVie's drug just starting to gain commercial momentum, Gilead's hepatitis C franchise appears set to continue falling in the quarters ahead. The big concern is that Gilead's ailing hepatitis C franchise has yet to stabilize in the wake of newfound competition from AbbVie 's (NYSE: ABBV) Mavyret. AbbVie, a stock that had its own share of problems this year, after all, is still trading at over 11 times forward earnings, and the vast majority of Gilead's immediate peer group (large-cap biotechs) are trading at valuations well north of 13 times forward-looking earnings. | AbbVie, a stock that had its own share of problems this year, after all, is still trading at over 11 times forward earnings, and the vast majority of Gilead's immediate peer group (large-cap biotechs) are trading at valuations well north of 13 times forward-looking earnings. The big concern is that Gilead's ailing hepatitis C franchise has yet to stabilize in the wake of newfound competition from AbbVie 's (NYSE: ABBV) Mavyret. With AbbVie's drug just starting to gain commercial momentum, Gilead's hepatitis C franchise appears set to continue falling in the quarters ahead. | AbbVie, a stock that had its own share of problems this year, after all, is still trading at over 11 times forward earnings, and the vast majority of Gilead's immediate peer group (large-cap biotechs) are trading at valuations well north of 13 times forward-looking earnings. The big concern is that Gilead's ailing hepatitis C franchise has yet to stabilize in the wake of newfound competition from AbbVie 's (NYSE: ABBV) Mavyret. With AbbVie's drug just starting to gain commercial momentum, Gilead's hepatitis C franchise appears set to continue falling in the quarters ahead. | The big concern is that Gilead's ailing hepatitis C franchise has yet to stabilize in the wake of newfound competition from AbbVie 's (NYSE: ABBV) Mavyret. With AbbVie's drug just starting to gain commercial momentum, Gilead's hepatitis C franchise appears set to continue falling in the quarters ahead. AbbVie, a stock that had its own share of problems this year, after all, is still trading at over 11 times forward earnings, and the vast majority of Gilead's immediate peer group (large-cap biotechs) are trading at valuations well north of 13 times forward-looking earnings. |
25520.0 | 2018-05-03 00:00:00 UTC | Did Gilead Sciences Make a Big Mistake? | ABBV | https://www.nasdaq.com/articles/did-gilead-sciences-make-big-mistake-2018-05-03 | nan | nan | Gilead Sciences (NASDAQ: GILD) reported its first-quarter earnings this week, and those results show that its hepatitis C drug revenue continues to slide because of new competition from AbbVie Inc. 's (NYSE: ABBV) Mavyret, which won approval in August. Was Gilead Sciences wrong to stop developing new hepatitis C treatments? AbbVie's results suggest the answer to that question is yes.
What's hepatitis C?
Hepatitis C is a potentially life-threatening liver disease that's most commonly spread by contact with the blood of someone who is infected with the hepatitis C virus (HCV), which exists in six genotypes.
Genotype 1 is the most common, and also the easiest to treat; it accounts for about 70% of chronic HCV infections in the United States. Of the rest, 15% to 20% of cases are genotype 2, 10% to 12% are genotype 3, approximately 1% are genotype 4, and less than 1% are genotype 5 or 6.
Hepatitis C turns into a chronic disease in up to 85% of those infected, and among that group, up to 70% develop liver disease. Sadly, as many as 20% of hepatitis C patients develop cirrhosis within 30 years, and about one in five patients will die from cirrhosis or liver cancer.
Efforts to limit the spread of the virus have led to fewer people being diagnosed with hepatitis C, but thousands of new cases are still reported in the United States every year, and an estimated 71 million people with chronic hepatitis C worldwide are likely to require treatment.
Reshaping an indication
When Gilead Sciences launched Sovaldi in December 2013, it transformed hepatitis C treatment. Up until that point, treating the disease required a cocktail of side-effect causing drugs that had to be taken for up to 48 weeks, and that delivered cure rates of only about 80%.
Sovaldi reduced treatment duration to as little as 12 weeks, eliminated the need for patients to take peginterferon (the drug responsible for many of the side effects in the prior treatment regimen), and delivered cure rates north of 90%.
Gilead Sciences improved treatment even further in 2014 when it rolled out Harvoni, and again in 2016 when it launched Epclusa. Harvoni delivered mid-90% cure rates in as little as 8 weeks for genotype 1 patients, while Epclusa was the first drug to significantly improve treatment duration and cure rates in as little as 12 weeks, regardless of genotype.
Competition puts the kibosh on research
These drugs were so revolutionary that they generated a tidal wave of demand, which quickly translated into tens of billions of dollars in revenue for Gilead Sciences. That success, however, was short lived.
The lure of profits derived from treating those millions of patients led AbbVie Inc. and Merck & Co. to develop new drugs of their own with similar efficacy -- and lower prices. In response, Gilead Sciences aggressively cut its prices to maintain market share, but that seriously crimped its revenue.
The addressable market also began to decline as more people were being treated and cured than than were being diagnosed with new cases of hepatitis C. The combination of competing drugs, price cuts, and declining demand caused Gilead Sciences' hepatitis C treatment sales to plunge. In the first quarter of 2016, they were about $4.3 billion; in Q1 2017, they were down to to $2.6 billion, and by Q1 2018, they'd slid to $1.05 billion.
Given the shrinking market opportunity, Gilead Sciences decided to halt its research into new hepatitis C treatments in late 2016, shifting its focus instead to other indications, including nonalcoholic steatohepatitis (NASH), another liver disease.
AbbVie pockets Gilead's profit
Unlike Gilead Sciences, AbbVie continued developing its next-generation hepatitis C drug, Mavyret, and based on its performance, it seems that was the right decision.
In clinical trials, Mavyret delivered a 99% functional cure rate in patients with genotype 1, 2, 4, 5, or 6 and including the tough to treat genotype 3 patients, Mavyret delivered a 97.5% functional cure rate after only 8 weeks of treatment.
The FDA approved Mavyret in August 2017, and it's been siphoning away Gilead Sciences hepatitis C business ever since. Mavyret's sales were nearly $500 million in Q4 2017, and in Q1 2018, they were nearly $850 million, which gives it a $3.4 billion annualized run rate after less than a year on the market. That performance is better than AbbVie predicted, so management recently increased its full-year hepatitis C sales outlook from $2.5 billion to $3.5 billion.
AbbVie doesn't think the market for this drug will disappear overnight, either. On the company's earnings conference call last month, CEO Richard Gonazalez said:
AbbVie's Mavyret appears to be the best treatment on the market, and I suspect it's going to continue to win away more of Gilead Sciences' sales in the indication for the foreseeable future. If so, then Gilead Sciences will find its decision to stop researching new hepatitis C treatments to have been a costly one.
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Todd Campbell owns shares of Gilead Sciences. His clients may have positions in the companies mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has the following options: short May 2018 $85 calls on 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. | Gilead Sciences (NASDAQ: GILD) reported its first-quarter earnings this week, and those results show that its hepatitis C drug revenue continues to slide because of new competition from AbbVie Inc. 's (NYSE: ABBV) Mavyret, which won approval in August. On the company's earnings conference call last month, CEO Richard Gonazalez said: AbbVie's Mavyret appears to be the best treatment on the market, and I suspect it's going to continue to win away more of Gilead Sciences' sales in the indication for the foreseeable future. AbbVie's results suggest the answer to that question is yes. | AbbVie pockets Gilead's profit Unlike Gilead Sciences, AbbVie continued developing its next-generation hepatitis C drug, Mavyret, and based on its performance, it seems that was the right decision. Gilead Sciences (NASDAQ: GILD) reported its first-quarter earnings this week, and those results show that its hepatitis C drug revenue continues to slide because of new competition from AbbVie Inc. 's (NYSE: ABBV) Mavyret, which won approval in August. AbbVie's results suggest the answer to that question is yes. | AbbVie pockets Gilead's profit Unlike Gilead Sciences, AbbVie continued developing its next-generation hepatitis C drug, Mavyret, and based on its performance, it seems that was the right decision. Gilead Sciences (NASDAQ: GILD) reported its first-quarter earnings this week, and those results show that its hepatitis C drug revenue continues to slide because of new competition from AbbVie Inc. 's (NYSE: ABBV) Mavyret, which won approval in August. AbbVie's results suggest the answer to that question is yes. | Gilead Sciences (NASDAQ: GILD) reported its first-quarter earnings this week, and those results show that its hepatitis C drug revenue continues to slide because of new competition from AbbVie Inc. 's (NYSE: ABBV) Mavyret, which won approval in August. AbbVie pockets Gilead's profit Unlike Gilead Sciences, AbbVie continued developing its next-generation hepatitis C drug, Mavyret, and based on its performance, it seems that was the right decision. AbbVie's results suggest the answer to that question is yes. |
25521.0 | 2018-05-02 00:00:00 UTC | Gilead (GILD) Q1 Earnings & Sales Miss Estimates on Weak HCV | ABBV | https://www.nasdaq.com/articles/gilead-gild-q1-earnings-sales-miss-estimates-on-weak-hcv-2018-05-02 | nan | nan | Gilead Sciences, Inc . GILD reported dismal results for the first quarter of 2018 wherein both earnings and revenues missed expectations due to a wider-than-expected decline in the hepatitis C virus (HCV) franchise.
Consequently, the stock declined in after-market hours trading and is expected to open in the red given the expectation of a further decline in HCV franchise in 2018. Gilead's stock has lost 1.7% in the last one month as against the industry' s gain of 0.4%.
The company's first-quarter earnings of $1.48 per share missed the Zacks Consensus Estimate of $1.66. Earnings were also below the year-ago quarter figure of $2.23 per share.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. Price, Consensus and EPS Surprise | Gilead Sciences, Inc. Quote
Moreover, total revenues of $5.1 billion also missed the Zacks Consensus Estimate of $5.42 billion. Further, revenues declined 21.8% year over year.
Harvoni & Sovaldi Plunge Further
Product sales came in at $5.0 billion, down 21.6% year over year due to accelerated decline in HCV sales.
Antiviral product sales, which include Gilead's HIV and liver disease portfolio, came in at $4.4 billion in the quarter, down 24.1% from the year-ago quarter.
Research & development (R&D) expenses declined 8.4% to $814 million. Selling, general and administrative (SG&A) expenses increased 9.5% to $884 million.
HCV product sales, which include Harvoni, Sovaldi, Epclusa and Vosevi, were $1.0 billion, down from $2.6 billion reported in the year-ago quarter. The downside was mainly due to lower sales of Harvoni and Sovaldi across all major markets and lower sales of Epclusa in the United States as a result of increased competition.
Sales of Harvoni plunged 74.7% year over year to $348 million in the quarter. Epclusa garnered sales of $536 million in the quarter, down from the year-ago period figure of $892 million.
Meanwhile, HIV and HBV product sales came in at $3.3 billion, up 1.9% year over year. The increase was primarily driven by continuous strong uptake of tenofoviral afenamide (TAF)-based products such as Genvoya, which generated sales of $1,082 million, up from $769 million in the year-ago quarter, Descovy, which recorded sales of $361 million, up from $251 million, and Odefsey, which registered sales of $342 million, up from $227 million. Entry of generics and greater U.S. inventory drawdown than in the prior-year quarter somewhat impacted sales. However, HIV treatments like Stribild and Complera/Eviplera sales declined 43.7% and 24.9% respectively. Viread sales were down at $97 million, down 62.7%.
Atripla sales tanked 30.5% to $314 million, while Truvada sales fell 8.7% to $652 million.
Other products like Letairis, Ranexa, AmBisome and Zydelig recorded sales of $204 million (down 3.3%), $195 million (up 27.4%), $107 million (up 16.3%) and $33 million, respectively. Adjusted product gross margin was 86.3% compared to 88.3% in the year-ago period.
2018 Guidance Reiterated
Gilead continues to expect net product sales in the range of $20-$21 billion. Adjusted R&D expenses and adjusted SG&A expenses are projected in the range of $3.4-$3.6 billion and $3.4-$3.6 billion, respectively. Adjusted product gross margin is expected in the range of 85-87%.
Acquisitions
The company acquired Kite Pharma in 2017. The FDA approval for Yescarta, a CAR-T therapy for the treatment of adult patients with relapsed or refractory large B-cell lymphoma after two or more lines of systemic therapy should Gilead's prospects. The company also acquired Cell Design Labs to expand further in the CAR-T space.
Yescarta sales came in at $40 million in the quarter.
Dividend and Share Repurchase
Gilead declared a cash dividend of 57 cents per share of common stock for second-quarter 2018. The dividend is payable on Jun 28 to stockholders of record at the close of business on Jun 15. During the quarter, the company paid cash dividends of $253 million and repurchased shares for $1.0 billion.
Our Take
Gilead's first-quarter results were disappointing with the company's both earnings and sales missing estimates as the magnitude of the decline in HCV sales was wider-than-expected. The HCV franchise is under tremendous pressure due to lower patient starts and increasing competition.
We expect sales to decline further going forward. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, and Merck's MRK Zepatier.
While pricing has largely stabilized, market share will stabilize by mid-2018 while patient starts are expected to decline further.
Meanwhile, the HIV franchise maintains momentum driven by the rapid adoption of Descovy-based regimens. The approval of Biktarvy in Feb 2018 by the FDA has further widened the portfolio. Biktarvy sales came in at $35 million in the quarter. In March, Biktarvy was added to the U.S. DHHS guidelines for the use of antiretroviral agents in adults and adolescents living with HIV as one of the recommended initial regimens. The CHMP has also adopted a positive opinion on the Marketing Authorization Application for Biktarvy in the EU and Gilead expects to obtain approval for the same in the third quarter which will further solidify its portfolio. Truvada for use in the pre-exposure prophylaxis setting continued to maintain momentum with an estimated 167,000 patients using Truvada by the end of the first quarter.
Given the persistent decline in HCV sales, the company is looking to newer avenues to help its top-line. Gilead is looking to solidify its presence in the gene therapy space. The initial uptake of Yescarta is also encouraging. During the first quarter, Gilead announced an agreement with Sangamo Therapeutics, Inc. SGMO to use Sangamo's zinc finger nuclease technology platform for the development of next-generation ex vivo cell therapies in oncology. Gilead is also intending to foray into the NASH market with pipeline candidates- selonsertib and filgotinib. Both the candidates are being evaluated in late stage studies and a tentative approval will diversify Gilead's portfolio.
Zacks Rank
Gilead 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, and Merck's MRK Zepatier. Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Sangamo Therapeutics, Inc. (SGMO): Free Stock Analysis Report To read this article on Zacks.com click here. GILD reported dismal results for the first quarter of 2018 wherein both earnings and revenues missed expectations due to a wider-than-expected decline in the hepatitis C virus (HCV) franchise. | Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Sangamo Therapeutics, Inc. (SGMO): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, and Merck's MRK Zepatier. Gilead Sciences, Inc. Price, Consensus and EPS Surprise Gilead Sciences, Inc. Price, Consensus and EPS Surprise | Gilead Sciences, Inc. Quote Moreover, total revenues of $5.1 billion also missed the Zacks Consensus Estimate of $5.42 billion. | Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Sangamo Therapeutics, Inc. (SGMO): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, and Merck's MRK Zepatier. Gilead Sciences, Inc. Price, Consensus and EPS Surprise Gilead Sciences, Inc. Price, Consensus and EPS Surprise | Gilead Sciences, Inc. Quote Moreover, total revenues of $5.1 billion also missed the Zacks Consensus Estimate of $5.42 billion. | We note that Harvoni, Sovaldi and Epclusa, face competition from AbbVie's ABBV Viekira Pak and Viekira XR, and Merck's MRK Zepatier. Click to get this free report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Sangamo Therapeutics, Inc. (SGMO): Free Stock Analysis Report To read this article on Zacks.com click here. Research & development (R&D) expenses declined 8.4% to $814 million. |
25522.0 | 2018-05-02 00:00:00 UTC | Seattle Genetics Accelerates Revenue Growth, Earnings Not So Much | ABBV | https://www.nasdaq.com/articles/seattle-genetics-accelerates-revenue-growth-earnings-not-so-much-2018-05-02 | nan | nan | Seattle Genetics (NASDAQ: SGEN) posted solid revenue gains in the first quarter of the year, but it was guidance for the second quarter that had investors excited about how the biotech's lead drug, Adcetris, is finally reaching its potential.
Seattle Genetics results: The raw numbers
Data source: Seattle Genetics.
What happened with Seattle this quarter?
Sales of Adcetris were up 36% year over year, thanks to the new label expansion based on the Echelon-1 trial for first-line Hodgkin lymphoma, which was approved on March 20. The year-over-year increase was also helped by the approval for patients with two subtypes of cutaneous T-cell lymphoma back in November.
Royalty revenue fell a tad, but that was just due to the new accounting standards for revenue recognition. Using the old standards, royalties would have been up about 35% year over year.
The third bucket of revenue -- the amount earned from collaborations -- was up slightly year over year. Seattle Genetics' partners -- Roche , AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) -- all have drugs in late-stage development using its antibody-drug conjugate technology that could result in additional milestone payments, and hopefully royalties if the drugs are approved.
The larger loss came from increases in spending on its late-stage clinical trials, an investment that will hopefully pay off in the years ahead.
In March, the company completed its acquisition of Cascadian Therapeutics, adding the late-stage breast cancer drug tucatinib to its pipeline.
What management had to say
Clay Siegall, Seattle Genetics' president and CEO, pointed out the challenges of converting doctors from using adriamycin, bleomycin, vinblastine, and dacarbazine (ABVD) to using Adcetris plus AVD in the Echelon-1 setting: "Doctors have been using ABVD for a long time -- over four decades. And so they don't all just on day one change and say OK, we're just going to drop everything. That's not the way docs work."
But, Siegall added, the newly diagnosed Hodgkin lymphoma patients tend to be younger and more likely to do research on their own, which could help convert stogy doctors, "We really heard that from our salespeople that patients come in and say, hey, I am diagnosed with Hodgkin lymphoma. I read about this. What about this? And they talk about the options."
On the potential to become profitable, Siegall noted that Seattle Genetics could be profitable now if it wasn't funding late-stage trials for its other drugs, but he thinks "it doesn't feel like it's the right time to pull off the gas pedal and make being profitable our top priority even though we want to be profitable at the earliest possible time."
Looking forward
Seattle Genetics pulled back 2018 guidance , which wasn't unexpected since the old guidance didn't take into account the Adcetris approval for newly diagnosed patients. Rather than issue new guidance for the year, management elected to go quarter by quarter for now, which seems reasonable given the uncertainty of the new Adcertis launch. For the second quarter, management thinks Adcetris sales will fall in the range of $105 million to $110 million, which would be roaring 10% to 15% quarter-over-quarter growth.
On the clinical trial front, Seattle Genetics is expecting data this year from the Echelon-2 trial in newly diagnosed patients with peripheral T-cell lymphomas, potentially allowing for further expansion of the diseases Adcetris is approved to treat. A little further down the line, the pivotal trial for enfortumab vedotin in patients with locally advanced or metastatic urothelial cancer who have failed other treatments is expected to complete enrolment in the third quarter and readout in the first half of 2019, setting up a potential late 2019 or early 2020 approval.
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Brian Orelli has no position in any of the stocks mentioned. The Motley Fool recommends Seattle Genetics. 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. | Seattle Genetics' partners -- Roche , AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) -- all have drugs in late-stage development using its antibody-drug conjugate technology that could result in additional milestone payments, and hopefully royalties if the drugs are approved. The larger loss came from increases in spending on its late-stage clinical trials, an investment that will hopefully pay off in the years ahead. In March, the company completed its acquisition of Cascadian Therapeutics, adding the late-stage breast cancer drug tucatinib to its pipeline. | Seattle Genetics' partners -- Roche , AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) -- all have drugs in late-stage development using its antibody-drug conjugate technology that could result in additional milestone payments, and hopefully royalties if the drugs are approved. But, Siegall added, the newly diagnosed Hodgkin lymphoma patients tend to be younger and more likely to do research on their own, which could help convert stogy doctors, "We really heard that from our salespeople that patients come in and say, hey, I am diagnosed with Hodgkin lymphoma. For the second quarter, management thinks Adcetris sales will fall in the range of $105 million to $110 million, which would be roaring 10% to 15% quarter-over-quarter growth. | Seattle Genetics' partners -- Roche , AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) -- all have drugs in late-stage development using its antibody-drug conjugate technology that could result in additional milestone payments, and hopefully royalties if the drugs are approved. Seattle Genetics (NASDAQ: SGEN) posted solid revenue gains in the first quarter of the year, but it was guidance for the second quarter that had investors excited about how the biotech's lead drug, Adcetris, is finally reaching its potential. On the potential to become profitable, Siegall noted that Seattle Genetics could be profitable now if it wasn't funding late-stage trials for its other drugs, but he thinks "it doesn't feel like it's the right time to pull off the gas pedal and make being profitable our top priority even though we want to be profitable at the earliest possible time." | Seattle Genetics' partners -- Roche , AbbVie (NYSE: ABBV) and GlaxoSmithKline (NYSE: GSK) -- all have drugs in late-stage development using its antibody-drug conjugate technology that could result in additional milestone payments, and hopefully royalties if the drugs are approved. Looking forward Seattle Genetics pulled back 2018 guidance , which wasn't unexpected since the old guidance didn't take into account the Adcetris approval for newly diagnosed patients. On the clinical trial front, Seattle Genetics is expecting data this year from the Echelon-2 trial in newly diagnosed patients with peripheral T-cell lymphomas, potentially allowing for further expansion of the diseases Adcetris is approved to treat. |
25523.0 | 2018-05-01 00:00:00 UTC | Pre-Market Most Active for May 1, 2018 : BP, TVIX, QQQ, SNE, SHOP, AAPL, ABBV, UAA, KLXI, UA, AVXS, SQQQ | ABBV | https://www.nasdaq.com/articles/pre-market-most-active-may-1-2018-bp-tvix-qqq-sne-shop-aapl-abbv-uaa-klxi-ua-avxs-sqqq | nan | nan | The NASDAQ 100 Pre-Market Indicator is up 8.1 to 6,613.67. The total Pre-Market volume is currently 2,072,269 shares traded.
The following are the most active stocks for the pre-market session :
BP p.l.c. ( BP ) is +0.32 at $44.91, with 394,841 shares traded. Market Realist Reports: ExxonMobil's 1Q18 Earnings Rose but Missed Estimates
Credit Suisse AG ( TVIX ) is +0.05 at $7.23, with 297,438 shares traded. This represents a 55.15% increase from its 52 Week Low.
PowerShares QQQ Trust, Series 1 ( QQQ ) is -0.2 at $160.74, with 263,700 shares traded. This represents a 18.37% increase from its 52 Week Low.
Sony Corp Ord ( SNE ) is +0.17 at $46.00, with 200,140 shares traded. As reported by Zacks, the current mean recommendation for SNE is in the "buy range".
Shopify Inc. ( SHOP ) is -2.37 at $131.26, with 195,640 shares traded. Reuters Reports: Shopify posts surprise profit on surge in merchant revenue
Apple Inc. ( AAPL ) is +1.22 at $166.48, with 179,487 shares traded. Seeking Alpha Reports: Tariffs Delayed, Dollar Rising, And BP Too (Wall Street Breakfast Podcast)
AbbVie Inc. ( ABBV ) is +4.63 at $101.18, with 171,018 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2018. The consensus EPS forecast is $1.95. ABBV's current last sale is 89.54% of the target price of $113.
Under Armour, Inc. ( UAA ) is -0.34 at $17.42, with 154,935 shares traded. Reuters Reports: Under Armour tops sales estimates on stronger overseas demand
KLX Inc. ( KLXI ) is -5.98 at $72.25, with 147,332 shares traded. As reported by Zacks, the current mean recommendation for KLXI is in the "buy range".
Under Armour, Inc. ( UA ) is -0.19 at $15.16, with 146,763 shares traded. UA's current last sale is 126.33% of the target price of $12.
AveXis, Inc. ( AVXS ) is +4.35 at $217.01, with 105,350 shares traded. AVXS's current last sale is 126.91% of the target price of $171.
ProShares UltraPro Short QQQ ( SQQQ ) is +0.08 at $17.74, with 102,899 shares traded. This represents a 22.68% increase from its 52 Week Low.
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. | Seeking Alpha Reports: Tariffs Delayed, Dollar Rising, And BP Too (Wall Street Breakfast Podcast) AbbVie Inc. ( ABBV ) is +4.63 at $101.18, with 171,018 shares traded. ABBV's current last sale is 89.54% of the target price of $113. Market Realist Reports: ExxonMobil's 1Q18 Earnings Rose but Missed Estimates Credit Suisse AG ( TVIX ) is +0.05 at $7.23, with 297,438 shares traded. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Seeking Alpha Reports: Tariffs Delayed, Dollar Rising, And BP Too (Wall Street Breakfast Podcast) AbbVie Inc. ( ABBV ) is +4.63 at $101.18, with 171,018 shares traded. ABBV's current last sale is 89.54% of the target price of $113. | Seeking Alpha Reports: Tariffs Delayed, Dollar Rising, And BP Too (Wall Street Breakfast Podcast) AbbVie Inc. ( ABBV ) is +4.63 at $101.18, with 171,018 shares traded. ABBV's current last sale is 89.54% of the target price of $113. ( BP ) is +0.32 at $44.91, with 394,841 shares traded. | Seeking Alpha Reports: Tariffs Delayed, Dollar Rising, And BP Too (Wall Street Breakfast Podcast) AbbVie Inc. ( ABBV ) is +4.63 at $101.18, with 171,018 shares traded. ABBV's current last sale is 89.54% of the target price of $113. The NASDAQ 100 Pre-Market Indicator is up 8.1 to 6,613.67. |
25524.0 | 2018-05-01 00:00:00 UTC | Why Nutrisystem, Tenet Healthcare, and AbbVie Jumped Today | ABBV | https://www.nasdaq.com/articles/why-nutrisystem-tenet-healthcare-and-abbvie-jumped-today-2018-05-01 | nan | nan | The stock market continued to be choppy on Tuesday, with major benchmarks moving in different directions. Weakness in the Dow Jones Industrial Average came largely from substantial price declines in some of the more heavily weighted stocks in the average, while the S&P 500 and Nasdaq Composite made gains. With key tech players set to release earnings, investors are a bit anxious to see whether anticipated bottom-line growth materializes, and some market participants are also continuing to look at interest rates as the Federal Reserve began a two-day meeting to discuss monetary policy. Still, some companies had good news that lifted their shares. Nutrisystem (NASDAQ: NTRI) , Tenet Healthcare (NYSE: THC) , and AbbVie (NYSE: ABBV) were among the best performers on the day. Here's why they did so well.
Nutrisystem gets healthier
Shares of Nutrisystem soared 18% after the weight loss and nutrition specialist issued its first-quarter financial report. The company has been under pressure recently, and so even though revenue was just flat from year-ago levels and net income fell by more than 60%, shareholders were generally pleased that Nutrisystem's fundamental business held up as well as it did. CEO Dawn Zier reported that a big part of its success recently has been its South Beach Diet-related sales, which rose sharply compared to the first quarter of 2017. With CFO Mike Monahan raising full-year 2018 guidance, longtime investors in Nutrisystem think that the company could successfully turn itself around and live up to its full potential.
Tenet is back in the black
Tenet Healthcare stock jumped 19% in the wake of its reversing year-ago losses with a profit for the first quarter of 2018. The hospital company said that it suffered a slight revenue decline of 2%, but it still managed to produce positive net income, reassuring investors who had expected to see a slight loss after adjusting for certain extraordinary items. In addition, Tenet announced that it had completed the sale of St. Louis-based Des Peres Hospital to a nonprofit healthcare provider in the area, helping to optimize its portfolio of medical facilities and focus on the most promising opportunities. The hospital company is building up momentum, even though the stock still trades for just half of what shares fetched in 2015.
AbbVie wants stock
Finally, shares of AbbVie rose nearly 6%. After a strong earnings report last week , the drug giant said that it will buy up to $7.5 billion in stock at prices between $99 and $114 per share in a modified Dutch auction tender offer. Under the terms of the deal, shareholders may choose to offer to sell all or part of their holdings to AbbVie at a price that they set within the given range, and AbbVie will then pay whatever minimum price lets them buy stock worth $7.5 billion. With the stock having closed yesterday at $96.55 per share, it was very likely that the share price would jump at least to $99, but the extra kick reflects the expectation that final tenders could happen at prices above that level. The tender sounds like a lot of money, but it's less than 5% of AbbVie's outstanding shares at current prices, and it'll be interesting to see if the stock holds onto its gains after the offer closes May 29.
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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. | Nutrisystem (NASDAQ: NTRI) , Tenet Healthcare (NYSE: THC) , and AbbVie (NYSE: ABBV) were among the best performers on the day. AbbVie wants stock Finally, shares of AbbVie rose nearly 6%. Under the terms of the deal, shareholders may choose to offer to sell all or part of their holdings to AbbVie at a price that they set within the given range, and AbbVie will then pay whatever minimum price lets them buy stock worth $7.5 billion. | Nutrisystem (NASDAQ: NTRI) , Tenet Healthcare (NYSE: THC) , and AbbVie (NYSE: ABBV) were among the best performers on the day. AbbVie wants stock Finally, shares of AbbVie rose nearly 6%. Under the terms of the deal, shareholders may choose to offer to sell all or part of their holdings to AbbVie at a price that they set within the given range, and AbbVie will then pay whatever minimum price lets them buy stock worth $7.5 billion. | Under the terms of the deal, shareholders may choose to offer to sell all or part of their holdings to AbbVie at a price that they set within the given range, and AbbVie will then pay whatever minimum price lets them buy stock worth $7.5 billion. Nutrisystem (NASDAQ: NTRI) , Tenet Healthcare (NYSE: THC) , and AbbVie (NYSE: ABBV) were among the best performers on the day. AbbVie wants stock Finally, shares of AbbVie rose nearly 6%. | AbbVie wants stock Finally, shares of AbbVie rose nearly 6%. Nutrisystem (NASDAQ: NTRI) , Tenet Healthcare (NYSE: THC) , and AbbVie (NYSE: ABBV) were among the best performers on the day. Under the terms of the deal, shareholders may choose to offer to sell all or part of their holdings to AbbVie at a price that they set within the given range, and AbbVie will then pay whatever minimum price lets them buy stock worth $7.5 billion. |
25525.0 | 2018-04-30 00:00:00 UTC | Drug Stocks Q1 Earnings to Watch on May 1: PFE, MRK & More | ABBV | https://www.nasdaq.com/articles/drug-stocks-q1-earnings-to-watch-on-may-1%3A-pfe-mrk-more-2018-04-30 | nan | nan | Per the latest Earnings Preview , the Q1 earnings season which has already crossed the half way mark is gaining strength with earnings and revenue growth on track to reach its highest level in seven years.
Total earnings for the 267 S&P 500 members that have already reported results are up 25.1% from the same period last year on 10% higher revenues, with 76.8% beating top-line estimates and 73.8% beating revenue estimates. The proportion of companies beating both earnings and revenue estimates is 61.4%.
The ongoing earnings season seems to have started off on a solid note for the Drug/Biotech sector. Among the major large cap players that have reported results, Bristol-Myers Squibb BMY and AbbVie ABBV beat the Zacks Consensus Estimate for both earnings as well as sales.
Amgen Inc. AMGN also surpassed both earnings and revenue expectations this quarter.
Higher demand is expected to boost new product sales. Also, innovation and successful product line expansion along with positive clinical study results, FDA approvals, and consistent performance of key products, growing demand for drugs, especially for rare-to-treat diseases, an ageing population as well as an increased healthcare expenditure are some of the factors that are expected keep the sector on a growth trajectory.
Also, according to the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is likely to record 7% year-over-year growth in revenues and witness a 12.9% rise in earnings in the quarter under review.
Four pharma/biotech giants are scheduled to report Q1 earnings results on May 1. Let's see, how things are shaping up for the companies in the upcoming releases.
Pfizer Inc. PFE is slated to releaseresults before the market opens. The company delivered a positive earnings surprise of 10.71% in the last reported quarter. The company's performance has been impressive in the recent past with its earnings surpassing expectations in the trailing four quarters, with an average beat of 4.97%.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP . The combination of the company's Zacks Rank #2 and +1.36 Earnings ESP, makes us reasonably confident of an earnings beat. The Zacks Consensus Estimate for the company's earnings for the quarter under review is pegged at 74 cents per share.
In the Innovative Health segment, new products like Xeljanz (rheumatoid arthritis) and Ibrance (breast cancer) as well as older products like Lyrica (neuropathic pain), Chantix (smoking cessation) and Eliquis (blood thinner) are expected to drive the top line. In the Essential Health, biosimilars and emerging markets are expected to support sales. The bottom line is expected to be driven by cost savings and share buybacks.(Read More: Will Pfizer's Earnings Beat Estimates Again in Q1? )
Pfizer Inc. Price and EPS Surprise
Pfizer Inc. Price and EPS Surprise | Pfizer Inc. Quote
Merck and Co. Inc. MRK is slated to report results before the opening bell. The company delivered a positive earnings surprise of 4.26% in the last reported quarter. The company's track record is excellent as it has consistently topped estimates in the last four quarters, with an average positive earnings surprise of 8.54%.
Our model does not conclusively show that Merck will beat estimates this quarter. This is because the stockhas an Earnings ESP of 0.00% and a Zacks Rank # 2. The Zacks Consensus Estimate for the quarterly earnings is pegged at 99 cents per share. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Merck's new products like cancer drugs Keytruda and Lynparza and Bridion injection are likely to drive the top line. However, loss of market exclusivity for several drugs, softness in the diabetes (Januvia/Janumet) franchise, and lower sales of key products like Zostavax and Zepatier due to competitive pressure may hurt sales.(Read More: What's in the Cards for Merck This Earnings Season? )
Merck & Co., Inc. Price and EPS Surprise
Merck & Co., Inc. Price and EPS Surprise | Merck & Co., Inc. Quote
Gilead Sciences, Inc.GILD is slated to report results after the market closes . The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 7.47%.In the last reported quarter, Gilead delivered a positive earnings surprise of 4.71%.
Our model shows that Gilead is likely to beat estimates this quarter. The combination of Gilead's Zacks Rank of 2 and an Earnings ESP of +0.32% makes us confident about an earnings beat in the upcoming report. The consensus mark for the quarter to be reported is pegged at $1.66 per share.
The company's Strong HIV performance and other antiviral product sales are being driven by continued uptake of tenofovir alafenamide ("TAF") based products - Genvoya, Descovy and Odefsey. We expect the trend to continue in the first quarter as well. The franchise received a further boost with the FDA approval of once-daily single tablet regimen ("STR"), Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF) for HIV-1 infection in February 2018. Hence, sales should get a further boost. (Read More: Is a Beat in the Cards for Gilead in Q1 Earnings? )
Gilead Sciences, Inc. Price and EPS Surprise
Gilead Sciences, Inc. Price and EPS Surprise | Gilead Sciences, Inc. Quote
Incyte CorporationINCY is slated to report results before the market opens. Incyte's track record has been impressive so far. The company's delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 67.05%.In the last reported quarter, Incyte delivered a positive earnings surprise of 103.85%.
Our model shows that Incyte is likely to beat estimates this quarter. The combination of Incyte's Zacks Rank of 3 and an Earnings ESP of +92.00% makes us confident about an earnings beat in the upcoming report. The consensus mark for the quarter to be reported is pegged at 8 cents per share.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Incyte continues to gain traction by its lead drug Jakafi's performance. Incyte's Jakafi performance was strong in 2017 driven by patient demand. The sales guidance for 2018 was also impressive. In October 2017, the FDA approved a label update of the drug to include the addition of new patient-reported outcome data from the COMFORT-I study, as well as updating the warning related to progressive multifocal leukoencephalopathy. The pivotal REACH1 trial evaluating Jakafi in patients with steroid-refractory acute graft-versus-host disease has completed enrollment and results are expected in the first half of 2018.
Assuming successful results, Incyte expects to submit an sNDA seeking approval of Jakafi for this indication. Jakafi sales are expected to get a boost from the updated labels. (Read More: Can Jafaki Help Incyte Beat Earnings Estimates in Q1? )
Incyte Corporation Price and EPS Surprise
Incyte Corporation Price and EPS Surprise | Incyte Corporation Quote
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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. | Among the major large cap players that have reported results, Bristol-Myers Squibb BMY and AbbVie ABBV beat the Zacks Consensus Estimate for both earnings as well as sales. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. The franchise received a further boost with the FDA approval of once-daily single tablet regimen ("STR"), Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF) for HIV-1 infection in February 2018. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. Among the major large cap players that have reported results, Bristol-Myers Squibb BMY and AbbVie ABBV beat the Zacks Consensus Estimate for both earnings as well as sales. Merck & Co., Inc. Price and EPS Surprise Merck & Co., Inc. Price and EPS Surprise | Merck & Co., Inc. Quote Gilead Sciences, Inc.GILD is slated to report results after the market closes . | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. Among the major large cap players that have reported results, Bristol-Myers Squibb BMY and AbbVie ABBV beat the Zacks Consensus Estimate for both earnings as well as sales. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 7.47%.In the last reported quarter, Gilead delivered a positive earnings surprise of 4.71%. | Among the major large cap players that have reported results, Bristol-Myers Squibb BMY and AbbVie ABBV beat the Zacks Consensus Estimate for both earnings as well as sales. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report To read this article on Zacks.com click here. The proportion of companies beating both earnings and revenue estimates is 61.4%. |
25526.0 | 2018-04-30 00:00:00 UTC | Gilead (GILD) 1st Quarter Earnings: What to Expect | ABBV | https://www.nasdaq.com/articles/gilead-gild-1st-quarter-earnings-what-expect-2018-04-30 | nan | nan | Gilead Sciences (GILD) will report first quarter fiscal 2018 earnings results after Tuesday’s closing bell. With its shares falling some 14% in three months, a solid beat on both the top and bottom lines would be just what the doctor ordered.
The biopharma specialist, which develops a host of drugs for the treatment such as HIV, cardiovascular (among others), has been a leader in several medical breakthroughs, producing producing innovative products such as Sovaldi and Harvoni, which are used to cure liver diseases such as chronic hepatitis C virus (HCV).
However, increased competition from the likes of Merck (MRK) and AbbVie (ABBV) have pressured Gilead’s HCV revenues, resulting in declining sales in Harvoni and Sovaldi. In that vein, on Tuesday Wall Street will want the company to assuage investor fears about its competitive position.
For the quarter that ended in March, the Foster City, Calif.-based company is projected to earn $1.67 per share on revenue of $5.4 billion. This compares to the year-ago quarter when earnings came to $2.23 per share on revenue of $6.5 billion. For the full year, ending in December, earnings are projected to be $6.47 per share, down from $8.84 a year ago, while full-year revenue of $21.29 billion would mark a decline of 18.4% year over year.
Despite a beat on both the top and bottom lines in Q4, revenues of $5.9 billion declined 19%. While Gilead, which has delivered an earnings beat in three of the last four quarters, has a solid track record with operational results, anxiety has set in. Among other reasons, AbbVie’s competing HCV drug Viekira Pak and Merck‘s Zepatier are believed to be chipping away at Gilead’s lead.
The former reported $919 billion in HCV antiviral sales in the most-recent quarter, which came in at about $656 million more than during the same period a year ago. And there is a growing belief that AbbVie’s growth may continue to come at the expense of Gilead. But Gilead CEO John Milligan doesn’t seem too worried. On the Q4 conference call with analyst, Milligan was optimistic about the HCV revenues, saying "the market dynamics of HCV are stabilizing.”
Citing adoption rates from recently-launched Epclusa, used to treat chronic hepatitis C in adults, Milligan suggested the company may start seeing market share improvements by the middle of 2018. Whether from market share or the acquisition of new patients, analysts will look for evidence within the company’s metrics.
Elsewhere, the company’s results from its non-HCV business will also be an area of focus. To the extent its dominance in HIV, driven by its single-tablet regimen Altripla, can help offset any weakness in HCV, Gilead’s Q1 results will be applauded. Accordingly, now would be the time to own GILD shares, which are down almost 14% in three months and pay a solid dividend yield of 3.00% - more than a full point above the S&P 500 index.
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, increased competition from the likes of Merck (MRK) and AbbVie (ABBV) have pressured Gilead’s HCV revenues, resulting in declining sales in Harvoni and Sovaldi. Among other reasons, AbbVie’s competing HCV drug Viekira Pak and Merck‘s Zepatier are believed to be chipping away at Gilead’s lead. And there is a growing belief that AbbVie’s growth may continue to come at the expense of Gilead. | However, increased competition from the likes of Merck (MRK) and AbbVie (ABBV) have pressured Gilead’s HCV revenues, resulting in declining sales in Harvoni and Sovaldi. Among other reasons, AbbVie’s competing HCV drug Viekira Pak and Merck‘s Zepatier are believed to be chipping away at Gilead’s lead. And there is a growing belief that AbbVie’s growth may continue to come at the expense of Gilead. | However, increased competition from the likes of Merck (MRK) and AbbVie (ABBV) have pressured Gilead’s HCV revenues, resulting in declining sales in Harvoni and Sovaldi. Among other reasons, AbbVie’s competing HCV drug Viekira Pak and Merck‘s Zepatier are believed to be chipping away at Gilead’s lead. And there is a growing belief that AbbVie’s growth may continue to come at the expense of Gilead. | However, increased competition from the likes of Merck (MRK) and AbbVie (ABBV) have pressured Gilead’s HCV revenues, resulting in declining sales in Harvoni and Sovaldi. Among other reasons, AbbVie’s competing HCV drug Viekira Pak and Merck‘s Zepatier are believed to be chipping away at Gilead’s lead. And there is a growing belief that AbbVie’s growth may continue to come at the expense of Gilead. |
25527.0 | 2018-04-30 00:00:00 UTC | The Good and the Bad News With Biogen Inc Earnings Results | ABBV | https://www.nasdaq.com/articles/the-good-and-the-bad-news-with-biogen-inc-earnings-results-2018-04-30 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Ahead of the Biogen Inc (NASDAQ: BIIB ) earnings report, BIIB stock touched a yearly low. This is a far cry from the $370 peak shares reached at the end of January 2018. Unless the market forgets about the bad news on its MS drug that followed its strong fourth quarter results, this quarter's results may not move the stock much.
In the fourth quarter report issued on Jan. 25, Biogen reported revenue growing 15% year-over-year to $3.3 billion. Operating income rose 65.4% to $1.5 billion, but the company lost $297.4 million, or $1.40 a share. Biogen guided revenue in 2018 of around $13 billion, GAAP EPS of $22.20-$23.20 and non-GAAP EPS between $24.40-$25.20.
The Bad News
Unfortunately, on Feb. 7, Biogen revealed its MS (multiple sclerosis) drug TYSABRI (natalizumab), which treats patients with acute ischemic stroke, did not beat the placebo. The company will reveal the details at a scientific conference in the future.
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On Mar. 2, both Biogen and AbbVie Inc (NYSE: ABBV ) withdrew its Zinbryta drug, which treats MS. Fortunately for Celgene Corporation (NASDAQ: CELG ), the drug does not amount to much sales. For Biogen, it was another bad-news event.
The Good News With First Quarter Results
Biogen reported revenue growing 11.4%, to $3.131 billion in the first quarter. Anti-CD20 revenue grew a solid 30% ($443.2 million), compared to the 6% growth in product sales ($2.52 billion). TECFIDERA accounted for most of the revenue, at $987 million, but rose only 3% YOY.
Sales of Biogen's other products fell from last year. This includes Interferon, AVONEX and TYSABRI. Though they accounted for a small percentage of total revenue, sales of biosimilars rose a solid 93%, to $128 million.
Business Development Highlights
Biogen signed a 10-year exclusive collaboration with Ionis Pharmaceuticals Inc (NASDAQ: IONS ) in which it will pay $375 million upfront, plus buy $500 million of Ionis' equity at a 25% premium.
Development milestones will cost up to $270 million and are dependent on royalties on net sales and on the indication. While Biogen is responsible for the development and commercialization activities, it will have the option to license therapies.
Biogen's acquisition of BIIB104 from Pfizer Inc. (NYSE: PFE ), which targets the MPA receptor potentiator for cognitive impairment associated with schizophrenia (CIAS), will cost $75 million upfront. It will pay $515 million in development and commercialization milestone payments.
2018 Priorities
MS is still a core priority for the company as U.S. demand for its drug is driving inventory lower. For its drugs treating spinal muscular atrophy, Biogen is accelerating sales through reimbursements. This will likely hurt profit margins but will pay off in the long run as it establishes its market share.
Meanwhile, reinvesting the excess cash flow to increase shareholder value is another priority. Though the 900,000-share buyback, or $250 million, is modest, BIIB may need to increase the buyback pace as its shares reach new yearly lows.
Biogen added five clinical programs in the last quarter in the areas of ophthalmology, Alzheimer's disease and dementia, pain, and neuropsychiatry. Positive results from any of these programs this year should not move the needle on the share price, but positive data for MS and neuroimmunology might. Those two areas are Biogen's core competency.
Valuation for BIIB Stock
The fair value on BIIB stock varies wildly, depending on the model used and the outlook on revenue and profits ahead. If investors assumed EBIT margins in the 40-60% range, Biogen is trading at fair value and has little upside .
Here's Why 275% in Biogen Inc Stock Looks Realistic
But if this biotech produces tremendous cash flow growth over the next few years from successfully launched, new products, then the 10Y DCF EBITDA Exit model (on finbox.io) suggests that investors will get rewarded for holding the stock. The company must grow revenue in the range of 2-6% in the next 10 years, a goal that is achievable.
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The post The Good and the Bad News With Biogen Inc Earnings Results 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. | 2, both Biogen and AbbVie Inc (NYSE: ABBV ) withdrew its Zinbryta drug, which treats MS. Fortunately for Celgene Corporation (NASDAQ: CELG ), the drug does not amount to much sales. The Bad News Unfortunately, on Feb. 7, Biogen revealed its MS (multiple sclerosis) drug TYSABRI (natalizumab), which treats patients with acute ischemic stroke, did not beat the placebo. Biogen's acquisition of BIIB104 from Pfizer Inc. (NYSE: PFE ), which targets the MPA receptor potentiator for cognitive impairment associated with schizophrenia (CIAS), will cost $75 million upfront. | 2, both Biogen and AbbVie Inc (NYSE: ABBV ) withdrew its Zinbryta drug, which treats MS. Fortunately for Celgene Corporation (NASDAQ: CELG ), the drug does not amount to much sales. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Ahead of the Biogen Inc (NASDAQ: BIIB ) earnings report, BIIB stock touched a yearly low. In the fourth quarter report issued on Jan. 25, Biogen reported revenue growing 15% year-over-year to $3.3 billion. | 2, both Biogen and AbbVie Inc (NYSE: ABBV ) withdrew its Zinbryta drug, which treats MS. Fortunately for Celgene Corporation (NASDAQ: CELG ), the drug does not amount to much sales. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Ahead of the Biogen Inc (NASDAQ: BIIB ) earnings report, BIIB stock touched a yearly low. Business Development Highlights Biogen signed a 10-year exclusive collaboration with Ionis Pharmaceuticals Inc (NASDAQ: IONS ) in which it will pay $375 million upfront, plus buy $500 million of Ionis' equity at a 25% premium. | 2, both Biogen and AbbVie Inc (NYSE: ABBV ) withdrew its Zinbryta drug, which treats MS. Fortunately for Celgene Corporation (NASDAQ: CELG ), the drug does not amount to much sales. The Good News With First Quarter Results Biogen reported revenue growing 11.4%, to $3.131 billion in the first quarter. Anti-CD20 revenue grew a solid 30% ($443.2 million), compared to the 6% growth in product sales ($2.52 billion). |
25528.0 | 2018-04-28 00:00:00 UTC | AbbVie's First Quarter: Can We Quit Worrying About Humira Now? | ABBV | https://www.nasdaq.com/articles/abbvies-first-quarter-can-we-quit-worrying-about-humira-now-2018-04-28 | nan | nan | Since AbbVie Inc. 's (NYSE: ABBV) inception, investors have been fretting about the eventual demise of its lead drug, Humira. The aging blockbuster has slowed down a bit during the first three months of the year, but the rest of the company's product lineup stepped up and delivered.
An immediate hit to Humira would still be devastating, but AbbVie's first quarter report suggests the company can keep the needle moving forward even if the record-breaking biologic doesn't reach the lofty revenue target the company touted last year. Here are a few hints in AbbVie's first quarter report that suggest the foundations that this company has built under the house of Humira can stand on their own.
Tough target to hit?
Humira's most important U.S. patent expired last year, but Americans probably won't have access to cheaper biosimilar versions until 2023 . That's why AbbVie confidently predicted annual Humira sales would climb to $21 billion by 2020 last October.
First quarter sales of the blockbuster rheumatoid arthritis therapy put it on pace to achieve $18.8 billion in a year. That's certainly not bad, but it finished the previous quarter on a $19.6 billion annualized run rate.
AbbVie attributed 2017's 18.5% gain in the U.S. to increasing patient populations and price increases, not a gain in market share. If insurers and pharmacy benefit managers play their cards right, anti-inflammatory drugs entering major markets could make it awfully hard to continue growing Humira sales with price increases alone.
New lead growth driver?
AbbVie's new hepatitis C virus (HCV) treatment is priced to compete with Gilead Sciences (NASDAQ: GILD) market-leading treatments and the strategy's working. Mayvret has been a disaster for Gilead's HCV franchise, but it did more to push AbbVie's needle forward than any other product during the first quarter. AbbVie reported $919 billion in HCV antiviral sales, $656 million more than during the same period last year and $409 million more than during the previous quarter.
AbbVie's superstar leukemia tablet, Imbruvica put on another impressive showing. Sales of the tablets rose 39% to a $3.0 billion annualized run rate. Strong contributions from Mayvret and Imbruvica made this the first quarter I can remember where overall sales growth exceeded Humira's.
Before we get too excited about Mayvret's hugely successful launch, it's important to remember the boom-and-bust nature of past HCV treatment launches. Gilead Sciences recorded $19.1 billion in HCV sales in 2015, but the segment hit an annualized run rate of just $6 billion in the fourth quarter. Don't be surprised if chasing each other to the bottom causes Mayvret sales to plateau by the end of 2018.
Batters on deck
Just ahead of its earnings release, AbbVie sent its experimental psoriasis drug to the FDA. During studies supporting the application, risankizumab helped more than half of patients that received it to achieve complete skin clearance.
Risankizumab even wiped the floor with Johnson & Johnson 's Stelara, a psoriasis drug on pace to pass $4 billion in annual sales this year. In one head-to-head trial, 82% of patients receiving AbbVie's candidate achieved a 90% improvement versus just 44% in the group randomized to receive Stelara. That doesn't necessarily mean risankizumab will pass the $4 billion mark as well, but it sure seems reasonable.
AbbVie also has an experimental oral rheumatoid arthritis therapy that could help the company maintain its edge in the space. Upadacitinib recently aced a head-to-head trial against Humira in one of several phase 3 trials designed to support an application the company thinks it can send to the FDA before the end of the year.
AbbVie thinks upadacitinib can add around $6.5 billion to the company's top line at its peak, which looks a bit more achievable following Eli Lilly 's (NYSE: LLY) recent date at the FDA. The agency called together an independent panel of experts to discuss a once-rejected application for baricitinib, a therapy similar to upadacitinib that's already generating significant sales in the EU. There were a lot of ins and outs to consider, but I expect the regulator will insist on another lengthy study for Lilly's drug that will clear the runway for upadacitinib's potential launch in 2019.
A bargain buy
A strong first quarter inspired management to raise its full-year adjusted earnings forecast a few percentage points higher to a range between $7.66 and $7.76 per share. That estimate represents a stunning year-to-year growth rate of 38%, but the stock price is still depressed to a level that doesn't make sense given the company's impressive first-quarter performance and late-stage development pipeline.
At recent prices, AbbVie's shares trade at just 12.6 times the midpoint of the company's new earnings prediction for the year. For comparison, the average stock in the benchmark S&P 500 trades at around 17.0 times forward estimates. Throw in a dividend that offers a 3.9% yield, and this stock looks like a hard bargain to pass on right now.
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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 the following options: short May 2018 $85 calls on 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. | AbbVie thinks upadacitinib can add around $6.5 billion to the company's top line at its peak, which looks a bit more achievable following Eli Lilly 's (NYSE: LLY) recent date at the FDA. Since AbbVie Inc. 's (NYSE: ABBV) inception, investors have been fretting about the eventual demise of its lead drug, Humira. An immediate hit to Humira would still be devastating, but AbbVie's first quarter report suggests the company can keep the needle moving forward even if the record-breaking biologic doesn't reach the lofty revenue target the company touted last year. | Since AbbVie Inc. 's (NYSE: ABBV) inception, investors have been fretting about the eventual demise of its lead drug, Humira. An immediate hit to Humira would still be devastating, but AbbVie's first quarter report suggests the company can keep the needle moving forward even if the record-breaking biologic doesn't reach the lofty revenue target the company touted last year. Here are a few hints in AbbVie's first quarter report that suggest the foundations that this company has built under the house of Humira can stand on their own. | An immediate hit to Humira would still be devastating, but AbbVie's first quarter report suggests the company can keep the needle moving forward even if the record-breaking biologic doesn't reach the lofty revenue target the company touted last year. AbbVie reported $919 billion in HCV antiviral sales, $656 million more than during the same period last year and $409 million more than during the previous quarter. Since AbbVie Inc. 's (NYSE: ABBV) inception, investors have been fretting about the eventual demise of its lead drug, Humira. | At recent prices, AbbVie's shares trade at just 12.6 times the midpoint of the company's new earnings prediction for the year. Since AbbVie Inc. 's (NYSE: ABBV) inception, investors have been fretting about the eventual demise of its lead drug, Humira. An immediate hit to Humira would still be devastating, but AbbVie's first quarter report suggests the company can keep the needle moving forward even if the record-breaking biologic doesn't reach the lofty revenue target the company touted last year. |
25529.0 | 2018-04-27 00:00:00 UTC | 3 Things You Need to Know About AbbVie's Monster Q1 Earnings | ABBV | https://www.nasdaq.com/articles/3-things-you-need-know-about-abbvies-monster-q1-earnings-2018-04-27 | nan | nan | AbbVie (NYSE: ABBV) ended 2017 with a bang, posting tremendous fourth-quarter results in January. The company has started 2018 with a bang, too.
On Thursday, AbbVie announced its Q1 earnings results. Wall Street analysts thought the company would report revenue of $7.6 billion. AbbVie's actual revenue total was $7.9 billion. Analysts expected adjusted earnings per share (EPS) of $1.79. AbbVie reported adjusted EPS in Q1 of $1.87.
How did the drugmaker hit a home run yet again? Here are three things you need to know about AbbVie's monster Q1 performance.
1. Mavyret is winning big-time
AbbVie's new hepatitis C virus (HCV) drug Mavyret appears to be giving Gilead Sciences (NASDAQ: GILD) a run for its money. In the first quarter, AbbVie's net HCV revenue came in at $919 million. That total includes both of the company's HCV drugs, Viekira and Mavyret. But there's virtually no question that Mavyret is contributing most of AbbVie's HCV revenue.
Consider that in the first quarter of 2017, Viekira generated sales of $263 million. The following quarter, sales for the drug dropped to $225 million. After Mavyret won FDA approval in August 2017, AbbVie began combining sales for both HCV drugs in its financial reports. However, it's a near certainty that Viekira's sales have continued to decline, while Mavyret's have soared.
Gilead reports its Q1 results next week. It should be interesting to see how its top HCV drug, Epclusa, performed. Based on the huge sales gains for Mavyret, I wouldn't be surprised if Epclusa had its second quarter in a row of year-over-year sales declines.
Gilead Sciences executives think that the market share for their HCV franchise will stabilize in the middle of 2018 . That probably isn't a bad assumption. If so, the sales growth for Mavyret will flatten also. However, AbbVie definitely has a big winner on its hands.
2. Imbruvica keeps gaining ground
There's no reason to think that Imbruvica will slow down. Sales of the cancer drug soared 38.5% year over year in the first quarter to $762 million. That was a 7.6% increase from the previous quarterly sales figure for Imbruvica.
Imbruvica already claims a laundry list of indications for which it has won FDA approval: mantle cell lymphoma, chronic lymphocytic leukemia (CLL), Waldenstrom's macroglobulinemia, marginal zone lymphoma, small lymphocytic lymphoma, and chronic graft-versus-host disease. AbbVie hopes to add more to that list.
The company is evaluating Imbruvica in late-stage studies targeting treatment of diffuse large B-cell lymphoma (DLBCL), follicular lymphoma, and pancreatic cancer. Probably the best chances for the drug are in the DLBCL indication.
Market research firm EvaluatePharma predicts that Imbruvica will become the No. 4 best-selling cancer drug in the world by 2022 , with sales of $7.5 billion. While AbbVie shares profits on international sales with Johnson & Johnson , Imbruvica appears set to be a growth driver for AbbVie for a long time to come.
3. Humira still wears the crown for now
Although Mavyret and Imbruvica generated the most sizzling growth in Q1, Humira still wears the crown as the top-selling drug for AbbVie. The immunology drug generated revenue of $4.7 billion in the first quarter, a solid increase of 14.4% over the prior-year period.
Humira's growth could taper off somewhat later this year, though. Amgen and Samsung Bioepis will begin marketing their biosimilars to Humira in Europe in October. However, AbbVie makes nearly 64% of total sales of Humira in the U.S. Also, the company will receive royalties on sales of the Humira biosimilars.
Perhaps the most notable thing about Humira in the first quarter is that, for the first time ever, sales of the drug accounted for less than 60% of AbbVie's total revenue. That's good news for AbbVie, which has been aggressively seeking to reduce its dependence on Humira.
Looking ahead
Thanks to its blowout performance in Q1, AbbVie boosted its guidance for the full year. The company now expects adjusted EPS between $7.66 and $7.76. Previously, AbbVie had projected 2018 adjusted EPS between $7.33 and $7.43.
AbbVie's long-term prospects also still appear to be good. The company did have a serious pipeline setback in March -- it announced disappointing results from a phase 2 study of Rova-T as a third-line treatment for relapsed/refractory small-cell lung cancer (SCLC). That clinical failure doesn't bode well for the drug's chances in a late-stage study targeting the first-line SCLC indication. However, AbbVie still has multiple promising candidates in its pipeline.
I continue to view AbbVie as one of the more attractive pharma stocks on the market. And with a dividend yielding north of 4%, investors will get paid nicely as they wait for Mavyret, Imbruvica, Humira, and the company's pipeline to deliver more monster quarters.
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Keith Speights owns shares of AbbVie and Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences and Johnson & Johnson. The Motley Fool has the following options: short May 2018 $85 calls on Gilead Sciences and short May 2018 $140 calls on Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | After Mavyret won FDA approval in August 2017, AbbVie began combining sales for both HCV drugs in its financial reports. AbbVie (NYSE: ABBV) ended 2017 with a bang, posting tremendous fourth-quarter results in January. On Thursday, AbbVie announced its Q1 earnings results. | Humira still wears the crown for now Although Mavyret and Imbruvica generated the most sizzling growth in Q1, Humira still wears the crown as the top-selling drug for AbbVie. AbbVie (NYSE: ABBV) ended 2017 with a bang, posting tremendous fourth-quarter results in January. On Thursday, AbbVie announced its Q1 earnings results. | While AbbVie shares profits on international sales with Johnson & Johnson , Imbruvica appears set to be a growth driver for AbbVie for a long time to come. Humira still wears the crown for now Although Mavyret and Imbruvica generated the most sizzling growth in Q1, Humira still wears the crown as the top-selling drug for AbbVie. However, AbbVie makes nearly 64% of total sales of Humira in the U.S. Also, the company will receive royalties on sales of the Humira biosimilars. | However, AbbVie makes nearly 64% of total sales of Humira in the U.S. Also, the company will receive royalties on sales of the Humira biosimilars. I continue to view AbbVie as one of the more attractive pharma stocks on the market. AbbVie (NYSE: ABBV) ended 2017 with a bang, posting tremendous fourth-quarter results in January. |
25530.0 | 2018-04-27 00:00:00 UTC | HIV Segment to Aid Gilead (GILD) Beat Q1 Earnings Estimates? | ABBV | https://www.nasdaq.com/articles/hiv-segment-to-aid-gilead-gild-beat-q1-earnings-estimates-2018-04-27 | nan | nan | Biotech bigwig Gilead Sciences Inc . GILD develops drugs for the treatment of human immunodeficiency virus ("HIV"), liver diseases such as chronic hepatitis C virus ("HCV") infection and chronic hepatitis B virus ("HBV") infection, cardiovascular, hematology/oncology and inflammation/respiratory diseases.
The HCV franchise boasts drugs like Sovaldi and Harvoni and the recently launched Epclusa. However, the HCV franchise continues to grapple with competitive and pricing pressure leading to a massive decline in Harvoni and Sovaldi sales. Harvoni and Sovaldi have been facing competition from AbbVie's ABBV Viekira Pak and Merck's MRK Zepatier, among others.
Gilead is a dominant player in the HIV market with an impressive portfolio for the same. The company was the first to bring to market a single-tablet regimen ("STR") for the treatment of HIV - Atripla. STRs for HIV in the market include Complera/Eviplera and Stribild among others.
The newly launched tenofovir alafenamide (TAF)-based products Genvoya, Odefsey and Descovy are performing well with strong adoption in both the United States and Europe. Genvoya has already become the most-prescribed regimen for both treatment-naïve and switch patients since its launch in November 2015.
Also, Genvoya has been listed as a preferred regimen in several HIV treatment guidelines. The TAF-based regimens now represent 62% of total Gilead HIV prescription volume following the launch of Genvoya and the launches of Odefsey and Descovy in 2016. The Zacks Consensus Estimate for sales of Genvoya is $1074 million.
Truvada, for use in the pre-exposure prophylaxis setting, also put up a strong performance. The company saw a significant uptick in PrEP usage in 2017 with approximately 153,000 patients using Truvada by the end of 2017. We note that HIV is one of the primary areas of focus for Gilead and the company is working to bring new HIV treatments to market to further boost sales of the franchise.
The company received a major boost when the FDA approved the company's once-daily STR, Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF) for HIV-1 infection. The approval provides a major boost to Gilead's HIV franchise.
Biktarvy combines the novel, unboosted integrase strand transfer inhibitor ("INSTI") bictegravir, with the demonstrated safety and efficacy profile of the Descovy, (FTC/TAF) dual nucleoside reverse transcriptase inhibitor ("NRTI") backbone and is the smallest INSTI-based triple-therapy STR available. The approval of this new HIV therapy will pose stiff competition to GlaxoSmith's GSK existing therapies, Tivicay and Triumeq.
Gilead's stock has returned 10.9% in the last twelve months compared with the industry's loss of 8.9%.
Gilead has a decent track record, with the company's earnings beating estimates in three of the last four while missing in one. In the last reported quarter, the company's earnings beat expectations by 4.7%. Overall, the company recorded an average positive earnings surprise of 7.5%. We expect the strength in the HIV franchise to offset the HCV franchise weakness making it highly likely for the company to beat on earnings in the first quarter. (Read more: Is a Beat in the Cards for Gilead in Q1 Earnings? )
Zacks Rank
Gilead currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today's Zacks #1 (Strong Buy) Rank 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. | Harvoni and Sovaldi have been facing competition from AbbVie's ABBV Viekira Pak and Merck's MRK Zepatier, among others. Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. However, the HCV franchise continues to grapple with competitive and pricing pressure leading to a massive decline in Harvoni and Sovaldi sales. | Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Harvoni and Sovaldi have been facing competition from AbbVie's ABBV Viekira Pak and Merck's MRK Zepatier, among others. GILD develops drugs for the treatment of human immunodeficiency virus ("HIV"), liver diseases such as chronic hepatitis C virus ("HCV") infection and chronic hepatitis B virus ("HBV") infection, cardiovascular, hematology/oncology and inflammation/respiratory diseases. | Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Harvoni and Sovaldi have been facing competition from AbbVie's ABBV Viekira Pak and Merck's MRK Zepatier, among others. We note that HIV is one of the primary areas of focus for Gilead and the company is working to bring new HIV treatments to market to further boost sales of the franchise. | Harvoni and Sovaldi have been facing competition from AbbVie's ABBV Viekira Pak and Merck's MRK Zepatier, among others. Click to get this free report GlaxoSmithKline plc (GSK): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. We note that HIV is one of the primary areas of focus for Gilead and the company is working to bring new HIV treatments to market to further boost sales of the franchise. |
25531.0 | 2018-04-26 00:00:00 UTC | AbbVie (ABBV) Q1 Earnings Beat, 2018 View Up, Stock Gains | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-q1-earnings-beat-2018-view-up-stock-gains-2018-04-26 | nan | nan | AbbVie Inc. ABBV posted impressive results in the first quarter of 2018 with better-than-expected earnings and revenues. Moreover, the company raised its expectations for 2018 bottom line. In response, shares too climbed almost 2.5% in pre-market trading .
Shares of AbbVie have surged 42.8% in a year's time, significantly outperforming the industry 's 3.7% rise.
The biopharmaceutical company reported earnings of $1.87 per share in the first quarter, beating the Zacks Consensus Estimate of $1.80 by 3.9%. Also, the figure grew 46.1% year over year. Earnings also surpassed the previous expected range of $1.77 and $1.79.
The company posted revenues of $7.9 billion in the quarter under review, marginally trumping the Zacks Consensus Estimate of $7.7 billion. The top line also increased 21.4% year over year. Excluding a 3.8% favorable impact from foreign exchange rate fluctuations, operational revenues rose 17.6%. Revenues showed higher growth compared with the previous projection in mid-teen range on an operational basis.
Quarter in Detail
Key drug Humira recorded sales growth of 10.7% on an operational basis with revenues coming in at $4.7 billion. Sales in the United States increased 11.4% to $3 billion. Humira sales in the ex-U.S. market were up 9.3% on an operational basis and 20% on reported basis to $1.71 billion. Growth across all three major market categories drove this upside despite stiffer competition from new classes of drugs as well as an indirect biosimilar contest in the international markets.
First-quarter net revenues from Imbruvica were $762 million, up 38.5% year over year. U.S. sales of Imbruvica grossed $624 million, up 36.7% compared with the year-ago figure. AbbVie logged $138 million of international profit sharing with Johnson & Johnson JNJ .
Other products having delivered an impressive performance include Duodopa showing revenue growth of 16.5% on operational and 28.9% on reported basis. Another product called Creon witnessed an ascent of 13% in revenues on both operational and reported basis.
HCV (chronic hepatitis C virus) product recorded sales of $919 million, significantly up 80.2% compared with the last report.
Adjusted SG&A expenses increased 21.4% to $1.67 billion while R&D expenses escalated 7.2% to $1.19 billion in the first quarter. Adjusted operating margin was 44.1% of sales.
Notably, in first-quarter earnings, AbbVie announced its intention to commence a tender offer to purchase shares of its common stock for a cash value up to $7.5 billion. The company expects to initiate the same as early as May 1, 2018.
2018 Outlook
AbbVie raised its adjusted EPS in the range of $7.66-$7.76 for 2018 compared with $7.33-$7.43, predicted earlier. The earnings guidance reflects a year-over-year surge of 38% at the mid-point. The Zacks Consensus Estimate for the metric in the current year is pegged at $7.57 per share.
AbbVie Inc. Price, Consensus and EPS Surprise
AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote
Zacks Rank & Key Picks
AbbVie carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the health care sector are Ligand Pharmaceuticals Incorporated LGND and Infinity Pharmaceuticals, Inc. INFI , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Ligand's earnings per share estimates have moved up from $3.92 to $4.40 for 2018 and from $4.75 to $5.32 for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 39.1% over a year.
Infinity's loss per share estimates have narrowed from $1.69 to 74 cents for 2018 and from 94 cents to 66 cents for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 7.87%.
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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. | Notably, in first-quarter earnings, AbbVie announced its intention to commence a tender offer to purchase shares of its common stock for a cash value up to $7.5 billion. AbbVie Inc. ABBV posted impressive results in the first quarter of 2018 with better-than-expected earnings and revenues. Shares of AbbVie have surged 42.8% in a year's time, significantly outperforming the industry 's 3.7% rise. | AbbVie Inc. Price, Consensus and EPS Surprise AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report Infinity Pharmaceuticals, Inc. (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV posted impressive results in the first quarter of 2018 with better-than-expected earnings and revenues. | AbbVie Inc. Price, Consensus and EPS Surprise AbbVie Inc. Price, Consensus and EPS Surprise | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report Infinity Pharmaceuticals, Inc. (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV posted impressive results in the first quarter of 2018 with better-than-expected earnings and revenues. | AbbVie Inc. ABBV posted impressive results in the first quarter of 2018 with better-than-expected earnings and revenues. Shares of AbbVie have surged 42.8% in a year's time, significantly outperforming the industry 's 3.7% rise. AbbVie logged $138 million of international profit sharing with Johnson & Johnson JNJ . |
25532.0 | 2018-04-26 00:00:00 UTC | Earnings Reaction History: AbbVie Inc., 54.5% Follow-Through Indicator, 4.4% Sensitive | ABBV | https://www.nasdaq.com/articles/earnings-reaction-history-abbvie-inc-545-follow-through-indicator-44-sensitive-2018-04-26 | nan | nan | Expected Earnings Release: 04/26/2018, Premarket
Avg. Extended-Hours Dollar Volume: $7,003,351
AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Given its history, traders can expect very active trading in the issue immediately following its quarterly earnings announcement. Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close.
Last 12 Qtrs Positive Only Price Reactions
Percent of time added to extended-hours gains: 83.3%
Average next regular session additional gain: 3.5%
Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 83.3% of the time (5 events) the stock posted additional gains in the following regular session by an average of 3.5%.
Last 12 Qtrs Negative Only Price Reactions
Percent of time added to extended-hours losses: 20%
Average next regular session additional loss: 1.7%
Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close.
Data provided by the MT Pro service at MTNewswires.com.
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. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 83.3% Average next regular session additional gain: 3.5% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 83.3% of the time (5 events) the stock posted additional gains in the following regular session by an average of 3.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 20% Average next regular session additional loss: 1.7% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close. Extended-Hours Dollar Volume: $7,003,351 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 83.3% Average next regular session additional gain: 3.5% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 83.3% of the time (5 events) the stock posted additional gains in the following regular session by an average of 3.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 20% Average next regular session additional loss: 1.7% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close. | Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 83.3% Average next regular session additional gain: 3.5% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 83.3% of the time (5 events) the stock posted additional gains in the following regular session by an average of 3.5%. Last 12 Qtrs Negative Only Price Reactions Percent of time added to extended-hours losses: 20% Average next regular session additional loss: 1.7% Over that same historical period, when shares of ABBV dropped in the extended-hours in reaction to its earnings announcement, history shows that 20.0% of the time (1 event) the stock dropped further, adding to the extended-hours losses by an average of 1.7% by the following regular session close. Extended-Hours Dollar Volume: $7,003,351 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. | Extended-Hours Dollar Volume: $7,003,351 AbbVie Inc. ( ABBV ) is due to issue its quarterly earnings report in the upcoming extended-hours session. Historical earnings event related premarket and after-hours trading activity in ABBV indicates that the price change in the extended hours is likely to be of limited value in forecasting additional price movement by the following regular session close. Last 12 Qtrs Positive Only Price Reactions Percent of time added to extended-hours gains: 83.3% Average next regular session additional gain: 3.5% Over the prior three fiscal years (12 quarters), when shares of ABBV rose in the extended-hours session in reaction to its earnings announcement, history shows that 83.3% of the time (5 events) the stock posted additional gains in the following regular session by an average of 3.5%. |
25533.0 | 2018-04-26 00:00:00 UTC | Health Care Sector Update for 04/26/2018: ALXN,AXSM,ABBV,BMY | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-04262018-alxnaxsmabbvbmy-2018-04-26 | nan | nan | Top Health Care Stocks
JNJ +1.23%
PFE +0.57%
ABT +0.63%
MRK -0.29%
AMGN +0.46%
Health care stocks were mostly higher today, including a more than 1.0% gain for the NYSE Health Care Index in recent trade. Also today, shares of health care companies in the S&P 500 also were up over 1.2% as a group while the Nasdaq Biotechnology index was rising just over 2.2% today.
Among health care stocks moving on news:
+ Alexion Pharmaceuticals ( ALXN ) was more than 12% higher in late Wednesday trading, slipping less than 10 cents off its $119.48 a share session high that followed the drugmaker reporting non-GAAP Q1 net income of $1.68 per share, beating the Capital IQ consensus by $0.18 per share. Revenue rose 7% year-over-year to $930.9 million, also exceeding the Street view expecting $922.99 million in quarterly sales. The advance also was finding support from strong forward guidance and Alexion reporting positive topline data from Phase III testing of its ALXN1210 drug candiate, demonstrating non-inferiority of a previously approved medication in patients with paroxysmal nocturnal hemoglobinuria .
In other sector news:
+ Axsome Therapeutics ( AXSM ) raced nearly 19% higher on Thursday to a session high of $3.15 a share after reporting positive interim results from Phase III testing of its AXS-05 drug candidate to treat depression. The company also said an independent data monitoring committee determined the trial should continue following analysis of unblinded, pre-specified data, also concluding AXS-05 appears safe and well-tolerated.
+ AbbVie ( ABBV ) rose almost 6% on Thursday, topping out at $97.30 a share, after posting Q1 adjusted net income and revenue beating Wall Street expectations. Excluding one-time items, it earned $1.87 per share, exceeding the Capital IQ consensus by $0.08 per share. Net revenue increased to $7.93 billion from $6.54 billion last year, also surpassing the $7.6 billion Street view. The company also raised its FY18 adjusted earnings outlook to a new range of $7.66 to $7.76 per share, up from $7.33 to $7.43 per share previously and beating the Street view by at least $0.13 per share.
- Bristol-Myers Squibb ( BMY ) was swinging between small gains and losses Thursday after the drugmaker grew its revenue during the January-to-March reporting period to $5.19 billion from $4.93 billion during the year-ago period but still lagging the Capital IQ consensus by around $60 million. The revenue miss upstaged Bristol-Myers reporting Q1 net income that beat consensus opinion and raising its FY18 per-share earnings outlook. It now expects non-GAAP FY18 EPS between $3.35 to $3.45 compared with prior view expecting $3.15 to $3.30 per share and surpassing the analyst mean by at least $0.09 per share.
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. | + AbbVie ( ABBV ) rose almost 6% on Thursday, topping out at $97.30 a share, after posting Q1 adjusted net income and revenue beating Wall Street expectations. The advance also was finding support from strong forward guidance and Alexion reporting positive topline data from Phase III testing of its ALXN1210 drug candiate, demonstrating non-inferiority of a previously approved medication in patients with paroxysmal nocturnal hemoglobinuria . In other sector news: + Axsome Therapeutics ( AXSM ) raced nearly 19% higher on Thursday to a session high of $3.15 a share after reporting positive interim results from Phase III testing of its AXS-05 drug candidate to treat depression. | + AbbVie ( ABBV ) rose almost 6% on Thursday, topping out at $97.30 a share, after posting Q1 adjusted net income and revenue beating Wall Street expectations. Among health care stocks moving on news: + Alexion Pharmaceuticals ( ALXN ) was more than 12% higher in late Wednesday trading, slipping less than 10 cents off its $119.48 a share session high that followed the drugmaker reporting non-GAAP Q1 net income of $1.68 per share, beating the Capital IQ consensus by $0.18 per share. The revenue miss upstaged Bristol-Myers reporting Q1 net income that beat consensus opinion and raising its FY18 per-share earnings outlook. | + AbbVie ( ABBV ) rose almost 6% on Thursday, topping out at $97.30 a share, after posting Q1 adjusted net income and revenue beating Wall Street expectations. Among health care stocks moving on news: + Alexion Pharmaceuticals ( ALXN ) was more than 12% higher in late Wednesday trading, slipping less than 10 cents off its $119.48 a share session high that followed the drugmaker reporting non-GAAP Q1 net income of $1.68 per share, beating the Capital IQ consensus by $0.18 per share. The company also raised its FY18 adjusted earnings outlook to a new range of $7.66 to $7.76 per share, up from $7.33 to $7.43 per share previously and beating the Street view by at least $0.13 per share. | + AbbVie ( ABBV ) rose almost 6% on Thursday, topping out at $97.30 a share, after posting Q1 adjusted net income and revenue beating Wall Street expectations. Among health care stocks moving on news: + Alexion Pharmaceuticals ( ALXN ) was more than 12% higher in late Wednesday trading, slipping less than 10 cents off its $119.48 a share session high that followed the drugmaker reporting non-GAAP Q1 net income of $1.68 per share, beating the Capital IQ consensus by $0.18 per share. The revenue miss upstaged Bristol-Myers reporting Q1 net income that beat consensus opinion and raising its FY18 per-share earnings outlook. |
25534.0 | 2018-04-26 00:00:00 UTC | Is a Beat in the Cards for Gilead (GILD) in Q1 Earnings? | ABBV | https://www.nasdaq.com/articles/is-a-beat-in-the-cards-for-gilead-gild-in-q1-earnings-2018-04-26 | nan | nan | Gilead Sciences Inc . GILD is scheduled to report first-quarter results on May 1, after the market closes .
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. Price, Consensus and EPS Surprise | Gilead Sciences, Inc. Quote
Gilead, a leader in the hepatitis C virus ("HCV") space, has a decent track record, with the company's earnings beating estimates in three of the last four while missing in one. In the last reported quarter, the company's earnings beat expectations by 4.7%. Overall, the company recorded an average positive earnings surprise of 7.5%.
Gilead's stock has rallied 10.5% over a year outperforming the industry's decline of 10.8%.
Why A Likely Positive Surprise?
Our proven model indicates that Gilead is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates which is what the case is here, as you will see below.
Zacks ESP : Earnings ESP for Gilead is +0.32%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Gilead currently carries a Zacks Rank #2 which when combined with a positive ESP makes us reasonably confident of an earnings beat this quarter.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
Concurrent with the fourth-quarter earnings call, Gilead provided guidance for 2018. Gilead now expects net product sales in the range of $20-$21 billion.
Strong HIV performance and other antiviral product sales are being driven by continued uptake of tenofovir alafenamide ("TAF") based products - Genvoya, Descovy and Odefsey. We expect the trend to continue in the first quarter as well. Genvoya has already become the most prescribed regimen for both treatment-naïve and switch patients since its launch. The TAF-based regimens now represent 62% of total Gilead HIV prescription volume. Truvada for use in the pre-exposure prophylaxis setting also put up a strong performance as the company saw a significant uptick in PrEP usage in 2017 with approximately 153,000 patients using Truvada by the end of 2017. Moreover, the franchise received a further boost with the FDA approval of once-daily single tablet regimen ("STR"), Biktarvy (bictegravir 50mg/emtricitabine 200mg/tenofovir alafenamide 25mg, BIC/FTC/TAF) for HIV-1 infection in February 2018. Hence, sales should get a further boost. The Zacks Consensus Estimate for sales of Genvoya is $1074 million. However, Gilead lost exclusivity for Viread in some countries outside the United States which might impact sales.
On the other hand, the HCV franchise continues to be under competitive and pricing pressure leading to a massive decline in Harvoni and Sovaldi sales. Harvoni and Sovaldi has been facing competition from AbbVie's ABBV Viekira Pak and Viekira XR among others. The franchise suffered a significant plunge in sales due to new competition and fewer patient starts. Both pricing and market share are expected to stabilize by mid-2018 while patient starts are expected to decline further. HCV revenues are projected to decline further and will constitute a smaller portion of the top-line going forward.
The Zacks Consensus Estimate for sales of lead HCV drug Sovaldi and Harvoni are $98 million and $466 million, respectively.
Adjusted R&D expenses and adjusted SG&A expenses are projected in the range of $3.4-$3.6 billion and $3.4-$3.6 billion, respectively. Adjusted product gross margin is expected in the range of 85-87%.
Meanwhile, the Kite acquisition was a step in the right direction with the FDA approval of its chimeric antigen receptor T-cell (CAR-T) therapy, Yescarta (axicabtagene ciloleucel), for the treatment of refractory aggressive non-Hodgkin lymphoma, which includes DLBCL, transformed follicular lymphoma and primary mediastinal B-cell lymphoma. However, management stated that Yescarta launch will be a controlled launch to ensure patient safety as CAR-T therapy is complicated and can sometimes be associated with severe side effects.
Gilead is also looking to build up a nonalcoholic steatohepatitis franchise. We expect the management to throw more light on the same during the first-quarter's call. Investors are also likely to keep an eye on other pipeline updates.
Other Stocks to Consider
Here are some other health care stocks that you may want to consider, as our model shows that they too have the right combination of elements to post an earnings beat this quarter.
GW Pharmaceuticals plc GWPH is expected to report earnings on May 8. The company has an Earnings ESP of +8.11% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Celgene Corporation CELG is scheduled to release first-quarter results on May 4. The company has an Earnings ESP of +0.63% and a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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AbbVie Inc. (ABBV): Free Stock Analysis Report
GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report
Gilead Sciences, Inc. (GILD): Free Stock Analysis Report
Celgene Corporation (CELG): Free Stock Analysis Report
To read this article on Zacks.com 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. | Harvoni and Sovaldi has been facing competition from AbbVie's ABBV Viekira Pak and Viekira XR among others. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Harvoni and Sovaldi has been facing competition from AbbVie's ABBV Viekira Pak and Viekira XR among others. Gilead Sciences, Inc. Price, Consensus and EPS Surprise Gilead Sciences, Inc. Price, Consensus and EPS Surprise | Gilead Sciences, Inc. Quote Gilead, a leader in the hepatitis C virus ("HCV") space, has a decent track record, with the company's earnings beating estimates in three of the last four while missing in one. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. Harvoni and Sovaldi has been facing competition from AbbVie's ABBV Viekira Pak and Viekira XR among others. Gilead Sciences, Inc. Price, Consensus and EPS Surprise Gilead Sciences, Inc. Price, Consensus and EPS Surprise | Gilead Sciences, Inc. Quote Gilead, a leader in the hepatitis C virus ("HCV") space, has a decent track record, with the company's earnings beating estimates in three of the last four while missing in one. | Harvoni and Sovaldi has been facing competition from AbbVie's ABBV Viekira Pak and Viekira XR among others. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. In the last reported quarter, the company's earnings beat expectations by 4.7%. |
25535.0 | 2018-04-26 00:00:00 UTC | AbbVie (ABBV) Tops Q1 Earnings and Revenues, View Up | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-tops-q1-earnings-and-revenues-view-2018-04-26 | nan | nan | North Chicago, IL-based AbbVie Inc. ABBV is best known for its autoimmune disease drug, Humira. AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease, chronic plaque psoriasis (moderate to severe), and hidradenitis suppurativa (moderate to severe. Other key products include Imbruvica (cancer) and Viekira Pak (hepatitis C virus (HCV) treatment).
Humira, is a major contributor to AbbVie's top line. While Humira will remain the key growth driver at AbbVie, the coming quarters will see investor focus remaining primarily on pipeline updates.
Meanwhile, the Pharmacyclics acquisition has diversified AbbVie's product portfolio with the addition of Imbruvica.
AbbVie's performance has been impressive, with the pharmaceuticals company delivering positive surprises in all of the past four quarter. The average earnings beat over the last four quarters is 1.81%.
Currently, AbbVie has a Zacks Rank #3 (Hold), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: AbbVie's first-quarter earnings came in at $1.87 per share, beating the Zacks Consensus Estimate of $1.80.
Revenues: AbbVie posted revenues of $7.9 billion, which marginally beat the Zacks Consensus Estimate of $7.7 billion.
Key Stats: Humira sales came in at $4.7 billion, up 10.7% year over year excluding currency impact. First-quarter Imbruvica net revenues were $762 million, up 38.5% year over year.
2018 Outlook: AbbVie updated its outlook for 2018. The company raised its adjusted EPS in the range of $7.66 to $7.76 compared to $7.33 to $7.43 expected previously. The Zacks Consensus Estimate is currently pegged at $7.57 per share.
Share Price Impact: Shares rose more than 2% in pre-market trading .
Check back later for our full write up on this AbbVie earnings report.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote
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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's performance has been impressive, with the pharmaceuticals company delivering positive surprises in all of the past four quarter. North Chicago, IL-based AbbVie Inc. ABBV is best known for its autoimmune disease drug, Humira. AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease, chronic plaque psoriasis (moderate to severe), and hidradenitis suppurativa (moderate to severe. | AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease, chronic plaque psoriasis (moderate to severe), and hidradenitis suppurativa (moderate to severe. Revenues: AbbVie posted revenues of $7.9 billion, which marginally beat the Zacks Consensus Estimate of $7.7 billion. AbbVie Inc. Price and EPS Surprise AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote More Stock News: This Is Bigger than the iPhone! | AbbVie's flagship product Humira is approved for several indications like rheumatoid arthritis (moderate to severe), moderately to severely active polyarticular juvenile idiopathic arthritis, active psoriatic arthritis, active ankylosing spondylitis, Crohn's disease (moderate to severe), ulcerative colitis (moderate to severe), axial spondyloarthritis, pediatric Crohn's disease, chronic plaque psoriasis (moderate to severe), and hidradenitis suppurativa (moderate to severe. We have highlighted some of the key stats from this just-revealed announcement below: Earnings: AbbVie's first-quarter earnings came in at $1.87 per share, beating the Zacks Consensus Estimate of $1.80. AbbVie Inc. Price and EPS Surprise AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote More Stock News: This Is Bigger than the iPhone! | Currently, AbbVie has a Zacks Rank #3 (Hold), but that could definitely change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below: Earnings: AbbVie's first-quarter earnings came in at $1.87 per share, beating the Zacks Consensus Estimate of $1.80. Revenues: AbbVie posted revenues of $7.9 billion, which marginally beat the Zacks Consensus Estimate of $7.7 billion. |
25536.0 | 2018-04-26 00:00:00 UTC | AbbVie Inc Stock Up on Strong Earnings, Guidance Update | ABBV | https://www.nasdaq.com/articles/abbvie-inc-stock-strong-earnings-guidance-update-2018-04-26 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc (NYSE: ABBV ) stock was up today following the release of its earnings report for the first quarter of the year.
Source: Black Stripe via Wikimedia (Modified)
During the first quarter of 2018, AbbVie Inc reported earnings per share of $1.89. This is an increase over its earnings per share of $1.28 from the same time last year. It also beat out Wall Street's earnings per share estimate of $1.79 for the quarter and was good news for ABBV stock.
AbbVie Inc's net income reported in the first quarter of the year was $2.78 billion. This is a major jump over the pharmaceutical company's net income of $1.71 billion that was reported in the first quarter of 2017.
Operating income reported by AbbVie Inc for the first quarter of 2018 was $2.90 billion. The company's operating income for the same period of the year prior came in at $2.41 billion.
AbbVie Inc also reported revenue of $7.93 billion for the first quarter of the year. This is up from its revenue of $6.54 billion that was reported in the first quarter of the previous year. It was also a boon to ABBV stock by coming in above analysts' revenue estimate of $7.60 billion for the period.
7 Stocks on a Long-Term Uptrend
AbbVie Inc's most recent earnings report also includes an update to its guidance for 2018. The company says it is now expecting earnings per share for the year to range from $7.66 to $7.76. It's previous outlook had earnings per share coming in between $7.33 and $7.43. Wall Street is looking for earnings per share of $7.55 in 2018.
ABBV stock was up 3% as of Thursday morning.
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The post AbbVie Inc Stock Up on Strong Earnings, Guidance Update 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. | It also beat out Wall Street's earnings per share estimate of $1.79 for the quarter and was good news for ABBV stock. 7 Stocks on a Long-Term Uptrend AbbVie Inc's most recent earnings report also includes an update to its guidance for 2018. Compare Brokers The post AbbVie Inc Stock Up on Strong Earnings, Guidance Update appeared first on InvestorPlace . | It also beat out Wall Street's earnings per share estimate of $1.79 for the quarter and was good news for ABBV stock. 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 Inc (NYSE: ABBV ) stock was up today following the release of its earnings report for the first quarter of the year. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was up today following the release of its earnings report for the first quarter of the year. It also beat out Wall Street's earnings per share estimate of $1.79 for the quarter and was good news for ABBV stock. Source: Black Stripe via Wikimedia (Modified) During the first quarter of 2018, AbbVie Inc reported earnings per share of $1.89. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was up today following the release of its earnings report for the first quarter of the year. AbbVie Inc also reported revenue of $7.93 billion for the first quarter of the year. It was also a boon to ABBV stock by coming in above analysts' revenue estimate of $7.60 billion for the period. |
25537.0 | 2018-04-26 00:00:00 UTC | DaVIta (DVA) to Report Q1 Earnings: Is a Beat in Store? | ABBV | https://www.nasdaq.com/articles/davita-dva-to-report-q1-earnings%3A-is-a-beat-in-store-2018-04-26 | nan | nan | DaVita Inc. 's DVA first-quarter 2018 results are scheduled to release on May 3, after the market closes . DaVita's Dialysis and related lab services business segment has been a consistent driver of revenues for the company. Surging acquisition of dialysis centers also adds to the positives.
Notably, in the fourth quarter of 2017, the company reported adjusted operating earnings of 92 cents per share, beating the Zacks Consensus Estimate of 91 cents. However, earnings declined 6.1% on a year-over-year basis.
Meanwhile, revenues in the last reported quarter increased 3% year over year to $2.78 billion but missed the Zacks Consensus Estimate of $3.89 billion.
For the quarter under review, the Zacks Consensus Estimate for revenues is pegged at $2.96 billion, reflecting a year-over-year decline of 20%. The same for earnings per share is projected at 92 cents, indicating year-over-year growth of 16.5%. The company delivered an average negative earnings surprise of 3.5% in the trailing four quarters.
DaVita Inc. Price and EPS Surprise
DaVita Inc. Price and EPS Surprise | DaVita Inc. Quote
Let's delve into other factors that are likely to impact DaVita's first-quarter 2018 results.
Kidney Care Business & Dialysis Centers to Drive Q1
DaVita Medical Group & Kidney Care, also known as DMG, provides integrated care management as an operating division of the company and focuses on delivering healthcare through a broad range of services.
In 2017, Kidney Care business witnessed several prospects. Adjusted operating income in the segment was $1.616 billion, up from the adjusted guidance of $1.57-$1.6 billion in 2017. Lately, the company, in collaboration with Texas-based Methodist Specialty and Transplant Hospital, announced the launch of the Transplant Waitlist Support Program. The aim is to help keep waitlisted patients transplant-ready by deploying a technology-enabled solution.
Developments like these are likely to help DaVita in registering solid quarterly results.
In fourth-quarter 2017, DaVita acquired nine dialysis centers, opened 36 new centers and closed four in the United States. DaVita also acquired six dialysis centers, opened two centers and closed one center outside the United States. However, the Zacks Consensus Estimate for the number of dialysis centers in the current quarter is pegged at 2.686, down 2.2% sequentially.
Other Factors at Play
Guidance
For 2018, the company projects Kidney Care consolidated operating income in the range of $1.5-$1.6 billion. Operating cash flow from continuing operations is estimated in the band of $1.4-$1.6 billion.
The effective tax rate is expected in the range of 26.5-27.5%.
A solid guidance such as this raises optimism in the company's upcoming quarterly results.
Reimbursements
Calcimimetics, a drug used to treat mineral bone disease, just moved into dialysis reimbursement with introduction of an injectable drug called Presibib.
Though it is early to understand the full picture, the management is optimistic about its probable contributions to the quarterly results.
Acquisition Perils
With surging labor cost inflation, DaVita is likely to witness solid margin pressure in the traditional Medicare fee-for-service business.
The series of acquisitions of dialysis centers by DaVita may affect operations, debt-to-capital ratio, capital expenditures or other aspects of the business.
Further, joint ventures and minority investments inherently involve a lesser degree of control over business operations, thereby potentially increasing the financial, legal, operational and compliance risks associated with the joint venture or minority investment.
Our Model
Our quantitative model predicts an earnings beat for DaVIta in the upcoming quarterly results.
This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. It can be illustrated below:
Zacks ESP
Earnings ESP for DaVita is +1.64%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank
DaVIta carries a Zacks Rank #3.
Here are a few other medical stocks worth considering as they also have the right combination of elements to post an earnings beat.
The Cooper Companies, Inc. COO has an Earnings ESP of +0.26% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Teleflex Incorporated TFX has an Earnings ESP of +0.58% and a Zacks Rank #3.
AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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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 has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report DaVita Inc. (DVA): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. Other Factors at Play Guidance For 2018, the company projects Kidney Care consolidated operating income in the range of $1.5-$1.6 billion. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report DaVita Inc. (DVA): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Notably, in the fourth quarter of 2017, the company reported adjusted operating earnings of 92 cents per share, beating the Zacks Consensus Estimate of 91 cents. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report DaVita Inc. (DVA): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Notably, in the fourth quarter of 2017, the company reported adjusted operating earnings of 92 cents per share, beating the Zacks Consensus Estimate of 91 cents. | AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report DaVita Inc. (DVA): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. Developments like these are likely to help DaVita in registering solid quarterly results. |
25538.0 | 2018-04-26 00:00:00 UTC | Notable Thursday Option Activity: MAR, GILD, ABBV | ABBV | https://www.nasdaq.com/articles/notable-thursday-option-activity-mar-gild-abbv-2018-04-26 | nan | nan | Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Marriott International, Inc. (Symbol: MAR), where a total volume of 16,829 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 72.2% of MAR's average daily trading volume over the past month, of 2.3 million shares. Particularly high volume was seen for the $145 strike call option expiring May 18, 2018 , with 10,001 contracts trading so far today, representing approximately 1.0 million underlying shares of MAR. Below is a chart showing MAR's trailing twelve month trading history, with the $145 strike highlighted in orange:
Gilead Sciences Inc (Symbol: GILD) options are showing a volume of 40,507 contracts thus far today. That number of contracts represents approximately 4.1 million underlying shares, working out to a sizeable 71.3% of GILD's average daily trading volume over the past month, of 5.7 million shares. Particularly high volume was seen for the $85 strike call option expiring May 18, 2018 , with 10,459 contracts trading so far today, representing approximately 1.0 million underlying shares of GILD. Below is a chart showing GILD's trailing twelve month trading history, with the $85 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) saw options trading volume of 46,625 contracts, representing approximately 4.7 million underlying shares or approximately 70.7% of ABBV's average daily trading volume over the past month, of 6.6 million shares. Particularly high volume was seen for the $97.50 strike put option expiring May 04, 2018 , with 2,447 contracts trading so far today, representing approximately 244,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $97.50 strike highlighted in orange:
For the various different available expirations for MAR options , GILD 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 $97.50 strike put option expiring May 04, 2018 , with 2,447 contracts trading so far today, representing approximately 244,700 underlying shares of ABBV. Below is a chart showing GILD's trailing twelve month trading history, with the $85 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 46,625 contracts, representing approximately 4.7 million underlying shares or approximately 70.7% of ABBV's average daily trading volume over the past month, of 6.6 million shares. Below is a chart showing ABBV's trailing twelve month trading history, with the $97.50 strike highlighted in orange: For the various different available expirations for MAR options , GILD options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing GILD's trailing twelve month trading history, with the $85 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 46,625 contracts, representing approximately 4.7 million underlying shares or approximately 70.7% of ABBV's average daily trading volume over the past month, of 6.6 million shares. Particularly high volume was seen for the $97.50 strike put option expiring May 04, 2018 , with 2,447 contracts trading so far today, representing approximately 244,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $97.50 strike highlighted in orange: For the various different available expirations for MAR options , GILD options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing GILD's trailing twelve month trading history, with the $85 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 46,625 contracts, representing approximately 4.7 million underlying shares or approximately 70.7% of ABBV's average daily trading volume over the past month, of 6.6 million shares. Particularly high volume was seen for the $97.50 strike put option expiring May 04, 2018 , with 2,447 contracts trading so far today, representing approximately 244,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $97.50 strike highlighted in orange: For the various different available expirations for MAR options , GILD options , or ABBV options , visit StockOptionsChannel.com. | Below is a chart showing GILD's trailing twelve month trading history, with the $85 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) saw options trading volume of 46,625 contracts, representing approximately 4.7 million underlying shares or approximately 70.7% of ABBV's average daily trading volume over the past month, of 6.6 million shares. Particularly high volume was seen for the $97.50 strike put option expiring May 04, 2018 , with 2,447 contracts trading so far today, representing approximately 244,700 underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $97.50 strike highlighted in orange: For the various different available expirations for MAR options , GILD options , or ABBV options , visit StockOptionsChannel.com. |
25539.0 | 2018-04-26 00:00:00 UTC | Health Care Sector Update for 04/26/2018: ABBV,AXSM | ABBV | https://www.nasdaq.com/articles/health-care-sector-update-04262018-abbvaxsm-2018-04-26 | nan | nan | Top Health Care Stocks
JNJ +1.48%
PFE +0.74%
ABT +0.43%
MRK -0.27%
AMGN -0.47%
Health care stocks were mostly higher, including a nearly 0.8% gain for the NYSE Health Care Index in recent trade. Also, shares of health care companies in the S&P 500 were up more than 0.8% as a group while the Nasdaq Biotechnology index was rising just more than 1.6%.
Among health care stocks moving on news:
+ AbbVie ( ABBV ) was almost 5% higher Thursday afternoon, staying within relative close distance of its session high, after the company posted Q1 adjusted net income and revenue topping Wall Street expectations. Excluding one-time items, it earned $1.87 per share, beating the Capital IQ consensus by $0.08 per share. Net revenue increased to $7.93 billion from $6.54 billion last year and also surpassing the $7.6 billion Street view. The company also raised its FY18 adjusted earnings outlook to a new range of $7.66 to $7.76 per share, up from $7.33 to $7.43 per share previously and beating the Street view by at least $0.13 per share.
In other sector news:
+ Axsome Therapeutics ( AXSM ) raced more than 16% higher Thursday after the firm reported positive interim results from Phase III testing of its AXS-05 drug candidate to treat moderate-to-server depression. The company also said an independent data monitoring committee determined the trial should continue following analysis of unblinded, pre-specified benchmarks. The panel said AXS-05 appears safe and well-tolerated.
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. | Among health care stocks moving on news: + AbbVie ( ABBV ) was almost 5% higher Thursday afternoon, staying within relative close distance of its session high, after the company posted Q1 adjusted net income and revenue topping Wall Street expectations. In other sector news: + Axsome Therapeutics ( AXSM ) raced more than 16% higher Thursday after the firm reported positive interim results from Phase III testing of its AXS-05 drug candidate to treat moderate-to-server depression. The company also said an independent data monitoring committee determined the trial should continue following analysis of unblinded, pre-specified benchmarks. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Among health care stocks moving on news: + AbbVie ( ABBV ) was almost 5% higher Thursday afternoon, staying within relative close distance of its session high, after the company posted Q1 adjusted net income and revenue topping Wall Street expectations. Top Health Care Stocks | Among health care stocks moving on news: + AbbVie ( ABBV ) was almost 5% higher Thursday afternoon, staying within relative close distance of its session high, after the company posted Q1 adjusted net income and revenue topping Wall Street expectations. Health care stocks were mostly higher, including a nearly 0.8% gain for the NYSE Health Care Index in recent trade. The company also raised its FY18 adjusted earnings outlook to a new range of $7.66 to $7.76 per share, up from $7.33 to $7.43 per share previously and beating the Street view by at least $0.13 per share. | Among health care stocks moving on news: + AbbVie ( ABBV ) was almost 5% higher Thursday afternoon, staying within relative close distance of its session high, after the company posted Q1 adjusted net income and revenue topping Wall Street expectations. Also, shares of health care companies in the S&P 500 were up more than 0.8% as a group while the Nasdaq Biotechnology index was rising just more than 1.6%. In other sector news: + Axsome Therapeutics ( AXSM ) raced more than 16% higher Thursday after the firm reported positive interim results from Phase III testing of its AXS-05 drug candidate to treat moderate-to-server depression. |
25540.0 | 2018-04-26 00:00:00 UTC | AbbVie Breaks Above 200-Day Moving Average - Bullish for ABBV | ABBV | https://www.nasdaq.com/articles/abbvie-breaks-above-200-day-moving-average-bullish-abbv-2018-04-26 | nan | nan | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $93.67, changing hands as high as $96.55 per share. AbbVie Inc shares are currently trading up about 3.8% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $64.61 per share, with $125.86 as the 52 week high point - that compares with a last trade of $95.28.
According to the ETF Finder at ETF Channel, ABBV makes up 6.84% of the First Trust Nasdaq Pharmaceuticals ETF (Symbol: FTXH) which is trading lower by about 1.2% on the day Thursday.
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $93.67, changing hands as high as $96.55 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $64.61 per share, with $125.86 as the 52 week high point - that compares with a last trade of $95.28. AbbVie Inc shares are currently trading up about 3.8% on the day. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $93.67, changing hands as high as $96.55 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $64.61 per share, with $125.86 as the 52 week high point - that compares with a last trade of $95.28. AbbVie Inc shares are currently trading up about 3.8% on the day. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $93.67, changing hands as high as $96.55 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $64.61 per share, with $125.86 as the 52 week high point - that compares with a last trade of $95.28. AbbVie Inc shares are currently trading up about 3.8% on the day. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) crossed above their 200 day moving average of $93.67, changing hands as high as $96.55 per share. AbbVie Inc shares are currently trading up about 3.8% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $64.61 per share, with $125.86 as the 52 week high point - that compares with a last trade of $95.28. |
25541.0 | 2018-04-25 00:00:00 UTC | What's in the Cards for Inogen (INGN) This Earnings Season? | ABBV | https://www.nasdaq.com/articles/whats-in-the-cards-for-inogen-ingn-this-earnings-season-2018-04-25 | nan | nan | Inogen Inc.'s INGN first-quarter 2018 results are scheduled for release on Apr 30, after the market closes . A broadening Long-term Oxygen Therapy ("LTOT") market, inherent benefits of Portable Oxygen Concentrators ("POC") over traditional delivery model, direct-to-customer business model, underpenetrated international markets and expanding product portfolio are key growth catalysts.
Notably, in the last quarter, Inogen reported adjusted earnings of 31 cents per share, beating the Zacks Consensus Estimate by 47.6%. Earnings increased 24% on a year-over-year basis. Total revenues in the reported quarter rose 25.4% to $63.8 million on a year-over-year basis. The figure beat the Zacks Consensus Estimate by 2.9%.
For the current quarter, the Zacks Consensus Estimate for revenues is pegged at $62.6 million, reflecting a rise of 19.2% year over year. The Zacks Consensus Estimate for earnings is pegged at 27 cents.
Let's delve into other factors which are likely to impact Inogen's first-quarter 2018 results.
European Sales to Boost Q1 Top Line
Inogen has been one of the leading providers of POCs in Europe. In the last-reported quarter, sales in Europe represented 84.3% of international sales, up from 83.3% in the year-ago quarter.
We expect the trend to continue in the upcoming quarterly results. In fact, management expects long-term opportunity ahead as the market transitions from tank and liquid oxygen systems to non-delivery solutions.
Further, in support of its European customers, Inogen began the production of its Inogen One G3 concentrators in the fourth quarter of 2017 using a contract manufacturer, Foxconn, located in the Czech Republic.
In 2018, the company expects Foxconn to produce a huge number of Inogen One G3 concentrators required to support the massive European demand, with the first quarter being no exception.
Although Inogen is just in the first leg of its collaboration with Foxconn, the company has been already delivering improved service levels and lower costs.
We expect the company to deliver a solid first-quarter 2018 performance on the back of Inogen One concentrators and Inogen At Home concentrators.
Inogen, Inc Price and EPS Surprise
Inogen, Inc Price and EPS Surprise | Inogen, Inc Quote
Other Factors at Play
Guidance
For 2018, Inogen expect revenues in the range of $298 million to $308 million, up from the previously-issued range of $295 million to $305 million. Notably, this represents growth of 19.5% to 23.5% year over year. An upbeat trend is expected to continue in the quarter to be reported as well.
Direct-to-Consumer Model
Inogen expects its direct-to-consumer sales to be the fastest growing channel, domestic business-to-business sales to have a significant growth rate and international business-to-business sales to have a modest growth rate where the strategy will still focus on the European market.
Inogen's direct-to-customer business model has lent it a leading position in the oxygen therapy market. The direct-to-consumer model gives companies an opportunity to build a unique brand relationship directly with customers. Recently, the company signed a lease for its expansion site in Ohio to accelerate growth in domestic direct-to-consumer sales channel. The growing direct-to-customer sales and marketing efforts help in increasing awareness among patients. Growth in physician referrals in this segment is expected to boost the top line over the long term.
In the fourth quarter of 2017, direct-to-consumer sales (domestic and international) increased 23.9% to $29.5 million on a year-over-year basis. The company's sales team consisted of 263 inside sales representatives as of Dec, 2017 which represented an increase of 86 reps over the 2016 year-end's total of 177. The company announced plans to execute a direct-to-consumer pricing trial in 2018 to ensure that its products are optimally priced.
A unique direct-to-consumer business model is likely to boost the company's first-quarter bottom line.
Dull Rental Revenues
Inogen derives a significant portion of its revenues from Medicare's service reimbursement programs. The company expects rental revenues per patient to decline in the upcoming quarters, due to lower reimbursement rates in connection with the nationalization of competitive bidding and continued reimbursement declines.
Rental revenues represented 8.5% of total revenues in the fourth quarter of 2017, lower than 16.2% of net revenues in the year-ago quarter. Rental revenues in the fourth quarter of 2017 were $5.4 million compared with $8.2 million in the fourth quarter of 2016, down 34.1% year over year. Per management, the decline was caused by a $2-million rental benefit in the year-ago quarter.
What Our Model Predicts
Our quantitative model does not predict an earnings beat for Inogen in the upcoming quarterly results.
This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates. It can be illustrated below:
Zacks ESP
Earnings ESP for Inogen is -37.04%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank
Inogen carries a Zacks Rank #3.
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
The Cooper Companies, Inc. COO has an Earnings ESP of +0.26% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Teleflex Incorporated TFX has an Earnings ESP of +0.58% and a Zacks Rank #3.
AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
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
Teleflex Incorporated (TFX): Free Stock Analysis Report
Inogen, Inc (INGN): Free Stock Analysis Report
The Cooper Companies, Inc. (COO): 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 Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report Inogen, Inc (INGN): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, management expects long-term opportunity ahead as the market transitions from tank and liquid oxygen systems to non-delivery solutions. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report Inogen, Inc (INGN): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. A broadening Long-term Oxygen Therapy ("LTOT") market, inherent benefits of Portable Oxygen Concentrators ("POC") over traditional delivery model, direct-to-customer business model, underpenetrated international markets and expanding product portfolio are key growth catalysts. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report Inogen, Inc (INGN): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Inogen, Inc Price and EPS Surprise Inogen, Inc Price and EPS Surprise | Inogen, Inc Quote Other Factors at Play Guidance For 2018, Inogen expect revenues in the range of $298 million to $308 million, up from the previously-issued range of $295 million to $305 million. | AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report Inogen, Inc (INGN): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, in the last quarter, Inogen reported adjusted earnings of 31 cents per share, beating the Zacks Consensus Estimate by 47.6%. |
25542.0 | 2018-04-25 00:00:00 UTC | Drug Stock Q1 Earnings Due on Apr 26: ABBV, ALXN, BMY & VRTX | ABBV | https://www.nasdaq.com/articles/drug-stock-q1-earnings-due-on-apr-26%3A-abbv-alxn-bmy-vrtx-2018-04-25 | nan | nan | The Q1 earnings season has started to gather steam. Per the latest Earnings Preview , 87 S&P 500 members - accounting for 17.4% of the index - have already released financial figures as of Apr 20, 2018.
Total earnings for the 87 S&P 500 members that have reported results already are up 25% from the same period last year on 10.7% higher revenues, with 82.8% beating EPS estimates and 67.8% beating revenue estimates. The proportion of companies beating both EPS and revenue estimates is 62.1%.
The ongoing earnings phase seems to have also begun encouragingly for the Drug/Biotech sector. Among the major large cap players, Johnson & Johnson JNJ kicked off the season on a strong note, beating the Zacks Consensus Estimate for both earnings as well as sales. Another large cap player that reported earnings last week was Novartis NVS , which also surpassed both earnings and revenue expectations this quarter. Also Biogen Inc. BIIB which released its results this week surpassed earnings but missed sales expectations.
Higher demand is expected to boost new product sales. Also, innovation and successful product line expansion along with positive clinical study results, FDA approvals, and consistent performance of key products, growing demand for drugs, especially for rare-to-treat diseases, an ageing population as well as an increased healthcare expenditure are some of the factors that should keep the sector on a growth trajectory.
Also, according to the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is likely to record 6.8% year-over-year growth in revenues and a 9.4% rise in earnings in the quarter under review.
Four pharma/biotech giants are scheduled to report Q1 earnings results on Apr 26. Let's see, how things are shaping up for the companies in the upcoming releases.
AbbVie Inc. ABBV is slated to releaseresults before the market opens. The company delivered a positive earnings surprise of 2.78% in the last reported quarter. Moreover, the company's performance has been impressive in the recent past with its earnings surpassing expectations in the trailing four quarters with an average positive earnings surprise of 1.81%.
Our proven model shows that AbbVie is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients - a positive Earnings ESP of 0.06% and a Zacks Rank # 3 (Hold). The Zacks Consensus Estimate for the company's earnings for the quarter under review is pegged at $1.80 per share.
The company's key drug, Humira, is likely to remain a key growth driver in the first quarter, backed by strong demand trends for the drug. AbbVie expects Humira sales to reflect a rise in the low-teens band in the imminent earnings release while internationally, the growth rate is projected in a mid-single-digit range, operationally. Other drugs, namely Duopa and Creon are also likely to maintain an encouraging performance in the soon-to-be-reported quarter. (Read More: Is a Beat in the Cards for AbbVie in Q1 Earnings? )
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote
Alexion PharmaceuticalsInc. ALXN is slated to report results before the opening bell. The company delivered a positive earnings surprise of 15.63% in the last reported quarter. The company's track record is excellent as it has consistently topped estimates in the last four quarters, with an average positive earnings surprise of 15.21%.
Alexion is likely to beat on earnings in the to-be-reported quarter because it has a positive Earnings ESP of 0.23% and a Zacks Rank # 2 (Buy). The Zacks Consensus Estimate for the quarterly earnings is pegged at $1.48 per share. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Alexion's blockbuster drug, Soliris, continues to perform well.The company is working on expanding Soliris' label into additional indications. Alexion recently announced that it will acquire Sweden-based Wilson Therapeutics for $855 million. The transaction is expected to close in the second quarter. The acquisition will add a late-stage candidate, WTX101 to Alexion's pipeline. The candidate is currently in phase III for the treatment of Wilson disease, a rare genetic disorder.
Alexion is looking to diversify its portfolio and reduce its dependence on its blockbuster drug Soliris. The deal will strengthen Alexion's rare disease pipeline with a late-stage candidate. (Read More: Is a Beat in Store for Alexion This Earnings Season? )
Alexion Pharmaceuticals, Inc. Price and EPS Surprise
Alexion Pharmaceuticals, Inc. Price and EPS Surprise | Alexion Pharmaceuticals, Inc. Quote
Bristol-Myers Squibb BMY is slated to report results before the opening bell.The company delivered a positive earnings surprise of 1.49% last quarter. The company's delivered a positive earnings surprise in three of the trailing four quarters with an average beat of 4.23%.
Our model shows that Bristol-Myers is likely to beat estimates this quarter. The combination of Bristol-Myers' Zacks Rank of 3 and a positive Earnings ESP of 0.82% makes us confident about an earnings beat in the upcoming report. The consensus mark for the quarter to be reported is pegged at 84 cents per share.
Bristol-Myers' blockbuster immuno-oncology drug, Opdivo is expected to remain the main sales driver in the first quarter, following several line extensions in 2017. In the soon-to-be reported quarter, the company announced encouraging results from a phase III study evaluating Opdivo in first-line non-small cell lung cancer. Label expansion of leukemia drug, Sprycel, approved in November 2017, should bring in more sales for the drug. Moreover, continued strong performance of Yervoy and Orencia will have a favorable impact. (Read More: Is a Beat in Store for Bristol-Myers in Q1 Earnings? )
Bristol-Myers Squibb Company Price and EPS Surprise
Bristol-Myers Squibb Company Price and EPS Surprise | Bristol-Myers Squibb Company Quote
Vertex Pharmaceuticals IncorporatedVRTX is slated to report results after the market closes . Vertex's track record has been impressive so far. The company delivered positive earnings surprises in each of the last four quarters. The average positive earnings surprise for the last four quarters is 25.31%. In the last reported quarter, Vertex delivered a positive earnings surprise of 5.17%.
Our model shows that Vertex is likely to beat estimates this quarter. The combination of Bristol-Myers' Zacks Rank of 3 and a positive Earnings ESP of 8.28% makes us confident about an earnings beat in the upcoming report. The consensus mark for the quarter to be reported is pegged at 57 cents per share.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Vertex's cystic fibrosis ("CF") drugs - Kalydeco & Orkambi - performed well in 2017, with sales rising almost 30%. We expect this positive trend to continue in the soon-to-be reported quarter also. In a boost to Vertex's CF franchise, the FDA approved Vertex's third CF drug, Symdeko, which is a combination of tezacaftor and ivacaftor, in February 2018. We expect the company to provide update on Symdeko's commercialization plan and its initial uptake. The company is also likely to provide full-year revenue guidance including Symdeko sales on the call.(Read More: Is a Beat in Store for Vertex This Earnings Season? ).
Vertex Pharmaceuticals Incorporated Price and EPS Surprise
Vertex Pharmaceuticals Incorporated Price and EPS Surprise | Vertex Pharmaceuticals Incorporated Quote
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
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
Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report
Novartis AG (NVS): Free Stock Analysis Report
Johnson & Johnson (JNJ): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report
Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report
Biogen Inc. (BIIB): 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 expects Humira sales to reflect a rise in the low-teens band in the imminent earnings release while internationally, the growth rate is projected in a mid-single-digit range, operationally. AbbVie Inc. ABBV is slated to releaseresults before the market opens. Our proven model shows that AbbVie is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients - a positive Earnings ESP of 0.06% and a Zacks Rank # 3 (Hold). | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV is slated to releaseresults before the market opens. Our proven model shows that AbbVie is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients - a positive Earnings ESP of 0.06% and a Zacks Rank # 3 (Hold). | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV is slated to releaseresults before the market opens. Our proven model shows that AbbVie is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients - a positive Earnings ESP of 0.06% and a Zacks Rank # 3 (Hold). | AbbVie Inc. ABBV is slated to releaseresults before the market opens. Our proven model shows that AbbVie is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients - a positive Earnings ESP of 0.06% and a Zacks Rank # 3 (Hold). AbbVie expects Humira sales to reflect a rise in the low-teens band in the imminent earnings release while internationally, the growth rate is projected in a mid-single-digit range, operationally. |
25543.0 | 2018-04-24 00:00:00 UTC | Is a Beat in the Cards for AbbVie (ABBV) in Q1 Earnings? | ABBV | https://www.nasdaq.com/articles/is-a-beat-in-the-cards-for-abbvie-abbv-in-q1-earnings-2018-04-24 | nan | nan | We expect AbbVie Inc.ABBV to beat expectations when it reports first-quarter 2018 results on Apr 26, before the market opens. Last quarter, the company delivered a positive earnings surprise of 2.78%.
Shares of AbbVie have marginally outperformed the industry so far this year. While the stock has declined 4.1%, the industry has decreased 4.3%.
Notably, AbbVie's earnings history is quite impressive with the pharmaceuticals company having outpaced estimates in all the last four quarters with an average beat of 1.81%.
Let's see, how things are shaping up for the company this quarter.
Factors to Consider
AbbVie expects first-quarter 2018 earnings in the range of $1.77-$1.79 per share. Revenues are estimated to grow in a mid-teen range on an operational basis. Foreign exchange is anticipated to gain a 3% favorable impact on sales in the period to be reported.
The company's key drug, Humira, is likely to remain a key growth driver in the first quarter, backed by strong demand trends for the drug. AbbVie expects Humira sales to reflect a rise in the low-teens band in the imminent earnings release while internationally, the growth rate is projected in a mid-single-digit range, operationally. The Zacks Consensus Estimate for Humira is pegged at $4.7 billion.
Significantly, on first-quarter conference call, investors' focus will also be on the performance level as well as the label expansion updates of AbbVie's another cancer drug, Imbruvica. The drug has been recording strong sales since the past few quarters, a trend that we expect to continue even in the quarter to be reported. The Zacks Consensus Estimate for Imbruvica stands at $759 million.
Other drugs, namely Duopa and Creon are also likely to maintain an encouraging performance in the soon-to-be-reported quarter.
However, AbbVie's Hepatitis C virus (HCV) treatment, Viekira, will continue to see declining sales, affected by an intense pricing and competitive pressure in the HCV market.
Moreover, in March 2018, AbbVie's rovalpituzumab tesirine or Rova-T fell short of expectations in a phase II TRINITY study, evaluating it in third-line therapy for later small cell lung cancer (SCLC). On first-quarter conference call, we expect management to provide updates on the same.
Notably, AbbVie's eight-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret, secured an approval in the United States, EU, Canada as well as Japan in the second half of 2017. Importantly, Mavyret recorded $500 million global sales last year. The initial uptake of the drug has been commendable and we expect its higher sales in the first quarter as well.
Earnings Whispers
Our proven model shows that the stock is likely to beat on earnings this quarter as it has the right combination of the two key ingredients - a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen.
Zacks ESP: AbbViehas an Earnings ESP of +0.06%. The Zacks Consensus Estimate is $1.80 per share. A positive ESP indicates a likely earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: AbbViehas a Zacks Rank #3, which increases the predictive power of ESP and together with a positive ESP, chances of the stock beating estimates in its upcoming release are always pegged higher.
We caution against the Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks That Warrant a Look
Here are a couple of other health care stocks worth considering with the right combination of elements to also surpass estimates this time around:
Pfizer Inc. PFE is scheduled to release results on May 1. The company has an Earnings ESP of +1.36% and a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Bristol-Myers Squibb Company BMY is scheduled to report earnings on Apr 26. The company has an Earnings ESP of +0.82% and a Zacks Rank of 3.
Celgene Corporation CELG is slated to announce financial figures on May 4. The company has an Earnings ESP of +0.63% and is a Zacks #3 Ranked player.
AbbVie Inc. Price and EPS Surprise
AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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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. | AbbVie expects Humira sales to reflect a rise in the low-teens band in the imminent earnings release while internationally, the growth rate is projected in a mid-single-digit range, operationally. Moreover, in March 2018, AbbVie's rovalpituzumab tesirine or Rova-T fell short of expectations in a phase II TRINITY study, evaluating it in third-line therapy for later small cell lung cancer (SCLC). Notably, AbbVie's eight-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret, secured an approval in the United States, EU, Canada as well as Japan in the second half of 2017. | AbbVie Inc. Price and EPS Surprise AbbVie Inc. Price and EPS Surprise | AbbVie Inc. Quote Will You Make a Fortune on the Shift to Electric Cars? Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. We expect AbbVie Inc.ABBV to beat expectations when it reports first-quarter 2018 results on Apr 26, before the market opens. | Zacks Rank: AbbViehas a Zacks Rank #3, which increases the predictive power of ESP and together with a positive ESP, chances of the stock beating estimates in its upcoming release are always pegged higher. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Celgene Corporation (CELG): Free Stock Analysis Report To read this article on Zacks.com click here. We expect AbbVie Inc.ABBV to beat expectations when it reports first-quarter 2018 results on Apr 26, before the market opens. | We expect AbbVie Inc.ABBV to beat expectations when it reports first-quarter 2018 results on Apr 26, before the market opens. Shares of AbbVie have marginally outperformed the industry so far this year. Notably, AbbVie's earnings history is quite impressive with the pharmaceuticals company having outpaced estimates in all the last four quarters with an average beat of 1.81%. |
25544.0 | 2018-04-24 00:00:00 UTC | Biogen (BIIB) Q1 Earnings Beat, Sales Miss, Shares Down | ABBV | https://www.nasdaq.com/articles/biogen-biib-q1-earnings-beat-sales-miss-shares-down-2018-04-24 | nan | nan | Biogen Inc. 's BIIB reported first-quarter 2018 earnings per share of $6.05, which beat the Zacks Consensus Estimate of $5.93 by 2%. Moreover, the bottom line rose 16% year over year.
Sales came in at $3.13 billion, up 11% from the year-ago period. However, the metric marginally missed the Zacks Consensus Estimate of $3.15 billion. The top line, excluding hemophilia revenues, grew 15% year over year.
We remind investors that last year,Biogen spun off its hemophilia business into a new company called Bioverativ. Earlier this January, Sanofi SNY announced that it has entered into an agreement with Bioverativ to buy the latter for $11.6 billion.
Shares of Biogen were down more than 2.5% in pre-market trading . The stock has declined 19.3% this year so far, underperforming the industry 's 9% decrease.
Quarter in Detail
Biogen's multiple sclerosis (MS) revenues were $2.1 billion (down 4% year over year) in the reporter quarter including approximately $77 million in royalties on the sales of Roche's RHHBY MS drug, Ocrevus. Per a deal with Roche, Biogen is entitled to receive royalties on U.S. sales of Ocrevus.
Oral MS drug Tecfidera's sales increased 3% year over year but decreased 8% sequentiallyto $987 million. The other MS drug Tysabri's sales declined 15% year over year but was flat sequentially with $462 million.
Combined interferon revenues (Avonex and Plegridy) in the first quarter were $550 million, down 15% both year over year and sequentially. Avonex revenues declined 16% from the year-ago period to $451 million. Plegridy contributed $100 million to revenues, which decreased 11% year over year and 20%, sequentially.
U.S. Interferon revenues are experiencing declining trends due to patients transitioning to other oral MS therapies as well as due to higher discounts and allowance.
Zinbryta, launched in collaboration with AbbVie ABBV , contributed $1 million to revenues in the first quarter compared with $12 million in fourth-quarter 2017.
Notably, in March 2018, Biogen announced the decision to withdraw Zinbryta from the markets, within less than two years of its FDA approval, due to growing safety concerns and limited commercial adoption of the drug because of its restrictive label. Both companies decided to discontinue the drug's marketing on grounds of its complex and evolving benefit/risk profile.
Biogen's newest drug Spinraza (spinal muscular atrophy) logged revenues of $364 million in the first quarter, almost in line with the previous one.
Spinraza U.S. sales were $188 million in the first quarter, decreasing 13.8% sequentially. However, in the ex-U.S. markets, Spinraza recorded sales of $176 million, up 22% sequentially. Significantly, the number of patients receiving Spinraza grew 16% in the United States and 56% outside the United States in the quarter under review compared with the preceding period.
The company said that Spinraza international revenues were mainly grossed from Germany, Turkey and Japan.
In the first quarter of 2018, Biogen recorded biosimilar revenues of $128 million compared with $122 million in the fourth quarter of 2017.
Revenues from Anti-CD20 therapeutic programs, which include Biogen's shares of Rituxan and Gazyva operating profits, climbed 30.1% from the year-ago period to $443.2 million.
The R&D spend increased 18% year over year but decreased 15% sequentially to $497 million. On the other hand, while SG&A spend were up 3% year over year, it decreased 10% sequentially to $497 million.
Biogen Inc. Price, Consensus and EPS Surprise
Biogen Inc. Price, Consensus and EPS Surprise | Biogen Inc. Quote
Zacks Rank
Biogen carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
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
Roche Holding AG (RHHBY): Free Stock Analysis Report
Sanofi (SNY): Free Stock Analysis Report
AbbVie Inc. (ABBV): 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. | Zinbryta, launched in collaboration with AbbVie ABBV , contributed $1 million to revenues in the first quarter compared with $12 million in fourth-quarter 2017. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, in March 2018, Biogen announced the decision to withdraw Zinbryta from the markets, within less than two years of its FDA approval, due to growing safety concerns and limited commercial adoption of the drug because of its restrictive label. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Zinbryta, launched in collaboration with AbbVie ABBV , contributed $1 million to revenues in the first quarter compared with $12 million in fourth-quarter 2017. Quarter in Detail Biogen's multiple sclerosis (MS) revenues were $2.1 billion (down 4% year over year) in the reporter quarter including approximately $77 million in royalties on the sales of Roche's RHHBY MS drug, Ocrevus. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Zinbryta, launched in collaboration with AbbVie ABBV , contributed $1 million to revenues in the first quarter compared with $12 million in fourth-quarter 2017. Quarter in Detail Biogen's multiple sclerosis (MS) revenues were $2.1 billion (down 4% year over year) in the reporter quarter including approximately $77 million in royalties on the sales of Roche's RHHBY MS drug, Ocrevus. | Zinbryta, launched in collaboration with AbbVie ABBV , contributed $1 million to revenues in the first quarter compared with $12 million in fourth-quarter 2017. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Sanofi (SNY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Quarter in Detail Biogen's multiple sclerosis (MS) revenues were $2.1 billion (down 4% year over year) in the reporter quarter including approximately $77 million in royalties on the sales of Roche's RHHBY MS drug, Ocrevus. |
25545.0 | 2018-04-24 00:00:00 UTC | What's in Store for AmerisourceBergen (ABC) in Q2 Earnings? | ABBV | https://www.nasdaq.com/articles/whats-in-store-for-amerisourcebergen-abc-in-q2-earnings-2018-04-24 | nan | nan | AmerisourceBergen Corporation 's ABC second-quarter fiscal 2018 results, scheduled for release on May 2, are expected to show steady growth in the Pharmaceutical Distribution segment, a significant contributor to revenues.
In the last reported quarter, the company posted adjusted earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.35 and improving 14% year over year. The upside was attributed to strong growth in the company's Pharmaceutical Distribution Segment and World Courier business. Revenues improved almost 6% to $40.47 billion in the previous quarter and beat the Zacks Consensus Estimate of $40.37 billion.
For the quarter to be reported, the Zacks Consensus Estimate for revenues is pegged at $40.49 billion, reflecting a rise of 9% year over year. The Zacks Consensus Estimate for earnings is pegged at $1.83, indicating an increase of 3.4% year over year.
Let's dig deeper to analyze how things are shaping up before the earnings announcements.
Pharmaceutical Distribution to Boost Q2 Results
Pharmaceutical Distribution accounted for 96.2% of total revenues in the last quarter. Revenues in the segment were $38.94 billion, up 5.8% on a year-over-year basis. Operating income was $388.2 million, up 2.4% year over year.
For the upcoming quarterly results, the Zacks Consensus Estimate for Pharmaceutical Distribution segment is pegged at $38.88 billion. The figure reflects an increase of 9.5% from the year-ago figure.
Strong organic growth rates in the U.S. pharmaceutical market, improving patient access to medical care, improved economic conditions and population demographics, introduction of new innovative drugs like hepatitis C drugs along with a consistent good brand-pricing environment should drive growth for AmerisourceBergen in the quarter to be reported.
AmerisourceBergen Corporation Price and EPS Surprise
AmerisourceBergen Corporation Price and EPS Surprise | AmerisourceBergen Corporation Quote
Moreover, the company's focus on specialty drugs bodes well. Per the IMS, pharmaceutical sales are estimated to grow approximately 7.1% annually over a five-year period through 2020, courtesy of strong demand, favorable pricing and new product introductions.
The deals signed by AmerisourceBergen look encouraging, which are likely to boost the top line. The company entered into a strategic agreement with Walgreen Boots Alliance. The deal includes a 10-year pharmaceutical distribution contract, under which the company will distribute branded and generic pharmaceutical products to Walgreens.
However, the segment is likely to be affected by lower-than-expected production at PharMEDium's Memphis 503B outsourcing facility. Notably, operations in the facility were voluntarily suspended by the company in the last quarter following a few inspections by the FDA.
Other Factors to Consider
Generics & Product Launches to Drive Growth: We believe that AmerisourceBergen will benefit from generics growth in the long run. In the last quarter, AmerisourceBergen marked its 16th consecutive quarter with 10% or greater revenue growth in the business. Management confirmed that its strategic and focused effort is driving generic product volume growth to offset historic deflation rates.
However, it's important to highlight that AmerisourceBergen will have about a 25% increase in quarterly interest expense beginning from the second quarter.
Operational Efficiencies: The recent U.S. tax legislation has enhanced AmerisourceBergen's ability to invest in business, innovate and deliver value to its shareholders. Over the long term, this enables AmerisourceBergen to boost its U.S. business.
Recently, the company made strategic investments in IT systems to realize greater operational efficiency and increase operating leverage. This is likely to boost the company's results in the second quarter.
In fact, AmerisourceBergen also announced its plans to roll out eight new IT systems and a new e-commerce platform at MWI. These should enhance the company's results in the quarter to be reported.
Guidance: Based upon the expectations from the recently legislated U.S. tax reform, AmerisourceBergen raised guidance for fiscal 2018. Notably, AmerisourceBergen's strong guidance for fiscal 2018 indicates that the company expects to deliver solid results from the second quarter itself.
The company expects adjusted earnings per share in the range of $6.45-$6.65, up from the previously range of $5.90-$6.15. Revenue growth for fiscal 2018 is expected in the range of 8-11%, up from the previous band of 7-9%.
PharMEDium Slows Down: Recently, AmerisourceBergen received a grand jury subpoena from the U.S. Attorney's Office for the Western District of Tennessee for documents about its lab testing of a certain type of syringe made at its PharMEDium lab in Memphis, which is the company's largest highly automated production facility. As a result of the subpoena, AmerisorceBergen suspended operations and recalled all of the products that had yet to expire. In fact, the FDA also visited this facility for the same reason. Sluggishness in this unit is likely to hamper the company's specialty distribution segment in the quarter to be reported.
In the last reported quarter, the segment's results were negatively impacted by PharMEDium, wherein the company had lower-than-expected revenues and profit contribution.
Per management, because of the time and certain ongoing incremental expenses required to perform remedial measures, PharMEDium's contribution to adjusted EBIT and EPS in the second quarter will be lower than anticipated.
Earnings Whispers
Our proven model does not show an earnings beat for AmerisourceBergen in the second quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: AmerisourceBergen has an Earnings ESP of -1.55%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: AmerisourceBergen carries a Zacks Rank #3.
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
The Cooper Companies, Inc. COO has an Earnings ESP of +0.26% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Teleflex Incorporated TFX has an Earnings ESP of +0.58% and a Zacks Rank #3.
AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
Teleflex Incorporated (TFX): Free Stock Analysis Report
The Cooper Companies, Inc. (COO): Free Stock Analysis Report
AmerisourceBergen Corporation (ABC): Free Stock Analysis Report
To read this article on Zacks.com click here.
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. | AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report AmerisourceBergen Corporation (ABC): Free Stock Analysis Report To read this article on Zacks.com click here. AmerisourceBergen Corporation 's ABC second-quarter fiscal 2018 results, scheduled for release on May 2, are expected to show steady growth in the Pharmaceutical Distribution segment, a significant contributor to revenues. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report AmerisourceBergen Corporation (ABC): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. In the last reported quarter, the company posted adjusted earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.35 and improving 14% year over year. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report AmerisourceBergen Corporation (ABC): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. In the last reported quarter, the company posted adjusted earnings of $1.55 per share, beating the Zacks Consensus Estimate of $1.35 and improving 14% year over year. | AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report AmerisourceBergen Corporation (ABC): Free Stock Analysis Report To read this article on Zacks.com click here. The deal includes a 10-year pharmaceutical distribution contract, under which the company will distribute branded and generic pharmaceutical products to Walgreens. |
25546.0 | 2018-04-24 00:00:00 UTC | Get Paid While You Wait: 3 Top Dividend Stocks in Big Pharma | ABBV | https://www.nasdaq.com/articles/get-paid-while-you-wait-3-top-dividend-stocks-big-pharma-2018-04-24 | nan | nan | AbbVie Inc. (NYSE: ABBV) , Pfizer Inc. (NYSE: PFE) , and Merck & Co. (NYSE: MRK) are developing drugs that could drive profits, and their share prices, through the roof in the years ahead. Of course, there are plenty of reasons things might not work out as planned.
Innovative new drugs make these some of the best big pharma stocks you can buy right now , but unlucky clinical trial results, unfavorable FDA decisions, and competition can quickly alter such assessments and hammer stock prices. However, all three of these stocks offer yields above 3% that could smooth out potential potholes along their road to growth.
Data source: FinViz, SEC Filings.
1. Merck & Co Inc.: A new standard?
This company has a lot riding on its lead drug, a cancer therapy with blockbuster sales growing by leaps and bounds. Merck launched Keytruda at the end of 2014, and sales of the drug already hit a $5.2 billion annualized run rate during the last three months of 2017.
Merck has an FDA lung cancer approval to thank for Keytruda's recent sales growth. Last May, the agency made adding it to standard chemo an approved treatment option for newly diagnosed non-small cell lung cancer patients with tumors that have already started spreading. Look for continued growth following recently released results that show adding Keytruda to standard chemo reduced the risk of death by half .
Although it looks like the coast is clear for Merck's lead growth driver, its single largest revenue stream at the moment has plateaued and could start backsliding. Januvia is an aging treatment for type 2 diabetes that's been facing some pricing pressure in an increasingly competitive space with new treatment options.
Merck relied on its Januvia franchise for around 15% of total sales last year, and an accelerating contraction could force Merck to halt a dividend program that's already stretched awfully thin. The company booked a huge one-time tax-related expense that threw its payout ratio out of whack. As a percentage of pre-tax profit, though, the payout's still too high to expect more annual raises if Januvia sales can't hold steady.
2. Pfizer Inc.: More diverse
Recent tax reform skewed our view of Pfizer's finances as well. While AbbVie and Merck reported one-time charges, Pfizer reported a $9 billion benefit that makes its dividend look a lot more well-funded than it really is. As a percentage of pre-tax profits, Pfizer's dividend is stretched a bit thin as well, but it looks like a diverse product lineup can keep the payout rising.
Pfizer has two big growth drivers in Ibrance, a breast cancer tablet, and Eliquis, a next-generation blood thinner. Sales of Ibrance grew 46% last year to $3.1 billion and Eliquis rose 47% to $2.5 billion. Pfizer has several new drugs in late-stage testing, including talazoparib, the prized oncology candidate that inspired a $14 billion acquisition of Medivation in 2016.
Pfizer's established health unit, where it relegates products that have lost patent protected exclusivity, creates a mighty fierce headwind to overcome. The struggling segment is responsible for around 40% of the total product sales. Sales from the segment fell 11% in 2017 and will probably contract again in 2018.
3. AbbVie Inc.: Headwind delayed
This big pharma depends on its rheumatoid arthritis injection Humira for around two-thirds of total sales, which is going to be a big problem in a few years . Unlike Merck and Pfizer, though, nearly all of AbbVie's main product lines are moving in the right direction at the moment.
A few years ago, most analysts assumed that Humira sales would have already started tanking because its main U.S. patent expired last year. Now AbbVie thinks sales of the drug will rise from $18 billion in 2017 to a stunning $21 billion by 2020.
A lack of significant headwinds helped this top dividend-paying pharma stock to raise its payout 140% since 2013. With sales already firing on all cylinders, several potential new drug launches on the horizon could kick profit growth and dividend raises into an extra high gear.
An easy favorite
In just about every way that matters, AbbVie looks like the best dividend paying big pharma stock that you can buy right now. Merck and Pfizer offer above average yields that they can probably sustain, but AbbVie offers an even higher yield that you can reasonably expect to rise.
Humira sales could tank in a few years and make further increases difficult, but we could have said the exact same thing a few years ago. If the doomsday predictions finally materialize, at least you'll have accumulated a heap of dividend payments to soften the blow.
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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. (NYSE: ABBV) , Pfizer Inc. (NYSE: PFE) , and Merck & Co. (NYSE: MRK) are developing drugs that could drive profits, and their share prices, through the roof in the years ahead. While AbbVie and Merck reported one-time charges, Pfizer reported a $9 billion benefit that makes its dividend look a lot more well-funded than it really is. AbbVie Inc.: Headwind delayed This big pharma depends on its rheumatoid arthritis injection Humira for around two-thirds of total sales, which is going to be a big problem in a few years . | While AbbVie and Merck reported one-time charges, Pfizer reported a $9 billion benefit that makes its dividend look a lot more well-funded than it really is. AbbVie Inc. (NYSE: ABBV) , Pfizer Inc. (NYSE: PFE) , and Merck & Co. (NYSE: MRK) are developing drugs that could drive profits, and their share prices, through the roof in the years ahead. AbbVie Inc.: Headwind delayed This big pharma depends on its rheumatoid arthritis injection Humira for around two-thirds of total sales, which is going to be a big problem in a few years . | AbbVie Inc. (NYSE: ABBV) , Pfizer Inc. (NYSE: PFE) , and Merck & Co. (NYSE: MRK) are developing drugs that could drive profits, and their share prices, through the roof in the years ahead. While AbbVie and Merck reported one-time charges, Pfizer reported a $9 billion benefit that makes its dividend look a lot more well-funded than it really is. AbbVie Inc.: Headwind delayed This big pharma depends on its rheumatoid arthritis injection Humira for around two-thirds of total sales, which is going to be a big problem in a few years . | Now AbbVie thinks sales of the drug will rise from $18 billion in 2017 to a stunning $21 billion by 2020. AbbVie Inc. (NYSE: ABBV) , Pfizer Inc. (NYSE: PFE) , and Merck & Co. (NYSE: MRK) are developing drugs that could drive profits, and their share prices, through the roof in the years ahead. While AbbVie and Merck reported one-time charges, Pfizer reported a $9 billion benefit that makes its dividend look a lot more well-funded than it really is. |
25547.0 | 2018-04-24 00:00:00 UTC | Can PBM Unit Boost Express Scripts' (ESRX) Q1 Earnings? | ABBV | https://www.nasdaq.com/articles/can-pbm-unit-boost-express-scripts-esrx-q1-earnings-2018-04-24 | nan | nan | Express Scripts Holding Company ESRX is scheduled to report first-quarter 2018 results on May 2, after market close. Solid performance by the Pharmacy Benefit Management segment ("PBM") is likely to drive the company's top line. However, the company is getting acquired by Cigna Corporation by the end of 2018.
In the last reported quarter, Express Scripts delivered adjusted earnings of $2.16 per share, which beat the Zacks Consensus Estimate of $2.08. Further, adjusted earnings improved from $1.88 in the year-ago quarter. Revenues of $25.38 billion also beat the Zacks Consensus Estimate of $25.12 billion.
For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $24.76 billion, reflecting a rise of 0.4% year over year. The Zacks Consensus Estimate for earnings is pegged at $1.76, indicating an increase of 32.3% year over year.
Let's dig deeper to analyze how things are shaping up before the earnings announcements.
PBM in Focus
Express Scripts is the largest PBM in North America. The company has been consistently trying to expand its core PBM business. Meanwhile, the Zacks Consensus Estimate for PBM revenues is pegged at $22.60 billion.
We believe that the company's unique offerings of home-delivery pharmacy care, specialty pharmacy care, specialty benefit management and medical and drug data analysis services buoy optimism. Express Scripts also distributes a full range of biopharmaceutical products and provides extensive cost-management and patient-care services.
The company inked an agreement to acquire privately-held eviCore healthcare at $3.6 billion in October 2017. The transaction was closed in the fourth quarter of 2017. eviCore provides evidence-based and integrated medical benefit management services (MBM) solutions that drive cost reduction and quality care outcomes. The acquisition is expected to prove accretive to Express Scripts' adjusted diluted earnings per share within the first full year of operation, the first quarter being no exception.
Express Scripts Holding Company Price and EPS Surprise
Express Scripts Holding Company Price and EPS Surprise | Express Scripts Holding Company Quote
Express Scripts' PBM services coupled with eviCore's complementary medical benefits management is likely to build a solution.
Strong demand for the company's solutions continued into the quarter under review. The company expects solid demand for SafeGuardRx, 90-day supply for chronic medications, exclusive Accredo Specialty Pharmacy and advanced opioid solutions. Through each of these programs as well as many others, Express Scripts delivers superior care to patients at an affordable cost.
The company's latest offering of Multiple Sclerosis Care Value Program has been launched on Jan 1. This program extends the company's differentiated payment model by shielding payers from costs associated with discontinued therapy. Express Scripts already enrolled over 22 million lives as of yet. Management claims this as the most successful launch till date.
Other Factors to Consider
Guidance: Adjusted claims for the first quarter of 2018 are expected in the range of 335-345 million. Adjusted earnings per share for the first quarter of 2018 are estimated in the range of $1.73-$1.78. This represents growth of 30-34% on a year-over-year basis.
For the full year, adjusted earnings are estimated in the band of $9.27-$9.47, reflecting growth of 31-33% year over year. Revenues are expected in the band of $99,000-$102,000 million. Adjusted EBITDA is expected between $7,600 million and $7,800 million.
Coming to guidance for Express Scripts' core business, total adjusted claims are expected in the range of 280-290 million for the first quarter of 2018.
Client-Retention Rate Positive: Express Scripts entered 2018 with strong market momentum and continued to witness success in retaining key clients. By the end of the previous quarter, the company created trusted client relationships by delivering exceptional care to patients while controlling costs. Its favorable drug-trend results are clearly indicative of the above fact. Buoyed by strong prospects, Express Scripts expects to provide retention rate guidance for 2019 of 96-98%.
Express Scripts Getting Acquired: After declaring that Express Scripts is losing its biggest customer - the leading health insurer Anthem Inc., the company recently announced that it is getting acquired by Cigna, a global health insurance company.
The acquisition is expected to be completed by Dec 31, 2018. Per the definitive agreement, Cigna will take over Express Scripts in a cash and stock transaction worth $67 billion. Notably, this includes Cigna's assumption of approximately $15 billion debt of Express Scripts.
In fact, Moody's Investors Service, the rating services arm of Moody's Corporation, is worried about Express Scripts' high customer concentration and pricing pressure. Per Moody's, Express Scripts is likely to experience declining script volume and higher-than-typical customer losses in the days to come. Other challenges include fewer generic drug introductions, softening mail order growth trends, client focus on cost savings and transparency.
Earnings Whispers
Our proven model does not show an earnings beat for Express Scripts in the quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Express Scripts has an Earnings ESP of -0.19%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Express Scripts carries a Zacks Rank #3.
Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
The Cooper Companies, Inc. COO has an Earnings ESP of +0.26% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Teleflex Incorporated TFX has an Earnings ESP of +0.58% and a Zacks Rank #3.
AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
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
Teleflex Incorporated (TFX): Free Stock Analysis Report
The Cooper Companies, Inc. (COO): Free Stock Analysis Report
Express Scripts Holding Company (ESRX): Free Stock Analysis Report
To read this article on Zacks.com click here.
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. | AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report Express Scripts Holding Company (ESRX): Free Stock Analysis Report To read this article on Zacks.com click here. The transaction was closed in the fourth quarter of 2017. eviCore provides evidence-based and integrated medical benefit management services (MBM) solutions that drive cost reduction and quality care outcomes. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report Express Scripts Holding Company (ESRX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. We believe that the company's unique offerings of home-delivery pharmacy care, specialty pharmacy care, specialty benefit management and medical and drug data analysis services buoy optimism. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report Express Scripts Holding Company (ESRX): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Express Scripts Holding Company Price and EPS Surprise Express Scripts Holding Company Price and EPS Surprise | Express Scripts Holding Company Quote Express Scripts' PBM services coupled with eviCore's complementary medical benefits management is likely to build a solution. | AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report Express Scripts Holding Company (ESRX): Free Stock Analysis Report To read this article on Zacks.com click here. In the last reported quarter, Express Scripts delivered adjusted earnings of $2.16 per share, which beat the Zacks Consensus Estimate of $2.08. |
25548.0 | 2018-04-23 00:00:00 UTC | 5 Dividend Growth Stocks With Upside To Analyst Targets | ABBV | https://www.nasdaq.com/articles/5-dividend-growth-stocks-upside-analyst-targets-2018-04-23 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention - and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period - so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
Another consideration with dividend growth stocks is just how much the dividend is growing . We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
These five stocks are part of our full Dividend Aristocrats List . The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com .
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: Another consideration with dividend growth stocks is just how much the dividend is growing . Get the latest Zacks research report on KMB - FREE Get the latest Zacks research report on PG - FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period - so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Get the latest Zacks research report on KMB - FREE Get the latest Zacks research report on PG - FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period - so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: Another consideration with dividend growth stocks is just how much the dividend is growing . | But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. Get the latest Zacks research report on KMB - FREE Get the latest Zacks research report on PG - FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
25549.0 | 2018-04-23 00:00:00 UTC | Q1 Earnings Surprise Well in Cards: Healthcare ETFs to Buy | ABBV | https://www.nasdaq.com/articles/q1-earnings-surprise-well-cards-healthcare-etfs-buy-2018-04-23 | nan | nan | Healthcare space has been on a tough journey this year. The popular ETF like Health Care Select Sector SPDR Fund XLV has shed 0.4% so farwhile Vanguard Health Care ETF VHT and Fidelity MSCI Health Care Index ETF FHLC have gained at least 0.8%. Meanwhile, iShares U.S. Healthcare ETF IYH has added 0.1%.
The mixed trend is likely to continue heading into the Q1 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. All these stocks collectively account for 26.3% share in XLV, 24.6% in IYH, 23.9% in VHT and 22.5% in FHLC (read: Healthy Q1 Earnings at UnitedHealth: ETFs to Watch ).
Let's dig deeper into the earnings picture of these companies that would drive the performance of the above-mentioned funds in the coming days:
According to the our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while a Zacks Rank #4 or 5 (Sell rated) are best avoided. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Inside Our Surprise Prediction of These Stocks
Pfizer has a Zacks Rank #2 and an Earnings ESP of +1.36%, indicating a higher chance of beating estimates this quarter. The stock has seen positive earnings estimate revision of seven cents for to-be-reported quarter and delivered an average positive earnings surprise of 4.97% for the past four quarters. It has a VGM Score of B. Pfizer is scheduled to report earnings on May 1, before the opening bell.
Merck is expected to report results on May 1 before the market opens. It has a Zacks Rank #2 and an Earnings ESP of 0.00%. The stock delivered a positive earnings surprise in the last four quarters, with an average beat of 8.54% but witnessed a positive earnings estimate revision of eight cents over the past 90 days for the to-be-reported quarter. Merck has a VGM Score of C.
Amgen carries a Zacks Rank #3 and has an Earnings ESP of +3.34%, indicating a reasonable chance of beating estimates this time around. The earnings surprise track over the past four quarters is strong with an average positive surprise of 2.94%. In addition, Amgen witnessed positive earnings estimate revision of three cents over the past 90 days for the quarter to be reported. The stock has a solid VGM Score of A. Amgen will report earnings on Apr 26 after market close (read: Why These Small Cap Biotech ETFs are Soaring ).
AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.06%. The company delivered a positive earnings surprise in the last four quarters, with an average beat of 1.81% and saw solid earnings estimate revision of 31 cents over the past three months for the to-be-reported quarter. The stock has a solid VGM Score of B. The company is scheduled to report on Apr 26 before the opening bell.
Gilead is expected to release earnings on May 1 after market close. It has a Zacks Rank #2 and an Earnings ESP of +0.32%. Gilead delivered positive earnings surprises of 7.47% over the last four quarters but saw negative earnings estimate revision of a penny over the past three months for the to-be-reported quarter. It has a VGM Score of C.
Bristol-Myers will likely report earnings on Apr 26 before the opening bell. It has a Zacks Rank #3 and an Earnings ESP of +0.82%. The stock delivered an average positive earnings surprise of 4.23% over the past four quarter, and witnessed positive earnings estimate revision of 10 cents for the to-be-reported quarter. It has a VGM Score of C.
Summing Up
With earnings surprises well in the cards, the healthcare sector is expected to witness earnings growth of 9.4% in the first quarter, suggesting some upside for healthcare ETFs. In particular, all the four ETFs have a Zacks ETF Rank #3 (see: all the Healthcare ETFs here ).
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SPDR-HLTH CR (XLV): ETF Research Reports
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ISHARS-US HLTHC (IYH): ETF Research Reports
FID-H CARE (FHLC): ETF Research Reports
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Amgen Inc. (AMGN): 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. | The mixed trend is likely to continue heading into the Q1 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.06%. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | The mixed trend is likely to continue heading into the Q1 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.06%. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The mixed trend is likely to continue heading into the Q1 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.06%. | Click to get this free report Bristol-Myers Squibb Company (BMY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report SPDR-HLTH CR (XLV): ETF Research Reports VIPERS-HLTH CR (VHT): ETF Research Reports ISHARS-US HLTHC (IYH): ETF Research Reports FID-H CARE (FHLC): ETF Research Reports Gilead Sciences, Inc. (GILD): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The mixed trend is likely to continue heading into the Q1 earnings season as some big names like Pfizer PFE , Merck MRK , Amgen AMGN , AbbVie ABBV , Gilead Sciences GILD and Bristol-Myers Squibb BMY are lined up to report this week and in the next. AbbVie has a Zacks Rank #3 and an Earnings ESP of +0.06%. |
25550.0 | 2018-04-23 00:00:00 UTC | Will Global Industrial Unit Boost Ecolab's (ECL) Q1 Earnings? | ABBV | https://www.nasdaq.com/articles/will-global-industrial-unit-boost-ecolabs-ecl-q1-earnings-2018-04-23 | nan | nan | Ecolab Inc. ECL is scheduled to report first-quarter 2018 results on May 1, before the market opens. Solid performance in the Global Industrial segment is likely to drive the top line. Further, an expected improvement in revenues in other segments is likely to help the company generate solid results this season.
Last quarter, Ecolab reported adjusted earnings of $1.39 per share, which missed the Zacks Consensus Estimate by a penny. Earnings improved from $1.25 in the year-ago quarter. Adjusted quarterly net sales were $3.56 billion, up 7.2% from the year-ago quarter. Also, net sales missed the Zacks Consensus Estimate of $3.62 billion.
For the current quarter, the Zacks Consensus Estimate for revenues is pegged at $3.37 million, reflecting a rise of 6.5% year over year. The Zacks Consensus Estimate for earnings is pegged at 88 cents, indicating an increase of 10% year over year.
Let's delve deeper.
Ecolab Inc. Price and EPS Surprise
Ecolab Inc. Price and EPS Surprise | Ecolab Inc. Quote
Global Industrial to Drive Q1
Global Industrialaccounted for 36.2% of total revenues in the last quarter. Sales in the segment grew 6.1% year over year to almost $1.29 billion. The upside was driven by major gains in Water, Food & Beverage and Life Sciences unit. Europe, North America and Latin America led the Global Industrial regional growth.
For the upcoming quarterly results, the Zacks Consensus Estimate for Global Industrial segment is pegged at $1.20 billion. The figure reflects an increase of 5.7% from the year-ago figure.
Ecolab's Global Industrial segment primarily provides water treatment and process applications. Operating units within the Global Industrial reportable segment include Nalco Water, Food & Beverage, Paper, Textile Care and Life Sciences.
Ecolab acquired New York-based Cascade Water Services Inc., a privately-held company that provides water treatment programs and services to the U.S. institutional market. Notably, acquisition broadens services and improves opportunities in strategic water treatment market in the Global Industrial unit.
On Mar 7, Ecolab divested its phosphonate component business in China to Italmatch Chemicals SpA, a leading global specialty chemicals group and phosphonate supplier. Per management, the divestment is likely to enhance Ecolab's strategic focus on the core business and allow it to drive profits in China in the near term.
Other Factors to Consider
Guidance
For the first quarter of 2018, Ecolab expects adjusted earnings in the range of 85-93 cents per share, up from the previous range of 84-92 cents. The current outlook reflects an increase of 6-16% year over year.
Adjusted gross margin for the first quarter of 2018 is expected to be 46% of net revenues.
For 2018, Ecolab projects adjusted earnings in the range of $5.25-$5.45 per share, up 12-16% year over year.
As a percentage of revenues, adjusted gross margin is expected in the range of 47-48%.
Global Energy to Boost Top Line
Global Energy accounted for 24% of total revenues in the last quarter. Sales in the segment rose 10.8% to $853.2 million owing to strong growth in the well stimulation business and modest gains in the downstream business.
The segment operates under the Nalco Champion name. Global Energy caters to the process chemical and water treatment needs of the global petroleum and petrochemical industries in upstream and downstream applications. Management at Ecolab announced margin improvements and operating income growth in the energy business in the last-reported quarter.
Solid estimate revision trends in Ecolab's Global Energy segment buoy optimism. The Zacks Consensus estimate for the Global Energy segment is pegged at $812 million, reflecting a nominal improvement of 7.3% on a year-over-year basis.
Global Institutional in Focus
Global Institutionalaccounted for 34.3% of total revenues in the last quarter. Sales increased 8.5% to $1.22 billion, led by strong growth in the Specialty business line. The segment witnessed solid growth in North America and Asia Pacific.
The segment provides specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, healthcare, government, education and retail industries. Operating units within the Global Institutional segment include Institutional, Specialty and Healthcare.
Management expects first-quarter 2018 results to surpass fourth-quarter 2017 number with solid growth in the U.S. business. Further, the China business within the Global Institutional unit has been growing very steadily at double digits or high single digits and is expected to maintain its pace, which will be reflected in the to-be-reported quarter.
The Zacks Consensus Estimate for the Global Institutional segment is pegged at $1.13 billion, reflecting a rise of 5.1% on a year-over-year basis.
Thus, Ecolab is confident of improving growth trajectory, which will be visible in the upcoming quarterly results.
What Our Model Predicts
Our quantitative model shows an earnings beat for Ecolab this quarter. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates.
Zacks ESP : Earnings ESP for Ecolab is +0.76%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Ecolab carries a Zacks Rank #3.
Other Stocks Worth a Look
Here are a few other medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.
The Cooper Companies, Inc. COO has an Earnings ESP of +0.26% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
Teleflex Incorporated TFX has an Earnings ESP of +0.58% and a Zacks Rank #3.
AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Teleflex Incorporated (TFX): Free Stock Analysis Report
The Cooper Companies, Inc. (COO): 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 Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Ecolab Inc. (ECL): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. Operating units within the Global Industrial reportable segment include Nalco Water, Food & Beverage, Paper, Textile Care and Life Sciences. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Ecolab Inc. (ECL): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Ecolab Inc. Price and EPS Surprise Ecolab Inc. Price and EPS Surprise | Ecolab Inc. Quote Global Industrial to Drive Q1 Global Industrialaccounted for 36.2% of total revenues in the last quarter. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Ecolab Inc. (ECL): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Ecolab Inc. Price and EPS Surprise Ecolab Inc. Price and EPS Surprise | Ecolab Inc. Quote Global Industrial to Drive Q1 Global Industrialaccounted for 36.2% of total revenues in the last quarter. | AbbVie Inc. ABBV has an Earnings ESP of +0.06% and a Zacks Rank #3. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Ecolab Inc. (ECL): Free Stock Analysis Report Teleflex Incorporated (TFX): Free Stock Analysis Report The Cooper Companies, Inc. (COO): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, Ecolab reported adjusted earnings of $1.39 per share, which missed the Zacks Consensus Estimate by a penny. |
25551.0 | 2018-04-23 00:00:00 UTC | Is a Beat in Store for Alexion (ALXN) This Earnings Season? | ABBV | https://www.nasdaq.com/articles/is-a-beat-in-store-for-alexion-alxn-this-earnings-season-2018-04-23 | nan | nan | Alexion Pharmaceuticals, Inc.ALXN is scheduled to report first-quarter 2018 results on Apr 26, before the opening bell.
In the last quarter, the company's earnings surpassed the Zacks Consensus Estimate. Also, Alexion's track record is excellent as it has consistently topped estimates in the last four quarters, with an average positive earnings surprise of 15.21%.
Alexion's shares have underperformed the industry in the past year. The stock has lost 9.9% compared with the industry 's decline of 8.3%.
What Does the Zacks Model Unveil?
Our proven model shows that Alexion is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - which have a significantly higher chance of beating estimates.
Zacks ESP: Alexion has an Earnings ESP of +2.09% as the Most Accurate estimate is $1.51 and the Zacks Consensus Estimate is pegged at $1.48. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Alexion's Zacks Rank #2, when combined with a positive ESP makes us reasonably confident of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here .
Note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Let's see how things are shaping up for this announcement.
Factors Likely to Impact Q1 Results
Alexion's blockbuster drug, Soliris, continues to perform well. Alexion continues to identify and treat a consistently high number of new patients with paroxysmal nocturnal hemoglobinuria ("PNH") and atypical hemolytic uremic syndrome (aHUS) with Soliris, across its 50-country operating platform.
Alexion is working on expanding Soliris' label into additional indications. The FDA recently approved the drug for the treatment of refractory generalized myasthenia gravis (gMG) in patients who are anti-acetylcholine receptor antibody-positive. The drug was approved in Europe for this indication. Approximately 60,000-80,000 patients are expected to have gMG in the United States.
Additionally, a phase III study (PREVENT) on Soliris in patients with relapsing neuromyelitis optica spectrum disorder is ongoing with enrollment was completed and data expected in mid-2018. Label expansion in additional indications will give Soliris access to a higher patient population and increase the commercial potential of the drug significantly. The Zacks Consensus Estimate for Soliris hints that the drug's sales will increase to about 8.2% from the year-ago quarter to $803 million.
Alexion recently announced that it will acquire Sweden-based Wilson Therapeutics for $855 million. The transaction is expected to close in the second quarter. The acquisition will add a late-stage candidate, WTX101 to Alexion's pipeline. The candidate is currently in phase III for the treatment of Wilson disease, a rare genetic disorder.
Alexion is looking to diversify its portfolio and reduce its dependence on its blockbuster drug Soliris. The deal will strengthen Alexion's rare disease pipeline with a late-stage candidate.
The company plans to focus on rare diseases businesses in core areas of hematology, nephrology, neurology and metabolic disorders to enhance productivity. Alexion will reduce spending and headcount associated with the previously announced de-prioritized pipeline programs as well as optimizing additional R&D expenses.
The company plans to relocate its headquarters to Boston, MA by mid-2018 with approximately 400 positions. As a result of the restructuring plan, the company will reduce its global workforce by approximately 20%. The company expects that the increased financial flexibility will allow it to reinvest approximately $100 million annually into R&D. Alexion expects pretax savings of approximately $250 million by 2019.
In the meantime, the company's efforts to develop its pipeline are impressive, particularly in case of ALXN1210. Currently, it is evaluating ALXN1210 (a longer-acting anti-C5 antibody that inhibits terminal complement) in phase III studies for both PNH and aHUS. A tentative approval for PNH is expected in 2019.
Patients are also being dosed in a phase III trial with ALXN1210 administered intravenously every eight weeks in complement inhibitor treatment-naive adolescent and adult patients with aHUS. The company is expected to complete enrollment in the second quarter and announce the results in the fourth quarter of 2018.
Alexion Pharmaceuticals, Inc. Price and EPS Surprise
Alexion Pharmaceuticals, Inc. Price and EPS Surprise | Alexion Pharmaceuticals, Inc. Quote
OtherStocks That Warrant a Look
Here are some biotech stocks that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter.
Pfizer Inc. PFE is scheduled to release results on May 1. The company has an Earnings ESP of +1.36% and a Zacks Rank #2.
AbbVie Inc. ABBV is scheduled to release results on Apr 26. The company has an Earnings ESP of +0.06% and a Zacks Rank #3.
Gilead Sciences, Inc. GILD is scheduled to release results on May 1. The company has an Earnings ESP of +0.32% and a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report
Gilead Sciences, Inc. (GILD): 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 Inc. ABBV is scheduled to release results on Apr 26. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Alexion continues to identify and treat a consistently high number of new patients with paroxysmal nocturnal hemoglobinuria ("PNH") and atypical hemolytic uremic syndrome (aHUS) with Soliris, across its 50-country operating platform. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV is scheduled to release results on Apr 26. Factors Likely to Impact Q1 Results Alexion's blockbuster drug, Soliris, continues to perform well. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc. ABBV is scheduled to release results on Apr 26. Our proven model shows that Alexion is likely to beat on earnings in the to-be-reported quarter because it has the right combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - which have a significantly higher chance of beating estimates. | AbbVie Inc. ABBV is scheduled to release results on Apr 26. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Alexion Pharmaceuticals, Inc. (ALXN): Free Stock Analysis Report Gilead Sciences, Inc. (GILD): Free Stock Analysis Report To read this article on Zacks.com click here. Also, Alexion's track record is excellent as it has consistently topped estimates in the last four quarters, with an average positive earnings surprise of 15.21%. |
25552.0 | 2018-04-23 00:00:00 UTC | Implied DIVB Analyst Target Price: $29 | ABBV | https://www.nasdaq.com/articles/implied-divb-analyst-target-price-29-2018-04-23 | nan | nan | Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares U.S. Dividend and Buyback ETF (Symbol: DIVB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $29.24 per unit.
With DIVB trading at a recent price near $25.48 per unit, that means that analysts see 14.77% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DIVB's underlying holdings with notable upside to their analyst target prices are Mallinckrodt plc (Symbol: MNK), Celgene Corp (Symbol: CELG), and AbbVie Inc (Symbol: ABBV). Although MNK has traded at a recent price of $13.76/share, the average analyst target is 71.26% higher at $23.57/share. Similarly, CELG has 36.62% upside from the recent share price of $88.95 if the average analyst target price of $121.52/share is reached, and analysts on average are expecting ABBV to reach a target price of $121.08/share, which is 30.75% above the recent price of $92.60. Below is a twelve month price history chart comparing the stock performance of MNK, CELG, and ABBV:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Below is a twelve month price history chart comparing the stock performance of MNK, CELG, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DIVB's underlying holdings with notable upside to their analyst target prices are Mallinckrodt plc (Symbol: MNK), Celgene Corp (Symbol: CELG), and AbbVie Inc (Symbol: ABBV). Similarly, CELG has 36.62% upside from the recent share price of $88.95 if the average analyst target price of $121.52/share is reached, and analysts on average are expecting ABBV to reach a target price of $121.08/share, which is 30.75% above the recent price of $92.60. | Three of DIVB's underlying holdings with notable upside to their analyst target prices are Mallinckrodt plc (Symbol: MNK), Celgene Corp (Symbol: CELG), and AbbVie Inc (Symbol: ABBV). Similarly, CELG has 36.62% upside from the recent share price of $88.95 if the average analyst target price of $121.52/share is reached, and analysts on average are expecting ABBV to reach a target price of $121.08/share, which is 30.75% above the recent price of $92.60. Below is a twelve month price history chart comparing the stock performance of MNK, CELG, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? | Similarly, CELG has 36.62% upside from the recent share price of $88.95 if the average analyst target price of $121.52/share is reached, and analysts on average are expecting ABBV to reach a target price of $121.08/share, which is 30.75% above the recent price of $92.60. Below is a twelve month price history chart comparing the stock performance of MNK, CELG, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DIVB's underlying holdings with notable upside to their analyst target prices are Mallinckrodt plc (Symbol: MNK), Celgene Corp (Symbol: CELG), and AbbVie Inc (Symbol: ABBV). | Below is a twelve month price history chart comparing the stock performance of MNK, CELG, and ABBV: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of DIVB's underlying holdings with notable upside to their analyst target prices are Mallinckrodt plc (Symbol: MNK), Celgene Corp (Symbol: CELG), and AbbVie Inc (Symbol: ABBV). Similarly, CELG has 36.62% upside from the recent share price of $88.95 if the average analyst target price of $121.52/share is reached, and analysts on average are expecting ABBV to reach a target price of $121.08/share, which is 30.75% above the recent price of $92.60. |
25553.0 | 2018-04-23 00:00:00 UTC | What Lies Ahead for Vice ETFs? | ABBV | https://www.nasdaq.com/articles/what-lies-ahead-for-vice-etfs-2018-04-23 | nan | nan | Vice ETFs primarily target companies dealing in products seen as vices, such as alcohol, tobacco or marijuana. These ETFs are attractive options for those seeking some diversification in their portfolio by investing in the so-called sin stocks.
The need to form such a category was primarily because of some investors' inclination toward sustainable investing, which mainly seeks to avoid sin stocks. However, some investors choose such stocks for their attractive return potential.
How to Add Sin Stocks to Your Portfolio?
Investors have multiple ways to gain exposure to the space. Depending on their preference, investors can choose pure play alcohol stocks, tobacco, marijuana stocks or form a diversified portfolio of the entire space. However, owing to high volatility in this space and stringent regulations, it is advisable to go the ETF way to gain exposure to the sector.
With experienced managers handling money, investors will be in a good spot when the sector performs well. When AdvisorShares Vice ETF was launched last September, the fund's portfolio manager Dan Ahrens said, "We're not making any kind of moral judgment or statement about what people want to consume with this focus; there's a strong economic argument for looking at these sectors."
Another positive for this segment's investors is that these products are somewhat staples. Even when the economy is not performing well, people drink and smoke. As a result, even if the sector takes a beating at the time of a recession, it will outperform other segments of the markets, owing to its demand interdependency.
The alcohol industry has been looking up, with growth surpassing expectations. Volumes for spirits grew 2.6% last year, according to data provided by the Distilled Spirits Council, while supplier revenue was up 4.0% to $26.2 billion. Moreover, the cannabis and legal marijuana industry is seeing strong growth although tobacco sales are seeing a slight decline.
Let us now discuss a few ETFs providing exposure to the space.
Spirited Funds/ETFMG Whiskey & Spirits ETFWSKY
This fund focuses on providing exposure to companies across the world involved in the production and sale of whiskey and spirits. It has AUM of $15.0 million and charges a fee of 60 basis points a year. From a geographical perspective, the fund has high allocation to the United Kingdom, France and United States, with 25.9%, 25.0% and 13.5% exposure, respectively. It has an allocation of 16.9% to Diageo, 9.0% to Pernod Ricard and 5.6% to Radico Khaitan. This fund has garnered $3.3 million in inflows so far this year. It has returned 28.7% in a year.
ETFMG Alternative Harvest ETFMJ
This fund seeks to provide exposure to companies involved in the cannabis business.
It has AUM of $371.9 million and charges a fee of 75 basis points a year. The fund's top three holdings are GW Pharmaceuticals Plc GWPH , Hydropothecary Corp and Medreleaf Corp, with 6.3%, 6.0% and 5.9% allocation, respectively. This fund has garnered $405.6 million in inflows so far this year. It has returned 3.0% in a year.
AdvisorShares Vice ETFACT
This fund is a popular ETF focused on providing exposure to companies involved in the alcohol, tobacco or cannabis business.
It has AUM of $15.0 million and charges a fee of 75 basis points a year. From a sector perspective, the fund has 53.0% allocation to alcohol businesses, 26.0% to tobacco businesses and 21.0% to Cannabis businesses. The fund's top three holdings are AbbVie Inc ABBV , Constellation Brands Inc A STZ and MGP Ingredients Inc MGPI , with 1.1%, 0.9% and 0.8% allocation, respectively. This fund has garnered $5.4 million in inflows so far this year. It has lost 0.6% in a year.
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AbbVie Inc. (ABBV): Free Stock Analysis Report
Constellation Brands Inc (STZ): Free Stock Analysis Report
ETFMG-WSKY&SPRT (WSKY): ETF Research Reports
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GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report
ADVSR-VICE ETF (ACT): ETF Research Reports
ETFMG-ALT HRVST (MJ): ETF Research Reports
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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 fund's top three holdings are AbbVie Inc ABBV , Constellation Brands Inc A STZ and MGP Ingredients Inc MGPI , with 1.1%, 0.9% and 0.8% allocation, respectively. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report ETFMG-WSKY&SPRT (WSKY): ETF Research Reports MGP Ingredients, Inc. (MGPI): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. When AdvisorShares Vice ETF was launched last September, the fund's portfolio manager Dan Ahrens said, "We're not making any kind of moral judgment or statement about what people want to consume with this focus; there's a strong economic argument for looking at these sectors." | The fund's top three holdings are AbbVie Inc ABBV , Constellation Brands Inc A STZ and MGP Ingredients Inc MGPI , with 1.1%, 0.9% and 0.8% allocation, respectively. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report ETFMG-WSKY&SPRT (WSKY): ETF Research Reports MGP Ingredients, Inc. (MGPI): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. AdvisorShares Vice ETFACT This fund is a popular ETF focused on providing exposure to companies involved in the alcohol, tobacco or cannabis business. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report ETFMG-WSKY&SPRT (WSKY): ETF Research Reports MGP Ingredients, Inc. (MGPI): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. The fund's top three holdings are AbbVie Inc ABBV , Constellation Brands Inc A STZ and MGP Ingredients Inc MGPI , with 1.1%, 0.9% and 0.8% allocation, respectively. Depending on their preference, investors can choose pure play alcohol stocks, tobacco, marijuana stocks or form a diversified portfolio of the entire space. | Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Constellation Brands Inc (STZ): Free Stock Analysis Report ETFMG-WSKY&SPRT (WSKY): ETF Research Reports MGP Ingredients, Inc. (MGPI): Free Stock Analysis Report GW Pharmaceuticals PLC (GWPH): Free Stock Analysis Report ADVSR-VICE ETF (ACT): ETF Research Reports ETFMG-ALT HRVST (MJ): ETF Research Reports To read this article on Zacks.com click here. The fund's top three holdings are AbbVie Inc ABBV , Constellation Brands Inc A STZ and MGP Ingredients Inc MGPI , with 1.1%, 0.9% and 0.8% allocation, respectively. Depending on their preference, investors can choose pure play alcohol stocks, tobacco, marijuana stocks or form a diversified portfolio of the entire space. |
25554.0 | 2018-04-20 00:00:00 UTC | J&J, Novartis' Q1 Earnings Impress: Will Others Follow Suit? | ABBV | https://www.nasdaq.com/articles/jj-novartis-q1-earnings-impress%3A-will-others-follow-suit-2018-04-20 | nan | nan | Johnson & JohnsonJNJ kicked off pharma earnings season on a strong note beating the Zacks Consensus Estimate for both earnings and sales in the first-quarter 2018. J&J's performance was driven by continued positive momentum since the second half of 2017 and improvement in Consumer segment sales.
How Did J&J Perform in Q1?
J&J's earnings of $2.06 per share beat the Zacks Consensus Estimate of $2.01. Quarterly revenues were $20 billion, which also beat the consensus mark of $19.48 billion. Buoyed by its strong performance, the company upped its previously issued sales outlook for 2018. (Read More: J&J Tops Q1 Earnings Estimates, Raises Sales Guidance ).
J&J's Pharmaceutical segment sales grew 19.4% year over year in the first quarter of 2018 due to strong sales in both domestic and international markets and favorable currency impact. Sales in the U.S. market rose 9.9% in the quarter while international sales grew 33.1%.
New products like Imbruvica (cancer) and Darzalex (multiple myeloma) continued to perform well. Oncology sales increased 45% during the quarter to $2.3 billion, constituting almost a quarter of the pharmaceutical sales. Core products like Xarelto, Stelara, Zytiga, Simponi/Simponi Aria and Invega Sustenna also contributed to growth. Imbruvica sales rose 43.5%. The drug is marketed by J&J in partnership with AbbVie, Inc. ABBV .
Edurant sales rose 40.9% while Prezista sales increased 11.2%.
However, Concerta sales continue to decline due to generic competition. Sales of Risperdal Consta also fell 5.3%. Sales of Invokana/Invokamet declined 12.7% due to higher managed care discounting, while blockbuster rheumatoid arthritis drug, Remicade, marketed in partnership with Merck & Co., Inc. MRK fell 16.9%.
J&J's Pharma segment achieved some clinical milestones during the quarter including FDA approvals of prostate cancer drug, Erleada for the treatment of men with non-metastatic castration-resistant prostate cancer and line extension of already marketed prostate cancer drug, Zytiga in combination with prednisone in the first-line setting.
These will certainly boost sales in 2018. J&J now expects revenues in the range of $81.0 to $81.8 billion, higher than $80.6 billion to $81.4 billion expected previously.
Overall, in 2018, J&J expects the Pharmaceutical segment to remain strong while the Consumer and Medical Device segments will continue to improve. We expect other companies like Merck, Amgen, Inc. AMGN , Pfizer and Lilly to follow suit.
Novartis Reports Encouraging Q1 Results
Novartis AGNVS also reported this week. The Swiss pharma giant beat earnings and revenue estimates driven by strong performance of key drugs, Cosentyx and Entresto. Novartis reported core earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.25 and up from $1.13 recorded in the year-ago quarter. Revenues increased 10% to $12.7 billion, beating the Zacks Consensus Estimate of $12.3 billion. (Read more: Novartis Beats Earnings and Revenue Estimates in Q1 )
Sales of the Innovative Medicines division grew 6% to $8.4 billion driven by volume growth of Cosentyx and Entresto. However, entry of generics for Gleevec in the United States and Europe impacted sales unfavorably.
Cosentyx sales increased to $580 million, up 35% driven strong growth in all indications and expanded access. Entresto's sales increased 126% to $200 million driven by increased uptake.
Oncology franchise (excluding Gleevec) grew 6% driven by Promacta/Revolade, Tafinlar + Mekinist, Jakavi and recent launches. However, sales at the Sandoz division were $2.5 billion, down 4% due to price erosion in the Unites States.
However, this year so far, J&J's shares have lost 8.8% and Novartis' shares are down 6% against 4.3% decrease witnessed by the industry .
Will Other Pharma Bigwigs Report Solid Results Too?
Pfizer
Pfizer's top line is expected to be favorably impacted by new products like Xeljanz (rheumatoid arthritis) and Ibrance (breast cancer) as well as older products like Lyrica (neuropathic pain), Chantix (smoking cessation) and Eliquis (blood thinner) in the soon-to-be reported quarter. Moreover, line extension of Xeljanz, Sutent and Bosulif received in the fourth quarter of 2017 is also expected to bring in more sales.
However, loss of exclusivity and associated generic competition for Pristiq in the United States and Lyrica in Europe, and product shortages for legacy Hospira will likely affect sales negatively. Blockbuster drug Enbrel sales should continue to decline in the quarter due to biosimilar competition.
In 2018, the company's sales are expected to increase in low single digits from 2017 levels. The Zacks Consensus Estimate for sales and earnings for Q1 is pegged at $13.03 billion and 73 cents, respectively. The Zacks Consensus Estimate for sales in 2018 currently stands at $54.52 billion, representing year-over-year growth of 3.7%. Pfizer carries a Zacks Rank #2 (Buy).
Merck
Merck's blockbuster drug, Keytruda, along with Lynparza and Bridion Injection is expected to boost revenues in the first quarter. Keytruda sales are gaining momentum through approval and launch of Keytruda in new indications, especially in first-line lung cancer.
However, rising competitive and pricing pressure are expected to hurt sales of Zostavax, Zepatier, Januvia and Isentress.
Animal health franchise sales are likely to remain strong in the first quarter.
Merck carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The Zacks Consensus Estimate for sales and earnings for Q1 is pegged at $10.11 billion and 99 cents, respectively. The Zacks Consensus Estimate for 2018 sales is $41.81 billion, representing a 4.2% year-over-year increase.
Eli Lilly (LLY)
Sales of Lilly's diabetes drugs, Trulicity and Jardiance are expected to grow driven by market share gains. Other new drugs such as Cyramza, Taltz, and Lartruvo are also expected to boost the top line due to continued strong demand. Verzenio is also expected to generate higher sales in the first quarter.
However, patent expiry in some countries for Cymbalta, Strattera, Effient, Axiron, Zyprexa, Evista and competitive pressure mainly from immuno-oncology agents for Alimta will hurt sales of these drugs.
We expect strong uptake of new products to offset decline in sales of established products this quarter too.
The Zacks Consensus Estimate for sales and earnings for Q1 is pegged at $5.52 billion and $1.13, respectively. The Zacks Consensus Estimate for 2018 sales stands at $23.43 billion, representing a rise of 2.4% year over year. Lilly carries a Zacks Rank #2.
Bristol-Myers Squibb Company (BMY)
Several label expansions of Bristol-Myers' blockbuster cancer drug, Opdivo, drove the company's sales last year and is expected do so this year as well. Moreover, cardiovascular drug, Eliquis, also demonstrated strong performance in 2017. We expect this trend to continue this quarter. Label expansion of leukemia drug, Sprycel, approved in November 2017 should bring in more sales for the drug. Moreover, continued strong performance of Yervoy and Orencia will have a favorable impact.
However, genericization of Plavix, Avapro/Avalide and Baraclude in the United States due to loss of exclusivity is significantly hurting the company's top line. The company also faces stiff competition in the immuno-oncology space. The HIV business continues to face competitive pressure.
The Zacks Consensus Estimate for sales and earnings for Q1 is pegged at $5.17 billion and 84 cents, respectively. The Zacks Consensus Estimate for 2018 sales is pegged at $21.69 billion, representing a rise of 12.7% year over year. Bristol Myers carries a Zacks Rank #3.
Conclusion
The new products of the majority of these companies are doing well and are expected to offset declining sales of legacy drugs due to loss of exclusivity. Moreover, most of these companies boast a deep and promising pipeline. Also, the new tax law boosts the prospects of strategic mergers and acquisitions and in-licensing deals/collaboration with smaller companies, which will strengthen the companies' product portfolio.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The drug is marketed by J&J in partnership with AbbVie, Inc. ABBV . Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Sales of Invokana/Invokamet declined 12.7% due to higher managed care discounting, while blockbuster rheumatoid arthritis drug, Remicade, marketed in partnership with Merck & Co., Inc. MRK fell 16.9%. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The drug is marketed by J&J in partnership with AbbVie, Inc. ABBV . The Swiss pharma giant beat earnings and revenue estimates driven by strong performance of key drugs, Cosentyx and Entresto. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The drug is marketed by J&J in partnership with AbbVie, Inc. ABBV . J&J's Pharmaceutical segment sales grew 19.4% year over year in the first quarter of 2018 due to strong sales in both domestic and international markets and favorable currency impact. | The drug is marketed by J&J in partnership with AbbVie, Inc. ABBV . Click to get this free report Novartis AG (NVS): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Oncology sales increased 45% during the quarter to $2.3 billion, constituting almost a quarter of the pharmaceutical sales. |
25555.0 | 2018-04-19 00:00:00 UTC | Mylan NV Could Be Closer to a Breakout Than Most Traders Realize | ABBV | https://www.nasdaq.com/articles/mylan-nv-could-be-closer-breakout-most-traders-realize-2018-04-19 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
If it seems like Mylan NV (NASDAQ: MYL ) has gotten far more media attention of late than it usually does - almost all of it bullish - you're not crazy. It has. The recent investor-day event helped the company toot its own horn to be sure, still, MYL stock has been strangely stuck in neutral in recent days.
It's a curious situation that defies the news Mylan has been dishing out that's been turning some heads.
Maybe it's just a technical, chart-based issue. Maybe investors are too distracted by everything else going on with the rest of the market right now. One thing is for sure though, and that is, if Mylan stock can get over whatever technical hurdle is standing in its way right now and develop some momentum, there's not much that should hold back a rally.
Lots to Like
Leerink analyst Ami Fadia was absolutely right when she said last week "Mylan's biosimilars/complex products pipeline is shaping up to be one of the strongest in the industry." The encouraging words came packaged with an upgrade of MYL stock to an outperform rating. Yet, Fadia's comments may have understated the potential of Mylan's pipeline.
In the queue are a biosimilar versions of Neulasta and Humira. The former is an immune system booster for cancer patients, made by Amgen, Inc. (NASDAQ: AMGN ). Humira, is a gastrointestinal drug that maker AbbVie Inc (NYSE: ABBV ) believes it can sell more than $20 billion worth by 2020 . Compare that to the more than a billion dollars' worth of Neulasta that Amgen sold in the final quarter of 2017 alone. Both biosimilars should launch before the end of this year.
3 Must-Own Stocks to Buy for Any Portfolio
But, it's not just biosimilars that could add major incremental revenue to the mix, nor is it the four other in-house drugs nearing their launch date . Mylan is also forming selling partnerships with other drugmakers.
Case in point: Earlier this month the company acquired the rights to sell a once-monthly multiple sclerosis treatment developed by Israel's Mapi Pharma. Late last month, Mylan and Asian pharmaceutical company Biocon won EU approval for their jointly developed diabetes treatment Semglee.
Seems Undervalued at 7x
Even if not all of these drugs become blockbusters, revenue growth is clearly in the cards. So why, pray tell, has the market been so unwilling to give this company any kind of credit by valuing it at more than seven (yes, only seven) times its forward-looking earnings?
Two theories stand out above all others, though you won't find either described in any investing "how to" books.
The first is that investors are so convinced the company can't overcome all of its woes, they won't able to recognize it when Mylan finally does manage to get itself back on track. For some observers, Mylan CEO Heather Bresch's appearance at a Senate hearing about the outrageous price increases for its EpiPen was the last straw; MYL stock is still priced roughly where it was then. Perception is everything.
The other theory posits that it's in some traders' best interest to hold this stock down, so much so they'll find a way to keep a lid on it as long as possible.
Who'd care about seeing MYL stock not rally? Shorts traders, who are holding the 24.2 million short shares right now, are one group betting that MYL stock will move lower rather than higher. If Mylan stock starts to rise, those bears could be in serious trouble; there is no limit to the potential losses on a short trade.
Neither theory is verifiable. Regardless, the validity of either or both theories is irrelevant. Something is holding MYL stock back, and until that something breaks, nobody can afford to hold their breath. But, what a rocket ride it could be once traders are able to shrug off whatever it is between their ears that's keeping Mylan shares anchored! It just needs the right nudge. The fundamental backdrop is already in place.
Waiting on MYL Stock
As for what to look for going forward, it's not terribly tough: MYL stock needs to break out of the consolidation funk they're now in. Thing is, we may be closer to such a move than many traders realize.
Twilio Inc Needs More Than Just Strong Revenue Growth
The daily chart of MYL stock below tells the tale. It's been getting squeezed into the tip of a converging wedge (framed by red, dashed lines) since the latter part of last year. You can also see the stock is tangled up with all of its key moving average lines.
Click to Enlarge
At first glance it looks problematic, suggesting shares are trapped. The waning volume further suggests a growing disinterest in Mylan, which would only exacerbate the stagnation issue.
That's not how it works, though. Periods of low volatility are followed by periods of high volatility, and vice versa. This stagnation also has all the hallmarks of the bulls and the bears sizing each other up. Once one side or the other flinches, look for fireworks again.
Just for the record though, the undertow favors the bulls.
Zoom out to a weekly chart (below) of Mylan for a moment. In this time frame you can see we've already made a higher high and a higher low. We're also above the pivotal 200-day moving average line (pink), and even found support there a couple of times this year. More than anything though, we've been well above the falling resistance line (red, dashed) that had proven problematic since late 2015.
Click to Enlarge
The last thing we need to see in order to trigger the brewing breakout is a move above the 100-day moving average line at $41.50. That move would by default include a move above the upper edge of the converging wedge pattern we plotted on the daily chart. After that, a move to $50 - if not more - is within reach.
The hardest part is waiting.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter , at @jbrumley.
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The post Mylan NV Could Be Closer to a Breakout Than Most Traders Realize 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. | Humira, is a gastrointestinal drug that maker AbbVie Inc (NYSE: ABBV ) believes it can sell more than $20 billion worth by 2020 . 3 Must-Own Stocks to Buy for Any Portfolio But, it's not just biosimilars that could add major incremental revenue to the mix, nor is it the four other in-house drugs nearing their launch date . Case in point: Earlier this month the company acquired the rights to sell a once-monthly multiple sclerosis treatment developed by Israel's Mapi Pharma. | Humira, is a gastrointestinal drug that maker AbbVie Inc (NYSE: ABBV ) believes it can sell more than $20 billion worth by 2020 . InvestorPlace - Stock Market News, Stock Advice & Trading Tips If it seems like Mylan NV (NASDAQ: MYL ) has gotten far more media attention of late than it usually does - almost all of it bullish - you're not crazy. It's been getting squeezed into the tip of a converging wedge (framed by red, dashed lines) since the latter part of last year. | Humira, is a gastrointestinal drug that maker AbbVie Inc (NYSE: ABBV ) believes it can sell more than $20 billion worth by 2020 . InvestorPlace - Stock Market News, Stock Advice & Trading Tips If it seems like Mylan NV (NASDAQ: MYL ) has gotten far more media attention of late than it usually does - almost all of it bullish - you're not crazy. Waiting on MYL Stock As for what to look for going forward, it's not terribly tough: MYL stock needs to break out of the consolidation funk they're now in. | Humira, is a gastrointestinal drug that maker AbbVie Inc (NYSE: ABBV ) believes it can sell more than $20 billion worth by 2020 . InvestorPlace - Stock Market News, Stock Advice & Trading Tips If it seems like Mylan NV (NASDAQ: MYL ) has gotten far more media attention of late than it usually does - almost all of it bullish - you're not crazy. The other theory posits that it's in some traders' best interest to hold this stock down, so much so they'll find a way to keep a lid on it as long as possible. |
25556.0 | 2018-04-18 00:00:00 UTC | Roche Hemophilia Drug Gets Breakthrough Therapy Designation | ABBV | https://www.nasdaq.com/articles/roche-hemophilia-drug-gets-breakthrough-therapy-designation-2018-04-18 | nan | nan | Roche Holding AG's RHHBY member Genentech announced that the FDA has granted Breakthrough Therapy Designation to its hemophilia drug, Hemlibra (emicizumab-kxwh). The designation was granted to Hemlibra for treatment of people with hemophilia A without factor VIII inhibitors.
The designation aims to expedite the development and review of drugs intended to treat serious or life-threatening conditions and provide patients access to these as soon as possible.
This designation is based on data from the phase III HAVEN 3 study in people 12 years or older with hemophilia A without inhibitors. In the study, Hemlibra prophylaxis dosed subcutaneously every week or every two weeks showed a statistically significant and clinically meaningful reduction in treated bleeds compared to no prophylaxis. The study met its primary endpoint as well as key secondary endpoints with Hemlibra significantly reducing bleeding.
Roche's stock has lost 11.6% over a year compared with industry 's gain of 8.9%.
In January 2018, the EU Committee for Medicinal Products for Human Use ("CHMP") adopted a positive opinion for Hemlibra (emicizumab) for routine prophylaxis of bleeding episodes in patients suffering from hemophilia A with factor VIII inhibitors. The CHMP has recommended the drug for use in all age groups. The Marketing Authorisation Application is being reviewed under accelerated assessment.
A potential approval will further boost Roche's hematology portfolio which includes approved drugs like MabThera/Rituxan, Gazyva/Gazyvaro, Tecentriq and Venclexta
We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . Both companies are jointly commercializing the drug in the United States. AbbVie is commercializing the drug outside the United States.
Approval of new drugs and a potential label expansion of existing drugs bode well for Roche as its legacy drugs like Herceptin, MabThera are facing competition from biosimilars.
Novartis NVS has already launched its biosimilar version of Rituxan/ MabThera in Europe. Amgen AMGN has also obtained FDA approval for a biosimilar version of Avastin for treatment of five types of cancers including lung cancer, colorectal cancer, glioblastoma, renal cell carcinoma and cervix cancer.
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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 further boost Roche's hematology portfolio which includes approved drugs like MabThera/Rituxan, Gazyva/Gazyvaro, Tecentriq and Venclexta We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. A potential approval will further boost Roche's hematology portfolio which includes approved drugs like MabThera/Rituxan, Gazyva/Gazyvaro, Tecentriq and Venclexta We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States. | Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. A potential approval will further boost Roche's hematology portfolio which includes approved drugs like MabThera/Rituxan, Gazyva/Gazyvaro, Tecentriq and Venclexta We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States. | A potential approval will further boost Roche's hematology portfolio which includes approved drugs like MabThera/Rituxan, Gazyva/Gazyvaro, Tecentriq and Venclexta We note that Roche is developing Venclexta in collaboration with AbbVie ABBV . AbbVie is commercializing the drug outside the United States. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. |
25557.0 | 2018-04-17 00:00:00 UTC | AbbVie Inc. Is a Clear Value Play in Biotech Stocks | ABBV | https://www.nasdaq.com/articles/abbvie-inc-clear-value-play-biotech-stocks-2018-04-17 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since topping over $120 a share three distinct times since February, shares of AbbVie Inc. (NYSE: ABBV ) are still down around 25 percent. Whether the stock was perfectly priced or investors wanted an excuse to lock in profits, ABBV stock still has tremendous value and growth ahead. The pause in the stock's rally could just be temporary.
On March 22, AbbVie reported disappointing Phase 2 data for its Rova-T study that sent its shares lower. The 16-percent response rate for a subgroup of patients for Rova-T in third-line relapsed/refractory small cell lung cancer (SCLC) suggests the overall response rate was lower.
But with around 70 percent of institutional ownership for the stock, the sell-off could be shaking out the weak, speculative hands. Institutions tend to ride out the near-term volatility by holding on to the shares. Any accumulation in the stock, especially when it is valued at a 16.6 times price-to-earnings ratio and 10.5 times forward P/E, will slow any further drop in the stock markets.
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Strong Fourth-Quarter Results Forgotten
AbbVie's stock rose in January when the company reported earnings and revenue that beat consensus estimates. Revenue grew 13.8% year-on-year to $7.74 billion. The adjusted earnings per share of $1.48 represented year-on-year growth of over 23 percent. The latest disappointment in the Rova-T study will have a small impact on the business should it fail. Considering AbbVie has not one, but three major drivers for growth - Humira, Imbruvica, and Mavyret - investors may expect steady upside in the company for 2018.
AbbVie has a solid history of outperformance behind it. The latest quarterly earnings report once again confirmed how healthy its business is since earnings and sales grew at a double-digit rate. For the year, sales of Imbruvica grew 41 percent. Mavyret ended the year with 32-percent market share.
Future Upside for ABBV Stock
Pivotol trial results for AbbVie's upadacitinib, which treats rheumatoid arthritis; risankizumab, for treating psoriasis, a skin disease; and Murano, which treats patients with relapsed/refractory chronic lymphocytic leukemia (CLL), collectively ensure AbbVie will have a strong pipeline ahead.
This makes the stock market's strong negative reaction to disappointing Rova-T more puzzling. Markets could be re-pricing the stock's fair value in anticipation of Rova-T not contributing to the company's revenue in late 2018 to 2019 as management previously forecast. The clinical results are also a setback when management expected Rova-T would add "significantly" to the business.
Despite that one unknown, upadacitinib holds special promise. The drug is in clinical development for six indications. This includes dermatology (eczema), GI, and rheumatology. Crohn's disease and psoriatic arthritis are some of the diseases it treats. The addressable market for the drug is clearly a big one for AbbVie. For now, the clinical results look very promising.
Upadacitinib earned a breakthrough designation in atopic dermatitis based on its Phase 2 data. Since this disease is prevalent in North America, AbbVie has a potential winner if it gets the drug to market soon. Only Pfizer Inc. (NYSE: PFE) and Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN ) are ahead of AbbVie in developing non-steroidal drugs that treat this skin disease. But for investors, ABBV stock holds a distinct advantage from a valuation perspective. Pfizer and Regeneron both trade at P/E multiples that are higher than that of AbbVie's stock.
Takeaway on ABBV stock
The market potential for drugs treating lung cancer is big, so the set-back in AbbVie cannot be dismissed. For value investors, AbbVie's stock trades at a discount to its peers, so the stock already more than discounts temporary disappointments from its clinical studies.
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As a group, biotechnology is underperforming the markets as investors shy away from risk. If that sentiment changes, ABBV stock will be one of the first stocks to recover.
Disclosure: Author does not own shares in any of the companies mentioned.
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The post AbbVie Inc. Is a Clear Value Play in Biotech Stocks 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. | Only Pfizer Inc. (NYSE: PFE) and Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN ) are ahead of AbbVie in developing non-steroidal drugs that treat this skin disease. Takeaway on ABBV stock The market potential for drugs treating lung cancer is big, so the set-back in AbbVie cannot be dismissed. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since topping over $120 a share three distinct times since February, shares of AbbVie Inc. (NYSE: ABBV ) are still down around 25 percent. | On March 22, AbbVie reported disappointing Phase 2 data for its Rova-T study that sent its shares lower. Future Upside for ABBV Stock Pivotol trial results for AbbVie's upadacitinib, which treats rheumatoid arthritis; risankizumab, for treating psoriasis, a skin disease; and Murano, which treats patients with relapsed/refractory chronic lymphocytic leukemia (CLL), collectively ensure AbbVie will have a strong pipeline ahead. Takeaway on ABBV stock The market potential for drugs treating lung cancer is big, so the set-back in AbbVie cannot be dismissed. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since topping over $120 a share three distinct times since February, shares of AbbVie Inc. (NYSE: ABBV ) are still down around 25 percent. Future Upside for ABBV Stock Pivotol trial results for AbbVie's upadacitinib, which treats rheumatoid arthritis; risankizumab, for treating psoriasis, a skin disease; and Murano, which treats patients with relapsed/refractory chronic lymphocytic leukemia (CLL), collectively ensure AbbVie will have a strong pipeline ahead. More From InvestorPlace 10 Cheap Stocks for Less Than the Price of a Netflix Subscription 5 Great Stocks to Take a Bite Out of China 3 Must-Own Stocks to Buy for Any Portfolio Compare Brokers The post AbbVie Inc. Is a Clear Value Play in Biotech Stocks appeared first on InvestorPlace . | InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since topping over $120 a share three distinct times since February, shares of AbbVie Inc. (NYSE: ABBV ) are still down around 25 percent. For value investors, AbbVie's stock trades at a discount to its peers, so the stock already more than discounts temporary disappointments from its clinical studies. Whether the stock was perfectly priced or investors wanted an excuse to lock in profits, ABBV stock still has tremendous value and growth ahead. |
25558.0 | 2018-04-17 00:00:00 UTC | 5 Drug Stocks Poised to Surpass on Earnings This Quarter | ABBV | https://www.nasdaq.com/articles/5-drug-stocks-poised-to-surpass-on-earnings-this-quarter-2018-04-17-0 | nan | nan | The first-quarter earnings season has just kicked off. Per the latest Earnings Preview , the bottom line of S&P 500 companies is expected to increase at a highly impressive rate of 16.6% on a year-over-year basis. This prospective upside marks the maximum quarterly earnings growth pace in seven years. The report further predicts that 11 of the 16 Zacks sectors are projected to exhibit double-digit earnings growth in the to-be-reported quarter. Total revenues for the same set of companies are projected to grow 7.5%.
However, focusing our attention on the Large Cap Pharma and Medical-Drugs sector, we note that both these sectors have decreased 6.2% and 4.2%, respectively, since February this year due to broader market pressure. Further, the S&P 500 index has registered a decline of 6.2% since the second month of 2018.
We remind investors that the U.S. stock market is facing a severe volatility since the last couple of months despite a strong start this year. This downside can mainly be attributable to a potentially damaging trade war between the world's two largest economies, United States and China, since this February.
After President Donald Trump announced plans to impose tariffs on up to $60 billion of annual Chinese imports, China retaliated by notifying its intention to levy tariffs on 128 U.S. products. Such aggressive exchange has triggered tensions of a possible trade dispute between the two countries. Moreover, sluggish large-cap tech stocks are cited as another reason for this plummet in the market.
Despite the recent market unrest, an optimistic sentiment revolves around the remaining year. Notably, the biotech sector is likely to improve as the year advances. We expect new product sales to thrive in tandem with rising demand. This apart, a successful innovation and a host of product launches, strong clinical study outcomes, more frequent FDA nods, solid performance of key products, growing demand for drugs, especially to deal with rare-to-treat diseases, an ageing population and an escalated healthcare expenditure are some of the factors to keep the sector stable. You can see the complete list of today's Zacks #1 Rank stocks here .
It is important to note that the outlook for the upcoming first-quarter results looks bright. Per the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is expected to record 6.3% year-over-year growth in revenues and a 7.8% rise in earnings.
How to Pick Potential Q1 Winners
Given the enormity of the healthcare space, the task of selecting stocks with possibilities to beat estimates could appear quite daunting. But the Zacks proprietary methodology makes this job fairly simple. One way to carve out the top choices this reporting cycle is by looking at the stocks with the combination of a favorable Zacks Rank - Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - and a positive Earnings ESP . It is observed that a positive earnings surprise delivered by a company mostly leads to its stock price appreciation.
Per the well-researched quantitative model, an Earnings ESP is used for identifying stocks with higher or 70% chances of pulling off a positive surprise in the impending earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Per our proven methodology, we culled three stocks from large-cap pharma and two from the medical-drug sector, poised to surpass estimates in the to-be-reported quarter.
The three large cap stocks are as follows:
Our first pick is AbbVie Inc. ( ABBV ). This North Chicago, IL-based company has an Earnings ESP of +0.24% and a Zacks Rank #3. The stock has seen the Zacks Consensus Estimate for first-quarter 2018 earnings being pegged at $1.78 per share. Besides this, the company boasts an encouraging earnings track record, exceeding expectations in all the last four quarters with an average beat of 1.81%. AbbVie is scheduled to report earnings numbers on Apr 26.
Our next choice is Eli Lilly & Company ( LLY ). The stock has an Earnings ESP of +0.73% and a Zacks Rank #2. The consensus mark for first-quarter earnings stands at $1.13 per share. Headquartered in Indianapolis, IN, Lilly has an excellent positive earnings surprise history. The company's average beat over the trailing four quarters is 4.08%. Lilly is slated to announce results on Apr 24.
Pfizer Inc . ( PFE ) too has a pleasing earnings profile with the company having consistently outpaced expectations in all the last four quarters with an average beat of 4.97%. It looks perfectly poised to repeat this winning streak this time around as well. This New York-based player is Zacks #2 Ranked and has an Earnings ESP of +2.62%. The consensus mark for first-quarter bottom line is pegged at 73 cents per share. Pfizer is scheduled to release financial figures on May 1.
Given below are the two medical-drug stocks:
Our first pick from the medical-drug sector is Catalent, Inc. ( CTLT ). This New Jersey-based company has an Earnings ESP of +1.70% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter earnings is pegged at 39 cents per share. The company flaunts a positive earnings surprise record, outshining expectations in all the last four quarters with an average beat of 16.44%. Catalent is expected to report earnings on May 3.
Our next choice is Aratana Therapeutics, Inc. ( PETX ). The stock has an Earnings ESP of +37.14% and is a #3 Ranked player. The consensus mark for first-quarter loss stands at 18 cents per share. Based in Kansas, Aratana has an outstanding earnings history with consecutive estimate beats in the trailing four quarters, the average being 11.74%. The company is slated to announce results on May 4.
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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 three large cap stocks are as follows: Our first pick is AbbVie Inc. ( ABBV ). AbbVie is scheduled to report earnings numbers on Apr 26. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Aratana Therapeutics, Inc. (PETX): Free Stock Analysis Report Catalent, Inc. (CTLT): Free Stock Analysis Report To read this article on Zacks.com click here. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Aratana Therapeutics, Inc. (PETX): Free Stock Analysis Report Catalent, Inc. (CTLT): Free Stock Analysis Report To read this article on Zacks.com click here. The three large cap stocks are as follows: Our first pick is AbbVie Inc. ( ABBV ). AbbVie is scheduled to report earnings numbers on Apr 26. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Aratana Therapeutics, Inc. (PETX): Free Stock Analysis Report Catalent, Inc. (CTLT): Free Stock Analysis Report To read this article on Zacks.com click here. The three large cap stocks are as follows: Our first pick is AbbVie Inc. ( ABBV ). AbbVie is scheduled to report earnings numbers on Apr 26. | The three large cap stocks are as follows: Our first pick is AbbVie Inc. ( ABBV ). AbbVie is scheduled to report earnings numbers on Apr 26. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Eli Lilly and Company (LLY): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Aratana Therapeutics, Inc. (PETX): Free Stock Analysis Report Catalent, Inc. (CTLT): Free Stock Analysis Report To read this article on Zacks.com click here. |
25559.0 | 2018-04-17 00:00:00 UTC | J&J (JNJ) Tops Q1 Earnings Estimates, Raises Sales Guidance | ABBV | https://www.nasdaq.com/articles/jj-jnj-tops-q1-earnings-estimates-raises-sales-guidance-2018-04-17 | nan | nan | Johnson & JohnsonJNJ kicked off 2018 pharma earnings on a strong note, beating the Zacks Consensus Estimate on both counts in the first quarter of 2018. The drug and consumer products giant upped its previously issued sales outlook for 2018. Shares were up around 1% in pre-market trading .
This year so far, J&J's shares have declined 5.7%, comparing unfavorably with the 2.7% decline witnessed by the industry .
Earnings Beat
J&J's first-quarter 2018 earnings came in at $2.06 per share, beating the Zacks Consensus Estimate of $2.01 and increasing 12.6% from the year-ago period.
Adjusted earnings excluded amortization expense and some special items. Including these items, J&J reported first-quarter earnings of $1.60 per share compared with earnings of $1.61 in the year-ago period.
Sales Beat Slightly
Sales came in at $20 billion, beating the Zacks Consensus Estimate of $19.48 billion. Sales also increased 12.6% from the year-ago quarter, reflecting an operational increase of 8.4% and a positive currency impact of 4.2%. Organically, excluding the impact of acquisitions and divestitures, sales increased 4.3% on an operational basis, better than 2.4% increase seen in 2017. This is because the Pharmaceutical segment continued the positive momentum seen in the second half of 2017 and the Consumer segment sales improved.
First-quarter sales grew 6.1% in the domestic market to $9.95 billion and 19.9% in international markets to $10 billion, reflecting 10.9% operational growth and 9% positive currency impact.
Sales in Details
Pharmaceutical segment sales rose 19.4% year over year to $9.84 billion, reflecting 15.1% operational growth and 4.3% positive currency impact as sales rose in both domestic and international markets. Sales in the domestic market rose 9.9% to $5.35 billion while international sales grew 33.1% to $4.49 billion (operational increase of 22.5%).
New products like Imbruvica (cancer) and Darzalex (multiple myeloma) continued to perform well. Core products like Xarelto, Stelara, Zytiga, Simponi/Simponi Aria and Invega Sustenna also contributed to growth. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV .
Organically, excluding the impact of acquisitions and divestitures, sales increased 7.5% on an operational basis, slightly less than 7.6% growth seen in the previous quarter.
In the quarter, J&J recorded pulmonary arterial hypertension (PAH) revenues of $585 million, less than $610 million in the previous quarter. The $30 billion acquisition of Swiss biotech,Actelion in June last year diversified J&J's revenues to the PAH category and added 7.6% to sales growth in the first quarter.
However, sales of Invokana/Invokamet declined 12.7% due to higher managed care discounting. Importantly, sales of the blockbuster rheumatoid arthritis drug, Remicade, marketed in partnership with Merck & Co., Inc. MRK , was down 16.9% in the quarter with U.S. sales declining 22.5%. However, international sales rose 1.8% despite biosimilar competition.
J&J's Pharma segment achieved some clinical milestones during the quarter including FDA approvals of prostate cancer drug, Erleada for the treatment of men with non-metastatic castration-resistant prostate cancer and line extension of already marketed prostate cancer drug, Zytiga in combination with prednisone in the first-line setting.
Medical Devices segment sales came in at $6.77 billion, up 7.5% from the year-ago period. It included an operational increase of 3.2% and positive currency movement of 4.3%.
Domestic market sales rose 2.2% year over year to $3.16 billion. International market sales increased 12.7% (operational increase of 4.2%) year over year to $3.61 billion.
The Consumer segment recorded revenues of $3.4 billion in the reported quarter, up 5.3% year over year(operational increase of 1.3%). Foreign currency movement positively impacted sales in the segment by 4%. Sales in the domestic market rose 1.6% from the year-ago period to $1.44 billion.
Meanwhile, the international segment recorded an increase of 8.2% to 1.96 billion, reflecting an operational increase of 1.2% and a positive currency impact of 7%.
2018 Outlook
J&J maintained the previously issued earnings guidance for 2018 while increasing the sales range.
J&J still expects 2018 adjusted earnings per share in the range of $8.00 - $8.20, reflecting an operational growth rate between 6.8% and 9.6%.
However, now it expects revenues in the range of $81.0 to $81.8 billion, higher than $80.6 billion to $81.4 billion, reflecting operational constant currency sales growth rate in the range of 4% to 5% (previously 3.5% to 4.5%).
Our Take
Though quite a few key products in J&J's portfolio like Remicade and Concerta face generic competition, we believe that new products like plaque psoriasis drug, Tremfya (guselkumab), cancer drugs, Darzalex, Imbruvica and Zytiga, currency tailwinds and contribution from acquisitions helped J&J deliver strong sales and profit in the first quarter of the year and led it to raise the sales outlook for the whole year. In fact, J&J is quite confident that its Pharma segment will continue to perform better than the market this year despite impact of biosimilars on Remicade sales, as told by chief financial officer, Dominic J. Caruso to Bloomberg.
Meanwhile, J&J announced some global supply chain initiatives, which will annually save approximately $600 million to $800 million in pre-tax costs by 2022. Meanwhile, Alex Gorsky, chairman and chief executive officer of J&J said that the company will invest more than $30 billion in R&D and capital investments in the United States over the next four years. The new tax laws will leave some extra cash in the hands of large pharma companies like J&J, allowing them to invest in innovation and capital building.
Zacks Rank & Stock to Consider
J&J carries a Zacks Rank #3 (Hold).
Johnson & Johnson Price, Consensus and EPS Surprise
Johnson & Johnson Price, Consensus and EPS Surprise | Johnson & Johnson Quote
A better-ranked stock is Pfizer, Inc. PFE , which has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Shares of Pfizer have gained 0.8% this year so far.
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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. | Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. The $30 billion acquisition of Swiss biotech,Actelion in June last year diversified J&J's revenues to the PAH category and added 7.6% to sales growth in the first quarter. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Sales in Details Pharmaceutical segment sales rose 19.4% year over year to $9.84 billion, reflecting 15.1% operational growth and 4.3% positive currency impact as sales rose in both domestic and international markets. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Sales in Details Pharmaceutical segment sales rose 19.4% year over year to $9.84 billion, reflecting 15.1% operational growth and 4.3% positive currency impact as sales rose in both domestic and international markets. | Please note that J&J markets Imbruvica in partnership with AbbVie, Inc. ABBV . Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. International market sales increased 12.7% (operational increase of 4.2%) year over year to $3.61 billion. |
25560.0 | 2018-04-17 00:00:00 UTC | Shire Sells Oncology Unit Ahead of Takeda's Potential Offer | ABBV | https://www.nasdaq.com/articles/shire-sells-oncology-unit-ahead-of-takedas-potential-offer-2018-04-17 | nan | nan | Shire plcSHPG announced that it has entered into a definitive agreement with French company, Servier to sell its Oncology business. The deal is valued at $2.4 billion and includes global rights to leukemia drug, Oncaspar, and ex-U.S. rights to pancreatic cancer drug, Onivyde. Servier will also add another leukemia drug, Calaspargase Pegol, to its portfolio, which is under review in the United States.
Shire's oncology segment also includes immuno-oncology pipeline collaborations, comprising multiple early stage studies. Although the oncology segment has delivered high growth and profitability, it contributed lower than 2% to product sales in 2017.
The company has initiated the sale of this segment as part of its long-term strategy to focus on rare disease leadership. Shire plans to return the proceeds from the sale to its shareholders through a share buyback. However, the buyback program will be initiated after Takeda Pharmaceutical's TKPYY potential offer to acquire Shire, which is expected by Apr 25.
Per the terms of the recent agreement, Servier will acquire the segment in an all cash deal, which is valued at an attractive revenue multiple of 9.2 times of 2017 revenues. The deal is not subject to shareholder approval and is expected to close in the second or third quarter of 2018.
Shire is also looking to dispose of other non-strategic assets as part of the strategy.
Shire shares have decreased 1.7% so far this year, comparing favorably with the industry 's decline of 3.2% in that period.
However, a deal between Takeda and Shire is still expected to bring strategic synergies. Takeda acquired ARIAD Pharmaceuticals last year in a bid to strengthen and diversify its oncology business. The sale of Shire's oncology segment may bring down the acquisition cost for Takeda.
The investor community also believes that a formal takeover offer from Takeda may also trigger bids from other companies, which previously showed interest in Shire including AbbVie ABBV and Pfizer PFE .
Demand for companies with rare disease drugs in their portfolio or pipeline candidates are rising. This is evident from the billion dollar deals signed this year. Novartis is acquiring AveXis for $8.7 billion while Sanofi has spent nearly $16 billion to boost its rare blood disorder pipeline.
Shire plc Price
Shire plc Price | Shire plc Quote
Shire 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. | The investor community also believes that a formal takeover offer from Takeda may also trigger bids from other companies, which previously showed interest in Shire including AbbVie ABBV and Pfizer PFE . Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Shire plc (SHPG): Free Stock Analysis Report To read this article on Zacks.com click here. Shire's oncology segment also includes immuno-oncology pipeline collaborations, comprising multiple early stage studies. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Shire plc (SHPG): Free Stock Analysis Report To read this article on Zacks.com click here. The investor community also believes that a formal takeover offer from Takeda may also trigger bids from other companies, which previously showed interest in Shire including AbbVie ABBV and Pfizer PFE . Shire plc Price Shire plc Price | Shire plc Quote Shire carries a Zacks Rank #4 (Sell). | The investor community also believes that a formal takeover offer from Takeda may also trigger bids from other companies, which previously showed interest in Shire including AbbVie ABBV and Pfizer PFE . Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Shire plc (SHPG): Free Stock Analysis Report To read this article on Zacks.com click here. Shire plc Price Shire plc Price | Shire plc Quote Shire carries a Zacks Rank #4 (Sell). | The investor community also believes that a formal takeover offer from Takeda may also trigger bids from other companies, which previously showed interest in Shire including AbbVie ABBV and Pfizer PFE . Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Shire plc (SHPG): Free Stock Analysis Report To read this article on Zacks.com click here. Shire plans to return the proceeds from the sale to its shareholders through a share buyback. |
25561.0 | 2018-04-17 00:00:00 UTC | 5 Drug Stocks Poised to Surpass on Earnings This Quarter | ABBV | https://www.nasdaq.com/articles/5-drug-stocks-poised-to-surpass-on-earnings-this-quarter-2018-04-17 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The first-quarter earnings season has just kicked off. Per the latest Earnings Preview , the bottom line of S&P 500 companies is expected to increase at a highly impressive rate of 16.6% on a year-over-year basis. This prospective upside marks the maximum quarterly earnings growth pace in seven years.
However, focusing our attention on the Large Cap Pharma and Medical-Drugs sector, we note that both these sectors have decreased 6.2% and 4.2%, respectively, since February this year due to broader market pressure. Further, the S&P 500 index has registered a decline of 6.2% since the second month of 2018.
We remind investors that the U.S. stock market is facing a severe volatility since the last couple of months despite a strong start this year. This downside can mainly be attributable to a potentially damaging trade war between the world's two largest economies, United States and China, since this February.
After President Donald Trump announced plans to impose tariffs on up to $60 billion of annual Chinese imports, China retaliated by notifying its intention to levy tariffs on 128 U.S. products. Such aggressive exchange has triggered tensions of a possible trade dispute between the two countries. Moreover, sluggish large-cap tech stocks are cited as another reason for this plummet in the market.
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Despite the recent market unrest, an optimistic sentiment revolves around the remaining year. Notably, the biotech sector is likely to improve as the year advances. We expect new product sales to thrive in tandem with rising demand.
This apart, a successful innovation and a host of product launches, strong clinical study outcomes, more frequent FDA nods, solid performance of key products, growing demand for drugs, especially to deal with rare-to-treat diseases, an ageing population and an escalated healthcare expenditure are some of the factors to keep the sector stable.
It is important to note that the outlook for the upcoming first-quarter results looks bright. Per the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is expected to record 6.3% year-over-year growth in revenues and a 7.8% rise in earnings.
How to Pick Potential Q1 Winners
Given the enormity of the healthcare space, the task of selecting stocks with possibilities to beat estimates could appear quite daunting. But the Zacks proprietary methodology makes this job fairly simple.
One way to carve out the top choices this reporting cycle is by looking at the stocks with the combination of a favorable Zacks Rank - Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - and a positive Earnings ESP . It is observed that a positive earnings surprise delivered by a company mostly leads to its stock price appreciation.
Per the well-researched quantitative model, an Earnings ESP is used for identifying stocks with higher or 70% chances of pulling off a positive surprise in the impending earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
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Per our proven methodology, we culled three stocks from large-cap pharma and two from the medical-drug sector, poised to surpass estimates in the to-be-reported quarter.
Drug Stocks Poised to Surpass on Earnings This Quarter: AbbVie Inc (ABBV)
Our first pick is AbbVie Inc (NYSE: ABBV ). This North Chicago, IL-based company has an Earnings ESP of +0.24% and a Zacks Rank #3.
Source: Black Stripe via Wikimedia (Modified)
The stock has seen the Zacks Consensus Estimate for first-quarter 2018 earnings being pegged at $1.78 per share. Besides this, the company boasts an encouraging earnings track record, exceeding expectations in all the last four quarters with an average beat of 1.81%.
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AbbVie is scheduled to report earnings numbers on Apr 26.
Drug Stocks Poised to Surpass on Earnings This Quarter: Eli Lilly And Co (LLY)
Our next choice is Eli Lilly And Co (NYSE: LLY ). The stock has an Earnings ESP of +0.73% and a Zacks Rank #2.
Source: Paul Sableman via Flickr
The consensus mark for first-quarter earnings stands at $1.13 per share. Headquartered in Indianapolis, IN, Lilly has an excellent positive earnings surprise history.
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The company's average beat over the trailing four quarters is 4.08%. Lilly is slated to announce results on Apr 24.
Drug Stocks Poised to Surpass on Earnings This Quarter: Pfizer Inc. (PFE)
Pfizer Inc . (NYSE: PFE ) too has a pleasing earnings profile with the company having consistently outpaced expectations in all the last four quarters with an average beat of 4.97%.
Source: Kojach Via Flickr
It looks perfectly poised to repeat this winning streak this time around as well. This New York-based player is Zacks #2 Ranked and has an Earnings ESP of +2.62%.
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The consensus mark for first-quarter bottom line is pegged at 73 cents per share. Pfizer is scheduled to release financial figures on May 1.
Drug Stocks Poised to Surpass on Earnings This Quarter: Catalent Inc (CTLT)
Our first pick from the medical-drug sector is Catalent Inc (NYSE: CTLT ). This New Jersey-based company has an Earnings ESP of +1.70% and a Zacks Rank of 3.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 39 cents per share. The company flaunts a positive earnings surprise record, outshining expectations in all the last four quarters with an average beat of 16.44%.
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Catalent is expected to report earnings on May 3.
Drug Stocks Poised to Surpass on Earnings This Quarter: Aratana Therapeutics Inc (PETX)
Our next choice is Aratana Therapeutics Inc (NASDAQ: PETX ). The stock has an Earnings ESP of +37.14% and is a #3 Ranked player.
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The company is slated to announce results on May 4.
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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. | Drug Stocks Poised to Surpass on Earnings This Quarter: AbbVie Inc (ABBV) Our first pick is AbbVie Inc (NYSE: ABBV ). 3 Stocks to Gain From the Artificial Intelligence Wave AbbVie is scheduled to report earnings numbers on Apr 26. Per the latest Earnings Preview , the bottom line of S&P 500 companies is expected to increase at a highly impressive rate of 16.6% on a year-over-year basis. | Drug Stocks Poised to Surpass on Earnings This Quarter: AbbVie Inc (ABBV) Our first pick is AbbVie Inc (NYSE: ABBV ). 3 Stocks to Gain From the Artificial Intelligence Wave AbbVie is scheduled to report earnings numbers on Apr 26. Per the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is expected to record 6.3% year-over-year growth in revenues and a 7.8% rise in earnings. | Drug Stocks Poised to Surpass on Earnings This Quarter: AbbVie Inc (ABBV) Our first pick is AbbVie Inc (NYSE: ABBV ). 3 Stocks to Gain From the Artificial Intelligence Wave AbbVie is scheduled to report earnings numbers on Apr 26. Per the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is expected to record 6.3% year-over-year growth in revenues and a 7.8% rise in earnings. | Drug Stocks Poised to Surpass on Earnings This Quarter: AbbVie Inc (ABBV) Our first pick is AbbVie Inc (NYSE: ABBV ). 3 Stocks to Gain From the Artificial Intelligence Wave AbbVie is scheduled to report earnings numbers on Apr 26. Per the Earnings Preview, the broader Medical sector (inclusive of drug, biotech as well as Medical Device companies) is expected to record 6.3% year-over-year growth in revenues and a 7.8% rise in earnings. |
25562.0 | 2018-04-16 00:00:00 UTC | Vanguard S&P 500 ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/vanguard-sp-500-etf-experiences-big-outflow-2018-04-16 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $137.9 million dollar outflow -- that's a 0.2% decrease week over week (from 357,895,565 to 357,329,244). Among the largest underlying components of VOO, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.1%, Philip Morris International Inc (Symbol: PM) is trading flat, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 7.7%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average:
Looking at the chart above, VOO's low point in its 52 week range is $213.80 per share, with $263.37 as the 52 week high point - that compares with a last trade of $245.40. 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 VOO, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.1%, Philip Morris International Inc (Symbol: PM) is trading flat, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 7.7%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $213.80 per share, with $263.37 as the 52 week high point - that compares with a last trade of $245.40. 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 VOO, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.1%, Philip Morris International Inc (Symbol: PM) is trading flat, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 7.7%. For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $213.80 per share, with $263.37 as the 52 week high point - that compares with a last trade of $245.40. 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 VOO, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.1%, Philip Morris International Inc (Symbol: PM) is trading flat, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 7.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $137.9 million dollar outflow -- that's a 0.2% decrease week over week (from 357,895,565 to 357,329,244). For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $213.80 per share, with $263.37 as the 52 week high point - that compares with a last trade of $245.40. | Among the largest underlying components of VOO, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.1%, Philip Morris International Inc (Symbol: PM) is trading flat, and Bristol-Myers Squibb Co. (Symbol: BMY) is lower by about 7.7%. Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the Vanguard S&P 500 ETF (Symbol: VOO) where we have detected an approximate $137.9 million dollar outflow -- that's a 0.2% decrease week over week (from 357,895,565 to 357,329,244). For a complete list of holdings, visit the VOO Holdings page » The chart below shows the one year price performance of VOO, versus its 200 day moving average: Looking at the chart above, VOO's low point in its 52 week range is $213.80 per share, with $263.37 as the 52 week high point - that compares with a last trade of $245.40. |
25563.0 | 2018-04-15 00:00:00 UTC | Validea's Top Five Healthcare Stocks Based On John Neff - 4/15/2018 | ABBV | https://www.nasdaq.com/articles/valideas-top-five-healthcare-stocks-based-john-neff-4152018-2018-04-15 | nan | nan | The following are the top rated Healthcare stocks according to Validea's Low PE Investor model based on the published strategy of John Neff . This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
ABBVIE INC ( ABBV ) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on John Neff is 81% 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
UNIVERSAL HEALTH SERVICES, INC. ( UHS ) is a large-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff is 81% 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: Universal Health Services, Inc. is a holding company. The Company's principal business is owning and operating, through its subsidiaries, acute care hospitals and outpatient facilities, and behavioral healthcare facilities. The Company's segments include Acute Care Hospital Services, Behavioral Health Services and Other. As of February 28, 2017, the Company owned and/or operated 319 inpatient facilities, and 33 outpatient and other facilities, located in 37 states, Washington, District of Columbia, the United Kingdom, Puerto Rico and the United States Virgin Islands. The Company's hospitals provide a range of services, such as oncology, diagnostic care, coronary care, pediatric services, pharmacy services and/or behavioral health services. As of February 28, 2017, its acute care facilities located in the United States included 26 inpatient acute care hospitals; four free-standing emergency departments, and four outpatient surgery/cancer care centers and one surgical hospital.
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
CARDINAL HEALTH INC ( CAH ) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on John Neff 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: Cardinal Health, Inc. is a healthcare services and products company. The Company operates through two segments: Pharmaceutical and Medical. The Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, over-the-counter healthcare and consumer products. This segment also operates nuclear pharmacies and cyclotron facilities; provides pharmacy management services to hospitals, as well as medication therapy management and patient outcomes services to hospitals, other healthcare providers and payers, and provides services to healthcare companies. The Medical segment distributes a range of medical, surgical and laboratory products, and provides services to hospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers. This segment also manufactures, sources and develops its own Cardinal Health brand medical and surgical products. It provides post-acute care management and transition services, and software to hospitals.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
BIOGEN INC ( BIIB ) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on John Neff 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: Biogen Inc. is a biopharmaceutical company. The Company focuses on discovering, developing, manufacturing and delivering therapies to people living with serious neurological, rare and autoimmune diseases. The Company markets products, including TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA and FAMPYRA for multiple sclerosis ( MS ), FUMADERM for the treatment of severe plaque psoriasis and SPINRAZA for the treatment of spinal muscular atrophy (SMA). It also has a collaboration agreement with Genentech, Inc. (Genentech), a member of the Roche Group, with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL) and other conditions, GAZYVA indicated for the treatment of CLL and follicular lymphoma, and other anti-CD20 therapies. The Company's product candidate includes OCREVUS; Biosimilar adalimumab; Aducanumab; E2609; BIIB074; BAN2401; Opicinumab; CIRARA; BIIB061; BIIB054; BIIB067, and BIIB068.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
HCA HEALTHCARE INC (HCA) is a large-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on John Neff 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: HCA Healthcare, Inc., formerly HCA Holdings, Inc., is a holding company. The Company, through its subsidiaries, owns and operates hospitals and related healthcare entities. As of December 31, 2016, the Company operated in two geographically organized groups, including the National and American Groups. As of December 31, 2016, the National Group included 84 hospitals, which were located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia. As of December 31, 2016, the American Group included 80 hospitals, which were located in Colorado, northern Georgia, Kansas, southern Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee and Texas. As of December 31, 2016, the Company operated six hospitals in England. The Company owns, manages or operates hospitals, freestanding surgery centers and freestanding emergency care facilities, walk-in clinics, diagnostic and imaging centers, among 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 John Neff has returned 143.25% vs. 138.89% for the S&P 500. For more details on this strategy, click here
About John Neff : While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
About Validea : Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | ABBVIE INC ( ABBV ) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. As of December 31, 2016, the National Group included 84 hospitals, which were located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia. | 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. For a full detailed analysis using NASDAQ's Guru Analysis tool, click here UNIVERSAL HEALTH SERVICES, INC. ( UHS ) is a large-cap growth stock in the Healthcare Facilities industry. | 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. 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). | 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. 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). |
25564.0 | 2018-04-13 00:00:00 UTC | Better Buy: AbbVie Inc. vs. Eli Lilly | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-inc-vs-eli-lilly-2018-04-13 | nan | nan | One comparison tells a lot about the current situations for AbbVie Inc. (NYSE: ABBV) and Eli Lilly (NYSE: LLY) . AbbVie stock has fallen more than 20% over the last month -- and it's still outperforming Lilly over the past 12 months and so far in 2018.
But that comparison doesn't tell us much about the future prospects for either big pharma company. Which stock is the better choice for investors looking at the long run? Here's how AbbVie and Lilly stack up against each other in three key categories.
Growth prospects
AbbVie's growth engine of the past, Humira, still has some juice left. The autoimmune disease drug generated $18.4 billion in sales last year. AbbVie thinks Humira's sales will grow to close to $21 billion by 2020. Beginning in 2023, though, Humira will face competition from biosimilars in the U.S. That means AbbVie will need to offset the inevitable sales decline for its top-selling drug.
Imbruvica will be one important key for the drugmaker to continue growing. Hepatitis C drug Mavyret, approved last year, will be another. But it's AbbVie's pipeline that is most critical for future growth.
The company had hoped to win FDA approval for elagolix in treating endometriosis by the second quarter of 2018. However, the FDA recently told AbbVie that it would need an extra three months for reviewing the application for the drug. AbbVie had an even more serious setback in March with disappointing results for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC).
Still, AbbVie's pipeline includes several other promising candidates, including cancer drugs Venclexta and veliparib as well as immunology drugs upadacitinib and risankizumab. Overall, AbbVie should be able to generate solid double-digit percent earnings growth for years to come.
The growth outlook for Eli Lilly is more complicated . Lilly isn't as dependent on one drug as AbbVie is. Several drugs in the big pharma company's current lineup should contribute to growth. Trulicity stands at the top of the list. The diabetes drug raked in sales topping $2 billion in 2017, up 119% year over year.
Lilly also saw strong sales growth last year for a couple of other diabetes drugs, Forteo and Trajenta. And the company's psoriasis and psoriatic arthritis drug Taltz is picking up nice momentum.
The problem for Lilly is that its top-selling product, Humalog, has lost patent exclusivity and faces the prospects of generic competition. Sales are already falling for the company's No. 2 and No. 3 best-selling drugs, Cialis and Alimta.
What about Lilly's pipeline? The company hopes to obtain FDA approval this year for migraine drug galcanezumab. Lilly also has several late-stage candidates that could be big winners, notably including pain drug tanezumab, which is being developed with Pfizer , and migraine drug lasmiditan. The drugmaker also has phase 3 studies in progress targeting additional indications for several already-approved drugs such as Cyramza and Jardiance.
Even with its challenges for several current drugs in its lineup, Lilly should be able to grow earnings over the next few years -- perhaps even by a low double-digit percentage, if there are no big pipeline stumbles. However, AbbVie appears to still have better growth prospects than Lilly does.
Valuation
We can't compare the two companies based on trailing-12-month price-to-earnings ratios. Lilly posted a net loss for 2017 due to a big one-time tax hit. However, we can look at forward earnings multiples.
AbbVie stock currently trades at 11 times expected earnings. Lilly appears to be more expensive, with shares trading at nearly 15 times expected earnings. As you might expect, AbbVie's valuation also looks more attractive factoring in growth prospects, with a PEG ratio of 0.74 compared to 1.39 for Lilly.
Dividend
AbbVie claims a nice dividend yield of 3.91%. The company has increased its dividend by 140% since being spun off from Abbott Labs in 2013. AbbVie uses less than 44% of its free cash flow to fund the dividend program, indicating plenty of flexibility to hike the dividend in the future.
Lilly's dividend yield currently stands at 2.84%. The drugmaker held its dividend payment steady between 2010 and 2014, but it has hiked the dividend each year since 2015. Lilly uses 63% of its free cash flow to pay dividends. Its dividend appears to be pretty safe, but isn't as attractive as AbbVie's.
Better buy
If you've been keeping score, you'll have noticed that AbbVie won in all three categories. With better growth prospects than Lilly, a more attractive valuation, and a stronger dividend, AbbVie certainly appears to be the better stock to buy, in my view.
AbbVie faces risks, though. The problems for Rova-T, a drug for which AbbVie has had high hopes, underscores the dangers in buying the stock. However, I continue to like the long-term prospects for AbbVie and expect it will generate impressive total returns for investors who buy and 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. | Beginning in 2023, though, Humira will face competition from biosimilars in the U.S. That means AbbVie will need to offset the inevitable sales decline for its top-selling drug. AbbVie had an even more serious setback in March with disappointing results for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). One comparison tells a lot about the current situations for AbbVie Inc. (NYSE: ABBV) and Eli Lilly (NYSE: LLY) . | Still, AbbVie's pipeline includes several other promising candidates, including cancer drugs Venclexta and veliparib as well as immunology drugs upadacitinib and risankizumab. AbbVie stock currently trades at 11 times expected earnings. One comparison tells a lot about the current situations for AbbVie Inc. (NYSE: ABBV) and Eli Lilly (NYSE: LLY) . | Lilly isn't as dependent on one drug as AbbVie is. However, AbbVie appears to still have better growth prospects than Lilly does. With better growth prospects than Lilly, a more attractive valuation, and a stronger dividend, AbbVie certainly appears to be the better stock to buy, in my view. | However, AbbVie appears to still have better growth prospects than Lilly does. With better growth prospects than Lilly, a more attractive valuation, and a stronger dividend, AbbVie certainly appears to be the better stock to buy, in my view. One comparison tells a lot about the current situations for AbbVie Inc. (NYSE: ABBV) and Eli Lilly (NYSE: LLY) . |
25565.0 | 2018-04-13 00:00:00 UTC | Another Shot At This 4-Time Winner -- If We Act Quickly | ABBV | https://www.nasdaq.com/articles/another-shot-4-time-winner-if-we-act-quickly-2018-04-13 | nan | nan | Last week, I introduced you to Hetty Green . This week, I want to ruminate a little more on her most important piece of wisdom: "Act with thrift and shrewdness and be persistent." As market volatility picks back up, it's a good time take Hetty's approach to heart.
I believe there is a level of shrewdness in ignoring the broader market when making trading decisions, unless your goal is trading the market. If, for example, you are buying S&P 500 futures, then you need to focus on the broader market. But if you are looking for individual stocks, then the broader market is less important.
That's why, whether we're in a bull or bear market, my premium Income Trader readers and I are always only going to be trading the best stocks, the kind that have resulted in winning trades more than 90% of the time . With my strategy, it's OK for a stock to decline a little. As long as it remains above our option's strike price, we enjoy a winning trade.
Now, as you may remember, Hetty was called the "Witch of Wall Street," so we probably shouldn't aim to duplicate all of her traits. But staying focused on persistent shrewdness is certainly a worthy ambition.
I was thinking about Hetty's shrewdness this week as I ran across some news about AbbVie (NYSE: ABBV ) , one of the world's largest drug makers -- and one of my all-time favorite trade targets.
An Income-Producing Classic
This is a company I've written about before . (We've now sold put options on ABBV four times, and all four trades were winners.) The stock has long been a market leader but recently experienced a sharp selloff.
The drug, Rova-T, was tested as a third treatment in small cell lung cancer in patients that either relapsed or didn't respond to other therapies. At 12 months of treatment, the probability of survival was 17.5%, in line with what the company was expecting.
But the drug was tied to a number of adverse events. About a third of patients experienced fatigue, sensitivity to sunlight, a buildup of excess fluid around the lungs, swelling and/or nausea.
Rova-T is still in Phase 3 testing for the drug as first and second treatments in the same form of advanced lung cancer. Data in those trials are expected after 2020.
I believe the market reaction was excessive . If approved, Rova-T is expected to generate sales of about $200 million to $400 million a year -- not nearly enough to affect the bottom line of a company that reported more than $28 billion in sales over the past 12 months.
Most of those sales came from Humira, which produced more than $18 billion in sales last year in the rheumatoid arthritis ( RA ), Crohn's disease, and eczema markets -- including $12.4 billion in the United States alone.
And as investors would hope, AbbVie is taking shrewd steps to protect this market.
While a number of companies are working on creating Humira biosimilars (similar to generic drugs) in the United States, and AbbVie is turning to the courts to prevent their launch. Like generics, biosimilars sell for lower prices than their counterpart drugs, and that presents a problem for ABBV.
In the United States, two companies (Boehringer Ingelheim and Amgen) are already approved to produce Humira biosimilars. Biogen is also ready to launch a biosimilar, but reached an agreement to delay introduction of the product in the United States until June 2023. And while the company is still scheduled to launch its product in Europe in October of this year, it will be paying AbbVie royalties on sales. Thanks to a similar agreement, Amgen will delay launching its biosimilar until January 2023.
These shrewd steps will protect ABBV's revenue for the years to come. They should also relieve some of the short-term selling pressure in the stock. Of course, that short-term selling pressure increased the stock's volatility and temporarily elevated options premiums -- which means my subscribers and I have an opportunity to grab an outsized amount of income relative to the very low amount of risk we're taking on.
Now is the time to benefit from the higher volatility by selling a put option in 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.
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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. | I was thinking about Hetty's shrewdness this week as I ran across some news about AbbVie (NYSE: ABBV ) , one of the world's largest drug makers -- and one of my all-time favorite trade targets. While a number of companies are working on creating Humira biosimilars (similar to generic drugs) in the United States, and AbbVie is turning to the courts to prevent their launch. (We've now sold put options on ABBV four times, and all four trades were winners.) | While a number of companies are working on creating Humira biosimilars (similar to generic drugs) in the United States, and AbbVie is turning to the courts to prevent their launch. I was thinking about Hetty's shrewdness this week as I ran across some news about AbbVie (NYSE: ABBV ) , one of the world's largest drug makers -- and one of my all-time favorite trade targets. (We've now sold put options on ABBV four times, and all four trades were winners.) | How I'm Trading This Stock -- Without Buying A Single Share If you're interested in catching some of the potential upside, you can always buy shares of ABBV and wait for the market to catch up to this well-positioned company. I was thinking about Hetty's shrewdness this week as I ran across some news about AbbVie (NYSE: ABBV ) , one of the world's largest drug makers -- and one of my all-time favorite trade targets. (We've now sold put options on ABBV four times, and all four trades were winners.) | While a number of companies are working on creating Humira biosimilars (similar to generic drugs) in the United States, and AbbVie is turning to the courts to prevent their launch. Now is the time to benefit from the higher volatility by selling a put option in ABBV. I was thinking about Hetty's shrewdness this week as I ran across some news about AbbVie (NYSE: ABBV ) , one of the world's largest drug makers -- and one of my all-time favorite trade targets. |
25566.0 | 2018-04-12 00:00:00 UTC | J&J (JNJ) to Begin Pharma Q1 Earnings: What's in Store? | ABBV | https://www.nasdaq.com/articles/jj-jnj-to-begin-pharma-q1-earnings%3A-whats-in-store-2018-04-12 | nan | nan | We expect Johnson & JohnsonJNJ , a healthcare bellwether, to beat expectations when it reports first-quarter 2018 results on April 17, before market opens. Last quarter, the company delivered a positive earnings surprise of 1.16%.
J&J's performance has been pretty impressive, with the company exceeding earnings expectations in all the trailing four quarters. The average positive earnings surprise over the last four quarters is 3.09%
The J&J stock has depreciated 6.6% this year so far, which compares unfavorably with a decline of 1.0% recorded by the industry .
Factors to Consider
J&J's sales growth accelerated in the second half of 2017, backed by higher sales in the Pharmaceutical segment and improving performance in Medical Devices.In 2018, J&J expects the Pharmaceutical segment to remain strong, while the Consumer and Medical Device segments will likely continue to improve.
We believe new products in all segments, label expansion of drugs like Imbruvica, Xarelto, Stelara and Darzalex, and meaningful contribution from Swiss biotech - Actelion - which J&J bought in June last year, will support the top line. The Zacks Consensus Estimate for sales from the Pharmaceutical segment in Q1 is $9.5 billion.
However, in the fourth quarter of 2017, revenues from pulmonary arterial hypertension (PAH) products - added from the Actelion acquistion -declined sequentially. It is to be seen if PAH revenues improve in Q1.
Meanwhile, biosimilar competition is expected to continue to hurt sales of the key arthritis drug - Remicade - outside the United States.
However, J&J does not expect any biosimilar entrants for Zytiga, Prezista, Risperdal Consta, or Invega Sustenna in the United States this year.
Regarding the newly-launched Tremfya, J&J noted at the Q4 conference call that the uptake of the product has been decent. The drug recorded sales of $47 million in Q4 which is expected to be higher in the to-be reported quarter. Meanwhile, we expect J&J to discuss commercialization plans for Erleada, its newly-approved prostate cancer drug, at the Q1 conference call. Also, J&J will discuss the initial sales uptake of Juluca- the first dual treatment for HIV developed in partnership with GlaxoSmithKline GSK - which received the FDA approval in November last year. Juluca is under review in the EU.
In the Medical Devices segment, sales are expected to continue to rise in the Vision Care and Cardiovascular units. Diabetes Care unit will continue to remain weak. The Zacks Consensus Estimate for sales from the Medical Devices segment in Q1 is $6.7 billion.
In the Consumer segment, global consumer category slowdown across many of the company's markets will continue to hurt sales. However, recent acquisitions as well as new products will likely provide some support. The Zacks Consensus Estimate for sales from the Consumer segment in Q1 is $3.35 billion.
Meanwhile, higher investments behind the new product launches will continue to thwart profits.
Earnings Whispers
Our proven model shows that J&J is likely to beat estimates this quarter because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate ($2.03 per share) and the Zacks Consensus Estimate ($2.01 per share), is +1.16%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: J&J has a Zacks Rank #2. The combination of J&J's Zacks Rank #2 and positive ESP makes us confident of an earnings beat in the upcoming release.
Sell-rated stocks (Zacks Rank #4 or 5), on the other hand, should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other large drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
Amgen, Inc. AMGN with an Earnings ESP of +1.15% and a Zacks Rank #2. The company is scheduled to release results on Apr 26. You can see the complete list of today's Zacks #1 Rank stocks here .
AbbVie, Inc. ABBV has an Earnings ESP of +0.47% and a Zacks Rank #3. The company is slated to release results on Apr 26.
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And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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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 has an Earnings ESP of +0.47% and a Zacks Rank #3. Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline plc (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. The average positive earnings surprise over the last four quarters is 3.09% The J&J stock has depreciated 6.6% this year so far, which compares unfavorably with a decline of 1.0% recorded by the industry . | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline plc (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie, Inc. ABBV has an Earnings ESP of +0.47% and a Zacks Rank #3. Factors to Consider J&J's sales growth accelerated in the second half of 2017, backed by higher sales in the Pharmaceutical segment and improving performance in Medical Devices.In 2018, J&J expects the Pharmaceutical segment to remain strong, while the Consumer and Medical Device segments will likely continue to improve. | Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline plc (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie, Inc. ABBV has an Earnings ESP of +0.47% and a Zacks Rank #3. Factors to Consider J&J's sales growth accelerated in the second half of 2017, backed by higher sales in the Pharmaceutical segment and improving performance in Medical Devices.In 2018, J&J expects the Pharmaceutical segment to remain strong, while the Consumer and Medical Device segments will likely continue to improve. | AbbVie, Inc. ABBV has an Earnings ESP of +0.47% and a Zacks Rank #3. Click to get this free report Johnson & Johnson (JNJ): Free Stock Analysis Report GlaxoSmithKline plc (GSK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company delivered a positive earnings surprise of 1.16%. |
25567.0 | 2018-04-12 00:00:00 UTC | Mylan Fujifilm Kyowa Team Up to Market Humira Biosimilar | ABBV | https://www.nasdaq.com/articles/mylan-fujifilm-kyowa-team-up-to-market-humira-biosimilar-2018-04-12 | nan | nan | Mylan N.V.MYL is partnering with Fujifilm Kyowa Kirin Biologics Co., Ltd. to commercialize a biosimilar to AbbVie's ABBV blockbuster arthritis drug Humira (adalimumab). Adalimumab is developed by Fujifilm Kyowa Kirin Biologics.
Mylan intends to seek approval and commercialize the product in Europe. The European Medicines Agency ("EMA") accepted a marketing authorization application for review for the proposed biosimilar to Humira in May 2017, and the companies expect to receive the EMA's decision during the second half of 2018.
Under the agreement, Mylan will have an exclusive license to commercialize the biosimilar in Europe and will receive an upfront fee from Fujifilm Kyowa Kirin. The company will also be responsible for the sales activity of the product in European countries. On the other hand, Fujifilm Kyowa Kirin Biologics will be eligible to receive a subsequent commercialization milestone payment and sales royalties.
Over a year, shares of Mylan increased 6.2% compared with the industry 's fall of 27.9%.
Humira is a TNF-inhibitor aimed at treating multiple chronic inflammatory conditions. It is approved in Europe for the treatment of rheumatoid arthritis, juvenile idiopathic arthritis, psoriatic arthritis, ankylosing spondylitis, Crohn's disease, ulcerative colitis, plaque psoriasis, hidradenitis suppurativa and uveitis.
We note that few days ago, Biogen Inc.BIIB and partner Samsung Bioepis announced resolution of an ongoing patent dispute with AbbVie regarding Biogen's biosimilar version (Imraldi) of AbbVie's Humira, in the EU. Per the settlement agreement, Biogen/Samsung Bioepis plans to launch Imraldi in Europe on Oct 16, 2018.
Also in the United States, Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023.
Notably, Imraldi is the second biosimilar version of Humira to be launched in the EU. Another biotechnology company, Amgen AMGN , is also expected to launch its biosimilar version of Humira, in the EU come October this year as Amjevita, per a settlement with AbbVie.
Notably, Amjevita was approved in the EU last March and approved in the United States in September 2016.
In the United States, per settlement with AbbVie, Amjevita is likely to be launched on Jan 31, 2023.
Mylan N.V. Price
Mylan N.V. Price | Mylan N.V. Quote
Zacks Rank
Mylan carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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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. | Mylan N.V.MYL is partnering with Fujifilm Kyowa Kirin Biologics Co., Ltd. to commercialize a biosimilar to AbbVie's ABBV blockbuster arthritis drug Humira (adalimumab). Another biotechnology company, Amgen AMGN , is also expected to launch its biosimilar version of Humira, in the EU come October this year as Amjevita, per a settlement with AbbVie. We note that few days ago, Biogen Inc.BIIB and partner Samsung Bioepis announced resolution of an ongoing patent dispute with AbbVie regarding Biogen's biosimilar version (Imraldi) of AbbVie's Humira, in the EU. | Mylan N.V.MYL is partnering with Fujifilm Kyowa Kirin Biologics Co., Ltd. to commercialize a biosimilar to AbbVie's ABBV blockbuster arthritis drug Humira (adalimumab). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that few days ago, Biogen Inc.BIIB and partner Samsung Bioepis announced resolution of an ongoing patent dispute with AbbVie regarding Biogen's biosimilar version (Imraldi) of AbbVie's Humira, in the EU. | Mylan N.V.MYL is partnering with Fujifilm Kyowa Kirin Biologics Co., Ltd. to commercialize a biosimilar to AbbVie's ABBV blockbuster arthritis drug Humira (adalimumab). Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report Mylan N.V. (MYL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that few days ago, Biogen Inc.BIIB and partner Samsung Bioepis announced resolution of an ongoing patent dispute with AbbVie regarding Biogen's biosimilar version (Imraldi) of AbbVie's Humira, in the EU. | Mylan N.V.MYL is partnering with Fujifilm Kyowa Kirin Biologics Co., Ltd. to commercialize a biosimilar to AbbVie's ABBV blockbuster arthritis drug Humira (adalimumab). Another biotechnology company, Amgen AMGN , is also expected to launch its biosimilar version of Humira, in the EU come October this year as Amjevita, per a settlement with AbbVie. We note that few days ago, Biogen Inc.BIIB and partner Samsung Bioepis announced resolution of an ongoing patent dispute with AbbVie regarding Biogen's biosimilar version (Imraldi) of AbbVie's Humira, in the EU. |
25568.0 | 2018-04-11 00:00:00 UTC | FDA Prolongs Review Date for AbbVie Endometriosis Candidate | ABBV | https://www.nasdaq.com/articles/fda-prolongs-review-date-for-abbvie-endometriosis-candidate-2018-04-11 | nan | nan | AbbVie Inc.ABBV and partner Neurocrine Biosciences announced that the FDA has extended the review period of marketing application for the companies' pipeline candidate, elagolix, by three months. As a result, the regulatory body will now announce its decision by the third quarter of 2018 instead of the previously anticipated second-quarter 2018 timeline.
AbbVie is looking to get elagolix approved as an oral medicine for pain management associated with endometriosis.
Last September, the FDA accepted AbbVie's new drug application (NDA) for elagolix and subsequently, granted priority review status in October. However, the regulatory body requested for an extended time frame to review additional information, provided by AbbVie along with its NDA pertaining to liver function test results.
Notably, management showed confidence in the company's data provided to the FDA and continues to work with the regulatory body to bring elagolix to the U.S. market.
We remind investors that the NDA filing was supported by positive results from two replicate pivotal phase III trials, evaluating elagolix for the aforementioned indication. The detailed data from the study, presented last October, showed that treatment with elagolix resulted in statistically significant reductions in menstrual and non-menstrual pelvic pain associated with endometriosis compared with placebo.
Data from the studies also demonstrated superiority as compared to placebo in alleviating pelvic pain, non-menstrual pelvic pain and painful intercourse associated with endometriosis.
Endometriosis affects an estimated one in 10 women of reproductive age and is associated with pain symptoms. At present, there is no cure for the disease. The pain associated with it is currently managed with oral contraceptives, progestins, danazol, NSAIDS, opioids and GnRH agonists. Many medicines are not specifically indicated for treating endometriosis. If approved, elagolix will be the first option for patients in need of an additional treatment to apprehend the disease.
AbbVie's share price has surged 45.4% in a year, comparing favorably with the industry 's 7.5% gain.
Meanwhile, Elagolix is also being evaluated in two phase III programs for preventing heavy menstrual bleeding in premenopausal women with uterine fibroids.
Importantly, another pharma company Allergan AGN also has a pipeline candidate, ulipristal acetate, in its portfolio, which is currently under evaluation for treatment of uterine fibroids. Here too, the FDA in February requested to extend the review period of the company's NDA for the candidate to August 2018.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
Zacks Rank & Key Picks
AbbVie carries a Zacks Rank #3 (Hold). Two better-ranked stocks in the health care sector are Ligand Pharmaceuticals Incorporated LGND and Infinity Pharmaceuticals, Inc. INFI , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Ligand's earnings per share estimates have moved up from $3.78 to $4.20 for 2018 and from $4.75 to $5.32 for 2019 in the last 60 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has soared 54.6% over a year.
Infinity's loss per share estimates narrowed from $1.07 to 74 cents for 2018 and from 83 cents to 66 cents for 2019 in the last 30 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 7.87%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
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Allergan plc (AGN): 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 Inc.ABBV and partner Neurocrine Biosciences announced that the FDA has extended the review period of marketing application for the companies' pipeline candidate, elagolix, by three months. However, the regulatory body requested for an extended time frame to review additional information, provided by AbbVie along with its NDA pertaining to liver function test results. AbbVie is looking to get elagolix approved as an oral medicine for pain management associated with endometriosis. | AbbVie Inc.ABBV and partner Neurocrine Biosciences announced that the FDA has extended the review period of marketing application for the companies' pipeline candidate, elagolix, by three months. AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Allergan plc (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report Infinity Pharmaceuticals, Inc. (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. | AbbVie Inc. Price AbbVie Inc. Price | AbbVie Inc. Quote Zacks Rank & Key Picks AbbVie carries a Zacks Rank #3 (Hold). Click to get this free report Allergan plc (AGN): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report Infinity Pharmaceuticals, Inc. (INFI): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie Inc.ABBV and partner Neurocrine Biosciences announced that the FDA has extended the review period of marketing application for the companies' pipeline candidate, elagolix, by three months. | AbbVie is looking to get elagolix approved as an oral medicine for pain management associated with endometriosis. However, the regulatory body requested for an extended time frame to review additional information, provided by AbbVie along with its NDA pertaining to liver function test results. AbbVie Inc.ABBV and partner Neurocrine Biosciences announced that the FDA has extended the review period of marketing application for the companies' pipeline candidate, elagolix, by three months. |
25569.0 | 2018-04-11 00:00:00 UTC | Biotech Stock Roundup: Spectrum Up, Incyte Down, AveXis to Merge with Novartis | ABBV | https://www.nasdaq.com/articles/biotech-stock-roundup%3A-spectrum-up-incyte-down-avexis-to-merge-with-novartis-2018-04-11 | nan | nan | The biotech sector was on a bumpy ride over the week as shares of Spectrum surged on positive data from a phase II study, while that of Incyte plunged on the failure of melanoma study. In an effort to bolster its presence in the gene therapy space Swiss giant Novartis announced the acquisition of AveXis Inc.
Spectrum Surges on Lung Cancer Data : Shares of Spectrum Pharmaceuticals, Inc. SPPI surged after the company reported encouraging results from a phase II study on poziotinib in EGFR Exon 20 Mutant non-small cell lung cancer patients. The results show that the confirmed objective response rate was 64% in the first 11 patients, better than the expectations of 20% and 30%.
These early data suggest that poziotinib may have a meaningful impact on outcomes for patients who have limited treatment options. The median progression-free survival rate has still not been reached after a median follow up period of 6.5 months. Meanwhile, the original cohort of 30 EGFR patients is fully enrolled and the expanded cohort of 20 patients is nearing the completion of enrollment.
AveXis Skyrockets on Novartis Deal : AveXis, Inc.'s AVXS shares skyrocketed on the news of a merger with Swiss pharma giant Novartis NVS . Per the agreement, Novartis will pay $8.7 billion for this clinical stage gene therapy company. AveXis lead product candidate, AVXS-101, is being evaluated as one-time gene replacement therapy for spinal muscular atrophy, a disease which results in early death or life-long disability with considerable healthcare costs. The acquisition will poise Novartis in the promising gene therapy space. The acquisition will be completed in mid-2018.
The candidate enjoys a breakthrough therapy designation in the United States and Prime designation in Europe. The FDA also granted AVXS-101, a fast track status for the treatment of SMA Type 1. A regulatory filing in the United States is expected in the second half of this year with a launch anticipated in 2019. (Read more: Novartis Inks $8.7 Billion Gene Therapy Deal to Buy AveXis )
Incyte Plunges on Study Failure : Shares of Incyte Corporation INCY plunged after an external Data Monitoring Committee review of the phase III study, ECHO-301/KEYNOTE-252 evaluating Incyte's epacadostat in combination with Merck's Keytruda in patients with unresectable or metastatic melanoma determined that the study did not meet the primary endpoint of improving progression-free survival in the overall population when compared to Keytruda monotherapy. Moreover, the second primary endpoint of overall survival is not expected to reach statistical significance either. Hence, the study will be stopped.
The failure of the late-stage candidate disappointed investors as Incyte had pinned hopes on the success given the improved response rates in mid-stage studies. (Read more: Incyte's Epacadostat Fails in Melanoma Study, Shares Plunge )
Conatus Pharmaceuticals Sinks on Study Failure : Conatus Pharmaceuticals CNAT plummeted after it reported that its pipeline candidate, emricasan, failed in a phase IIB study - POLT-HCV-SVR. The candidate did not achieve primary endpoint in the study, which evaluated patients with fibrosis or cirrhosis undergoing liver transplant. Data from the POLT-HCV-SVR study showed that emricasan did not achieve a better overall response rate compared to placebo in the overall patient population.
However, in patient subset with advanced fibrosis or early cirrhosis, emricasan provided evidence of an anti-fibrotic treatment effect in 95% of the patients compared to 58.3% for placebo. The company may evaluate emricasan further in this particular subset. (Read more: Conatus' Emricasan Fails in Phase II Study, Shares Sink )
Biogen Settles Litigation With AbbVie For Humira Biosimilar : Biogen Inc. BIIB and partner Samsung Bioepis announced an agreement with AbbVie ABBV for the commercialization of Imraldi, a biosimilar of Humira. Per the terms, AbbVie will grant patent licenses for the use and sale of Imraldi in Europe, on a country-by-country basis, and Biogen and Samsung Bioepis will make royalty payments to AbbVie. Both companies have agreed to dismiss all pending patent litigation. Biogen plans to launch the biosimilar in Europe in October 2018.
Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023. (Read more: Biogen Cracks the Case With AbbVie for Humira Biosimilar )
Biogen carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Performance
The NASDAQ Biotechnology Index lost 0.05% over the last four trading sessions. Among major biotech stocks, Alexion fell 2.81%%. Over the last six months, Celgene lost 35.97% while Vertex gained 4.30% (see the last biotech stock roundup here: Biotech Stock Roundup: EDGE Falls, ALKS Down, FDA OK's AMGN Drug Label Expansion ).
Medical - Biomedical and Genetics Industry 5YR % Return
Medical - Biomedical and Genetics Industry 5YR % Return
What's Next in the Biotech World?
Stay tuned for more regulatory and pipeline updates.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
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Novartis AG (NVS): Free Stock Analysis Report
AbbVie Inc. (ABBV): Free Stock Analysis Report
Conatus Pharmaceuticals Inc. (CNAT): Free Stock Analysis Report
Incyte Corporation (INCY): Free Stock Analysis Report
Biogen Inc. (BIIB): Free Stock Analysis Report
AveXis, Inc. (AVXS): Free Stock Analysis Report
Spectrum Pharmaceuticals, Inc. (SPPI): 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. | (Read more: Conatus' Emricasan Fails in Phase II Study, Shares Sink ) Biogen Settles Litigation With AbbVie For Humira Biosimilar : Biogen Inc. BIIB and partner Samsung Bioepis announced an agreement with AbbVie ABBV for the commercialization of Imraldi, a biosimilar of Humira. Per the terms, AbbVie will grant patent licenses for the use and sale of Imraldi in Europe, on a country-by-country basis, and Biogen and Samsung Bioepis will make royalty payments to AbbVie. Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023. | (Read more: Conatus' Emricasan Fails in Phase II Study, Shares Sink ) Biogen Settles Litigation With AbbVie For Humira Biosimilar : Biogen Inc. BIIB and partner Samsung Bioepis announced an agreement with AbbVie ABBV for the commercialization of Imraldi, a biosimilar of Humira. Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Conatus Pharmaceuticals Inc. (CNAT): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report AveXis, Inc. (AVXS): Free Stock Analysis Report Spectrum Pharmaceuticals, Inc. (SPPI): Free Stock Analysis Report To read this article on Zacks.com click here. Per the terms, AbbVie will grant patent licenses for the use and sale of Imraldi in Europe, on a country-by-country basis, and Biogen and Samsung Bioepis will make royalty payments to AbbVie. | Click to get this free report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Conatus Pharmaceuticals Inc. (CNAT): Free Stock Analysis Report Incyte Corporation (INCY): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report AveXis, Inc. (AVXS): Free Stock Analysis Report Spectrum Pharmaceuticals, Inc. (SPPI): Free Stock Analysis Report To read this article on Zacks.com click here. (Read more: Conatus' Emricasan Fails in Phase II Study, Shares Sink ) Biogen Settles Litigation With AbbVie For Humira Biosimilar : Biogen Inc. BIIB and partner Samsung Bioepis announced an agreement with AbbVie ABBV for the commercialization of Imraldi, a biosimilar of Humira. Per the terms, AbbVie will grant patent licenses for the use and sale of Imraldi in Europe, on a country-by-country basis, and Biogen and Samsung Bioepis will make royalty payments to AbbVie. | (Read more: Conatus' Emricasan Fails in Phase II Study, Shares Sink ) Biogen Settles Litigation With AbbVie For Humira Biosimilar : Biogen Inc. BIIB and partner Samsung Bioepis announced an agreement with AbbVie ABBV for the commercialization of Imraldi, a biosimilar of Humira. Per the terms, AbbVie will grant patent licenses for the use and sale of Imraldi in Europe, on a country-by-country basis, and Biogen and Samsung Bioepis will make royalty payments to AbbVie. Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023. |
25570.0 | 2018-04-10 00:00:00 UTC | Ex-Dividend Reminder: American Eagle Outfitters, Buckle and AbbVie | ABBV | https://www.nasdaq.com/articles/ex-dividend-reminder-american-eagle-outfitters-buckle-and-abbvie-2018-04-10 | nan | nan | Looking at the universe of stocks we cover at Dividend Channel , on 4/12/18, American Eagle Outfitters, Inc. (Symbol: AEO), Buckle, Inc. (Symbol: BKE), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.1375 on 4/27/18, Buckle, Inc. will pay its quarterly dividend of $0.25 on 4/27/18, and AbbVie Inc will pay its quarterly dividend of $0.96 on 5/15/18. As a percentage of AEO's recent stock price of $21.35, this dividend works out to approximately 0.64%, so look for shares of American Eagle Outfitters, Inc. to trade 0.64% lower - all else being equal - when AEO shares open for trading on 4/12/18. Similarly, investors should look for BKE to open 1.10% lower in price and for ABBV to open 1.05% lower, all else being equal.
Below are dividend history charts for AEO, BKE, and ABBV, showing historical dividends prior to the most recent ones declared.
American Eagle Outfitters, Inc. (Symbol: AEO) :
Buckle, Inc. (Symbol: BKE) :
AbbVie Inc (Symbol: ABBV) :
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 2.58% for American Eagle Outfitters, Inc., 4.42% for Buckle, Inc. , and 4.20% for AbbVie Inc.
In Tuesday trading, American Eagle Outfitters, Inc. shares are currently up about 1.3%, Buckle, Inc. shares are up about 1.1%, and AbbVie Inc shares are up about 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.
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 2.58% for American Eagle Outfitters, Inc., 4.42% for Buckle, Inc. , and 4.20% for AbbVie Inc. Looking at the universe of stocks we cover at Dividend Channel , on 4/12/18, American Eagle Outfitters, Inc. (Symbol: AEO), Buckle, Inc. (Symbol: BKE), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.1375 on 4/27/18, Buckle, Inc. will pay its quarterly dividend of $0.25 on 4/27/18, and AbbVie Inc will pay its quarterly dividend of $0.96 on 5/15/18. | Looking at the universe of stocks we cover at Dividend Channel , on 4/12/18, American Eagle Outfitters, Inc. (Symbol: AEO), Buckle, Inc. (Symbol: BKE), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.1375 on 4/27/18, Buckle, Inc. will pay its quarterly dividend of $0.25 on 4/27/18, and AbbVie Inc will pay its quarterly dividend of $0.96 on 5/15/18. American Eagle Outfitters, Inc. (Symbol: AEO) : Buckle, Inc. (Symbol: BKE) : AbbVie Inc (Symbol: ABBV) : 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 4/12/18, American Eagle Outfitters, Inc. (Symbol: AEO), Buckle, Inc. (Symbol: BKE), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.1375 on 4/27/18, Buckle, Inc. will pay its quarterly dividend of $0.25 on 4/27/18, and AbbVie Inc will pay its quarterly dividend of $0.96 on 5/15/18. American Eagle Outfitters, Inc. (Symbol: AEO) : Buckle, Inc. (Symbol: BKE) : AbbVie Inc (Symbol: ABBV) : 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 2.58% for American Eagle Outfitters, Inc., 4.42% for Buckle, Inc. , and 4.20% for AbbVie Inc. Looking at the universe of stocks we cover at Dividend Channel , on 4/12/18, American Eagle Outfitters, Inc. (Symbol: AEO), Buckle, Inc. (Symbol: BKE), and AbbVie Inc (Symbol: ABBV) will all trade ex-dividend for their respective upcoming dividends. American Eagle Outfitters, Inc. will pay its quarterly dividend of $0.1375 on 4/27/18, Buckle, Inc. will pay its quarterly dividend of $0.25 on 4/27/18, and AbbVie Inc will pay its quarterly dividend of $0.96 on 5/15/18. |
25571.0 | 2018-04-08 00:00:00 UTC | Here's Why AbbVie Inc. Fell 18.3% in March | ABBV | https://www.nasdaq.com/articles/heres-why-abbvie-inc-fell-183-march-2018-04-08 | nan | nan | What happened
Shares of AbbVie Inc. (NYSE: ABBV) , a big U.S. pharma, dropped 18.3% in March, according to data from S&P Global Market Intelligence . A high-profile lung cancer candidate missed the mark during an important trial.
So what
Rova-T was the early clinical-stage asset that inspired AbbVie to pay a stunning $5.8 billion for Stemcentryx just two years ago. To justify the splurge, AbbVie pointed to a 44% response rate among a group of advanced stage small cell lung cancer patients with tumors that express Rova-T's target. AbbVie also pointed to a chance to apply for accelerated approval and become the first available treatment for these patients after they failed two previous courses of therapy.
The market shaved around $23 billion from AbbVie's market cap on the day the company announced it wouldn't be seeking an accelerated approval for Rova-T in the third-line setting. AbbVie's expensive experimental drug helped shrink tumors for just 16% of patients during the mid-stage Trinity study.
Now what
It might not be game over for Rova-T but it seems unlikely that AbbVie will realize a positive return on its investment. That said, it looks like the market-beating has gone a bit too far. The company's market cap has fallen around $36 billion since the announcement.
Seeing ordinary results from a $5.8 billion gamble is enough to shake anyone's confidence, but don't let the Rova-T upset convince you that the rest of AbbVie's pipeline is on shaky ground. In fact, there are at least three late-stage candidates with blockbuster potential getting close to the finish line.
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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. | What happened Shares of AbbVie Inc. (NYSE: ABBV) , a big U.S. pharma, dropped 18.3% in March, according to data from S&P Global Market Intelligence . To justify the splurge, AbbVie pointed to a 44% response rate among a group of advanced stage small cell lung cancer patients with tumors that express Rova-T's target. Seeing ordinary results from a $5.8 billion gamble is enough to shake anyone's confidence, but don't let the Rova-T upset convince you that the rest of AbbVie's pipeline is on shaky ground. | To justify the splurge, AbbVie pointed to a 44% response rate among a group of advanced stage small cell lung cancer patients with tumors that express Rova-T's target. 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 Shares of AbbVie Inc. (NYSE: ABBV) , a big U.S. pharma, dropped 18.3% in March, according to data from S&P Global Market Intelligence . | To justify the splurge, AbbVie pointed to a 44% response rate among a group of advanced stage small cell lung cancer patients with tumors that express Rova-T's target. The market shaved around $23 billion from AbbVie's market cap on the day the company announced it wouldn't be seeking an accelerated approval for Rova-T in the third-line setting. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | To justify the splurge, AbbVie pointed to a 44% response rate among a group of advanced stage small cell lung cancer patients with tumors that express Rova-T's target. The market shaved around $23 billion from AbbVie's market cap on the day the company announced it wouldn't be seeking an accelerated approval for Rova-T in the third-line setting. What happened Shares of AbbVie Inc. (NYSE: ABBV) , a big U.S. pharma, dropped 18.3% in March, according to data from S&P Global Market Intelligence . |
25572.0 | 2018-04-06 00:00:00 UTC | 3 High-Yield Stocks at Rock-Bottom Prices | ABBV | https://www.nasdaq.com/articles/3-high-yield-stocks-rock-bottom-prices-2018-04-06 | nan | nan | Often, dividend yields soar because a company's share price is falling thanks to a business in disrepair. That can make buying high-yield stocks risky, so it pays to be selective and focus only on businesses that have the best odds of getting back on track. With that in mind, we asked some of our top Motley Fool investors if there were any of these companies on their radars, and they said "yes!" Read on to find out why it might be a smart time to add L Brands (NYSE: LB) , GameStop Corp. (NYSE: GME) , and AbbVie, Inc. (NYSE: ABBV) to income portfolios now.
A fat retail dividend
Tim Green(L Brands): There's no shortage of retailers currently struggling to grow sales and maintain margins. L Brands, which owns Victoria's Secret, Bath & Body Works, and a few other brands, suffered from a period of slumping comparable sales in 2016 and 2017. But its fourth-quarter results were better than expected, with both comparable sales and adjusted earnings moving in the right direction.
Fourth-quarter comparable sales jumped 2%, while adjusted earnings per share rose 4%. Victoria's Secret suffered a sales decline, but sales growth from Bath & Body Works picked up the slack. It's hard to say whether the company can sustain this growth, but for now, things are looking up.
L Brands pays a quarterly dividend of $0.60 per share, which works out to a yield of about 6.4%, one of the highest in the S&P 500 . A slumping stock price over the past few years is responsible for the soaring yield. Since peaking in late 2015, the stock has tumbled roughly 62%. Based on the mid-point of the company's adjusted earnings guidance for this year, the stock sports a price-to-earnings ratio of just 12.
The dividend does eat up 77% of adjusted earnings based on the guidance, which is high enough to be concerned that a dividend cut could be in the cards if earnings growth doesn't pick up. That's a risk you'll have to take if you want a yield that's more than triple that of the S&P 500.
Be careful what you wish for
Rich Smith(GameStop): So you say you want a stock with a really high dividend yieldand a rock-bottom price? Well, I've got good news and bad news. The good news is that when a stock gets well and truly creamed, knocking its price down to a multiyear low, its dividend will probably look really big relative to that really low stock price.
In the case of GameStop, that's also the bad news.
With an 11.2% dividend yield, GameStop is one of the 100 top dividend paying companies on the stock market today -- a pretty incredible statistic for a pretty run-of-the-mill retailer. The problem is, the way GameStop achieved its top dividend payer status was not just by increasing the amount of dividends it pays (although it has done that). At the same time as it's been growing its dividend, though, GameStop's stock price has been shrinking pretty dramatically, inflating its dividend yield as a result. Currently priced below $14 a share, GameStop is selling for a price last seen in 2005 -- a near-13-year low. The question for dividend seekers is whether it can (and will) continue paying out so much wealth in dividends.
Can it continue to pay out so much money as dividends? I think so. GameStop's payout ratio remains a very reasonable 44%. Will it continue paying? I think the answer there, too, is yes. In fact, GameStop CFO Robert Lloyd expressed a commitment to "continue to prioritize shareholder returns" when GameStop reported fourth-quarter earnings last week. Still, I could be wrong about that.
And if I am wrong, and GameStop does eventually cut its high-yield dividend, I fear investors will see today's rock-bottom stock price fall even lower.
A beaten-down biopharma with a top-tier dividend yield
Todd Campbell (AbbVie): Recently, AbbVie rolled out disappointing data for one of its most prized clinical-stage drugs, Rova-T. The overall response rate to Rova-T in heavily pretreated small cell lung cancer patients was only OK, and as a result, hopes to see it secure an accelerated OK ahead of phase 3 trials were dashed.
The Rova-T news sent AbbVie's shares reeling and, in turn, its dividend yield soaring. As of this writing, buyers are being rewarded with a healthy, market-beating 4.1% dividend rate.
The risk of buying any beat-up dividend stock is that further declines in share price will more than offset any income the company pays out. No one knows what will happen next for AbbVie, but Rova-T isn't the only drug management is counting on to fuel future growth. It plans to file for FDA approval soon for upadacitinib, a rheumatoid arthritis drug, and risankizumab, a psoriasis drug, and the peak sales projections for those two drugs alone exceeds $11 billion.
AbbVie could also benefit from ongoing sales growth for its blood-cancer drug, Imbruvica, which was recently approved for use in graft-versus-host disease, and the potential approval of its endometriosis drug, elagolix, which could add another billion in sales. There's also a chance that label expansions will turn its multiple myeloma drug, Venclexta, into a blockbuster someday.
Additionally, it may not be game-over for Rova-T. Phase 3 trials are continuing, and since the 5-year survival rate in late-line small cell lung cancer is in the low single-digit percentages, the bar is set low for those trials to be considered successful.
Ultimately, AbbVie's biggest risk is the threat of biosimilar competition to its best-seller, Humira. Humira's patents are expiring in the EU this year, so it will face some headwinds, but following a positive patent decision last year, Humira may not have to fight off competitors in the U.S. until 2023. As a result, AbbVie's still got some time to maneuver.
Overall, I think AbbVie's other R&D programs suggest now is a good time to start picking up shares and pocketing its market-beating dividend yield.
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 tripled 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 April 2, 2018
Rich Smith owns shares of GameStop. Timothy Green has no position in any of the stocks mentioned. Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool owns shares of GameStop and has the following options: short April 2018 $18 calls on GameStop. 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. | Read on to find out why it might be a smart time to add L Brands (NYSE: LB) , GameStop Corp. (NYSE: GME) , and AbbVie, Inc. (NYSE: ABBV) to income portfolios now. A beaten-down biopharma with a top-tier dividend yield Todd Campbell (AbbVie): Recently, AbbVie rolled out disappointing data for one of its most prized clinical-stage drugs, Rova-T. The Rova-T news sent AbbVie's shares reeling and, in turn, its dividend yield soaring. | A beaten-down biopharma with a top-tier dividend yield Todd Campbell (AbbVie): Recently, AbbVie rolled out disappointing data for one of its most prized clinical-stage drugs, Rova-T. Read on to find out why it might be a smart time to add L Brands (NYSE: LB) , GameStop Corp. (NYSE: GME) , and AbbVie, Inc. (NYSE: ABBV) to income portfolios now. The Rova-T news sent AbbVie's shares reeling and, in turn, its dividend yield soaring. | Read on to find out why it might be a smart time to add L Brands (NYSE: LB) , GameStop Corp. (NYSE: GME) , and AbbVie, Inc. (NYSE: ABBV) to income portfolios now. A beaten-down biopharma with a top-tier dividend yield Todd Campbell (AbbVie): Recently, AbbVie rolled out disappointing data for one of its most prized clinical-stage drugs, Rova-T. The Rova-T news sent AbbVie's shares reeling and, in turn, its dividend yield soaring. | The Rova-T news sent AbbVie's shares reeling and, in turn, its dividend yield soaring. Read on to find out why it might be a smart time to add L Brands (NYSE: LB) , GameStop Corp. (NYSE: GME) , and AbbVie, Inc. (NYSE: ABBV) to income portfolios now. A beaten-down biopharma with a top-tier dividend yield Todd Campbell (AbbVie): Recently, AbbVie rolled out disappointing data for one of its most prized clinical-stage drugs, Rova-T. |
25573.0 | 2018-04-06 00:00:00 UTC | Biogen Cracks the Case With AbbVie for Humira Biosimilar | ABBV | https://www.nasdaq.com/articles/biogen-cracks-the-case-with-abbvie-for-humira-biosimilar-2018-04-06 | nan | nan | Biogen Inc.BIIB and partner Samsung Bioepis have announced resolution of an ongoing patent dispute with AbbVie ABBV regarding Biogen's biosimilar version (Imraldi) of AbbVie's blockbuster arthritis drug, Humira, in the EU. Per the settlement agreement, Biogen/Samsung Bioepis plans to launch Imraldi in Europe on Oct 16, 2018.
Also in the United States, Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023.
Imraldi (or SB5) will be used for a whole range of indications including rheumatoid arthritis, axial spondyloarthritis, ankylosing spondylitis, plaque psoriasis, psoriatic arthritis, Crohn's disease, ulcerative colitis, polyarticular juvenile idiopathic arthritis, active enthesitis-related arthritis, hidradenitis suppurativa and non-infectious uveitis.
Notably, Imraldi is the second biosimilar version of Humira to be launched in the EU. Another biotechnology company, Amgen (AMGN), is also expected to launch its biosimilar version of Humira, in the EU come October this year as Amjevita, per a settlement with AbbVie.
Notably, Amjevita was approved in the EU last March and approved in the United States in September 2016.
In the United States, per settlement with AbbVie, Amjevita is likely to be launched on Jan 31, 2023.
Shares of Biogen have underperformed its industry this year so far. The stock has lost 16.6% compared with the industry's decrease of 6.3%.
We remind investors that Biogen has a joint venture with Samsung BioLogics for biosimilars called Samsung Bioepis, which already markets a couple of biosimilars in the EU, namely Flixabi, a biosimilar referencing J&J/Merck's MRK Remicade and Benepali, a biosimilar referencing Amgen/Pfizer's PFE Enbrel. This development in turn makes Imraldi the third anti-TNF biosimilar from Biogen to receive a marketing authorization in the EU.
Biogen is also working with Samsung BioLogics to introduce new biosimilars to the market.
Importantly, Biogen grossed biosimilar revenues of $380 million for a 12-month period ending December 2017 compared with $101 million, logged in 2016. This upside was primarily driven by Benepali, which recorded revenues of $370.8 million compared with the year-ago figure of $100.6 million on increased market share.
Biogen Inc. Price
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Biogen 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. | Also in the United States, Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023. Another biotechnology company, Amgen (AMGN), is also expected to launch its biosimilar version of Humira, in the EU come October this year as Amjevita, per a settlement with AbbVie. Biogen Inc.BIIB and partner Samsung Bioepis have announced resolution of an ongoing patent dispute with AbbVie ABBV regarding Biogen's biosimilar version (Imraldi) of AbbVie's blockbuster arthritis drug, Humira, in the EU. | Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Biogen Inc.BIIB and partner Samsung Bioepis have announced resolution of an ongoing patent dispute with AbbVie ABBV regarding Biogen's biosimilar version (Imraldi) of AbbVie's blockbuster arthritis drug, Humira, in the EU. Also in the United States, Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023. | Biogen Inc.BIIB and partner Samsung Bioepis have announced resolution of an ongoing patent dispute with AbbVie ABBV regarding Biogen's biosimilar version (Imraldi) of AbbVie's blockbuster arthritis drug, Humira, in the EU. Click to get this free report Pfizer Inc. (PFE): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis Report To read this article on Zacks.com click here. Also in the United States, Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023. | Biogen Inc.BIIB and partner Samsung Bioepis have announced resolution of an ongoing patent dispute with AbbVie ABBV regarding Biogen's biosimilar version (Imraldi) of AbbVie's blockbuster arthritis drug, Humira, in the EU. Also in the United States, Samsung Bioepis entered into a settlement agreement with AbbVie, which would allow the former to bring Humira biosimilar into the U.S. market by Jan 31, 2023. Another biotechnology company, Amgen (AMGN), is also expected to launch its biosimilar version of Humira, in the EU come October this year as Amjevita, per a settlement with AbbVie. |
25574.0 | 2018-04-06 00:00:00 UTC | iShares S&P 500 Growth ETF Experiences Big Outflow | ABBV | https://www.nasdaq.com/articles/ishares-sp-500-growth-etf-experiences-big-outflow-2018-04-06 | nan | nan | Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the iShares S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $156.1 million dollar outflow -- that's a 0.8% decrease week over week (from 129,450,000 to 128,450,000). Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Broadcom Ltd (Symbol: AVGO) is down about 0.7%, and Celgene Corp (Symbol: CELG) is lower by about 0.1%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average:
Looking at the chart above, IVW's low point in its 52 week range is $130.04 per share, with $166.51 as the 52 week high point - that compares with a last trade of $155.18. 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 IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Broadcom Ltd (Symbol: AVGO) is down about 0.7%, and Celgene Corp (Symbol: CELG) is lower by about 0.1%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $130.04 per share, with $166.51 as the 52 week high point - that compares with a last trade of $155.18. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. | Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Broadcom Ltd (Symbol: AVGO) is down about 0.7%, and Celgene Corp (Symbol: CELG) is lower by about 0.1%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $130.04 per share, with $166.51 as the 52 week high point - that compares with a last trade of $155.18. 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 IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Broadcom Ltd (Symbol: AVGO) is down about 0.7%, and Celgene Corp (Symbol: CELG) 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 S&P 500 Growth ETF (Symbol: IVW) where we have detected an approximate $156.1 million dollar outflow -- that's a 0.8% decrease week over week (from 129,450,000 to 128,450,000). For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $130.04 per share, with $166.51 as the 52 week high point - that compares with a last trade of $155.18. | Among the largest underlying components of IVW, in trading today AbbVie Inc (Symbol: ABBV) is up about 0.2%, Broadcom Ltd (Symbol: AVGO) is down about 0.7%, and Celgene Corp (Symbol: CELG) is lower by about 0.1%. For a complete list of holdings, visit the IVW Holdings page » The chart below shows the one year price performance of IVW, versus its 200 day moving average: Looking at the chart above, IVW's low point in its 52 week range is $130.04 per share, with $166.51 as the 52 week high point - that compares with a last trade of $155.18. 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). |
25575.0 | 2018-04-05 00:00:00 UTC | After Hours Most Active for Apr 5, 2018 : CZR, MSFT, KEY, JPM, CSCO, CMCSA, MU, MXIM, GE, NUE, ABBV, PFE | ABBV | https://www.nasdaq.com/articles/after-hours-most-active-apr-5-2018-czr-msft-key-jpm-csco-cmcsa-mu-mxim-ge-nue-abbv-pfe | nan | nan | The NASDAQ 100 After Hours Indicator is down -3.41 to 6,591.43. The total After hours volume is currently 72,403,769 shares traded.
The following are the most active stocks for the after hours session :
Caesars Entertainment Corporation ( CZR ) is unchanged at $11.50, with 33,486,748 shares traded. As reported by Zacks, the current mean recommendation for CZR is in the "buy range".
Microsoft Corporation ( MSFT ) is -0.07 at $92.31, with 2,501,034 shares traded. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range".
KeyCorp ( KEY ) is unchanged at $19.74, with 2,098,872 shares traded. As reported by Zacks, the current mean recommendation for KEY is in the "buy range".
J P Morgan Chase & Co ( JPM ) is +0.02 at $111.90, with 1,931,678 shares traded. JPM's current last sale is 91.72% of the target price of $122.
Cisco Systems, Inc. ( CSCO ) is +0.17 at $41.99, with 1,532,716 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Comcast Corporation ( CMCSA ) is unchanged at $34.60, with 1,526,384 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Micron Technology, Inc. ( MU ) is -0.09 at $49.75, with 1,471,163 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending May 2018. The consensus EPS forecast is $2.81. As reported by Zacks, the current mean recommendation for MU is in the "buy range".
Maxim Integrated Products, Inc. ( MXIM ) is unchanged at $57.86, with 1,428,384 shares traded. MXIM's current last sale is 96.43% of the target price of $60.
General Electric Company ( GE ) is -0.01 at $13.42, with 1,335,582 shares traded. GE's current last sale is 78.94% of the target price of $17.
Nucor Corporation ( NUE ) is unchanged at $63.10, with 1,134,107 shares traded. As reported by Zacks, the current mean recommendation for NUE is in the "buy range".
AbbVie Inc. ( ABBV ) is -0.07 at $92.14, with 1,067,550 shares traded. ABBV's current last sale is 73.71% of the target price of $125.
Pfizer, Inc. ( PFE ) is unchanged at $35.73, with 1,046,496 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
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 ) is -0.07 at $92.14, with 1,067,550 shares traded. ABBV's current last sale is 73.71% of the target price of $125. The following are the most active stocks for the after hours session : Caesars Entertainment Corporation ( CZR ) is unchanged at $11.50, with 33,486,748 shares traded. | The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie Inc. ( ABBV ) is -0.07 at $92.14, with 1,067,550 shares traded. ABBV's current last sale is 73.71% of the target price of $125. | AbbVie Inc. ( ABBV ) is -0.07 at $92.14, with 1,067,550 shares traded. ABBV's current last sale is 73.71% of the target price of $125. As reported by Zacks, the current mean recommendation for MSFT is in the "buy range". | AbbVie Inc. ( ABBV ) is -0.07 at $92.14, with 1,067,550 shares traded. ABBV's current last sale is 73.71% of the target price of $125. The following are the most active stocks for the after hours session : Caesars Entertainment Corporation ( CZR ) is unchanged at $11.50, with 33,486,748 shares traded. |
25576.0 | 2018-04-04 00:00:00 UTC | Which Big Pharma CEOs Least Deserved Their Big Pay Increases? | ABBV | https://www.nasdaq.com/articles/which-big-pharma-ceos-least-deserved-their-big-pay-increases-2018-04-04 | nan | nan | You might be surprised by the pay increases given to big pharma CEOs in 2017.
The average pay increase for all U.S. workers last year was 3.1%, according to the Society for Human Resource Management. But based on recent regulatory filings submitted by several major biopharmaceutical companies, their CEOs received salary increases averaging 3%, a little below the average pay hike for most Americans.
There's more to the story, though. The biggest of the big pharma companies reporting their executive compensation for 2017 so far are AbbVie (NYSE: ABBV) , Bristol-Myers Squibb (NYSE: BMY) , Gilead Sciences (NASDAQ: GILD) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . While the companies gave only modest salary increases to their CEOs, it was a different story when it came to total compensation. Which of these big pharma CEOs least deserved their boosts in pay?
CEO compensation comparisons
Salary increases for the big pharma companies' CEOs really were modest. However, the CEOs didn't start out with modest salaries.
Johnson & Johnson CEO Alex Gorsky didn't get a salary bump at all last year, although he certainly wasn't hurting, raking in $1.6 million. Bristol-Myers Squibb CEO Giovanni Caforio and Gilead Sciences CEO John Milligan enjoyed the heftiest pay raises, with increases of 4.9% and 5.1%, respectively. Pfizer CEO Ian Read received a salary increase of 2.7%, while AbbVie CEO Rick Gonzalez saw a pay hike of 2.4%.
The differences were much more dramatic when it came to total compensation changes in 2017, though. All of the CEOs received stock awards and bonuses, with some also getting stock options. These boosted their total compensation considerably.
Pfizer CEO Ian Read was the big winner, with a total compensation increase in 2017 of 61% . The biggest loser (relatively speaking, of course) was J&J's Gorsky, who saw his total compensation drop last year by more than 14%. Gorsky's annual performance bonus in 2017 was cut by $700,000 compared to the prior year. His long-term incentive awards fell nearly $2.5 million.
All three of the other big pharma CEOs enjoyed big jumps in total compensation. Gilead's John Milligan received a 10.8% increase in total compensation, followed closely by BMS CEO Caforio with a 10.4% increase. AbbVie's Gonzalez's total compensation grew by 7.9% last year.
How their companies performed
Hindsight is 20/20. We can look back to see how each big pharma stock performed relative to the CEOs' salary and total compensation increases, and the record shows something quite interesting.
AbbVie's total return, including stock gains and dividend reinvestment, was by far the greatest of these big pharma companies. Probably the most important reason behind the tremendous performance by AbbVie was that the company negotiated a favorable deal with Amgen that keeps the biotech's biosimilar to AbbVie's top-selling drug Humira off the U.S. market until early 2023.
Johnson & Johnson CEO Alex Gorsky didn't get a pay raise and saw a double-digit percentage decrease in total compensation last year. That didn't correlate at all to the healthcare giant's 2017 performance, though. Thanks largely to acquisitions, J&J posted growth that helped drive the stock higher.
Three of these big pharma CEOs arguably didn't deserve their higher pay, in retrospect. BMS's Caforio and Gilead's Milligan received total compensation increases that were greater than their stocks' total return in 2017. But the most glaring outlier was Pfizer, whose CEO received a huge total compensation boost last year that was nearly four times the stock's total return.
Are they worth the big bucks?
CEO compensation can be a touchy subject. Some point to the great discrepancies between CEO pay and the salaries of their companies' employees. Others defend high compensation for CEOs, claiming that it's money well spent to grow shareholder value.
My view is that it's hard to justify the exorbitant increase in total compensation that Pfizer gave Ian Read. It's not that Read hasn't been a pretty good CEO. I just think there are plenty of individuals who could do an equally good job at a much lower price tag.
On the other hand, I don't think we can fairly assess the value that a CEO brings to the company based on the stock performance over just one year. Also, other variables should be factored into the equation. Gilead, for example, has seen its revenue and earnings decline significantly -- but not because of anything John Milligan did. The company is essentially a victim of its own success, with its hepatitis C franchise revenue falling primarily due to lower patient starts, which are in turn a result of Gilead's drugs curing so many patients in recent years.
Perhaps the best way to compensate CEOs to align with shareholder interests is by granting stock options that provide incentives for executives to achieve significant long-term stock appreciation. I'd love to see at least 95% of big pharma CEOs' total compensation tied to stock options that weren't slam-dunks. For now, shareholders can at least take comfort that even the highest-paid big pharma CEOs receive only a sliver compared to the companies' overall revenue and earnings.
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Keith Speights owns shares of AbbVie, Gilead Sciences, and Pfizer. The Motley Fool owns shares of and recommends Gilead Sciences and Johnson & Johnson. The Motley Fool has the following options: short May 2018 $85 calls on 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. | AbbVie's total return, including stock gains and dividend reinvestment, was by far the greatest of these big pharma companies. The biggest of the big pharma companies reporting their executive compensation for 2017 so far are AbbVie (NYSE: ABBV) , Bristol-Myers Squibb (NYSE: BMY) , Gilead Sciences (NASDAQ: GILD) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . Pfizer CEO Ian Read received a salary increase of 2.7%, while AbbVie CEO Rick Gonzalez saw a pay hike of 2.4%. | The biggest of the big pharma companies reporting their executive compensation for 2017 so far are AbbVie (NYSE: ABBV) , Bristol-Myers Squibb (NYSE: BMY) , Gilead Sciences (NASDAQ: GILD) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . Pfizer CEO Ian Read received a salary increase of 2.7%, while AbbVie CEO Rick Gonzalez saw a pay hike of 2.4%. AbbVie's Gonzalez's total compensation grew by 7.9% last year. | The biggest of the big pharma companies reporting their executive compensation for 2017 so far are AbbVie (NYSE: ABBV) , Bristol-Myers Squibb (NYSE: BMY) , Gilead Sciences (NASDAQ: GILD) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . Pfizer CEO Ian Read received a salary increase of 2.7%, while AbbVie CEO Rick Gonzalez saw a pay hike of 2.4%. AbbVie's Gonzalez's total compensation grew by 7.9% last year. | The biggest of the big pharma companies reporting their executive compensation for 2017 so far are AbbVie (NYSE: ABBV) , Bristol-Myers Squibb (NYSE: BMY) , Gilead Sciences (NASDAQ: GILD) , Johnson & Johnson (NYSE: JNJ) , and Pfizer (NYSE: PFE) . Pfizer CEO Ian Read received a salary increase of 2.7%, while AbbVie CEO Rick Gonzalez saw a pay hike of 2.4%. AbbVie's Gonzalez's total compensation grew by 7.9% last year. |
25577.0 | 2018-04-03 00:00:00 UTC | Aeglea Initiates Lung Cancer Combination Study With Keytruda | ABBV | https://www.nasdaq.com/articles/aeglea-initiates-lung-cancer-combination-study-with-keytruda-2018-04-03 | nan | nan | Aeglea BioTherapeutics, Inc.AGLE announced that it has initiated dosing of patients in two studies evaluating its lung cancer candidate, pegzilarginase, in small cell lung cancer ("SCLC").
A cohort expansion phase I study is evaluating pegzilarginase as monotherapy in SCLC patients. The other one is phase I/II study evaluating the candidate in combination with Merck's MRK anti-PD-1 therapy, Keytruda, in a similar indication.
Top-line data from the studies are expected in the fourth quarter of 2018.
Aeglea's shares have risen 77.8% so far this year, against the industry 's loss of 4.9% during the period.
The phase I/II study is evaluating combination of pegzilarginase and Keytruda for overall response rate in patients with extensive disease SCLC whose disease has relapsed or progressed after receiving platinum-based chemotherapy.
Per the press release, only 6% of SCLC patients survive after five years of treatment, showing a significant unmet need.
Several pharma companies are developing therapies for treating SCLC. AstraZeneca AZN is developing a combination of its PARP inhibitor, Lynparza, and chemotherapy, Temodar, in a phase I/II study. AbbVie ABBV and Bristol-Myers have collaborated to develop rovalpituzumab tesirine in combination with Opdivo and Yervoy in a phase I study. G1 Therapeutics is also developing therapies in combination with chemotherapy for SCLC.
Apart from SCLC, Aeglea is also developing pegzilarginase in a phase I/II study in patients with Arginase 1 deficiency, a rare genetic disease. The company reported positive preliminary data from the study earlier this month.
Aeglea BioTherapeutics, Inc. Price
Aeglea BioTherapeutics, Inc. Price | Aeglea BioTherapeutics, Inc. Quote
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Aeglea currently has 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 ABBV and Bristol-Myers have collaborated to develop rovalpituzumab tesirine in combination with Opdivo and Yervoy in a phase I study. Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Aeglea BioTherapeutics, Inc. (AGLE): Free Stock Analysis Report To read this article on Zacks.com click here. AstraZeneca AZN is developing a combination of its PARP inhibitor, Lynparza, and chemotherapy, Temodar, in a phase I/II study. | Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Aeglea BioTherapeutics, Inc. (AGLE): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV and Bristol-Myers have collaborated to develop rovalpituzumab tesirine in combination with Opdivo and Yervoy in a phase I study. The other one is phase I/II study evaluating the candidate in combination with Merck's MRK anti-PD-1 therapy, Keytruda, in a similar indication. | Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Aeglea BioTherapeutics, Inc. (AGLE): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie ABBV and Bristol-Myers have collaborated to develop rovalpituzumab tesirine in combination with Opdivo and Yervoy in a phase I study. The phase I/II study is evaluating combination of pegzilarginase and Keytruda for overall response rate in patients with extensive disease SCLC whose disease has relapsed or progressed after receiving platinum-based chemotherapy. | AbbVie ABBV and Bristol-Myers have collaborated to develop rovalpituzumab tesirine in combination with Opdivo and Yervoy in a phase I study. Click to get this free report AstraZeneca PLC (AZN): Free Stock Analysis Report Merck & Co., Inc. (MRK): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Aeglea BioTherapeutics, Inc. (AGLE): Free Stock Analysis Report To read this article on Zacks.com click here. G1 Therapeutics is also developing therapies in combination with chemotherapy for SCLC. |
25578.0 | 2018-04-03 00:00:00 UTC | 2 Big Biotech Bargains You Can Buy Now | ABBV | https://www.nasdaq.com/articles/2-big-biotech-bargains-you-can-buy-now-2018-04-03 | nan | nan | Biotech stocks aren't usually known for being great bargains. In many cases, biotechs command premium valuations. But that's not the case for two big biotechs.
Both AbbVie (NYSE: ABBV) and Celgene (NASDAQ: CELG) have seen their stock prices fall significantly. These big biotechs now claim really low earnings multiples, but still offer strong growth prospects. Here's what you need to know about these big biotech bargains that you can buy right now.
Why they're beaten down
AbbVie's share price is down more than 20% over the last three weeks. Celgene stock has fallen close to 40% during the past six months. Both of the companies have stumbled because of bad news.
A clinical setback for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC) caused AbbVie's decline. On March 22, the company announced that it wouldn't seek accelerated approval for Rova-T due to disappointing efficacy for the drug. AbbVie has two late-stage clinical studies in progress evaluating Rova-T as a first-line and second-line treatment for SCLC.
Failure in the third-line setting, though, casts doubts about how well Rova-T will perform in the phase 3 studies targeting earlier lines of SCLC. AbbVie in the past has mentioned peak annual sales potential for Rova-T in the ballpark of $5 billion.
Celgene, meanwhile, has had a string of bad news. Once-promising Crohn's disease drug GED-0301 failed in a late-stage study. The biotech missed 2017 Q3 revenue projections in October due to lower-than-expected sales for psoriasis and psoriatic arthritis drug Otezla. At the same time, Celgene cut its full-year 2017 and longer-term 2020 outlooks.
Perhaps the most stunning problem for Celgene, though, was that it received a Complete Response Letter from the U.S. Food and Drug Administration (FDA) for its New Drug Application (NDA) for ozanimod in treating multiple sclerosis. Receiving this kind of rejection is rare for a big biotech like Celgene, which investors expect to have its act together in regulatory filings.
Market research firm EvaluatePharma projected last year that Rova-T would be the No. 4 biggest new drug launched in 2018, with ozanimod coming in at No. 5. And, based on their potential, they should have been. Now, neither drug will launch this year. The chances for Rova-T to make it to market at all are now in doubt. Ozanimod seems likely to eventually win FDA approval, but it will be much later than Celgene counted on.
Why they're bargains
Because of these factors, AbbVie stock now trades at 10.6 times expected earnings. Celgene's forward earnings multiple is only 8.7. Both biotech stocks are cheap. But are they really bargains? I think so.
There's still a chance that Rova-T will be successful in late-stage studies. Even if not, though, AbbVie has several other avenues for growth. Imbruvica should be on its way to becoming one of the biggest cancer drugs on the market. Venclexta is another oncology asset that has a lot of potential for AbbVie.
The company claims several pipeline candidates that could become blockbusters over the next few years. AbbVie hopes to win approval for elagolix in treating endometriosis this month. It plans to file for regulatory approval of upadacitinib in treating rheumatoid arthritis in the second half of 2018. AbbVie is also evaluating immunology drug risankizumab in late-stage studies.
Celgene, too, has both current drugs and pipeline candidates that should drive growth for years to come. Blood cancer drugs Revlimid and Pomalyst continue to show strong sales momentum, as does Otezla. The setback for ozanimod should only be temporary.
Several other drugs in Celgene's pipeline have blockbuster potential. The company expects to submit fedratinib for FDA approval in mid-2018 for treatment of myelofibrosis. Experimental hematology and oncology drugs luspatercept, CC-486, and BGB-A317 are the most promising late-stage assets.
Prior to the Rova-T setback, AbbVie expected to generate risk-adjusted non-Humira sales of $35 billion by 2025. Excluding Rova-T, the company's projection would be around $30 billion. Even if AbbVie's calculation is still too optimistic, the biotech should be able to grow considerably over the next few years.
Celgene's growth potential looks even better. The loss of GED-0301 hurt, but it wasn't crippling. Celgene should be able to grow adjusted earnings by around 19% annually through 2020. The company has plenty of catalysts for growth well into the next decade as well.
Is there a catch?
It only makes sense to wonder if there's a catch with biotech stocks like AbbVie and Celgene that are cheap yet still have great growth prospects. And there is a similar catch for each of these companies.
Both AbbVie and Celgene remain highly dependent on one drug. Humira generates 65% of AbbVie's total revenue. Revlimid contributes 63% of Celgene's total revenue. Both Humira and Revlimid face the prospects of loss of exclusivity.
How big are the risks that the two biotechs will soon lose a huge amount of revenue? My view is that both AbbVie and Celgene should be in pretty good shape.
AbbVie struck a deal with Amgen last year that keeps Amgen's biosimilar version of Humira off the U.S. market until early 2023. Celgene reached an agreement a few years ago that allows Natco Pharma to market a generic version of Revlimid in the U.S. at limited volumes beginning in March 2022, with no volume restrictions beginning in early 2026. Other generic-drug makers are also challenging Revlimid's patents. However, it would surprise me if Celgene doesn't reach agreements with other generic-drug companies that are similar to what it has in place with Natco.
Also, it seems likely that Humira and Revlimid will experience gradual sales declines when the day comes where they do face major competition. AbbVie and Celgene should both have plenty of time for other drugs to ramp up sales to offset those declines.
The risks aren't non-existent, though, which is why these two big biotech stocks have such low valuations. But I think AbbVie and Celgene are biotech bargains right now that will pay off for investors 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | A clinical setback for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC) caused AbbVie's decline. Both AbbVie (NYSE: ABBV) and Celgene (NASDAQ: CELG) have seen their stock prices fall significantly. Why they're beaten down AbbVie's share price is down more than 20% over the last three weeks. | Prior to the Rova-T setback, AbbVie expected to generate risk-adjusted non-Humira sales of $35 billion by 2025. It only makes sense to wonder if there's a catch with biotech stocks like AbbVie and Celgene that are cheap yet still have great growth prospects. Both AbbVie (NYSE: ABBV) and Celgene (NASDAQ: CELG) have seen their stock prices fall significantly. | It only makes sense to wonder if there's a catch with biotech stocks like AbbVie and Celgene that are cheap yet still have great growth prospects. AbbVie and Celgene should both have plenty of time for other drugs to ramp up sales to offset those declines. But I think AbbVie and Celgene are biotech bargains right now that will pay off for investors over the long run. | Why they're bargains Because of these factors, AbbVie stock now trades at 10.6 times expected earnings. Both AbbVie (NYSE: ABBV) and Celgene (NASDAQ: CELG) have seen their stock prices fall significantly. Why they're beaten down AbbVie's share price is down more than 20% over the last three weeks. |
25579.0 | 2018-04-03 00:00:00 UTC | Tuesday Sector Laggards: Utilities, Healthcare | ABBV | https://www.nasdaq.com/articles/tuesday-sector-laggards-utilities-healthcare-2018-04-03 | nan | nan | In afternoon trading on Tuesday, Utilities stocks are the worst performing sector, up 0.1%. Within that group, Sempra Energy (Symbol: SRE) and American Water Works Co, Inc. (Symbol: AWK) are two large stocks that are lagging, showing a loss of 0.7% and 0.5%, respectively. Among utilities ETFs , one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is flat on the day on the day, and down 4.08% year-to-date. Sempra Energy, meanwhile, is up 3.07% year-to-date, and American Water Works Co, Inc., is down 11.26% year-to-date. Combined, SRE and AWK make up approximately 6.4% of the underlying holdings of XLU.
The next worst performing sector is the Healthcare sector, higher by 0.3%. Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Celgene Corp (Symbol: CELG) are the most notable, showing a loss of 2.3% and 1.2%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF ( XLV ), which is up 0.6% in midday trading, and down 2.84% on a year-to-date basis. AbbVie Inc, meanwhile, is down 6.89% year-to-date, and Celgene Corp, is down 17.54% year-to-date. Combined, ABBV and CELG make up approximately 6.8% of the underlying holdings of XLV.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, nine sectors are up on the day, while none of the sectors are down.
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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. | Combined, ABBV and CELG make up approximately 6.8% of the underlying holdings of XLV. Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Celgene Corp (Symbol: CELG) are the most notable, showing a loss of 2.3% and 1.2%, respectively. AbbVie Inc, meanwhile, is down 6.89% year-to-date, and Celgene Corp, is down 17.54% year-to-date. | Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Celgene Corp (Symbol: CELG) are the most notable, showing a loss of 2.3% and 1.2%, respectively. AbbVie Inc, meanwhile, is down 6.89% year-to-date, and Celgene Corp, is down 17.54% year-to-date. Combined, ABBV and CELG make up approximately 6.8% of the underlying holdings of XLV. | Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Celgene Corp (Symbol: CELG) are the most notable, showing a loss of 2.3% and 1.2%, respectively. AbbVie Inc, meanwhile, is down 6.89% year-to-date, and Celgene Corp, is down 17.54% year-to-date. Combined, ABBV and CELG make up approximately 6.8% of the underlying holdings of XLV. | Among large Healthcare stocks, AbbVie Inc (Symbol: ABBV) and Celgene Corp (Symbol: CELG) are the most notable, showing a loss of 2.3% and 1.2%, respectively. AbbVie Inc, meanwhile, is down 6.89% year-to-date, and Celgene Corp, is down 17.54% year-to-date. Combined, ABBV and CELG make up approximately 6.8% of the underlying holdings of XLV. |
25580.0 | 2018-04-02 00:00:00 UTC | AbbVie Breaks Below 200-Day Moving Average - Notable for ABBV | ABBV | https://www.nasdaq.com/articles/abbvie-breaks-below-200-day-moving-average-notable-abbv-2018-04-02 | nan | nan | In trading on Monday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $91.84, changing hands as low as $90.30 per share. AbbVie Inc shares are currently trading down about 3.4% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average:
Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $91.46.
According to the ETF Finder at ETF Channel, ABBV makes up 6.58% of the First Trust Nasdaq Pharmaceuticals ETF (Symbol: FTXH) which is trading lower by about 2.4% on the day Monday.
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Monday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $91.84, changing hands as low as $90.30 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $91.46. AbbVie Inc shares are currently trading down about 3.4% on the day. | In trading on Monday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $91.84, changing hands as low as $90.30 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $91.46. AbbVie Inc shares are currently trading down about 3.4% on the day. | In trading on Monday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $91.84, changing hands as low as $90.30 per share. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $91.46. AbbVie Inc shares are currently trading down about 3.4% on the day. | In trading on Monday, shares of AbbVie Inc (Symbol: ABBV) crossed below their 200 day moving average of $91.84, changing hands as low as $90.30 per share. AbbVie Inc shares are currently trading down about 3.4% on the day. The chart below shows the one year performance of ABBV shares, versus its 200 day moving average: Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $91.46. |
25581.0 | 2018-04-01 00:00:00 UTC | How Safe Is AbbVie, Inc.'s Dividend Now? | ABBV | https://www.nasdaq.com/articles/how-safe-abbvie-incs-dividend-now-2018-04-01 | nan | nan | AbbVie Inc. 's (NYSE: ABBV) treated shareholders to some hefty dividend bumps since its inception five years ago, but a 35% raise announced in February was the biggest yet. Not long after announcing the payout boost and another $10 billion stock repurchase program, a high-profile clinical trial failure knocked AbbVie's stock down a few pegs.
At recent prices, AbbVie shares offer a nice 4% yield. That's more than twice as much as you'll get from the average dividend-paying stock in the benchmark S&P 500 index. If you're a cautious investor worried about a dividend that looks too good to be true , here's what you need to know about the pillars supporting AbbVie's rapidly rising payouts.
On the way down
Humira is the world's best-selling drug at the moment, but it's just a matter of time before biosimilar competition begins chipping away at its share of the rheumatoid arthritis (RA) market. Enough patents have expired to allow the Food and Drug Administration to approve two copycat versions, but additional patent litigation has kept them off the U.S. market. Amgen 's (NASDAQ: AMGN) already agreed to delay Amjevita's U.S. launch until 2023, but Boehringer Ingelheim hasn't backed down with Cyltezo yet. I'd be surprised if Cyltezo gets any further than Amjevita, but we can't rule out the possibility.
Biosimilars aren't the only competitive threat that could make it hard for AbbVie to keep raising its dividend. Baricitinib from partners Incyte (NASDAQ: INCY) and Eli Lilly (NYSE: LLY) is already marketed in the European Union as Olumiant, but the FDA sent back the first baricitinib application Lilly submitted for more data. During clinical trials, adding Lilly's pills to standard care improved RA symptoms at a rate that bested Humira, and an eventual approval is widely expected.
We'll know more about the Olumiant threat on April 23, when an independent advisory committee meets to discuss its risk-to-benefit profile in detail. In the meantime, AbbVie investors will want to keep an eye on how popular the oral therapy is among would-be Humira patients throughout Europe.
Shot missed
AbbVie spent a stunning $5.8 billion for Rova-T in hopes it could earn a speedy approval to treat certain lung cancer patients. The assumption turned out wrong , but it probably won't ruin AbbVie's chances to keep raising the dividend in the years ahead.
Humira and other products already on the market helped the company generate $9.4 billion in free cash flow last year, which was a lot more than the company needed to make dividend payments that totaled $4.1 billion in 2017. Over the years, AbbVie's funneled Humira profits into a stable of experimental new drugs with potential blockbuster written all over them. Investors will be glad to know that Rova-T didn't even make my top three list .
Earlier this year, AbbVie predicted sales of drugs excluding Humira would rise from $9.8 billion in 2017 to $35 billion in 2025. The Rova-T letdown will knock several billion off that ambitious target, but there's a good chance the company's bottom line, and its dividend can continue expanding over the next decade.
Going up
Dividend investments that depend entirely on potential drug launches are a terrible idea. Luckily, AbbVie's more recently launched offerings are already moving in the right direction. Leading the charge is a blood cancer tablet with sales that keep growing by leaps and bounds ever since it became the first chemo-free option for people recently diagnosed with the most common form of leukemia. AbbVie's share of Imbruvica's haul rose 41% last year to $2.5 billion, and AbbVie thinks it could go twice as high.
AbbVie and Roche (NASDAQOTH: RHHBY) launched Venetoclax as a treatment for a very small, genetically defined group of leukemia patients in 2016. So far, sales haven't been worth mentioning, but results from a combination trial designed to expand Venetoclax to a larger population suggest it can still generate several billion annually for AbbVie. The rate of survival without disease progression at 24 months was 85% among patients given a combination of Rituxan plus Venetoclax, versus just 36% in the group given Rituxan plus a standard chemotherapy.
Getting leukemia patients who've already relapsed to show initial responses to subsequent treatments is relatively easy, but the duration of those responses is generally poor. To see long-term eradication from these patients is just incredible, and a big reason AbbVie thinks Venclexta can become a $6 billion-per-year drug.
MRK dividend . Data by YCharts .
Know what to expect
With a slightly diminished late-stage pipeline still ready to deliver the goods, and blood cancer products on the rise now, AbbVie has a good chance of avoiding the sort of long-term earnings contractions that have held back Bristol-Myers Squibb and Merck 's distributions. Thanks to patent cliffs for former lead earners, their earnings per share (EPS) are lower today than they were 20 years ago and both companies have struggled to keep payouts rising at a snail's pace. On a 10-year time frame, the same can be said for Eli Lilly .
As a biologic drug , Humira's eventual demise will be far less dramatic than the patent cliffs that have hobbled dividend growth for America's biggest pharmaceutical companies. That doesn't mean a steadily rising payout for the next two decades is guaranteed, but at 4% or better, you won't find a safer dividend in healthcare.
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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. | So far, sales haven't been worth mentioning, but results from a combination trial designed to expand Venetoclax to a larger population suggest it can still generate several billion annually for AbbVie. AbbVie Inc. 's (NYSE: ABBV) treated shareholders to some hefty dividend bumps since its inception five years ago, but a 35% raise announced in February was the biggest yet. Not long after announcing the payout boost and another $10 billion stock repurchase program, a high-profile clinical trial failure knocked AbbVie's stock down a few pegs. | Not long after announcing the payout boost and another $10 billion stock repurchase program, a high-profile clinical trial failure knocked AbbVie's stock down a few pegs. Earlier this year, AbbVie predicted sales of drugs excluding Humira would rise from $9.8 billion in 2017 to $35 billion in 2025. Know what to expect With a slightly diminished late-stage pipeline still ready to deliver the goods, and blood cancer products on the rise now, AbbVie has a good chance of avoiding the sort of long-term earnings contractions that have held back Bristol-Myers Squibb and Merck 's distributions. | Not long after announcing the payout boost and another $10 billion stock repurchase program, a high-profile clinical trial failure knocked AbbVie's stock down a few pegs. Earlier this year, AbbVie predicted sales of drugs excluding Humira would rise from $9.8 billion in 2017 to $35 billion in 2025. AbbVie's share of Imbruvica's haul rose 41% last year to $2.5 billion, and AbbVie thinks it could go twice as high. | Biosimilars aren't the only competitive threat that could make it hard for AbbVie to keep raising its dividend. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. AbbVie Inc. 's (NYSE: ABBV) treated shareholders to some hefty dividend bumps since its inception five years ago, but a 35% raise announced in February was the biggest yet. |
25582.0 | 2018-04-01 00:00:00 UTC | Better Buy: AbbVie Inc. vs. Johnson & Johnson | ABBV | https://www.nasdaq.com/articles/better-buy-abbvie-inc-vs-johnson-johnson-2018-04-01 | nan | nan | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) battle each other in the marketplace every day. But they also are partners. That's not an unusual scenario in the biopharmaceutical world today.
Since being spun off from parent Abbott Labs (NYSE: ABT) in 2013, AbbVie stock's performance has more than doubled that of Johnson & Johnson. The two companies face different opportunities and challenges in the years ahead than they have in the past, though. So which big pharma stock is the better buy now?
The case for AbbVie
Investors typically fall into one of three categories: growth, income, or value. AbbVie is one of those relatively rare stocks that offer something to each type of investor.
AbbVie's historical growth stemmed primarily from Humira, the top-selling drug in the world. The autoimmune-disease drug continues to generate 65% of AbbVie's total revenue. And sales for Humira keep growing. AbbVie projects the drug's sales will approach $21 billion by 2020.
Future growth, though, will be driven by other products. At the the top of the list is Imbruvica, which AbbVie co-markets with Johnson & Johnson. Sales for the cancer drug jumped 40% last year and peak annual sales could top $7 billion within a few years. AbbVie's new hepatitis C drug, Mavyret, is expected to become the company's next blockbuster.
AbbVie CFO Bill Chase recently stated that the drugmaker's pipeline has "almost an embarrassment of riches." The list of these "riches" includes endometriosis and uterine fibroids drug elagolix, and autoimmune-disease drugs upadacitinib and risankizumab.
For income-seeking investors, AbbVie offers a dividend that currently yields a little under 4%. Since its spinoff from Abbott five years ago, AbbVie has increased its dividend by a whopping 140%.
The stock is also priced attractively, something value investors would like. AbbVie shares trade at less than 11 times expected earnings. Factoring in the company's growth prospects makes the valuation look even better.
The case for Johnson & Johnson
How does Johnson & Johnson measure up in the three areas of growth, income, and value? Pretty well.
Johnson & Johnson hasn't achieved the rate of earnings growth or stock gains that AbbVie has in recent years. Yet the company appears to be positioned for future growth thanks to acquisitions and a strong pipeline.
Several acquisitions over the past couple of years have boosted J&J's top and bottom lines. The company's medical-device segment acquired Megadyne Medical Products, Torax Medical, and Abbott Medical Optics. Johnson & Johnson's biggest recent acquisition, however, was the $30 billion purchase of Swiss drugmaker Actelion last year.
The company claims several drugs with fast-growing sales, including Imbruvica, multiple myeloma drug Darzalex, and Stelara, which treats psoriasis and psoriatic arthritis. J&J's pipeline includes well over 30 late-stage programs. Some target potential new indications for already-approved drugs such as Darzalex, Imbruvica, and Stelara. Others are testing new drugs, notably including prostate cancer drug apalutamide, which market research firm EvaluatePharma ranked as the No. 2 most valuable pipeline asset in the biopharmaceutical industry.
Johnson & Johnson boasts an impeccable track record when it comes to dividends. The company has increased its dividend for a remarkable 55 consecutive years. J&J's dividend currently yields 2.64%.
As for valuation, J&J stock trades at less than 15 times expected earnings. That's well below the S&P 500 index's average forward-earnings multiple of 17. It's also lower than the average for healthcare stocks in the S&P 500.
Better buy
So far I haven't mentioned some of the challenges facing these companies. But challenges exist for both: AbbVie announced a significant pipeline setback recently, when Rova-T failed in a phase 2 study as a third-line treatment for relapsed/refractory small-cell lung cancer. And Johnson & Johnson's top-selling drug, Remicade, is losing market share to biosimilar competition.
These issues are not insignificant, but I think that both AbbVie and Johnson & Johnson should be able to overcome their respective obstacles.
AbbVie clearly boasts a more attractive dividend and valuation than J&J does. The company's growth prospects also appear to be higher, even with the Rova-T setback. On the other hand, Johnson & Johnson's business spans across healthcare, including consumer products, medical devices, and pharmaceuticals. The healthcare giant is certainly more diversified than AbbVie is, and arguably claims a stronger moat .
My view is that both of these stocks will be winners for long-term investors. If I could choose only one of these stocks, though, I'd go with AbbVie. The company has a compelling growth story (again, even with the uncertainty over Rova-T) and a fantastic dividend. The takeaway: AbbVie has something to offer all types of investors.
10 stocks we like better than AbbVie
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Keith Speights owns shares of AbbVie. The Motley Fool owns shares of and recommends Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 historical growth stemmed primarily from Humira, the top-selling drug in the world. AbbVie CFO Bill Chase recently stated that the drugmaker's pipeline has "almost an embarrassment of riches." But challenges exist for both: AbbVie announced a significant pipeline setback recently, when Rova-T failed in a phase 2 study as a third-line treatment for relapsed/refractory small-cell lung cancer. | AbbVie shares trade at less than 11 times expected earnings. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) battle each other in the marketplace every day. Since being spun off from parent Abbott Labs (NYSE: ABT) in 2013, AbbVie stock's performance has more than doubled that of Johnson & Johnson. | Since being spun off from parent Abbott Labs (NYSE: ABT) in 2013, AbbVie stock's performance has more than doubled that of Johnson & Johnson. Johnson & Johnson hasn't achieved the rate of earnings growth or stock gains that AbbVie has in recent years. AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) battle each other in the marketplace every day. | AbbVie (NYSE: ABBV) and Johnson & Johnson (NYSE: JNJ) battle each other in the marketplace every day. Since being spun off from parent Abbott Labs (NYSE: ABT) in 2013, AbbVie stock's performance has more than doubled that of Johnson & Johnson. The case for AbbVie Investors typically fall into one of three categories: growth, income, or value. |
25583.0 | 2018-03-30 00:00:00 UTC | 3 Top Healthcare Stocks to Buy Right Now | ABBV | https://www.nasdaq.com/articles/3-top-healthcare-stocks-buy-right-now-2018-03-30 | nan | nan | People need healthcare no matter what's happening to the rest of the economy or their portfolios. That makes strong companies in that critical industry wonderful businesses to own. We asked three Foolish investors which healthcare stocks looked like they were worth buying right now, and they picked AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Hologic (NASDAQ: HOLX) .
Something for everyone
Keith Speights (AbbVie) : You can't knock AbbVie's performance. The big-pharma stock soared more than 50% last year. Even with disappointing mid-stage clinical results for experimental cancer drug Rova-T, the stock still has much better year-to-date gains than the broader market.
Can AbbVie keep the momentum going? I think so.
AbbVie claims the world's top-selling drug with Humira, one of the fastest-growing cancer drugs with Imbruvica, and a hot new hepatitis C drug with Mavyret. Then there's the pipeline. AbbVie CFO Bill Chase recently stated that the company's pipeline has "almost an embarrassment of riches." That statement was made before the Rova-T setback. However, AbbVie remains loaded with potential blockbuster candidates, including endometriosis drug elagolix and autoimmune disease drugs risankizumab and upadacitinib.
Then there's the dividend. AbbVie's dividend currently yields 3.34%. It was even higher, but the stock surged so much that even the latest dividend hike of 35% wasn't enough to keep up. Dividend increases are a way of life for AbbVie, which has raised its dividend payout by 140% since being spun off from parent Abbott Labs in 2013.
Last but not least is valuation. Despite its strong growth prospects and dividend, AbbVie's shares trade at less than 12 times expected earnings.
What's not to like about AbbVie? Like any biopharmaceutical company, it has pipeline risks -- as seen recently with Rova-T. And the company still is heavily dependent on Humira. Still, I think AbbVie has something to offer almost every type of investor.
A low-risk growth-and-income stock
George Budwell (Pfizer): Buying healthcare stocks can be tricky because of the numerous unforeseen dangers arising from patent disputes, novel competitors entering the market, and a host of potential regulatory issues that can negatively impact a company's bottom line. To safely navigate these troubled waters, investors generally are best served by picking companies with robust clinical pipelines and exceptionally strong balance sheets. And that's why I think Pfizer is arguably one of the best healthcare stocks to own right now.
Besides sporting a mountain of cash and a top-notch shareholder-rewards program, Pfizer has developed one of the richest oncology pipelines in the business. The drugmaker's PD-L1 inhibitor avelumab -- brand name Bavencio -- that it co-develops with Merck KGaA , tends to grab the headlines. But investors shouldn't ignore Pfizer's earlier stage oncology pipeline that's home to a slew of high-value experimental drugs and biologic therapies. Over the next decade, these under-the-radar drug candidates could very well transform Pfizer into a top dog in oncology.
Meanwhile, the company is presently in the process of selling -- or possibly spinning off -- its consumer healthcare unit. While a deal to get the unit sold no longer seems imminent due to a lack of bidders, Pfizer appears intent on shedding its consumer healthcare business before year's end. By doing so, the drugmaker should have yet another significant source of funds to boost shareholder rewards and merger-and-acquisition activity.
I'm bullish on Pfizer's near- and long-term prospects because of the company's superb oncology pipeline, attractive shareholder rewards program, and ongoing restructuring process that soon should culminate in a sizable influx of cash.
A leader in women's health -- at a reasonable valuation
Chuck Saletta (Hologic): Ask women which medical procedures they least look forward to, and many of them will answer mammograms and gynecological exams. Those tests have the reputation of being painful, embarrassing, and awkward, yet women line up for them year after year after year. Why? Because the tests -- and early treatment of any issues found from them -- can save their lives.
Enter Hologic , a leader in mammography technologies, devices used in gynecological surgeries, and key diagnostics for health issues like osteoporosis that frequently affect women. Hologic not only has a strong market position in those fields, it's also actively working to make the procedures less painful for the women who have to go through them.
For instance, Hologic's 3Dimension Mammography system is designed to provide both higher-quality images and more patient comfort than traditional mammography systems. Higher-quality images mean there's less need to retest due to issues with the pictures received, and better patient comfort makes the test less painful and awkward than it otherwise would have been. That sounds like a double win for the women undergoing those tests.
Hologic is worth looking at because it occupies a critical market niche, but what makes it worth considering buying right now is its reasonable valuation. Hologic is trading at less than 15 times its forward expected earnings, which are expected to grow at nearly 10% annualized over the next five years. Investors buying today are getting what looks like a solid and growing company in a key industry at a reasonable price.
10 stocks we like better than Pfizer
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Chuck Saletta has no position in any of the stocks mentioned. George Budwell owns shares of Pfizer. 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. | We asked three Foolish investors which healthcare stocks looked like they were worth buying right now, and they picked AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Hologic (NASDAQ: HOLX) . Something for everyone Keith Speights (AbbVie) : You can't knock AbbVie's performance. Can AbbVie keep the momentum going? | Despite its strong growth prospects and dividend, AbbVie's shares trade at less than 12 times expected earnings. We asked three Foolish investors which healthcare stocks looked like they were worth buying right now, and they picked AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Hologic (NASDAQ: HOLX) . Something for everyone Keith Speights (AbbVie) : You can't knock AbbVie's performance. | We asked three Foolish investors which healthcare stocks looked like they were worth buying right now, and they picked AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Hologic (NASDAQ: HOLX) . Something for everyone Keith Speights (AbbVie) : You can't knock AbbVie's performance. Can AbbVie keep the momentum going? | What's not to like about AbbVie? We asked three Foolish investors which healthcare stocks looked like they were worth buying right now, and they picked AbbVie (NYSE: ABBV) , Pfizer (NYSE: PFE) , and Hologic (NASDAQ: HOLX) . Something for everyone Keith Speights (AbbVie) : You can't knock AbbVie's performance. |
25584.0 | 2018-03-29 00:00:00 UTC | Geron Corp. Skyrocketed and AbbVie Inc. Crashed -- Are These Stocks Buys? | ABBV | https://www.nasdaq.com/articles/geron-corp-skyrocketed-and-abbvie-inc-crashed-are-these-stocks-buys-2018-03-29 | nan | nan | Optimism that Johnson & Johnson (NYSE: JNJ) will choose to continue developing its lead drug sent Geron Corp .'s (NASDAQ: GERN) stock soaring recently. However, there are some reasons investors ought to tamp down their enthusiasm. Can Geron Corp.'s imetelstat overcome obstacles and reshape how doctors treat a billion-dollar indication?
In this episode of The Motley Fool's Industry Focus: Healthcare , analyst Kristine Harjes is joined by Todd Campbell to discuss what's at stake for Geron and its investors. Also, the two weigh in on bad news that recently caused AbbVie Inc. 's (NYSE: ABBV) shares to tumble. Is AbbVie's stock now a bargain-bin buy?
A full transcript follows the video.
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*Stock Advisor returns as of March 5, 2018
The author(s) may have a position in any stocks mentioned.
This video was recorded on March 28, 2018.
Kristine Harjes: Welcome to Industry Focus , the podcast that dives into a different sector of the stock market every day. Today is March 28th, and this is the Healthcare edition of the show. I'm your host, Kristine Harjes, and I have healthcare specialist Todd Campbell on the line. Welcome to the show, Todd!
Todd Campbell: Hi, Kristine! Happy Wednesday!
Harjes: Happy Wednesday to you, too! We are starting off today's show with a listener email. Isaac wrote to us from Wausau, Wisconsin. I hope I'm saying that correctly. He's a shareholder in Geron, ticker symbol GERN, one of the most volatile companies I have dug into in a while. Which is partnered, ironically, with one of the most stable, Johnson & Johnson. The two have been working on developing a drug called Imetelstat, and a recent surge in optimism has made Geron the best-performing biotech stock so far this year. Todd, what has investors so excited?
Campbell: We have a very, very big binary event that's coming up very quickly for Geron. And we're going to get into all the details behind that. But I think it's kind of coming down to, will this company finally get to the finish line after 20-plus years of existence as a clinical-stage biotech? And it's really going to hinge a lot on a decision that's going to be made in the third quarter by Johnson & Johnson on that lead drug, Imetelstat.
Harjes: Exactly. Geron has been working with Johnson & Johnson on the drug since 2014. Currently, development costs are split 50-50 between the two, and Johnson & Johnson is paying Geron some additional milestones as the drug progresses. It has looked fairly promising so far in the clinic. Particularly recently, Geron's CEO made some statements on their most recent conference call that implied that this drug could be an enormous advancement.
Campbell: I'm sure listeners are going to be on both sides of this, this is a very divisive story, in a way. The background here on this drug, it isn't necessarily a homerun that this thing is going to deliver on the efficacy and safety front, in my opinion, Kristine. There are some dose-limiting toxicities associated with the drug that influenced the dose that was used in the Phase II trial that we're talking about today. There was a clinical trial hold that was put on this drug back in 2014, it was being researched in three different hematological cancers. A clinical hold was put on there for, as the FDA described it, over concerns regarding the reversibility of liver toxicity.
That clinical trial hold was lifted later that year in 2014. But, those trials never restarted. Instead, what ended up happening was, Johnson & Johnson stepped in after the hold just lifted and said, we'll share 50-50 development costs, we'll cut a deal, we'll give you a little bit of money up front and potentially a lot of money on the back end if we decide to take this drug all the way, and let's focus our clinical research instead on myelofibrosis, a disease where there's not many treatment options and there's very poor prognosis. So, in theory, the bar is a little bit lower when it comes to the safety end of things.
And I think the excitement for this drug is, the only medicine out there right now, Kristine, if you can't have a bone marrow transplant, the only medicine out there is Jakafi, which is made by Incyte , it's a billion-dollar drug. The knock against Jakafi is, it just treats the symptoms. It doesn't treat the cause of the disease. And the thinking here is, this drug will be different, this drug will actually help to reduce the fibrosis that occurs in the bone marrow and causes red blood cells to have to be produced in the spleen and liver.
Harjes: Exactly. Right now, there's a 75% discontinuation rate for Jakafi after five years. Post-discontinuation median overall survival is just 7-16 months. So, the hope here is, this drug could provide a second line of therapy after patients have already failed on Jakafi. Currently, it's being studied in a Phase II trial, so about 100 patients who have already failed Jakafi. This is a fairly large and burdensome disease. There are 3,000 patients that are diagnosed in the U.S. annually, but as you mentioned, Todd, it is a very important disease to be looking into because it has such a poor prognosis.
You mentioned earlier that there were some safety concerns with this drug in prior studies and other indications. I do want to add onto that that there was actually a little bit of a safety concern scare in October of 2017, when the FDA put out an information request related to this drug's risk-to-reward ratio in these advanced myelofibrosis patients. This led to an enormous rise in the short interest in Geron, which is people that are betting against the stock. I think that short interest is a large part of the reason why recently we've seen enormous volatility in the share price.
Campbell: Yeah. Just to tease that out a little bit, I think we're looking at this and we're seeing, we have this huge decision that's going to be made by Johnson & Johnson related to the outcomes in this IMbark trial. You would think, if this was a completely great drug that had no problems, J&J would already have signed off on that continuance. It wants to wait until it has all the overall survival data in hand from this Phase II trial before it makes its decision.
I think one of the things that got people excited, Kristine, on Geron's conference call with investors, was the fact that the overall survival data should mature enough in the second quarter, where a decision from Johnson & Johnson will be made in the third quarter. And I think a lot of people looked at a decision by Johnson & Johnson in March to amend the trial and allow for the extension phase, to continue to evaluate patients who were already in it, as a bullish indicator. But, anything can happen here with the overall survival.
I mentioned that the knock against Jakafi is that it treats the symptoms and not the disease. That being said, studies have shown that it does improve overall survival. And you and I have talked about this on the show before, overall survival is the gold standard, that what you want to be able to deliver to really win the marketplace. And Jakafi delivers on that, the overall survival in the compared one study was some five years, it was a 1.5-2 year improvement over patients who didn't receive Jakafi. So, you have a drug that does extend overall survival already on the marketplace.
So then, you look at the "do no harm." Can this new drug secure an FDA approval if it, one, doesn't show really big improvements in spleen volume. That was something that they based the Jakafi approval on, was the reduction in spleen volume. We've seen spleen volume reduction in Imetelstat's trial, but it hasn't been to the same degree as we saw with Jakafi, and actually not to the same degree either as a competing drug that is making its way to the FDA from Celgene (NASDAQ: CELG) . So, there are some question marks here that make the J&J decision a really big uncertainty, a really big binary event. And that does make this an incredibly risky stock.
Harjes: I completely agree. For me, there are three main question marks when I'm looking at this. First thing, Johnson & Johnson has so much money, they could have just bought this company full out if they really wanted to. So, their reluctance to do so makes me also want to hedge my bet when it comes to this company.
Second thing, if we dig into the details of the study itself and what CEO John Scarlett was saying on that conference call that we've been talking about, he points out that they don't yet have median overall survival for the patient pool after 19 months of the trial, which is kind of a good thing. That would seem to imply that the final number for median overall survival would be longer than 19 months. But, the thing is, there's no control arm in this study. Scarlett is comparing the real-world overall survival to the numbers that you're seeing in this trial. And the number that he comes up with for real-world is seven months. And that's a little bit questionable. I give a lot of credit to Stat News, which is one of my favorite biotech sites out there, for picking apart at this, because they raised the point that that seven-month figure is from the original 430 patient group receiving Jakafi as the first line of therapy. The vast majority of those patients didn't receive anything else, presumably because they weren't healthy enough to receive a second line. But those who did receive another line of therapy, whether it was another round of Jakafi or another drug, had median survival of 22 months. So, whether or not Scarlett's comp is legitimate is very dependent on the baseline disease characteristics of the patient pool, meaning, how sick were they? So, which real-world patient pool is actually the most appropriate comparison? And right now, we just don't have that information.
So, combine that with my third question mark, which is that we don't have enough data, either, about the primary endpoints of this trial. Which, as you mentioned earlier, Todd, are actually that shrinking of enlarged spleens and reducing of disease symptoms. We talk a lot about overall survival, but that's only a secondary endpoint, and it's actually listed as the fifth secondary endpoint.
So, given that the last patient dosed in this trial started treatment in October 2016, I feel like we should have better and more robust data about the primary endpoints of the trial by now, but we don't. And when you press the companies for more information, they've been reluctant to give it.
Campbell: I suppose, in fairness, just to give Geron's argument and some of the arguments of bulls who support the company, they're arguing that you're not going to see the same level of spleen reduction because they're dealing with really, really tough-to-treat cases in their trial. These are patients who are resistant, intolerant, now, to Jakafi. They're theoretically in the later stages of their disease. So, that's one argument.
The other argument would be, this is potentially a disease-modifying drug, so the question mark would be -- let's say the safety is clean. And let's say that we did see that 35% of patients have a reduction in spleen volume. We can work with that. It's not as good as the some 50% that we've seen for Celgene's Fedratinib trials or Jakafi, but we can work with that. If it reverses fibrosis, then potentially now you have a drug that can, I don't want to call it a functional cure, but it moves the needle significantly for these patients. And you're talking about life expectancy be measured in years for these patients. So, it will be very interesting to see how this data reads out, because if the data is good, I think it could be transformational. It could also be transformational for the company, because if the data is good and J&J continues it, Geron is going to get a pile of money from Johnson & Johnson.
Harjes: Absolutely. When it all comes down to it, this is a stock that, if all goes well, has tremendous upside. But it's so binary, because they don't have anything else that they're working on. It really just comes down to what happens with this one drug. If it fails, they only have about $100 million in cash and investments sitting on their balance sheet, which isn't quite enough to really make something of the company if this fails.
Wrapping up with what Isaac's question was really asking about, was whether this company is a threat to Celgene. He's already a shareholder. He's considering either buying more shares of Geron or looking at initiating a stake in Celgene. And he kind of put it as an either/ or decision, but I don't want to take the question quite like that, just because I don't think these stocks are comparable, because Imetelstat so clearly defines the future for Geron in a binary all-or-nothing way, whereas Celgene, we've previously described it as an ETF within a single stock just because they have so much going on and so many partnerships across so many indications that they are a much safer way to expose yourself to the biotech industry. But, all that being said, Todd, what are your thoughts on how Geron might potentially change the course of Celgene's future?
Campbell: The first thing I want to say is, I've said this before on the show, diversify, diversify, diversify. Keep that in the back of your mind. Diversify, diversify, diversify. What's really at stake here, or, I think what the listener might be asking is, Celgene made a big purchase earlier this year of Impact Bio to get its hands on a drug called Fedratinib, easy for me to say. That was a drug that was developed by Sanofi for myelofibrosis. Positive Phase II trials showing an improvement in symptom scores and a reduction in spleen volume. Celgene plant on filing for FDA approval of that drug by the middle of this year. So, potentially, that could get on the market by, let's say, early next year, Fedratinib could.
In trials, it did well in both the naive patients and also in Jakafi resistant and intolerant patients. So, to your point, you have Celgene, which is this Goliath -- I love that, the ETF of biotech. So many different hands from so many different companies and so many different drugs in its pipeline. This is just one of those drugs. Imetelstat, if this drug does well in its clinical trials, I don't know how this will shake out with use, you could end up with Jakafi being first line, Fedratinib being second like, and Imetelstat being third line. I don't know how that's going to shake out. We just don't know. So, diversify, diversify, diversify. I really would resist chasing the run-up in Geron's shares right now. I want to see this data. There will be plenty of time to make money. You won't catch, obviously, a massive move, but at least you'll have a lot less risk by waiting.
Harjes: Wise words, Todd. Wise words. Moving onto the second half of our show today, we wanted to talk a little bit about AbbVie. Last time we covered this biotech was after their earnings report. I believe the show date was February 7th, and this drug called Rova-T received just a quick little mention from us. And yet, some news about Rova-T was recently enough to send this $150 billion market cap company down 13% in a single day. That's a drop of $23 billion in market cap.
Campbell: I think investors were pricing AbbVie for perfection. I would call Rova-T one of the three horsemen that could drive future growth. It's part of their strategy to expand themselves or diversify themselves away from Humira, their top-selling autoimmune disease drug, into oncology. You may remember years ago, they bought Pharmacyclics to get their hands on Imbruvica. Rova-T was another drug that they acquired around the same time, with the idea of being able to use that drug to target solid tumor cancers. Expectations have been high for the drug -- as a matter of fact, so high that management was hopeful that a really strong showing in small cell lung cancer would allow it to file for accelerated approval after its Phase 2 trials. Data that came out, recently, however, as you alluded to, wasn't that great. And as a result, they're walking back that idea, and instead they're going to wait for Phase III data to come out.
Harjes: Yeah. So, when they announced the results on March 22nd for this Phase II trial, they said that the drug shrank tumors in 16% of patients, which is roughly in line with chemotherapy historical data. Meanwhile, people were hoping to see something more like a 40% response rate. And, on top of that, about one-third of patients developed fluid in their lungs, which is a pretty problematic side effect. On top of that, another potential negative for why this drug is not necessarily going to displace others in the indication is that it would require testing for its target, which is called DLL3. This is a protein that's found on the surface of about 80% of cancer cells in small cell lung cancer patients. So, when you're comparing this drug to something that's already on the market, like Keytruda or Opdivo, that don't require this additional testing, overall I just don't think there's a lot of optimism left for this drug. Meanwhile, it's not like they're discontinuing the drug. But, I think expectations for it were a lot higher than they are now.
Campbell: There's been some back and forth. It seems like every time they present data on it, everybody goes, "Oh, that's not very good." And sure enough, excitement starts to build and build and build over time for it. Things are made to be seen. I think there's still a big opportunity for this drug in small cell lung cancer, and that's because, if you look at, we talked about bars being set high or low, if you look at late-line small cell lung cancer, Kristine, very limited treatment options. As a matter of fact, if you look at the five-year survival rate, it drops off markedly as you advance in stages in this indication. As a matter of fact, you get to Stage IV small cell lung cancer, I think you're talking a 2-3% five-year survival rate. There's obviously a big need here for new treatment alternatives.
Now, to your point, the data we've seen so far certainly doesn't mean this is going to revolutionize patient treatment. However, it may become an additional tool in the toolbox. I think it's wise for investors to temper their enthusiasm. Management had indicated previously that they think Rova-T can be a $4-5 billion a year drug in peak sales. I don't know where they're going to come up with that number. But I think there's still the possibility of this being a significant drug that could contribute revenue as soon as maybe 2021, depending on when those Phase III trials read out.
Harjes: Yeah. Even if you look at those numbers, $4-5 billion peak annual sales per year, even if you believe them and you think this news will cause the drug from having those potential numbers dropping down to zero because now they might scrap it, I don't see how that justifies a drop of $23 billion in market cap in a single day. Does it make their acquisition of Stemcentrx, which was a $5.8 billion acquisition, seem a little bit less prudent? Maybe. But now I'm looking at this stock, and it's a lot cheaper than it used to be, particularly when you consider that they have a dividend yield that's just under 4%, which for a biotech is fantastic.
Campbell: Yeah, and they had a patent decision late last year that gave them a little bit more breathing room on Humira's patent protection. We've talked in the past that Humira contributes 65% of sales. It's the best-selling drug in the world, about $18 billion a year in revenue from that one drug alone. And it looks like now it won't have to face off against biosimilars until about 2023. So, there's a few years here where AbbVie can advance other drugs to market that may be able to take some of the heat off of it when biosimilars start to eat away at Humira's market share.
This Rova-T was just one of those three drugs that I spend a lot of time looking at. The other ones are Upadacitinib, which is easy for me to say, and Risankizumab -- God, I hate these words. Both of those drugs are theoretically multibillion dollar drugs for autoimmune disease that should have FDA fillings for approval submitted this year. So, there's a lot going on here that could still help boost AbbVie's sales and drive its long-term returns. Like you said, it's a lot cheaper now, too. I think 11X next year's forward earnings estimates, that's pretty reasonable.
Harjes: Yeah. I think the conclusion here is, if you were bullish on AbbVie, this could provide quite an attractive entry point. Todd, thank you so much as always for being here with me today! As usual, people on the program may have interests in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. This show is produced by Austin Morgan. For Todd Campbell, I'm Kristine Harjes. Thanks for listening and Fool on!
Kristine Harjes owns shares of Johnson & Johnson. Todd Campbell owns shares of Celgene. The Motley Fool owns shares of and recommends Celgene and Johnson & Johnson. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Also, the two weigh in on bad news that recently caused AbbVie Inc. 's (NYSE: ABBV) shares to tumble. Is AbbVie's stock now a bargain-bin buy? Moving onto the second half of our show today, we wanted to talk a little bit about AbbVie. | Also, the two weigh in on bad news that recently caused AbbVie Inc. 's (NYSE: ABBV) shares to tumble. Is AbbVie's stock now a bargain-bin buy? Moving onto the second half of our show today, we wanted to talk a little bit about AbbVie. | Also, the two weigh in on bad news that recently caused AbbVie Inc. 's (NYSE: ABBV) shares to tumble. Is AbbVie's stock now a bargain-bin buy? Moving onto the second half of our show today, we wanted to talk a little bit about AbbVie. | Also, the two weigh in on bad news that recently caused AbbVie Inc. 's (NYSE: ABBV) shares to tumble. Is AbbVie's stock now a bargain-bin buy? Moving onto the second half of our show today, we wanted to talk a little bit about AbbVie. |
25585.0 | 2018-03-28 00:00:00 UTC | AbbVie a Top Ranked SAFE Dividend Stock With 4.2% Yield (ABBV) | ABBV | https://www.nasdaq.com/articles/abbvie-top-ranked-safe-dividend-stock-42-yield-abbv-2018-03-28 | nan | nan | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a stock with above-average ''DividendRank'' statistics including a strong 4.2% yield, as well as a superb track record of at least two decades of dividend growth, according to the most recent ''DividendRank'' report.
According to the ETF Finder at ETF Channel , AbbVie Inc is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.18% of the SPDR S&P Dividend ETF ( SDY ), which holds $175,601,068 worth of ABBV shares.
AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. 25" list because of these qualities: S . Solid return - hefty yield and strong DividendRank characteristics; A. Accelerating amount - consistent dividend increases over time; F . Flawless history - never a missed or lowered dividend; E. Enduring - at least two decades of dividend payments.
The annualized dividend paid by AbbVie Inc is $3.84/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 04/12/2018. Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance.
ABBV operates in the Drugs & Pharmaceuticals sector, among companies like Johnson & Johnson ( JNJ ), and Pfizer Inc ( PFE ).
Top 25 S.A.F.E. Dividend Stocks Increasing Payments For Decades »
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. | Below is a long-term dividend history chart for ABBV, which the report stressed as being of key importance. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel , AbbVie Inc is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.18% of the SPDR S&P Dividend ETF ( SDY ), which holds $175,601,068 worth of ABBV shares. | AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel , AbbVie Inc is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.18% of the SPDR S&P Dividend ETF ( SDY ), which holds $175,601,068 worth of ABBV shares. | According to the ETF Finder at ETF Channel , AbbVie Inc is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.18% of the SPDR S&P Dividend ETF ( SDY ), which holds $175,601,068 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. | AbbVie Inc (Symbol: ABBV) has been named to the Dividend Channel ''S.A.F.E. According to the ETF Finder at ETF Channel , AbbVie Inc is a member of the iShares S&P 1500 Index ETF ( ITOT ), and is also an underlying holding representing 1.18% of the SPDR S&P Dividend ETF ( SDY ), which holds $175,601,068 worth of ABBV shares. AbbVie Inc (Symbol: ABBV) made the "Dividend Channel S.A.F.E. |
25586.0 | 2018-03-28 00:00:00 UTC | Validea Peter Lynch Strategy Daily Upgrade Report - 3/28/2018 | ABBV | https://www.nasdaq.com/articles/validea-peter-lynch-strategy-daily-upgrade-report-3282018-2018-03-28 | nan | nan | The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch . This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
ROLLS-ROYCE HOLDING PLC (ADR) ( RYCEY ) is a large-cap value stock in the Aerospace & Defense industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% 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: Rolls-Royce Holdings plc is a United Kingdom-based engineering company. The Company is focused on power and propulsion systems. Its segments include Civil Aerospace, which is engaged in the development, manufacture, marketing and sales of commercial aero engines and aftermarket services; Defence Aerospace, which is engaged in the development, manufacture, marketing and sales of military aero engines and aftermarket services, and caters to sectors, including combat aircraft, trainer aircraft and helicopters; Power Systems, which is engaged in the development, manufacture, marketing and sales of reciprocating engines and power systems; Marine, which is engaged in the development, manufacture, marketing and sales of marine-power propulsion systems and aftermarket services, operating in offshore, merchant and naval markets, and Nuclear, which is engaged in the development, manufacture, marketing and sales of nuclear systems for civil power generation and naval propulsion systems.
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 Peter Lynch changed from 72% to 74% 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
Since its inception, Validea's strategy based on Peter Lynch has returned 408.17% vs. 161.15% for the S&P 500. For more details on this strategy, click here
About Peter Lynch : Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea : Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC ( ABBV ) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. Its segments include Civil Aerospace, which is engaged in the development, manufacture, marketing and sales of commercial aero engines and aftermarket services; Defence Aerospace, which is engaged in the development, manufacture, marketing and sales of military aero engines and aftermarket services, and caters to sectors, including combat aircraft, trainer aircraft and helicopters; Power Systems, which is engaged in the development, manufacture, marketing and sales of reciprocating engines and power systems; Marine, which is engaged in the development, manufacture, marketing and sales of marine-power propulsion systems and aftermarket services, operating in offshore, merchant and naval markets, and Nuclear, which is engaged in the development, manufacture, marketing and sales of nuclear systems for civil power generation and naval propulsion systems. | For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ABBVIE INC ( ABBV ) is a large-cap growth stock in the Biotechnology & Drugs industry. Company Description: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. Its segments include Civil Aerospace, which is engaged in the development, manufacture, marketing and sales of commercial aero engines and aftermarket services; Defence Aerospace, which is engaged in the development, manufacture, marketing and sales of military aero engines and aftermarket services, and caters to sectors, including combat aircraft, trainer aircraft and helicopters; Power Systems, which is engaged in the development, manufacture, marketing and sales of reciprocating engines and power systems; Marine, which is engaged in the development, manufacture, marketing and sales of marine-power propulsion systems and aftermarket services, operating in offshore, merchant and naval markets, and Nuclear, which is engaged in the development, manufacture, marketing and sales of nuclear systems for civil power generation and naval propulsion systems. | 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 today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch . |
25587.0 | 2018-03-27 00:00:00 UTC | How Risky Is AbbVie's Pipeline? | ABBV | https://www.nasdaq.com/articles/how-risky-abbvies-pipeline-2018-03-27 | nan | nan | AbbVie (NYSE: ABBV) continues to reel from its announcement last week of very disappointing results for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). Over one-fifth of the big pharma company's market cap has been wiped out following news of the Rova-T setback, although some of the decline has stemmed from general market anxieties.
It's only natural that investors could be concerned about the risks for AbbVie's other candidates. After all, the clock is ticking for AbbVie to replace revenue that will be lost when top-selling Humira faces biosimilar competition in the U.S. How risky is AbbVie's pipeline? Let's look at its key late-stage candidates by therapeutic area.
Oncology
Some might have already written off Rova-T altogether after the poor phase 2 results of the drug as a third-line treatment of SCLC. I suspect, though, that the drug could still have potential, particularly as part of a combo therapy. AbbVie and Bristol-Myers Squibb are evaluating Rova-T in combination with Opdivo and Yervoy in early-stage studies. Still, AbbVie's best chances in oncology appear to lie elsewhere.
Market research firm EvaluatePharma thinks Imbruvica will be the world's No. 4 best-selling cancer drug by 2022, with sales of $7.5 billion. AbbVie made $2.5 billion from the drug last year, with partner Johnson & Johnson making another $1.9 billion. One way for Imbruvica to reach its potential is to succeed in late-stage studies targeting treatment of diffuse large B-cell lymphoma (DLBCL), follicular lymphoma, and pancreatic cancer. Based on previous clinical-study results, Imbruvica appears to have the best chances of success in the DLBCL indication, with more modest prospects in the other two cancer types.
Venclexta is another important component to AbbVie's oncology hopes. The drug won FDA approval in 2016 for treating chronic lymphocytic leukemia (CLL) with 17p deletion. AbbVie hopes to win additional approvals for Venclexta in treating relapsed or refractory and first-line CLL, acute myeloid leukemia (AML), and multiple myeloma. The company should have pretty good odds of gaining approval at least in the relapsed or refractory CLL indication since late-stage results announced in December 2017 were positive.
AbbVie's other late-stage oncology asset is veliparib. However, the drug isn't considered to be as important for the company after it failed to meet primary endpoints last year in two phase 3 studies targeting treatment of squamous non-small cell lung cancer (NSCLC) and triple-negative breast cancer. AbbVie still has other late-stage studies of veliparib in progress as a treatment for non-squamous non-small cell lung cancer, BRCA1/2 breast cancer, and ovarian cancer.
Immunology
There are two promising late-stage immunology candidates in AbbVie's pipeline -- upadacitinib and risankizumab. Upadacitinib is being evaluated in late-stage studies for treating psoriatic arthritis and rheumatoid arthritis. Risankizumab completed the last of four late-stage studies targeting treatment of psoriatic arthritis.
AbbVie could have big winners with both of these drugs. All four of the pivotal studies of risankizumab in treating psoriatic arthritis demonstrated positive results. The company expects to submit the drug for regulatory approval in the first half of 2018.
Upadacitinib has already performed well in two late-stage studies for treating rheumatoid arthritis. AbbVie expects to report data from a couple of other pivotal studies in the first half of this year. If all goes well, the company will submit upadacitinib for approval in the second half of 2018.
More indications could follow for both immunology drugs. AbbVie should have results from two late-stage studies of upadacitinib in treating psoriatic arthritis next year. It's advancing the drug to a pivotal study in treating atopic dermatitis later in 2018. Upadacitinib is also in phase 2 testing for treatment of ulcerative colitis. And both upadacitinib and risankizumab are being evaluated in phase 2 studies targeting treatment of Crohn's disease.
Other
AbbVie's lone late-stage program outside of the oncology and immunology areas is elagolix. The company and its partner, Neurocrine Biosciences , announced positive results in November from a late-stage study of the drug in management of endometriosis with associated pain. AbbVie hopes to win approval for elagolix in the endometriosis indication in the second quarter of 2018.
The two partners also reported great results a few weeks ago from a second late-stage study of elagolix in treating uterine fibroids, with results from the first study coming less than a month earlier. Both of the studies demonstrated solid efficacy and safety. Additional late-stage studies in the indication are still in progress.
Risks great and small
In my view, elagolix is the least risky asset in AbbVie's pipeline. I expect FDA approval for the drug in treating endometriosis within a few months. And while potential approval for treatment of uterine fibroids is farther out, my take is that the chances for elagolix should be pretty good. AbbVie CFO Bill Chase recently stated that "even in a worst-case scenario, [elagolix] is clearly a $1 billion plus asset." I suspect that Chase is right.
Next on the risk scale, in my opinion, are AbbVie's two immunology candidates, upadacitinib and risankizumab. Upadacitinib is likely to become the bigger commercial success, but both drugs could easily be megablockbusters.
AbbVie's riskiest area is, unsurprisingly, oncology. I feel pretty good about Imbruvica's and Venclexta's prospects in securing additional indications. However, it wouldn't be shocking for either or both drugs to stumble in at least one indication. As for Rova-T, there's still a possibility the drug could succeed -- but you have to consider this drug as AbbVie's weakest link right now.
Perhaps the biggest risk of all with AbbVie's pipeline is that the company's management has a tendency to overpromise. For example, AbbVie has talked about peak sales potential for Imbruvica of $7 billion, but the jury is definitely still out on that target. And previous skepticism about AbbVie's prediction of $5 billion in sales for Rova-T certainly now seems to be justified.
Still, AbbVie has a very promising pipeline. I continue to view the stock as a buy at current levels. As is the case with any biopharmaceutical stock, though, it's important that investors be aware of the risks.
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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 (NYSE: ABBV) continues to reel from its announcement last week of very disappointing results for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). AbbVie hopes to win additional approvals for Venclexta in treating relapsed or refractory and first-line CLL, acute myeloid leukemia (AML), and multiple myeloma. It's only natural that investors could be concerned about the risks for AbbVie's other candidates. | AbbVie still has other late-stage studies of veliparib in progress as a treatment for non-squamous non-small cell lung cancer, BRCA1/2 breast cancer, and ovarian cancer. AbbVie (NYSE: ABBV) continues to reel from its announcement last week of very disappointing results for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). It's only natural that investors could be concerned about the risks for AbbVie's other candidates. | AbbVie still has other late-stage studies of veliparib in progress as a treatment for non-squamous non-small cell lung cancer, BRCA1/2 breast cancer, and ovarian cancer. AbbVie should have results from two late-stage studies of upadacitinib in treating psoriatic arthritis next year. AbbVie (NYSE: ABBV) continues to reel from its announcement last week of very disappointing results for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). | Risks great and small In my view, elagolix is the least risky asset in AbbVie's pipeline. Next on the risk scale, in my opinion, are AbbVie's two immunology candidates, upadacitinib and risankizumab. AbbVie (NYSE: ABBV) continues to reel from its announcement last week of very disappointing results for rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). |
25588.0 | 2018-03-26 00:00:00 UTC | The Zacks Analyst Blog Highlights: AbbVie, J&J, Heron Therapeutics, Roche and Pfizer | ABBV | https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-abbvie-jj-heron-therapeutics-roche-and-pfizer-2018-03 | nan | nan | For Immediate Release
Chicago, IL - March 26, 2018 - 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 AbbVieABBV , J&JJNJ , Heron TherapeuticsHRTX , RocheRHHBY and PfizerPFE .
Here are highlights from Friday's Analyst Blog:
Pharma Stock Roundup: ABBV, JNJ, HRTX and More
Discouraging results from a phase II study evaluating AbbVie's promising cancer candidate rovalpituzumab tesirine or Rova-T in third-line or later small cell lung cancer ("SCLC") grabbed headlines this week. Other news included a purchase offer for J&J's diabetes device unit and successful study results announced by Heron Therapeutics and Roche.
Recap of the Week's Most Important Stories
AbbVie's Rova-T Falls Short in Key Lung Cancer Study: AbbVie's promising cancer candidate, rovalpituzumab tesirine or Rova-T fell short of expectations in a phase II TRINITY study evaluating it in third-line or later small cell lung cancer (SCLC). AbbVie said it will not seek accelerated approval of Rova-T in the third-line setting after consulting with the FDA. Rova-T was added to AbbVie's portfolio, following the $5.8 billion acquisition of Stemcentrx in June 2016. AbbVie had significant confidence in Rova-T's potential. The failure of TRINITY has raised skepticism on Rova-T's potential and has brought into question the viability of the Stemcentrx deal. (Read More: AbbVie Stock Falls on Weak Lung Cancer Study Outcome )
J&J Gets $2.1B Offer for LifeScan Unit : J&J said it has received a $2.1 billion binding offer from a private equity firm, Platinum Equity, for its LifeScan diabetes device unit. J&J has time until Jun 15to accept the offer, failing which it will expire. J&J has been evaluating potential strategic options for its Diabetes Care units specifically, LifeScan, Animas Corporation, and Calibra Medical since early last year. (Read More: J&J Gets $2.1B Offer for LifeScan Diabetes Device Unit )
Pfizer Gets FDA's Priority Review to Expand Label of Xtandi: Pfizer and its Japanese partner Astellas gained FDA's priority review for a regulatory filing, which was looking to expand the label of its prostate cancer drug Xtandi to include an early-stage patient population. The regulatory applications to add the non-metastatic Castration-Resistant Prostate Cancer ("CRPC") indication to the drug's label were based on the results of the PROSPER study on Xtandi. With the FDA granting priority review, a decision is expected in July. (Read More: Pfizer's Xtandi Label Expansion Filing Gets Priority Review ).
Meanwhile, British company Reckitt Benckiser Group pulled out of the discussion with Pfizer to buy the latter's Consumer Health segment. Last October, Pfizer had said that it was exploring strategic alternatives for its Consumer Healthcare segment including a partial or a full separation through a spin-off, sale or other transaction. A decision regarding the same is expected to be made this year and it may ultimately opt to retain the business. Glaxo also said it has withdrawn from the race to buy Pfizer's unit.
Heron's HTX-011 Succeeds in Phase III: Heron Therapeutics' pipeline candidate, HTX-011 met the primary endpoint in two pivotal phase III studies, evaluating it in post-operative pain control, following bunionectomy and hernia repair, respectively. Top-line data from both the studies showed that treatment with HTX-011 led to statistically significant reductions in pain intensity and opoid use through 72 hours following surgery. The candidate was also superior to bupivacaine solution, which is the current standard-of care local anesthetic for postoperative pain control. (Read More: Heron's Pain Candidate Meets Endpoint in Pivotal Studies
Roche's Tecentriq Succeeds in Lung Cancer Combo Study: Roche's Tecentriq met the co-primary endpoint of progression-free survival in a phase III study, evaluating the PD-L1 inhibitor in combination with chemotherapy (carboplatin and Abraxane) for the first-line treatment of advanced squamous non-small cell lung cancer (NSCLC). Tecentriq is already marketed for the treatment of second-line metastatic NSCLC. Label expansion in the first line setting should boost the drug's sales further. However, Roche awaits overall survival data and the study will continue.(Read More: Roche Tecentriq Phase III Combo Study Meets Primary Endpoint ).
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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. | Stocks recently featured in the blog include AbbVieABBV , J&JJNJ , Heron TherapeuticsHRTX , RocheRHHBY and PfizerPFE . Here are highlights from Friday's Analyst Blog: Pharma Stock Roundup: ABBV, JNJ, HRTX and More Discouraging results from a phase II study evaluating AbbVie's promising cancer candidate rovalpituzumab tesirine or Rova-T in third-line or later small cell lung cancer ("SCLC") grabbed headlines this week. Recap of the Week's Most Important Stories AbbVie's Rova-T Falls Short in Key Lung Cancer Study: AbbVie's promising cancer candidate, rovalpituzumab tesirine or Rova-T fell short of expectations in a phase II TRINITY study evaluating it in third-line or later small cell lung cancer (SCLC). | Recap of the Week's Most Important Stories AbbVie's Rova-T Falls Short in Key Lung Cancer Study: AbbVie's promising cancer candidate, rovalpituzumab tesirine or Rova-T fell short of expectations in a phase II TRINITY study evaluating it in third-line or later small cell lung cancer (SCLC). Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Heron Therapeutics, Inc. (HRTX): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include AbbVieABBV , J&JJNJ , Heron TherapeuticsHRTX , RocheRHHBY and PfizerPFE . | Recap of the Week's Most Important Stories AbbVie's Rova-T Falls Short in Key Lung Cancer Study: AbbVie's promising cancer candidate, rovalpituzumab tesirine or Rova-T fell short of expectations in a phase II TRINITY study evaluating it in third-line or later small cell lung cancer (SCLC). Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Heron Therapeutics, Inc. (HRTX): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include AbbVieABBV , J&JJNJ , Heron TherapeuticsHRTX , RocheRHHBY and PfizerPFE . | Stocks recently featured in the blog include AbbVieABBV , J&JJNJ , Heron TherapeuticsHRTX , RocheRHHBY and PfizerPFE . Here are highlights from Friday's Analyst Blog: Pharma Stock Roundup: ABBV, JNJ, HRTX and More Discouraging results from a phase II study evaluating AbbVie's promising cancer candidate rovalpituzumab tesirine or Rova-T in third-line or later small cell lung cancer ("SCLC") grabbed headlines this week. Recap of the Week's Most Important Stories AbbVie's Rova-T Falls Short in Key Lung Cancer Study: AbbVie's promising cancer candidate, rovalpituzumab tesirine or Rova-T fell short of expectations in a phase II TRINITY study evaluating it in third-line or later small cell lung cancer (SCLC). |
25589.0 | 2018-03-26 00:00:00 UTC | Monday's ETF with Unusual Volume: XMX | ABBV | https://www.nasdaq.com/articles/mondays-etf-unusual-volume-xmx-2018-03-26 | nan | nan | The WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Monday, with over 1.1 million shares traded versus three month average volume of about 50,000. Shares of XMX were down about 0.3% on the day.
Components of that ETF with the highest volume on Monday were Facebook ( FB ), trading off about 2.1% with over 89.7 million shares changing hands so far this session, and General Electric ( GE ), off about 1.9% on volume of over 56.5 million shares. Microsoft ( MSFT ) is the component faring the best Monday, higher by about 6% on the day, while Abbvie ( ABBV ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 5.2%.
VIDEO: Monday's ETF with Unusual Volume: XMX
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. | Microsoft ( MSFT ) is the component faring the best Monday, higher by about 6% on the day, while Abbvie ( ABBV ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 5.2%. The WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Monday, with over 1.1 million shares traded versus three month average volume of about 50,000. Components of that ETF with the highest volume on Monday were Facebook ( FB ), trading off about 2.1% with over 89.7 million shares changing hands so far this session, and General Electric ( GE ), off about 1.9% on volume of over 56.5 million shares. | Microsoft ( MSFT ) is the component faring the best Monday, higher by about 6% on the day, while Abbvie ( ABBV ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 5.2%. The WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Monday, with over 1.1 million shares traded versus three month average volume of about 50,000. VIDEO: Monday's ETF with Unusual Volume: XMX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | Microsoft ( MSFT ) is the component faring the best Monday, higher by about 6% on the day, while Abbvie ( ABBV ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 5.2%. The WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Monday, with over 1.1 million shares traded versus three month average volume of about 50,000. Components of that ETF with the highest volume on Monday were Facebook ( FB ), trading off about 2.1% with over 89.7 million shares changing hands so far this session, and General Electric ( GE ), off about 1.9% on volume of over 56.5 million shares. | Microsoft ( MSFT ) is the component faring the best Monday, higher by about 6% on the day, while Abbvie ( ABBV ) is lagging other components of the WisdomTree Global ex-Mexico Equity Fund ETF, trading lower by about 5.2%. The WisdomTree Global ex-Mexico Equity Fund ETF ( XMX ) is seeing unusually high volume in afternoon trading Monday, with over 1.1 million shares traded versus three month average volume of about 50,000. Shares of XMX were down about 0.3% on the day. |
25590.0 | 2018-03-23 00:00:00 UTC | 5 Dividend Aristocrats Where Analysts See Capital Gains | ABBV | https://www.nasdaq.com/articles/5-dividend-aristocrats-where-analysts-see-capital-gains-2018-03-23 | nan | nan | To become a "Dividend Aristocrat," a dividend paying company must accomplish an incredible feat: consistently increase shareholder dividends every year for at least 20 consecutive years. Companies with this kind of track record tend to attract a lot of investor attention - and furthermore, "tracking" funds that follow the Dividend Aristocrats Index must own them. With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets.
But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. Which means, if the analysts are correct, these are five dividend growth stocks that could produce capital gains in addition to their growing dividend payments.
In the first table below, we present the five stocks. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented.
The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period - so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential:
Another consideration with dividend growth stocks is just how much the dividend is growing . We looked up the trailing twelve months worth of dividends shareholders of each of the above five companies have collected, and then also looked up the same number for the prior trailing twelve months. This gives us a rough yardstick to see how much the dividend has grown, from one trailing twelve month period to another.
These five stocks are part of our full Dividend Aristocrats List . The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com .
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Dividend Growth Stocks: 25 Aristocrats »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | With all of this demand for shares, dividend growth stocks can sometimes become "fully priced," where there isn't much upside to analyst targets. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: Another consideration with dividend growth stocks is just how much the dividend is growing . Get the latest Zacks research report on KMB - FREE Get the latest Zacks research report on ATR - FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period - so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. Get the latest Zacks research report on KMB - FREE Get the latest Zacks research report on ATR - FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The average 12-month analyst targets are only targets for the share price however, and each of these stocks are expected to pay dividends during that holding period - so the expected total return if these stocks reach their analyst targets is actually the share price upside seen by the analysts plus the dividend yield shareholders can expect. To ballpark that total return potential, we have added the current yield to the analyst target price upside, in order to arrive at the 12-month total return potential: Another consideration with dividend growth stocks is just how much the dividend is growing . | But we here at ETF Channel have looked through the underlying holdings of the SPDR S&P Dividend ETF (which tracks the S&P High Yield Dividend Aristocrats Index), and found these five dividend growth stocks that actually still have fairly substantial upside to the average analyst target price 12 months out. The recent share price, average analyst 12-month target price, and percentage upside to reach the analyst target are presented. Get the latest Zacks research report on KMB - FREE Get the latest Zacks research report on ATR - FREE Dividend Growth Stocks: 25 Aristocrats » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. |
25591.0 | 2018-03-23 00:00:00 UTC | Cancer Space Roundup: NVS' Tasigna & SGEN's Adcetris Label Expansions in Focus | ABBV | https://www.nasdaq.com/articles/cancer-space-roundup%3A-nvs-tasigna-sgens-adcetris-label-expansions-in-focus-2018-03-23 | nan | nan | The cancer space saw label expansion of two major drugs this week. Seattle Genetics, Inc.'s SGEN , Adcetris label was expanded to include treatment naive patients with advanced Hodgkin lymphoma (cHL). Novartis' NVS Tasigna received approval for use in pediatric patients, one year of age or older.
Meanwhile, the FDA granted priority review to Pfizer's PFE regulatory application seeking label expansion of Xtandi to include an early-stage patient population. Roche Holding AG's RHHBY PD-L1 inhibitor, Tecentriq, met primary endpoint in a phase III lung cancer combination study. However, AbbVie ABBV announced disappointing results from a mid-stage study evaluating its lung cancer candidate, Rovalpituzumab Tesirine (Rova-T).
Let's see the news in details.
Seattle Genetics' Adcetris Label Expansion: The FDA approved a supplemental Biologics License Application (sBLA) seeking label expansion of Seattle Genetics' Adcetris in treatment-naive stage III or IV cHL patients. The drug was approved in combination with a chemotherapy regimen, AVD (Adriamycin, vinblastine and dacarbazine), based on statistically significant improvement in progression-free survival data from phase III ECHELON-1 study. The study compared Adcetris combination regimen with the current standard of care. (Read more :Seattle Genetics' Adcetris Gets FDA Nod for Label Expansion ).
Seattle Genetics, Inc. Price
Seattle Genetics, Inc. Price | Seattle Genetics, Inc. Quote
Novartis's Tasigna Label Expanded in Pediatric Patients: Novartis announced that the FDA has approved a line extension of its leukemia drug, Tasigna, in pediatric patients one year of age or older with Philadelphia chromosome-positive chronic myeloid leukemia in the chronic phase. The drug received approval in first- and second-line setting in this patient population. The drug is already available for adults in this indication.
The approval was based on data from two studies evaluating Tasigna in patients in the age group of 2 years to 18 years. Data showed that the major molecular response (MMR) rate was 60% and 40.9% in newly diagnosed patients and patients resistant to prior therapy, respectively.
Novartis AG Price
Novartis AG Price | Novartis AG Quote
Pfizer's sBLA for Xtandi Gets Priority Review: The FDA granted priority review to a sBLA for Pfizer's prostate cancer drug, Xtandi. Pfizer is looking to include the non-metastatic Castration-Resistant Prostate Cancer indication in the drug's label. The regulatory status was granted based on data from the phase III PROSPER study. A decision from the FDA is expected in July this year. (Read more: Pfizer's Xtandi Label Expansion Filing Gets Priority Review ).
Pfizer Inc. Price
Pfizer Inc. Price | Pfizer Inc. Quote
Roche's Tecentriq Meets Primary Endpoint: Roche's subsidiary Genentech announced that Tecentriq in combination with chemotherapy (carboplatin and Abraxane) reduced the risk of disease worsening or death compared with chemotherapy alone in the phase III IMpower131 study. The study was evaluating the combo regimen in patients with advanced squamous non-small cell lung cancer. However, the study will be continued as statistically significant overall survival benefit was not achieved. (Read more: Roche Tecentriq Phase III Combo Study Meets Primary Endpoint ).
Roche Holding AG Price
Roche Holding AG Price | Roche Holding AG Quote
AbbVie's Rova-T Fails in Phase II Study: AbbVie shares crashed on Thursday, following the announcement of disappointing results from a pivotal phase II study evaluating Rova-T in third-line or later small cell lung cancer. The study evaluated the candidate in SCLC patients with high expression of the protein DLL3 and who have received at least two previous treatment regimens, including at least one platinum-based regimen.
The results did not meet expectations and were not significant enough for the candidate to be prioritized for accelerated approval. However, two phase III studies evaluating Rova-T in first- and second-line settings for the SCLC are ongoing. ( Read more:AbbVie Stock Falls on Weak Lung Cancer Study Outcome )
During the week, AbbVie collaborated with the International Myeloma Foundation to conduct a landmark retrospective chart review study. The study will evaluate the overall survival of patients with multiple myeloma.
AbbVie Inc. Price
AbbVie Inc. Price | AbbVie Inc. Quote
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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, AbbVie ABBV announced disappointing results from a mid-stage study evaluating its lung cancer candidate, Rovalpituzumab Tesirine (Rova-T). Roche Holding AG Price Roche Holding AG Price | Roche Holding AG Quote AbbVie's Rova-T Fails in Phase II Study: AbbVie shares crashed on Thursday, following the announcement of disappointing results from a pivotal phase II study evaluating Rova-T in third-line or later small cell lung cancer. ( Read more:AbbVie Stock Falls on Weak Lung Cancer Study Outcome ) During the week, AbbVie collaborated with the International Myeloma Foundation to conduct a landmark retrospective chart review study. | Roche Holding AG Price Roche Holding AG Price | Roche Holding AG Quote AbbVie's Rova-T Fails in Phase II Study: AbbVie shares crashed on Thursday, following the announcement of disappointing results from a pivotal phase II study evaluating Rova-T in third-line or later small cell lung cancer. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Seattle Genetics, Inc. (SGEN): Free Stock Analysis Report To read this article on Zacks.com click here. However, AbbVie ABBV announced disappointing results from a mid-stage study evaluating its lung cancer candidate, Rovalpituzumab Tesirine (Rova-T). | Roche Holding AG Price Roche Holding AG Price | Roche Holding AG Quote AbbVie's Rova-T Fails in Phase II Study: AbbVie shares crashed on Thursday, following the announcement of disappointing results from a pivotal phase II study evaluating Rova-T in third-line or later small cell lung cancer. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Novartis AG (NVS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Seattle Genetics, Inc. (SGEN): Free Stock Analysis Report To read this article on Zacks.com click here. However, AbbVie ABBV announced disappointing results from a mid-stage study evaluating its lung cancer candidate, Rovalpituzumab Tesirine (Rova-T). | Roche Holding AG Price Roche Holding AG Price | Roche Holding AG Quote AbbVie's Rova-T Fails in Phase II Study: AbbVie shares crashed on Thursday, following the announcement of disappointing results from a pivotal phase II study evaluating Rova-T in third-line or later small cell lung cancer. However, AbbVie ABBV announced disappointing results from a mid-stage study evaluating its lung cancer candidate, Rovalpituzumab Tesirine (Rova-T). ( Read more:AbbVie Stock Falls on Weak Lung Cancer Study Outcome ) During the week, AbbVie collaborated with the International Myeloma Foundation to conduct a landmark retrospective chart review study. |
25592.0 | 2018-03-23 00:00:00 UTC | Is AbbVie Still a Buy After Its Rova-T Setback? | ABBV | https://www.nasdaq.com/articles/abbvie-still-buy-after-its-rova-t-setback-2018-03-23 | nan | nan | AbbVie (NYSE: ABBV) enjoyed a nice streak of mainly positive news over the last six months. From striking a deal to hold off U.S. biosimilar competition for Humira to positive clinical updates to solid quarterly results, the big pharma was on a roll. That ended earlier this month when AbbVie and partner Biogen announced they were pulling Zinbryta from the market as a treatment for relapsing multiple sclerosis. Then things got worse this week.
On Thursday, AbbVie announced results from a phase 2 study evaluating rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). Those results were disappointing, with the company opting to not seek accelerated approval for Rova-T in the third-line SCLC indication. AbbVie stock subsequently plunged 13%. But is AbbVie still a buy after this Rova-T setback?
Bad news, but how bad?
AbbVie didn't release all of the data from the phase 2 study of Rova-T. More details will be presented at the American Society of Clinical Oncology (ASCO) meeting in June. But what the company did announce sounded pretty bad.
The best overall response rate for patients taking Rova-T measured by trial investigators was 29%. The objective response rate using established criteria for solid tumors was 16% -- well below the typical minimum level needed for regulatory approval. Median overall survival was 5.6 months.
To add insult to injury, AbbVie included an asterisk to the results that noted that the data represented 74% of the patients participating in the study with high DLL3 (delta-like protein 3) expression. Rova-T specifically targets tumor cells that express DLL3. Only including the patients with high expression of DLL3 basically amounted to cherry-picking the data.
So the news is really bad -- perhaps even worse than it appears at first glance. But just how bad? That remains to be seen. AbbVie stated that two phase 3 studies evaluating Rova-T as first-line and second-line treatments for SCLC will continue. Mike Severino, AbbVie's executive vice president of research and development and chief scientific officer, said that the company "continue[s] to believe Rova-T has potential for patients with small cell lung cancer and other DLL3-expressing cancers."
Assuming the worst
The worst-case scenario for AbbVie is that those late-stage studies of Rova-T stink just as much as the phase 2 results in third-line SCLC did. If that happens, the company's $5.8 billion up-front sum paid to buy Stemcentrx in 2016 will largely go down the toilet. The Stemcentrx deal did bring four other clinical compounds into AbbVie's pipeline, but Rova-T was the most advanced and most promising.
Losing Rova-T would be a significant blow for AbbVie. In mid-2017, market research firm EvaluatePharma ranked the drug No. 4 out of all pipeline candidates in the biopharmaceutical industry. It was AbbVie's highest-ranked pipeline asset.
At the J.P. Morgan Healthcare Conference earlier this year, AbbVie CEO Rick Gonzalez stated that the company projects $35 billion in risk-adjusted non-Humira revenue and $47 billion in nominal revenue by 2025. He listed Rova-T as one of the key drugs that AbbVie was counting on to achieve that goal.
Based on previous statements made by AbbVie executives, the company targeted peak annual sales for Rova-T of $5 billion. This figure was based on the drug winning approval in all lines of SCLC. If Rova-T winds up being a total bust, AbbVie will come in more than 10% below its announced non-Humira revenue projection for 2025.
The bigger picture
AbbVie lost nearly $22 billion from its market cap on Thursday following the disappointing news for Rova-T. However, not all of that decline was due to the clinical study update. The stock market in general fell significantly on fears of a potential trade war resulting from the Trump administration unveiling new tariffs.
In my view, investors should take a deep breath and look at the bigger picture for AbbVie. Are the company's 2025 projections overly optimistic? Yes. But can AbbVie still generate nice earnings growth? Yes, again.
First, it's jumping the gun to assume that the company will have to throw in the towel completely on Rova-T. More importantly, AbbVie has several other current products and pipeline candidates that should help the company grow. There's Imbruvica, new hepatitis C drug Mavyret, and cancer drug Venclexta already in Abbvie's lineup. The pipeline includes promising endometriosis and uterine fibroid drug elagolix, and autoimmune disease drugs risankizumab and upadacitinib.
Even if we cut out potential sales for Rova-T altogether and shaved another $5 billion of AbbVie's 2025 non-Humira risk-adjusted revenue projection for good measure, the resulting amount of $25 billion would still be close to the $28.2 billion the company made in total last year.
And sales for Humira won't disappear overnight when biosimilar competition hits the U.S. market in 2023. Judging from Johnson & Johnson 's experience with Remicade, AbbVie will face a gradual decline over several years. Humira will still generate plenty of money for the company well into the next decade.
The company could also acquire de-risked assets to fuel growth. AbbVie CFO Bill Chase stated recently that the company didn't need to make any major acquisitions, thanks to its current lineup and pipeline prospects. However, the latest news for Rova-T could change that perspective.
AbbVie's announcement on Thursday was definitely very bad news for the company. But with shares now trading at just over 11 times expected earnings and plenty of bright spots elsewhere, it could mean good news for investors looking to buy the pharma stock.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | On Thursday, AbbVie announced results from a phase 2 study evaluating rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). To add insult to injury, AbbVie included an asterisk to the results that noted that the data represented 74% of the patients participating in the study with high DLL3 (delta-like protein 3) expression. AbbVie CFO Bill Chase stated recently that the company didn't need to make any major acquisitions, thanks to its current lineup and pipeline prospects. | On Thursday, AbbVie announced results from a phase 2 study evaluating rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). At the J.P. Morgan Healthcare Conference earlier this year, AbbVie CEO Rick Gonzalez stated that the company projects $35 billion in risk-adjusted non-Humira revenue and $47 billion in nominal revenue by 2025. Even if we cut out potential sales for Rova-T altogether and shaved another $5 billion of AbbVie's 2025 non-Humira risk-adjusted revenue projection for good measure, the resulting amount of $25 billion would still be close to the $28.2 billion the company made in total last year. | On Thursday, AbbVie announced results from a phase 2 study evaluating rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). Even if we cut out potential sales for Rova-T altogether and shaved another $5 billion of AbbVie's 2025 non-Humira risk-adjusted revenue projection for good measure, the resulting amount of $25 billion would still be close to the $28.2 billion the company made in total last year. AbbVie's announcement on Thursday was definitely very bad news for the company. | On Thursday, AbbVie announced results from a phase 2 study evaluating rovalpituzumab tesirine (Rova-T) as a third-line treatment for relapsed/refractory small cell lung cancer (SCLC). AbbVie's announcement on Thursday was definitely very bad news for the company. AbbVie (NYSE: ABBV) enjoyed a nice streak of mainly positive news over the last six months. |
25593.0 | 2018-03-23 00:00:00 UTC | AbbVie (ABBV) Stock Falls on Weak Lung Cancer Study Outcome | ABBV | https://www.nasdaq.com/articles/abbvie-abbv-stock-falls-on-weak-lung-cancer-study-outcome-2018-03-23 | nan | nan | AbbVie, Inc.ABBV announced disappointing results from a pivotal phase II study, evaluating its promising cancer candidate rovalpituzumab tesirine or Rova-T in third-line or later small cell lung cancer (SCLC).
AbbVie said it will not seek accelerated approval of Rova-T in the third-line SCLC setting after consulting with the FDA.
AbbVie's stock crashed more than 12% on Thursday in response to the news. The stock has returned 2.1% this year so far, comparing favorably with a decrease of 0.2% recorded by the industry .
The TRINITY study is a single-arm study without a comparator. It is evaluating the efficacy of Rova-T for the treatment of patients with relapsed/refractory SCLC with high expression of the protein DLL3 and who have received at least two previous treatment regimens, including at least one platinum-based regimen. SCLC is characterized by poor outcomes with very few treatment choices available.
In the study, the best overall response rate was 29% while the objective response rate was only 16%. The median duration of response was 4.1 months. The median overall survival rate was 5.6 months while the probability of survival at 12 months was 17.5%. The results were much lower than what the company had hoped for and not significant enough to be prioritized for accelerated approval.
However, phase III studies of Rova-T in the first- and second-line settings, MERU and TAHOE, respectively, are ongoing. However, investor concerns about the success of these remaining studies increases after the failure of TRINITY.
Rova-T was added to AbbVie's portfolio following the $5.8 billion acquisition of Stemcentrx in June 2016. AbbVie had significant confidence in Rova-T's potential and believed the candidate had blockbuster potential. AbbVie had, in the past, guided peak sales for Rova-T at $5 billion. The failure of TRINITY has raised scepticism on Rova-T's potential and has brought into question the viability of the Stemcentrx deal. Rova-T is also being evaluated in an early-stage eight-arm "basket study" in neuroendocrine tumors.
Rova-T was a key candidate in AbbVie's oncology pipeline. AbbVie's key cancer drug at present is Imbruvica, marketed in partnership with J&J JNJ . Imbruvica, currently approved for quite a few indications, has multi-billion dollar potential and AbbVie is exploring the potential to expand Imbruvica's label into solid tumors and autoimmune diseases.
AbbVie is also conducting studies on another cancer drug, Venclyxto/Venclexta to expand the label to address the broader relapsed/refractory chronic lymphocytic leukemia (CLL) patient population, expand into earlier lines of therapy, and broaden into other hematologic malignancies like multiple myeloma and AML. Data from the phase III MURANO study of Venclexta plus Roche's RHHBY Rituxan in relapse/refractory CLL presented in September last year showed that the combination led to a profound improvement in progression free survival compared to Teva Pharma's TEVA Treanda plus Rituxan. Regulatory applications seeking approval for this combination use are under review in the United States.
AbbVie 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. | AbbVie is also conducting studies on another cancer drug, Venclyxto/Venclexta to expand the label to address the broader relapsed/refractory chronic lymphocytic leukemia (CLL) patient population, expand into earlier lines of therapy, and broaden into other hematologic malignancies like multiple myeloma and AML. AbbVie, Inc.ABBV announced disappointing results from a pivotal phase II study, evaluating its promising cancer candidate rovalpituzumab tesirine or Rova-T in third-line or later small cell lung cancer (SCLC). AbbVie said it will not seek accelerated approval of Rova-T in the third-line SCLC setting after consulting with the FDA. | AbbVie said it will not seek accelerated approval of Rova-T in the third-line SCLC setting after consulting with the FDA. Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie, Inc.ABBV announced disappointing results from a pivotal phase II study, evaluating its promising cancer candidate rovalpituzumab tesirine or Rova-T in third-line or later small cell lung cancer (SCLC). | AbbVie, Inc.ABBV announced disappointing results from a pivotal phase II study, evaluating its promising cancer candidate rovalpituzumab tesirine or Rova-T in third-line or later small cell lung cancer (SCLC). Click to get this free report Roche Holding AG (RHHBY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report To read this article on Zacks.com click here. AbbVie said it will not seek accelerated approval of Rova-T in the third-line SCLC setting after consulting with the FDA. | AbbVie said it will not seek accelerated approval of Rova-T in the third-line SCLC setting after consulting with the FDA. AbbVie, Inc.ABBV announced disappointing results from a pivotal phase II study, evaluating its promising cancer candidate rovalpituzumab tesirine or Rova-T in third-line or later small cell lung cancer (SCLC). AbbVie's stock crashed more than 12% on Thursday in response to the news. |
25594.0 | 2018-03-22 00:00:00 UTC | Why Is AbbVie (ABBV) Stock Crashing Today? | ABBV | https://www.nasdaq.com/articles/why-abbvie-abbv-stock-crashing-today-2018-03-22 | nan | nan | Shares of pharmaceutical behemoth AbbVie Inc. ABBV dropped more than 11% in early morning trading Thursday after the company's Rova-T program reported disappointing mid-stage results, forcing the drugmaker to abandon plans to seek accelerated approval for the treatment.
AbbVie was hopeful that its Rova-T, or rovalpituzumab tesirine, therapy would qualify for accelerated approval to treat third-line refractory small cell lung cancer, but the company has shifted its focus based on a phase 2 trial and the resulting "magnitude of effect across multiple parameters."
The decision was made after consulting with the Food and Drug Administration, the company said. Nevertheless, AbbVie said that it does still believe the drug has potential in small cell lung cancer and other cancers with the DLL3 protein. Rova-T continues to be tested in phase 3 trials for first-line and second-line small cell lung cancer.
But investors appear to be disappointed with today's news based on the scale of AbbVie's investment in Rova-T. AbbVie acquired the drug in a $5.8 billion deal for Stemcentrix back in 2016. Rova-T was the purchased firm's lead asset at the time.
Today's selloff adds to recent headaches for AbbVie, which has seen its share price slump by nearly 20% since reaching new highs in late January. However, the pharmaceutical stock is still up over 50% within the past year.
Analyst sentiment has also been relatively solid for AbbVie recently. The company has witnessed 11 positive revisions for its full-year earnings estimates within the past 60 days, lifting our Zacks Consensus Estimate by 92 cents over that time. Still, a pair of negative revisions has kept the stock at a Zacks Rank #3 (Hold).
Regardless, 2018 is expected to be a year of aggressive top and bottom line growth for the North Chicago, Illinois-based company. Based on current consensus projections, Abbvie is on track to witness EPS growth of 34% and revenue growth of 14% this 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. | Shares of pharmaceutical behemoth AbbVie Inc. ABBV dropped more than 11% in early morning trading Thursday after the company's Rova-T program reported disappointing mid-stage results, forcing the drugmaker to abandon plans to seek accelerated approval for the treatment. AbbVie was hopeful that its Rova-T, or rovalpituzumab tesirine, therapy would qualify for accelerated approval to treat third-line refractory small cell lung cancer, but the company has shifted its focus based on a phase 2 trial and the resulting "magnitude of effect across multiple parameters." Today's selloff adds to recent headaches for AbbVie, which has seen its share price slump by nearly 20% since reaching new highs in late January. | Nevertheless, AbbVie said that it does still believe the drug has potential in small cell lung cancer and other cancers with the DLL3 protein. Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of pharmaceutical behemoth AbbVie Inc. ABBV dropped more than 11% in early morning trading Thursday after the company's Rova-T program reported disappointing mid-stage results, forcing the drugmaker to abandon plans to seek accelerated approval for the treatment. | Shares of pharmaceutical behemoth AbbVie Inc. ABBV dropped more than 11% in early morning trading Thursday after the company's Rova-T program reported disappointing mid-stage results, forcing the drugmaker to abandon plans to seek accelerated approval for the treatment. AbbVie was hopeful that its Rova-T, or rovalpituzumab tesirine, therapy would qualify for accelerated approval to treat third-line refractory small cell lung cancer, but the company has shifted its focus based on a phase 2 trial and the resulting "magnitude of effect across multiple parameters." Click to get this free report AbbVie Inc. (ABBV): Free Stock Analysis Report To read this article on Zacks.com click here. | Nevertheless, AbbVie said that it does still believe the drug has potential in small cell lung cancer and other cancers with the DLL3 protein. Shares of pharmaceutical behemoth AbbVie Inc. ABBV dropped more than 11% in early morning trading Thursday after the company's Rova-T program reported disappointing mid-stage results, forcing the drugmaker to abandon plans to seek accelerated approval for the treatment. AbbVie was hopeful that its Rova-T, or rovalpituzumab tesirine, therapy would qualify for accelerated approval to treat third-line refractory small cell lung cancer, but the company has shifted its focus based on a phase 2 trial and the resulting "magnitude of effect across multiple parameters." |
25595.0 | 2018-03-22 00:00:00 UTC | RSI Alert: AbbVie (ABBV) Now Oversold | ABBV | https://www.nasdaq.com/articles/rsi-alert-abbvie-abbv-now-oversold-2018-03-22 | nan | nan | Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $97.36 per share. By comparison, the current RSI reading of the S&P 500 ETF ( SPY ) is 43.8. A bullish investor could look at ABBV's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABBV shares:
Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $97.06.
According to the ETF Finder at ETF Channel, ABBV makes up 6.95% of the First Trust Nasdaq Pharmaceuticals ETF (Symbol: FTXH) which is trading lower by about 1.8% on the day Thursday.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $97.36 per share. A bullish investor could look at ABBV's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $97.06. | The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $97.06. In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $97.36 per share. A bullish investor could look at ABBV's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $97.36 per share. The chart below shows the one year performance of ABBV shares: Looking at the chart above, ABBV's low point in its 52 week range is $63.1153 per share, with $125.86 as the 52 week high point - that compares with a last trade of $97.06. A bullish investor could look at ABBV's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. | In trading on Thursday, shares of AbbVie Inc (Symbol: ABBV) entered into oversold territory, hitting an RSI reading of 26.5, after changing hands as low as $97.36 per share. According to the ETF Finder at ETF Channel, ABBV makes up 6.95% of the First Trust Nasdaq Pharmaceuticals ETF (Symbol: FTXH) which is trading lower by about 1.8% on the day Thursday. A bullish investor could look at ABBV's 26.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. |
25596.0 | 2018-03-22 00:00:00 UTC | AbbVie Inc Stock Dives on Lung Cancer Drug Results | ABBV | https://www.nasdaq.com/articles/abbvie-inc-stock-dives-lung-cancer-drug-results-2018-03-22 | nan | nan | InvestorPlace - Stock Market News, Stock Advice & Trading Tips
AbbVie Inc (NYSE: ABBV ) stock was falling hard today following results from a Phase 2 study of lung cancer drug Rovalpituzumab Tesirine (Rova-T).
Source: Black Stripe via Wikimedia (Modified)
Rova-T is a drug that is designed to target cancer-stem cell-associated delta-like protein 3. These cancer cells are found in 80% of patients with small cell lung cancer. The drug combines an antibody with a cytotoxic agent that targets the cancer cells while leaving the healthy cells mostly unharmed.
The recent Phase 2 study of Rova-T was for treating small cell lung cancer patients with relapsed or refactory disease after receiving at least two prior treatments. The primary goal was to determine how well the drug worked as a third-line and later treatment for these types of patients.
The bad news fro AABV stock includes an objective response rate of 16% for Rova-T in the Phase 2 study. The company also only saw a median survival time of 5.6 months for patients on the treatment. The probability of patients surviving cancer after 12 months came in at 17.5%.
The poor results from the Phase 2 study means that AbbVie Inc is changing its plans for Rova-T. The drug maker was previously planning to seek accelerated approval from the U.S. Food and Drug Administration for Rova-T. However, after consulting with the organization, it won't be moving forward with these plans.
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"Although the results from the study were not what we hoped for, we look forward to receiving data from the ongoing Phase 3 studies in the first- and second-line settings and remain committed to developing Rova-T for the treatment of patients with small cell lung cancer," Mike Severino, M.D., Executive Vice President of Research and Development and Chief Scientific Officer for AbbVie Inc, said in a statement .
ABBV stock was down 13% as of noon Thursday.
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The post AbbVie Inc Stock Dives on Lung Cancer Drug Results 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. | 7 High-Quality Dividends for 2018 and Beyond "Although the results from the study were not what we hoped for, we look forward to receiving data from the ongoing Phase 3 studies in the first- and second-line settings and remain committed to developing Rova-T for the treatment of patients with small cell lung cancer," Mike Severino, M.D., Executive Vice President of Research and Development and Chief Scientific Officer for AbbVie Inc, said in a statement . InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was falling hard today following results from a Phase 2 study of lung cancer drug Rovalpituzumab Tesirine (Rova-T). The poor results from the Phase 2 study means that AbbVie Inc is changing its plans for Rova-T. | 7 High-Quality Dividends for 2018 and Beyond "Although the results from the study were not what we hoped for, we look forward to receiving data from the ongoing Phase 3 studies in the first- and second-line settings and remain committed to developing Rova-T for the treatment of patients with small cell lung cancer," Mike Severino, M.D., Executive Vice President of Research and Development and Chief Scientific Officer for AbbVie Inc, said in a statement . InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was falling hard today following results from a Phase 2 study of lung cancer drug Rovalpituzumab Tesirine (Rova-T). The poor results from the Phase 2 study means that AbbVie Inc is changing its plans for Rova-T. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was falling hard today following results from a Phase 2 study of lung cancer drug Rovalpituzumab Tesirine (Rova-T). 7 High-Quality Dividends for 2018 and Beyond "Although the results from the study were not what we hoped for, we look forward to receiving data from the ongoing Phase 3 studies in the first- and second-line settings and remain committed to developing Rova-T for the treatment of patients with small cell lung cancer," Mike Severino, M.D., Executive Vice President of Research and Development and Chief Scientific Officer for AbbVie Inc, said in a statement . The poor results from the Phase 2 study means that AbbVie Inc is changing its plans for Rova-T. | InvestorPlace - Stock Market News, Stock Advice & Trading Tips AbbVie Inc (NYSE: ABBV ) stock was falling hard today following results from a Phase 2 study of lung cancer drug Rovalpituzumab Tesirine (Rova-T). The poor results from the Phase 2 study means that AbbVie Inc is changing its plans for Rova-T. 7 High-Quality Dividends for 2018 and Beyond "Although the results from the study were not what we hoped for, we look forward to receiving data from the ongoing Phase 3 studies in the first- and second-line settings and remain committed to developing Rova-T for the treatment of patients with small cell lung cancer," Mike Severino, M.D., Executive Vice President of Research and Development and Chief Scientific Officer for AbbVie Inc, said in a statement . |
25597.0 | 2018-03-22 00:00:00 UTC | S&P 500 Movers: ABBV, CMG | ABBV | https://www.nasdaq.com/articles/sp-500-movers-abbv-cmg-2018-03-22 | nan | nan | In early trading on Thursday, shares of Chipotle Mexican Grill topped the list of the day's best performing components of the S&P 500 index, trading up 2.8%. Year to date, Chipotle Mexican Grill registers a 18.9% gain.
And the worst performing S&P 500 component thus far on the day is AbbVie, trading down 10.6%. AbbVie is showing a gain of 3.9% looking at the year to date performance.
Two other components making moves today are Acuity Brands, trading down 7.2%, and PG&E, trading up 2.7% on the day.
VIDEO: S&P 500 Movers: ABBV, CMG
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. | And the worst performing S&P 500 component thus far on the day is AbbVie, trading down 10.6%. AbbVie is showing a gain of 3.9% looking at the year to date performance. VIDEO: S&P 500 Movers: ABBV, CMG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. | VIDEO: S&P 500 Movers: ABBV, CMG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is AbbVie, trading down 10.6%. AbbVie is showing a gain of 3.9% looking at the year to date performance. | VIDEO: S&P 500 Movers: ABBV, CMG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is AbbVie, trading down 10.6%. AbbVie is showing a gain of 3.9% looking at the year to date performance. | And the worst performing S&P 500 component thus far on the day is AbbVie, trading down 10.6%. VIDEO: S&P 500 Movers: ABBV, CMG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. AbbVie is showing a gain of 3.9% looking at the year to date performance. |
25598.0 | 2018-03-22 00:00:00 UTC | This Explains Why AbbVie Is Falling Today | ABBV | https://www.nasdaq.com/articles/explains-why-abbvie-falling-today-2018-03-22 | nan | nan | What happened
After the biotech giant's disappointing update on an important experimental cancer drug, shares of AbbVie (NYSE: ABBV) fell as much as 12% in early morning trading on Thursday. Shares were down 11% as of 10:35 a.m. EDT.
So what
The drug in question is called rovalpituzumab tesirine, which goes by the nickname Rova-T. AbbVie shared a little bit of data from a phase 2 trial today that was studying Rova-T as a third-line treatment for relapsed/refractory small-cell lung cancer.
While the press release was light on details , AbbVie did say that the data from the trial was not strong enough for the company to seek accelerated approval. This news is a major blow for investors because Rova-T is widely believed to hold blockbuster potential .
Here's the commentary that AbbVie's chief scientific officer Dr. Mike Severino offered investors:
Given the update, it isn't hard to figure out why shares are tumbling today.
Now what
AbbVie spent $5.8 billion to acquire Stemcentrx in 2016 mostly because it wanted to add Rova-T to its pipeline. If Rova-T winds up as a clinical failure, then money will have been wasted.
Rova-T is also viewed by investors as a key drug that will reduce the company's reliance on the megablockbuster drug Humira in the years ahead. Humira currently accounts for about two-thirds of AbbVie's total sales so it's critical for the company to develop other blockbuster drugs to better diversify its revenue stream.
Thankfully, Rova-T is still being studied in two phase 3 studies that are investigating the drug a first- and second-line treatment for lung cancer. What's more, the safety data from this phase 2 study was consistent with previous studies, which is good news.
AbbVie plans to share much more data with investors from this phase 2 study at the 2018 American Society of Clinical Oncology meeting in June. Bulls and bears alike will certainly want to listen in for clues as to what's next for this important compound.
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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. | What happened After the biotech giant's disappointing update on an important experimental cancer drug, shares of AbbVie (NYSE: ABBV) fell as much as 12% in early morning trading on Thursday. So what The drug in question is called rovalpituzumab tesirine, which goes by the nickname Rova-T. AbbVie shared a little bit of data from a phase 2 trial today that was studying Rova-T as a third-line treatment for relapsed/refractory small-cell lung cancer. Here's the commentary that AbbVie's chief scientific officer Dr. Mike Severino offered investors: Given the update, it isn't hard to figure out why shares are tumbling today. | So what The drug in question is called rovalpituzumab tesirine, which goes by the nickname Rova-T. AbbVie shared a little bit of data from a phase 2 trial today that was studying Rova-T as a third-line treatment for relapsed/refractory small-cell lung cancer. What happened After the biotech giant's disappointing update on an important experimental cancer drug, shares of AbbVie (NYSE: ABBV) fell as much as 12% in early morning trading on Thursday. While the press release was light on details , AbbVie did say that the data from the trial was not strong enough for the company to seek accelerated approval. | So what The drug in question is called rovalpituzumab tesirine, which goes by the nickname Rova-T. AbbVie shared a little bit of data from a phase 2 trial today that was studying Rova-T as a third-line treatment for relapsed/refractory small-cell lung cancer. AbbVie plans to share much more data with investors from this phase 2 study at the 2018 American Society of Clinical Oncology meeting in June. 10 stocks we like better than AbbVie When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. | So what The drug in question is called rovalpituzumab tesirine, which goes by the nickname Rova-T. AbbVie shared a little bit of data from a phase 2 trial today that was studying Rova-T as a third-line treatment for relapsed/refractory small-cell lung cancer. AbbVie plans to share much more data with investors from this phase 2 study at the 2018 American Society of Clinical Oncology meeting in June. What happened After the biotech giant's disappointing update on an important experimental cancer drug, shares of AbbVie (NYSE: ABBV) fell as much as 12% in early morning trading on Thursday. |
25599.0 | 2018-03-22 00:00:00 UTC | Is It Game Over for AbbVie's Promising Cancer Drug? | ABBV | https://www.nasdaq.com/articles/it-game-over-abbvies-promising-cancer-drug-2018-03-22 | nan | nan | AbbVie Inc. (NYSE: ABBV) is racing against time. Patents protecting its best-selling drug, Humira, expire in the EU later this year, and management is scrambling to develop new drugs that can make up for any lost sales when biosimilars launch in the U.S. in 2023. The company's plans to diversify its revenue away from Humira, however, were dealt a big blow on Thursday, when management reported discouraging phase 2 trials for one of its most anticipated drugs, Rova-T.
Does this data mark the end for Rova-T? And what does it mean for AbbVie's future ?
A big bet could be a big flop
There's a big need for new drugs that can successfully battle back against relapsing and recurring solid tumor cancers. Up until now, AbbVie believed that big need could allow it to file for an accelerated approval of Rova-T in small-cell lung cancer patients who've received at least two previous treatment regimens, including at least one platinum-based regimen. The company's confidence in Rova-T's potential was so high that it paid $5.8 billion to acquire the drug in 2016.
Unfortunately, management might have been too confident. After discussing Rova-T's midstage trial results with the Food and Drug Administration (FDA), AbbVie is abandoning plans to file for an early approval. In its trial, only 16% of third-line small-cell lung cancer patients expressing DLL3, a protein found on the surface of about 80% of cancer cells in small-cell lung cancer patients, responded to it.
That's far shy of what people were hoping for. Because Rova-T specifically delivers a toxic payload to DLL3-expressing cancer cells, it was thought it could generate an overall response rate closer to 40%. Since the trial was a single-arm study without a comparator, the 16% rate simply doesn't offer enough proof of its efficacy to win over the FDA.
The lackluster performance raises the stakes considerably for Rova-T's remaining studies, including phase 3 trials for first-line and second-line small-cell lung cancer. A combination study involving Rova-T's use alongside the checkpoint inhibitor Opdivo and trials evaluating its use in other solid tumor types should begin trickling out later this year and into 2019.
All's not lost
Yes, this is discouraging news -- no question. However, Rova-T still has a chance to make its way to market.
Small-cell lung cancer is plagued by poor outcomes and limited treatment choices, so the efficacy bar is set pretty low. For instance, the five-year survival rate for stage I cancer is only 31%. Rates drop off considerably to just 2% for stage IV cancer. That makes it conceivable that even middling response rates in placebo-controlled studies could allow it to win a go-ahead, especially since the drug's side effects appear manageable.
It's best to significantly ratchet back or eliminate any Rova-T revenue from models estimating future revenue, but it's also important to remember that this isn't the only important drug AbbVie's developing.
The company's leukemia drug, Venclexta, won approval in 2016, and trials that could expand its addressable market have industry watchers estimating its peak annual sales could be between $1.5 billion and $2 billion.
AbbVie's endometriosis drug, elagolix, is currently under review by the FDA, and recent trial data suggest that it may help patients with uterine fibroids, too. If elagolix secures a green light from the FDA, it could be a billion-dollar blockbuster , too.
Positive phase 3 results are also already in hand for two autoimmune disease drugs that could move the needle: upadacitinib, a JAK 1 inhibitor, and risankizumab, an anti-IL-23 antibody.
Upadacitinib has succeeded in three phase 3 rheumatoid arthritis studies, and that has management aiming to file for its approval by the end of this year. A blockbuster indication that affects 23.7 million people worldwide, a win in rheumatoid arthritis could put this drug on its way to peak sales of $6.5 billion if it also wins approvals for additional autoimmune disease indications.
Meanwhile, risankizumab has succeeded in four phase 3 psoriasis trials. In its most recently reported study, nearly half of patients achieved complete skin clearance, and 73% of patients achieved PASI 90, which represents a 90% improvement in a patient's baseline Psoriasis Area and Severity Index score. Management plans to file for risankizumab's approval by the end of the second quarter, and if it gets the green light for psoriasis and other indications, AbbVie thinks it can win be a $5-billion-per-year drug someday.
Risks remain, but there's opportunity, too
The Rova-T uncertainty makes AbbVie a riskier stock to buy today than it was last week. Management will unveil more comprehensive data from its Rova-T trial in June, and that data could offer more insight into whether or not it's game over for this drug. There's always the risk that the FDA will balk at approving elagolix, upadacitinib, and risankizumab. If those drugs get rejected, it would be an even bigger blow to the company's long-term plans.
Nevertheless, an argument can be made that a steep sell-off in AbbVie's shares following its Rova-T news is discounting a lot of these risks while also boosting AbbVie's attractiveness to income investors. A 12% slide in shares as of midday Thursday has increased its forward dividend yield to nearly 4%. Given AbbVie's still got a few years before Humira's competition emerges, it's got multiple shots on goal, and it's got plenty of cash flowing in from its current products, buying it on sale could be smart.
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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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Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies 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. | Given AbbVie's still got a few years before Humira's competition emerges, it's got multiple shots on goal, and it's got plenty of cash flowing in from its current products, buying it on sale could be smart. AbbVie Inc. (NYSE: ABBV) is racing against time. And what does it mean for AbbVie's future ? | AbbVie Inc. (NYSE: ABBV) is racing against time. And what does it mean for AbbVie's future ? Up until now, AbbVie believed that big need could allow it to file for an accelerated approval of Rova-T in small-cell lung cancer patients who've received at least two previous treatment regimens, including at least one platinum-based regimen. | After discussing Rova-T's midstage trial results with the Food and Drug Administration (FDA), AbbVie is abandoning plans to file for an early approval. AbbVie Inc. (NYSE: ABBV) is racing against time. And what does it mean for AbbVie's future ? | Management plans to file for risankizumab's approval by the end of the second quarter, and if it gets the green light for psoriasis and other indications, AbbVie thinks it can win be a $5-billion-per-year drug someday. AbbVie Inc. (NYSE: ABBV) is racing against time. And what does it mean for AbbVie's future ? |
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